SEVENTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES ) le
Third Regular Session ) .
nara Reo
SENATE 18 AUG -9 P3:41
S.No, 1930

—.

Introduced by Senator Paolo Benigno “Bam” A. Aquino IV

AN ORGANIC ACT
ESTABLISHING THE AUTONOMOUS REGION OF THE CORDILLERA

EXPLANATORY NOTE

Section 15, Article X of the 1987 Constitution provides for the creation of the
Cordillera Autonomous Region (CAR). The Cordillera people have been waiting for
three decades for their opportunity at self-governance.

The proposed Organic Act will recognize the regional identity of the Cordillera
People and enable its people to craft policies that are relevant to the unique culture,
history and resources of the Cordillera people. Establishing the Autonomous Region
of the Cordillera should be prioritized over any shift from presidential to federal form
of government.

The passing of this measure will fulfill the provision of the 1987 Constitution,
and would convey the government's trust in the people of the Cordillera Region.

Let's put our faith in the capability and resolve of Filipinos to build a better,
more prosperous Philippines for all. Let us finally grant regional autonomy to the

Cordillera people.

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

Bn Ay ns



SEVENTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
Third Regular Session )
br
SENATE
s.No.__1930

Introduced by Senator Paolo Benigno “Bam” A. Aquino IV

AN ORGANIC ACT
ESTABLISHING THE AUTONOMOUS REGION OF THE CORDILLERA

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

PREAMBLE

We, the Cordillerans, pursuant to Section 15, Article X of the 1987
Constitution, imploring the will of Divine Providence, exercising our fundamental and
Constitutional right to self-determination, faithful to the pursuit of our forebears for
the defense, protection, conservation and development of our patrimony and cultural
heritage, in order to secure for ourselves and our posterity a region of peace and
Prosperity founded on truth, freedom, justice, love and human solidarity through a
Regional Autonomous Government that shall ensure our human rights, our human
development, and our active participation as citizens in the affairs of a united
Philippine State, do proclaim this Organic Act of the Autonomous Region of the
Cordillera.



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ARTICLE I
NAME AND PURPOSE

Section 1. Name. — There is hereby established an autonomous region in the
Cordillera to be known as the “Autonomous Region of the Cordillera” (ARC).

Sec. 2. Purpose. — The purpose of this law is to establish a political entity,
provide for its basic structure of government in recognition of the justness and cause
of the Cordillerans and to secure their identity and posterity and allow for
meaningful governance.

ARTICLE II
TERRITORY OF THE AUTONOMOUS REGION OF THE CORDILLERA

Sec. 3. Area of the Autonomous Region of the Cordillera. — The area of the
Autonomous Region of the Cordillera shall consist of the city and provinces that shall
vote favorably in the plebiscite called for the ratification of this Organic Act pursuant
to Sec. 18, Article X of the Constitution. The area of the plebiscite shall be the
provinces of Abra, Apayao, Benguet, Ifugao, Kalinga, Mountain Province, and the
chartered City of Baguio.

Sec. 4. Cordilleran Identity. — The term Cordilleran shall apply to all citizens
of the Philippines, who are, and were domiciled within the territory of the
Autonomous Region of the Cordillera.

ARTICLE III
DECLARATION OF POLICIES AND PRINCIPLES

Sec. 5. Integral Part of the Republic. — The Autonomous Region of the
Cordillera shall remain an integral and inseparable part of the national territory of
the Republic as defined by the Constitution and existing laws. The autonomous
region shall be governed and administered in accordance with the laws enacted by

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the Regional Assembly and by this Organic act, national laws shall be suppletory in
application.

Sec. 6. Equitable Share in the National Budget and Development Assistance.
— The central government or national government shall provide the autonomous
region a proportionate and equitable share in the annual national budget and foreign
assisted projects in addition to other financial assistance, support and subsidies to
accelerate its development. Whenever the Commission on Audit finds that the
internal controls set up in the region are inadequate, it may require pre-audit and
shall likewise conduct seminars in the communities concerned explaining the benefits
and proper use of the internal revenue allotments.

Sec. 7. Self-Governance. — In the exercise of their right to genuine autonomy
and meaningful self-governance, Cordillerans are free to pursue their political, social
and cultural development within the framework of national sovereignty.

Sec. 8. Democratic Political System. — The Regional Government is a
democratic political system allowing the people to participate in the political process.

Sec. 9. Prior and Preferential Right. — Cordillerans shall have prior and
preferential right to the natural, material, and fiscal resources of the region

Sec. 10. Fundamental Rights and Duties of People. — The fundamental rights
and duties of the people in the autonomous region are those defined in the
Constitution and this Organic Act, the Geneva Convention, the United Nations
Charter, the United Nations Declaration on the Rights of Indigenous Peoples, the
International Declaration on Human Rights, as well as those prescribed in the laws,
Practices, and principles binding upon members of the community of nations, and
the Indigenous Peoples Rights Act (IPRA).



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Sec. 11. Rights to Initiatives, Consultations, Referenda and Plebiscites. —
Without prejudice to other rights guaranteed by the Constitution, the rights of the
people to the autonomous region to initiate measures for the passage, amendment
or repeal of regional or local legislation; to be consulted on matters that affect their
environment; to call for a referendum on important issues affecting their lives; and,
to recall regional or local officials as provided by Republic Act 7160, the Local
Government Code of 1991, are hereby recognized.

Sec. 12. Accountability of Public Officers. — The Regional Government, to
meet the priority needs and service requirements of its constituents shall adopt the
principles of integrity, transparency and accountability in order to ensure an
accountable, efficient and dynamic organizational structure.

Sec. 13. Upholding Human Rights. — The Regional Government shall take
measures to prevent torture, cruel, inhuman and degrading punishment, illegal
detention and extra-judicial killings.

Sec. 14. Establishment of Peace Zones. — The regional government adheres
to the policy of peace and shall establish peace zones within the region.

Sec. 15. Civilian Government. — Governance in the Autonomous Region is the
responsibility of the duly constituted civilian government.

Sec. 16. Devolution of Powers. — The regional government shall adopt a
Policy on local autonomy whereby regional powers shall be devolved to LGUs
particularly in areas but not limited to education, health, human resources, science
and technology, and people empowerment. Until a law implementing this provision is
enacted by the Regional Assembly, Republic Act No. 7160, the Local Government
Code of 1991, shall continue to apply to all provinces, cities, municipalities, and
barangay within the autonomous region.



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The regional assembly may not pass any law to diminish, lessen or reduce the
powers, functions, and shares in the internal revenue taxes of the said local
government units as provided by Republic Act No. 7160.

Sec. 17. Sustainable Use and Management of Resources. — The Regional
Government shall share with the national government in the exploration,
development and utilization of its natural resources, the dynamic conservation and
protection of natural resources by promoting the sustainable use and management
thereof, by adopting the use of environmentally sound and appropriate technology
and indigenous knowledge systems in the management of natural resources.

Sec. 18. Community Responsive Education. — The Regional Government with
the active involvement of State Colleges and Universities shall establish a system of
education that responds to the needs of the Cordillera communities which respects
and promotes indigenous knowledge, core values, systems, institutions, culture and
Practice; encourages the use of indigenous languages and methods of education;
Promotes science and appropriate technology and methodologies that encourage
creative and critical thinking of the Cordilleran youth.

Sec. 19. Protection and Empowerment of the Cordilleran Youth and Children.
— The Regional Government shall formulate plans and programs for the youth that
empowers them by guaranteeing their effective participation and representation in
all aspects of public affairs. Further, laws shall be enacted and measures adopted to
Protect children against all forms of neglect, cruelty, and exploitation which are
harmful to their moral, physical, or mental health.

Sec. 20. Regional Arrangements. — The Autonomous Region of the Cordillera
shall pursue a policy of interregional development planning, coordination and mutual
cooperation in order to sustain the use, development as well as the protection and
conservation of its resources which benefits other regions.



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Sec. 21. Equal Access and Non-discrimination. — The Regional Government
shall ensure equal access by Cordillerans to resources, employment opportunities
and services regardless of ethnic origin, gender, language, political conviction,
economic, social status and/ or religious belief.

Sec. 22. Social Justice. — The Regional Government shall minimize disparities
between the rich and the poor, rural and urban areas within the region by providing,
maintaining and ensuring the equitable delivery of basic and responsive health
Programs, quality education, appropriate services, livelihood opportunities,
affordable and progressive housing projects and water resource development.

Sec. 23. Safeguards on Foreign Investments. — The Regional Government
shall provide incentives to investors, corporations and other businesses, but shall
adopt measures to prevent the abuse of human rights and exploration of natural
resources. To this end, the regional government shall adopt local and international
safeguards to review and audit the impact of all forms of foreign aid, loans special
Projects and the like.

ARTICLE IV
THE AUTONOMOUS REGION OF THE CORDILLERA

A. Powers of the Autonomous Region of the Cordillera

Sec. 24. Powers and Functions. — The regional government shall exercise
Powers and functions necessary for the proper governance and development of all
Provinces, cities, municipalities, and barangays within the autonomous region
consistent with the declared constitutional policy on regional and local autonomy and
decentralization: Provided, that nothing in this Act shall be construed as to authorize
the diminution of the powers and functions already enjoyed by local government
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Sec. 25. Devolved Powers. — The autonomous region is a corporate entity
with jurisdiction in all matters devolved to it by the Constitution and this Organic Act
as herein enumerated:

(1) Administrative organization such as but not limited to:

a. Declaration of holidays,

b. Public administration and bureaucracy for the region, and

c. Identification, generation, and mobilization of international
human resources for capacity-building and other activities
involving the same within the region.

(2) Creation of sources of revenues such as but not limited to:

a. Authority to regulate power generation, transmission and
distribution operating exclusively in the autonomous region and
not connected to the national transmission grid, and

b. Imposition of taxes to which are not already taxed by the
national and local government.

(3) Ancestral domain and natural resources such as but not limited to:

a. Protection, delineation and titling of the ancestral domain and
ancestral lands of indigenous cultural communities (ICCs). All
lands and natural resources in the autonomous region that have
been possessed or occupied by ICCs since time immemorial,
except when prevented by war, force majeure, or other forms of
forcible usurpation, shall form part of the ancestral domain.
Such ancestral domain shall include pasture lands, worship

areas, burial grounds, forests and fields, mineral resources,
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except strategic minerals such as uranium, coal, petroleum; and
other fossil fuels, mineral oils, and all sources of potential
energy; lakes, rivers, and lagoons; and national reserves and
marine parks, as well as forest and watershed reservations.

. The Regional Governor to grant leases, permits, and licenses

over agricultural, forest, or mineral lands. The said leases,
permits, franchises, or concessions shall, however, cover areas
not exceeding the limits allowed by the Constitution and shall
‘subsist for a period not exceeding 25 years. Except as provided
in this Organic Act, existing leases, permits, licenses, franchises,
and concessions shall be respected until their expiration unless
legally terminated earlier as provided by law, enacted by
Congress or the Regional Assembly.

. Declaration and disestablishment of nature reserves and aquatic

parks, forests, and watershed reservations, and other protected
areas in the autonomous region.

|. Authority, power, and right to the control and supervision over

the exploration, utilization, development, and protection of the
lands, forests, water, minerals and other natural resources
within the autonomous region in accordance with the
Constitution and the pertinent provisions of this Organic Act
except for the strategic minerals such as uranium, petroleum,
and other fossil fuels, mineral oil, and all sources of potential
energy, provided that the autonomous government shall be
consulted. Permits and licenses and the granting of contracts for
this purpose shall be within the powers of the ARC.

Regulation of small-scale mining to the end that the ecological

balance, safety and health, and the interests of the affected
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communities, the miners, the indigenous peoples, and the local
government units of the place where such operations are
conducted are duly protected and safeguarded.

(4) Personal, family and property relations shall be governed by existing
laws including customary justice and laws which are not contrary to
morals, good customs and public policy;

(5) Regional urban and rural planning development such as but not limited
to:

a. Adoption and implementation of a comprehensive urban land
reform and land use program,

b. Land management, land distribution, and agricultural land
use reclassification, and

c. Authority to conduct cadastral survey.

(6) Economic, social and tourism development such as but not limited to:

a. Establishment of transportation and communication facilities
to expedite the economic development of the autonomous
region,

b. Promotion of tourism with the autonomous region, and

c. Regulation of games and amusement operations within the
ARC.

(7) Educational policies such as but not limited to education and skills
training, research councils and scholarships.
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(8) Preservation and development of the cultural heritage such as but not
limited to the establishment of its own libraries and museums, and
declaration of historical and cultural sites; and culture and language.

(9) Patents, trademark, trade names, and copyrights; and such other
matters for the promotion of the general welfare of the people of the

region.

Sec. 26. The Regional Government may exercise the power of eminent
domain.

B. Intergovernmental Relations

Sec. 27. General Supervision. — Consistent with the principle of autonomy,
the President shall exercise general supervision over the Regional Government to
ensure that laws are faithfully executed.

Sec. 28. Powers of regional line agencies whose functions are covered by Sec.
25. — The Regional Line Agencies whose functions are covered by Sec. 25 shall
continue to exist without diminution of their mandated authority and perform their
functions.

Sec. 29. Powers of regional line agencies whose functions are devolved under
Sec. 25:

a. Regional Line Agencies and offices shall perform those functions
devolved by the Constitution to autonomous regions as enumerated in
Section 25 of this Organic Act;

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b. Regional line agency officials and employees shall continue to be paid
in accordance with Sec. 33. There shall be no diminution of their
compensation and other benefits due its officials and employees.

Existing assets and properties of the regional line agencies and offices shall
remain under their custody and accountability.

Sec. 30. Tenure of Civil Service Employees. — Except for just cause and after
due process, Civil Service officials and employees of the regional line agencies and
Offices in the region shall not be laid off, dismissed or removed as a result of any
reorganization attendant to the establishment of the Autonomous Region of the
Cordillera.

Sec. 31. Priority in Hiring. — Civil service officials and employees of the
regional autonomous government and the regional line agencies in the autonomous
region shall be hired in accordance with appropriate Civil Service rules and
regulations, but priority shall be accorded to qualified Cordillerans.

Sec. 32. Appointment to Third Level Positions. — The Regional Governor shall
fill up third level positions from among at least three (3) recommendees of the
regional Personnel Selection Board (PSB) that shall be duly constituted. Filling up of
third level positions of regional line agencies and offices shall be subject to the
Career Executive Service Board (CESB) requirements, where applicable. Otherwise,
the selection requirements of the concerned agency shall apply.

Sec. 33. Budget Preparation. — Regional line agencies and offices whose
functions are devolved to the regional government under Sec. 25 shall prepare their
respective budgets focused on the priorities and developmental goals of the region,
separate and distinct from the budget of the Regional Government. Their budgets
shall however be attached and form part of the whole budget of the Regional

Government when presented to Congress to ensure that plans and priorities of the
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autonomous region are harmonized and properly considered in the budgeting
processes. Provided however, after the full implementation of Sec. 167, the budget
of the absorbed RLAs and offices shall continue to be funded by the national
government.

Sec. 34. Management of ODA Funds. — The autonomous region may, upon
authority of the Regional Assembly, avail of Official Development Assistance (ODA)-
funded projects and other foreign financial grants or donations and shall undertake
these projects through the regional line agencies, government-owned and controlled
corporations (GOCCs), state colleges and universities, local government units or
whichever is deemed appropriate.

Sec. 35. GOCCs. — Government Owned and Controlled Corporations (GOCCs)
such as Government Service Insurance System (GSIS), the Social Security System
(SSS), the Pagtutulungan-Ikaw, Bangko Industriya't Gobyerno (PAG-IBIG),
PhilHealth and others shall continue to be governed by their respective charters and
other pertinent laws.

Sec. 36. Autonomy of Local Government Units. — The local government units
shall continue to be independent from each other and shall have the same set of
local officials and employees and shall enjoy autonomy and continue to exercise the
Powers granted them under the Local Government Code and other existing laws.
The Local Government Code shall apply to all provinces, cities, municipalities and
barangays in the autonomous region until the Regional Assembly shall enact a
regional Local Government Code. Nothing herein provided shall be construed in any
manner as to diminish the powers and functions as well as benefits and privileges
already being enjoyed by the local government units.

Sec. 37. Supervision of Devolved Line Agencies and Local Government Units
through the Regional Governor. — Consistent with the basic policy on local
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supervision over provinces and highly urbanized cities in the autonomous region to
ensure that their acts are within the scope of their prescribed powers and functions.

Sec. 38. Revenues and Taxes Accruing to LGUs. — Revenues, taxes, fees and
charges generated by the local government units and the regional government from
their respective local tax ordinances shall exclusively accrue to them.

Sec. 39. Just Share in National Taxes. — The local government units in the
autonomous region, including the Regional Government, shall have a just share in
the national taxes and applicable revenues which shall be automatically released to
them.

Sec. 40. Equitable Share in Utilization of Resources. — The local government
units in the autonomous region including the Regional Government shall be entitled
to an equitable share in the proceeds of the utilization and development of the
national wealth within their respective areas, in the manner provided by law and this
Organic Act.

Sec. 41. City Charters. — Any chartered city within the autonomous region
shall be governed primarily by its Charter.

Sec. 42. Creation of Special Political Subdivisions. — Special metropolitan
Political subdivisions may, by law, be created by the Regional Assembly, subject to a
plebiscite. The component cities and municipalities shall retain their basic autonomy
and shall be entitled to their own local executive and legislative bodies. The
jurisdiction of the metropolitan authority that will thereby be created shall be limited
to basic services requiring coordination.

Sec. 43. Right of LGUs to Aggregate. — The local government units in the
autonomous region may group themselves, consolidate or coordinate their efforts,

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services, and resources for purposes commonly beneficial to them in accordance

with law.

ARTICLE V

ELECTIVE OFFICIALS OF THE AUTONOMOUS REGIONAL GOVERNMENT — THEIR
QUALIFICATIONS, TERMS OF OFFICE, VACANCIES AND SUCCESSION AND

ACCOUNTABILITY

Sec. 44. Elective Officials. — The elective officials of the Autonomous Region
of the Cordillera are the (a) Regional Governor, (b) Regional Vice-Governor, and (c)
Members of the Regional Assembly.

Sec. 45. Qualifications:

a. Candidates for Regional Governor and Vice-Governor positions must
be a citizen of the Philippines and a Cordilleran, at least thirty-five
(35) years of age on election day, a registered voter in the region
and a resident thereof for a period of at least five (5) years
immediately preceding the day of election, able to read and write
Filipino or English or any 2 other local languages in the region.

b. Candidates for the position of Member of the Regional Assembly
must be a citizen of the Philippines and a Cordilleran, at least thirty
(30) years of age on election day, a registered voter in the
provincial district or city and a resident thereof for a period of at
least five (5) years immediately preceding the day of election, able
to read and write Filipino or English or any other local language in
the region.

Sec. 46. Disqualifications. — In addition to the disqualifications provided
under Book I, Title Two, Chapter 1, Section 40 of the Local Government Code,

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candidates for Regional Governor, Vice-Governor and members of the Regional
Assembly must not be related to the incumbent elected regional officials within the
4" degree of consanguinity or affinity.

Sec. 47. Manner of Election:

a. The Regional Governor and Vice-Governor shall be elected at large
by direct vote of the registered voters of the Autonomous Region of
the Cordillera.

b. Each province and city shall elect their own representatives to the
Regional Assembly. Any chartered city in the autonomous region is
entitled to two (2) representatives to the Regional Assembly. Any
component city shall be entitled to one (1) representative. Each
province shall be entitled to two (2) representatives, one (1) per
provincial district. Provided, that any political subdivision created
after the effectivity of this Organic Act shall be entitled to
representation to the Regional Assembly as may be provided by
law.

c. Unless otherwise provided, the regular election of the Regional
Governor, Vice Governor, and members of the Regional Assembly
shall be held on the second Monday of May.

Sec. 48. Term of Office:

a. The term of office of all elective regional officials elected after the
effectivity of this Organic Act shall be three (3) years which shall
begin at noon on the 30" day of June next following the day of
election and shall end at noon of the same date three (3) years
thereafter. No Regional Governor, Vice-Governor, or Member of the



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Regional Assembly shall serve for more than three (3) consecutive
terms.

b. Voluntary renunciation of, or removal from, office for any length of
time shall not be considered as an interruption in the continuity of
the service for the full term for which officials were elected.

Sec. 49. Oath of Office. — The Regional Governor, Vice-Governor and
Members of the Regional Assembly on assuming office shall take the following oath
or affirmation:

"I do solemnly swear (or affirm) that I will faithfully and conscientiously fulfill
my duties as Governor/Vice-Governor/Member of the Regional Assembly of
the Autonomous Region of the Cordillera, preserve and defend the
Constitution of the Republic of the Philippines and the Organic Act of the
Autonomous Region of the Cordillera, execute these laws, do justice to all and
consecrate myself to the service of the nation and the Autonomous Region of
the Cordillera. So help me God.” (In case of affirmation, the last sentence will
be omitted.)

Sec. 50. Prohibitions:

a. The Regional Governor and Vice-Governor shall not, during their
tenure, engage in the practice of any profession or hold any other
office or employment, except as otherwise provided in this Act.

b. The spouse and other relatives by consanguinity or affinity within
the fourth civil degree of the Regional Governor and the Regional
Vice-Governor shall not, during their tenure, be appointed officers
or employees of the Regional Government, except as members of
their confidential staff.

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c. No members of the Regional Assembly may hold any other office or
employment in the government or any subdivision, agency or
instrumentality thereof, including government-owned or controlled
corporations, or their subsidiaries, during their term without
forfeiting their seat. Neither shall he/she be appointed to any office
which has been created or the emoluments whereof increased by
the Regional Assembly during the term for which he/she was
elected.

d. The Regional Governor, and Regional Vice-Governor, and members
of the Regional Assembly shall not personally appear as counsel
before any court of justice or before the Electoral Commission or
quasi-judicial and other administrative bodies.

e. The Regional Governor, Regional Vice-Governor, and members of
the Regional Assembly shall not participate directly or indirectly in
any contract with or in any franchise or special privilege granted by
the Regional Government or any subdivision, agency or
instrumentality thereof, including any government-owned or-
controlled corporations or in any of their subsidiaries. They shall not
intervene in any matter before any office of the Autonomous
Region of the Cordillera for their pecuniary benefit or where they
may be called upon to act on account of their office.

Sec. 51. Vacancies and Succession:

a. In the event that the position of the Regional Governor becomes
Permanently vacant, the Regional Vice-Governor shall automatically
become the Regional Governor.

b. If the position of the Regional Vice-Governor becomes permanently

vacant, the member of the assembly garnering the highest
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percentage of votes in the district represented shall become the
vice-governor or in case of his/her permanent disability, the next
higher shall assume said position.

c. In case of a permanent vacancy in the assembly where automatic
‘succession does not apply, the Regional Governor shall appoint to
the position so vacated the nominee of the political party to which
the member who caused the vacancy belonged at the time of his
election. Provided, however, that the appointee has all the
qualifications and none of the disqualifications as provided by this
Organic Act. Provided, that should the one causing the vacancy did
not belong to any political party shall be filled by nomination by
majority members of the assembly. Provided further, that in both
cases, he/she comes from the same district represented by the
member who caused the vacancy.

d. For purposes of this article, a permanent vacancy arises when the
incumbent elective official concerned dies, voluntarily resigns, is
removed from office, fills up a higher vacant office, refuses to
assume office, fails to qualify, or is otherwise permanently
incapacitated to exercise the powers and discharge the functions of
his office.

Sec. 52. Temporary Vacancies:

a. When the Regional Governor is temporarily incapacitated to
perform his duties for physical or legal reasons such as, but not
limited to, leave of absence, travel abroad, and suspension from
Office, the regional vice governor shall automatically exercise the
Powers and perform the duties and functions of the former except
the power to appoint, suspend or dismiss employees which can only

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be exercised if the period of temporary incapacity exceeds thirty
(30) working days.

. Said temporary incapacity shall terminate upon submission to the

Regional Assembly of a written declaration by the Regional
Governor that he has reported back to office. In cases where the
temporary incapacity is due to legal causes, the regional official
concerned shall also submit necessary documents showing that said
legal causes no longer exist.

. When the incumbent Regional Governor is traveling within the

country but outside his territorial jurisdiction for a period not
exceeding three (3) consecutive days, he may designate in writing,
the officer-in-charge of the said office. Such authorization shall
specify the powers and functions that the regional official
concerned shall exercise except the power to appoint, suspend or
dismiss employees.

|. In the event, however, that the Regional Governor concerned fails

or refuses to issue such authorization, the Regional Vice-Governor
shall have the right to assume the powers, duties and functions of
the said office on the fourth (4"") day of absence of the Regional
Governor, subject to the limitations provided in subsection c,
hereof.

. Except as provided above, the Regional Governor shall in no case

authorize any regional official to assume the powers, duties and
functions of the office, other than the Regional Vice-Governor or
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Sec. 53. Approval of Leaves of Absence. — Leaves of absence of elective
officials of the Autonomous Region of the Cordillera shall be approved as follows:

‘a. Leaves of absence of regional officials, provincial governor, mayor
of a highly urbanized city or an independent component city shall
be approved by the Regional Governor or his duly authorized
representative;

b. Applications for leaves of absence of other officials and employees
other than those enumerated above shall follow those stipulated in
the Local Government Code;

c. Application for leave of the Regional Governor shall be approved by
the President.

Sec. 54. Compensation:

a. Unless otherwise provided by law or regional ordinance, the
Regional Governor and Regional Vice-Governor shall receive an
annual salary equivalent to that of a department secretary and
undersecretary, respectively, of the national government, which
shall not be decreased during their tenure. No increase in the salary
of the Regional Governor and Regional Vice-Governor shall take
effect until after the expiration of the term of the Regional
Governor and Regional Vice-Governor approving the same.

b. Unless otherwise provided by a regional ordinance, a member of
the Regional Assembly shall receive an annual salary not lower than
that of an assistant secretary of the national government. No
increase in salary provided for by ordinance shall take effect until
after the expiration of the term of office of all members of the
Regional Assembly approving the same.

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c. They shall not receive during their tenure any other emoluments
from the government or any other sources.

Sec. 55. Accountability:

a. Disclosure. All regional officials shall, upon their assumption of
office, make a full disclosure of their financial and business
interests, including those of their spouses and unmarried children
under eighteen (18) years of age living in their households.
Members of the Regional Assembly shall notify the Regional
Assembly of any potential conflict of interest that may arise from
the filing of measures of which they are authors. This section shall
be governed by R.A. 6713 or the Code of conduct and ethical
standards for public officials and employees.

b. Discipline of Regional Elective Officials shall be governed by Chapter
4, Title Two of Book I of R.A 7160 and other applicable laws.

c. Recall, Regional Elective Officials may be recalled on grounds and
procedures as provided for by Chapter 5, Title Two of Book I of
R.A. 7160 and other applicable laws.

ARTICLE VI
THE REGIONAL EXECUTIVE DEPARTMENT

Sec. 56. Executive Authority. — The executive power in the region shall be

vested in a Regional Governor. He shall exercise such powers and perform such
duties and functions as provided by this Organic Act and other laws.

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Sec. 57. Scope of Executive Authority. — As chief executive of the Regional
Government, the Regional Governor shall exercise contro! and supervision over all
Programs, projects, services and activities of the Regional Government and regional
line agencies and offices absorbed by the regional government; and supervision over
local government units within the autonomous region.

Sec. 58. Extent of Representation by Regional Governor. — The Regional
Governor shall represent the Autonomous Region of the Cordillera, including the
absorbed regional line agencies and offices and the local government units within
the autonomous region in Cabinet meetings called by the President and other affairs
involving the region.

Sec. 59. Regional Governor and Regional Assembly. — The Regional Governor
shall deliver the State of the Region Address to the Regional Assembly at the
opening of its regular sessions. He/she may also appear before it at any time.

Sec. 60. Regional Governor to Submit Budget. — The Regional Governor shall
submit to the Regional Assembly within thirty (30) days from the opening of every
regular session, as the basis of the regional appropriations bill, budget of
expenditures and sources of financing, including receipts from existing and proposed
revenue measures.

Sec. 61. Administrative Support. — The Regional Governor and the different
regional departments shall have sufficient administrative and support staff to
efficiently and effectively carry out their mandates and the purposes of the regional
government.

Sec. 62. Mandatory Staff. —The regional autonomous government shall have
the following mandatory staff: (1) Regional Executive Secretary, (2) Regional
Accountant, (3) Regional Budget Officer, (4) Regional Administrator, (5) Regional

Legal Officer, (6) Regional Treasurer, and (7) Regional General Services Officer. In
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addition thereto, the Regional Governor may, subject to the approval of the Regional
Assembly and availability of funds, create other offices deemed necessary.

The Regional Executive Secretary and the heads of the various regional
offices and employees under the executive department shall be appointed by the
Regional Governor. With the exception of the former, the appointment of the heads
of regional offices requires the concurrence of the majority of the members of the
Regional Assembly and compliance to civil service law, rules and regulations and this
Organic Act. The Regional Assembly shall act on said appointment within fifteen (15)
days from the date of submission otherwise the same shall be deemed confirmed.

The rank and salary grade level of the heads of the different regional
departments shall be equivalent to the regional directors of regional line agencies.
They shall receive compensation, allowances and other emoluments and benefits
allowed by law or ordinance. With the exception of the Regional Executive Secretary,
the heads of the regional departments shall be mandatory.

The qualifications of regional appointive officials, their duties and functions,
are as follows:

1) Regional Executive Secretary

(a) The Regional Executive Secretary of the Autonomous Region of the
Cordillera shall be a citizen of the Philippines and a Cordilleran, of
good moral character, a holder of a college degree preferably in
law, administration or any other related course from a recognized
college or university. He/she must have acquired experience in
management work for at least five (5) years.

(b) The term of office of the Regional Executive Secretary shall be co-
terminus with that of the appointing authority.



(c) The Regional Executive Secretary shall, subject to the control and
supervision of the Regional Governor, carry out the functions and
duties delegated to him/her and shall:

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. Directly assist the Regional Governor in the management of

the affairs pertaining to the Autonomous Region of the
Cordillera.

. Implement directives, orders and decisions.

. Decide, for and in behalf of the Regional Governor, matters

not requiring personal attention of the Regional Governor.

. Exercise supervision and control over the various units in the

Office of the Regional Governor including their internal
administrative requirements.

. Exercise supervision, in behalf of the Regional Governor,

over the various agencies under the Office of the Regional
Governor.

. Provide overall coordination in the operation of the Regional

Executive Office.

. Determine and assign matters to the appropriate units in the

Office of the Regional Governor.

. Have administrative responsibility for matters in the Office of

the Regional Governor coming from the various regional
offices and agencies of government.

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9. Exercise primary authority to sign papers "By authority of the
Regional Governor", attest executive orders and other
issuances unless attestation is specifically delegated to other
Officials by him or by the Regional Governor.

10.Determine, with the approval of the Regional Governor, the
appropriate assignment of offices not placed by law under
any specific regional executive department.

11.Provide consultative, research, fact-finding and advisory
service to the Regional Governor.

12. Assist the Regional Governor in the performance of functions
pertaining to legislation.

13.Assist the Regional Governor in the administration of special
projects.

14. Take charge of matters pertaining to protocol in the Regional
Government and ceremonial functions.

15.Provide secretarial and clerical services for the Regional
Governor and other bodies.

16.Promulgate such rules and regulations necessary to carry out
the objectives, policies and functions of the Office of the

Regional Governor.

17.Perform such other functions as the Regional Governor may
direct.

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2) Regional Accountant

(a) The Regional Accountant shall be a citizen of the Philippines and a
Cordilleran, of good moral character, and a certified public
accountant. He/she must have acquired experience in the treasury
or accounting service for at least five (5) years.

(b) The incumbent chief accountant in the office of the treasurer shall
be given preference in the appointment to the position of the
regional accountant.

(c) The regional accountant shall take charge of both the accounting
and internal audit services of the autonomous region and shall:

1, Install and maintain an internal audit system in the
autonomous region.

2. Prepare and submit financial statements to the Regional
Governor and to the Regional Assembly.

3. Apprise the Regional Assembly and other government
Officials on the financial condition and operations of the

autonomous region.

4. Certify to the availability of budgetary allotment to which
expenditures and obligations may be properly charged.

5. Review supporting documents before preparation of
vouchers to determine completeness of requirements.

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6. Prepare statements of cash advances, liquidation, salaries,
allowances, reimbursements and remittances pertaining to
the autonomous region.

7. Prepare statements of journal vouchers and liquidation of the
same and other adjustments related thereto.

8. Post individual disbursements to the subsidiary ledger and
index cards.

9. Maintain individual ledgers for officials and employees of the
autonomous region pertaining to payrolls and deductions.

10.Record and post in index cards details of purchased
furniture, fixtures, and equipment, including disposal thereof,
if any.

11.Account for all issued requests for obligations and maintain
and keep all records and reports related thereto.

12.Prepare journals and the analysis of obligations and maintain
and keep all records and reports related thereto.

13. Exercise such other powers and perform such other duties
and functions as may be provided by law or ordinance.

3) Regional Budget Officer

(a) The Regional Budget Officer shall be a citizen of the Philippines and
a Cordilleran, of good moral character, a holder of a college degree
preferably in accounting, economics, public administration or any

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related course from a recognized college or university, and a first
grade civil service eligible or its equivalent.

(b) He/she must have acquired experience in government budgeting
for at least five (5) years.

(c) The budget officer shall take charge of the budget office and shall:

. Prepare forms, orders, and circulars embodying instructions

on budgetary and appropriation matters for the signature of
the Regional Governor;

. Review and consolidate the budget proposals of different

departments and offices of the Regional Government;

. Assist the Regional Governor in the preparation of the

budget and during budget hearings;

. Study and evaluate budgetary implications of proposed

legislation and submit comments and recommendations
thereon;

. Submit periodic budgetary reports to the Department of

Budget and Management;

Coordinate with the treasurer, accountant, and the planning
officer for the purpose of budgeting;

. Assist the Regional Assembly in reviewing the approved

budgets of the provincial and highly urbanized cities;

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8. Coordinate with the regional planning officer in the
formulation of the regional development plan; and

9. Exercise such other powers and perform such other duties
and functions as may be prescribed by law or ordinance.

4) Regional Administrator

(a) The Regional Administrator shall be a citizen of the Philippines and
a Cordilleran, of good moral character, and a holder of a college
degree preferably in law, public administration or any other related
course from a recognized college or university. He/she must have
acquired experience in management and administration work for at
least five (5) years.

(b) The term of office of the Regional Administrator shall be coterminus
with that of the appointing authority.

(c) Subject to the control and supervision of the Regional Governor,
the Regional Administrator shall:

1. Develop plans and strategies and upon approval thereof
by the Regional Governor, implement the same
particularly those which have to do with the management
and administration-related programs and projects which
the Regional Governor is empowered to implement and
which the Regional Assembly is empowered to provide for
under this Organic Act.

2. Assist in the coordination of the work of all the officials of
the autonomous region, under the supervision, direction,
and control of the Regional Governor, and for this

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Purpose, he may convene the chiefs of offices and other
Officials of the autonomous region.

. Establish and maintain a sound personnel program for

the autonomous region designed to promote career
development and uphold the merit principle in the local

government service.

. Conduct a continuing organizational development of the

autonomous region with the end in view of instituting
effective administrative reforms.

. Be in the frontline of the delivery of administrative

support services, particularly those related to the
situations during and in the aftermath of man-made and
natural disasters and calamities.

. Recommend to the Regional Assembly and advise the

Regional Governor, as the case may be, on all other
matters relative to the management and administration
of the regional autonomous government.

. Exercise such other powers and perform such other

duties and functions as may be 15 prescribed by law or
by ordinance.

5) Regional Legal Officer

(a) The Regional Legal Officer shall be a citizen of the Philippines and a
Cordilleran, of good moral character, and a member of the
Philippine Bar. He must have practiced his profession or at least five



(b) The term of office of the Regional Legal Officer shall be coterminus
with that of the appointing authority.

(c) The Regional Legal Officer, the chief legal counsel of the regional
autonomous government, shall take charge of the office of legal
services and shall:

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1, Formulate measures for the consideration of the Regional
Assembly and provide legal assistance and support to the
Regional Governor, as the case may be, in carrying out the
delivery of basic services and provisions of adequate facilities
necessary.

2. Develop plans and strategies and upon approval thereof by
the Regional Governor, as the case may be, implement the
same, particularly those which have to do with programs and
projects related to legal services which the Regional
Governor is empowered to implement and which the
Regional Assembly is empowered to provide for under this
Organic Act.

3. Recommend measures and advise the Regional Governor on
all other matters related to upholding the rule of law.

4. Be in the frontline of protecting human rights and

Prosecuting any violations thereof, particularly those which
occur during and in the aftermath of man-made or natural
disasters or calamities.

5. Exercise such other powers and perform such other duties

and functions as may be prescribed by law or ordinance.
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6. In addition to the foregoing duties and functions, the legal
officer shall:

iii.

Represent the regional autonomous government in all
civil actions and special proceedings wherein the
autonomous region or any official thereof, in his
Official capacity, is a party.

When required by the Regional Governor, draft
ordinances, contracts, bonds, leases and other
instruments, involving any interest of the autonomous
region and provide comments and recommendations
‘on any instrument already drawn.

Render his/her opinion in writing on any question of
law when requested to do so by the Regional
Governor.

Investigate or cause to be investigated any Regional
Government official or employee for administrative
neglect or misconduct in office, and recommend
appropriate action to the Regional Governor as the
case may be.

Investigate or cause to be investigated any person,
firm or corporation holding any franchise or exercising
any public privilege for failure to comply with any
term or condition in the grant of such franchise or
privilege by the Regional Government, and

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recommending appropriate action to the Regional
Governor, as the case may be.

vi. When directed by the Regional Governor, initiate and
prosecute in the interest of the autonomous region
any civil action on any bond, lease or other contract
upon any breach or violation thereof.

vii. Review and submit recommendations on ordinances
approved and execute orders issued.

6) Regional Treasurer

(a) The Regional Treasurer shall be a citizen of the Philippines and a
Cordilleran, of good moral character, and a holder of a college degree
Preferably in commerce, public administration or law from a recognized
college or university. He/she must have acquired experience in
treasury or accounting service for at least five (5) years.

(b) The Regional Treasurer shall take charge of the Treasury Office,
perform the duties provided for under Book II of the Local Government
Code, and shall:

1. Advise the Regional Governor and other Regional
Government officials concerned regarding the disposition of
government funds, and on such other matters relative to
public finance.

2. Take custody of and exercise proper management of the
funds of the autonomous region.



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3. Take charge of the disbursement of all Regional Government
funds and such other funds the custody of which may be
entrusted to him/her by law or other competent authority.

4. Maintain and update the tax information system of the
autonomous region.

5. Exercise such other powers and perform such other duties
and functions as may be prescribed by law or ordinance.

7) Regional General Services Officer

(a) The Regional General Services Officer shall be a citizen of the
Philippines and a Cordilleran, of good moral character, and a holder of
a college degree preferably on public administration, business
administration and management or any other related course from a
recognized college or university. He/she must have acquired
experience in general services, including management of supply,
property, solid waste disposal, and general sanitation, for at least five
(5) years.

(b) The Regional General Services Officer shall take charge of the Office on
General Services and shall:

1. Formulate measures for the consideration of the Regional
Governor and provide him technical assistance and support
in carrying out measures to ensure the delivery of basic
services and provision of adequate facilities pursuant to the
Local Government Code and this Organic Act which require
general services expertise and technical support services.

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2. Develop plans and strategies and upon approval thereof by
the Regional Governor implement the same, particularly
those which have to do with the general services supportive
of the welfare of the inhabitants which the Regional
Governor is empowered to implement.

3. Be in the frontline of general services related activities, such
as the possible or imminent destruction or damage to
records, supplies, properties, and structures and the orderly
and sanitary clearing up of waste materials or debris,
particularly during and in the aftermath of man-made and
natural calamities and disasters.

4. Recommend and advise the Regional Governor on all matters
relative to general services.

5. In addition to the foregoing duties and functions, the
General Services Officer shall:

i, Take custody of and be accountable for all
Properties, real or personal, owned by the
autonomous government and those granted to it in
the form of donation, reparation, assistance and
counterpart of joint projects.

ji. With the approval of the Regional Governor, assign
building or land space to regional officials, who by
law, are entitled to such space. Recommend to the
Regional Governor reasonable rental rates for
Regional Government properties, whether real or

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vi.

vii.

viii.

personal, which will be leased to public or private
entities.

Recommend to the Regional Governor reasonable
rental rates of private properties which may be
leased for the official use of the Regional
Government.

Maintain and supervise janitorial, security,
government public buildings and other real
Property, whether owned or leased by the
Regional Government.

Collate and disseminate information regarding
prices, shipping and other costs of supplies and
other items commonly used by the Regional
Government.

Perform archival and record management with
respect to records of offices and departments of
the Regional Government.

Perform all other functions pertaining to supply
and property management heretofore performed
by the Regional Government Treasurer and
enforce policies on records creation, maintenance,
and disposal.

Exercise such other powers and perform such
other duties and functions as may be prescribed
by law or ordinance.

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Sec. 63. There shall be a Regional Development Council (RDC) which shall
function as the main planning and advisory body of the autonomous government,
setting the direction of economic and social development of the autonomous region
and through which regional development efforts shall be coordinated.

Sec. 64. The Regional Development Council, which shall be headed by the
Regional Governor, shall be composed of the Regional Governor as chair, Private
Sector Representative as co-chair, the Regional Director of NEDA as vice-chair, and
the following as members:

(a) All the provincial governors, the city and capital town mayors.

(b) Two (2) members of the Regional Assembly to be designated by its
presiding officer.

(c) Private sector representatives of duly accredited private sector and
non-government organizations/people's organizations, Provided that
their composition shall not be more than one-fourth of the total
membership.

(d) Regional heads of line agencies who are members of the NEDA Board.
(e) The Council may designate special non-voting members (SNVMs)
coming from both the public and private sectors, upon concurrence of
the majority of its regular members.
Sec. 65. The regional office of the National Economic and Development

Authority (NEDA) shall serve as the secretariat and technical operations arm of the
Council.

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Sec. 66. The Regional Development Council shall:

(a) Coordinate the preparation, implementation, monitoring and evaluation
of short- and long- term regional development plans and investment
programs, regional physical framework plans and special development
plans, including the formulation of policy recommendations.

(b) Integrate approved development plans of provinces and cities, line
agencies, state universities and colleges, government owned and
controlled corporations and special development authorities in the
autonomous region into the regional development plan.

(c) Review, prioritize, and endorse to the autonomous government the
annual and multi-year sectoral investment programs of the
autonomous region for funding and implementation.

(d) Review and endorse to the national government the annual budgets of
agency regional offices, state colleges and universities and special
development authorities.

(e) Promote and direct the inflow and allocation of private investments in
the autonomous region to support regional development objectives,
policies, strategies.

(f) Review and endorse national plans, programs and projects proposed
for implementation in the autonomous region.

(g) As required by the Investment Coordinating Committee (ICC), review
and endorse projects of national government agencies that have
impact on the region and projects of LGUs in the region requiring
national government exposure which may come in the form of

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guarantees, national government budget appropriations or subsidies,
among others.

(h) Initiate and coordinate the development, funding and implementation
of regional and special development projects such as those involving
several agencies or LGUs.

Coordinate the monitoring and evaluation of development projects
undertaken by government agencies, local government units, state

i

colleges and universities, government-owned and/or controlled
corporations and special development authorities in the autonomous
region.

(j) Perform other related functions and activities as may be necessary to
promote and sustain the socio-economic development of the
autonomous region.

Sec. 67. Creation of Committees. — The Council shall create appropriate
technical and sectoral committees to assist in its work.

Sec. 68. Existing Committees Placed under the RDC. — Existing regional
coordinating committees that are created by various laws and currently attached to
specific agencies, and ad-hoc program/project-based steering committees, such as,
but not limited to Development Administration Committee, Economic Development
Committee, Social Development Committee, Infrastructure Development Committee,
Watershed and Environmental Management Committee, Committee on Indigenous
Peoples’ Concerns, Regional Land Use Committee, Regional Gender and
Development Committee, Regional Project Monitoring Committee, Regional
Competitiveness Committee, Regional Development Budget Coordinating Committee,
Regional Statistical Coordination Committee, and the Cordillera Geographic
Information System Network, shall be placed under the umbrella of the RDC.

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Secretariat work of these inter-agency committees shall continue to be provided by
their mother agency.

Sec. 69. Attendance of Representatives to the RDC. — When the need arises,
the Council shall invite the Congressmen of the provinces and cities of the
autonomous region.

ARTICLE VII
THE REGIONAL VICE-GOVERNOR

Sec. 70. Presiding Officer. — The Regional Vice-Governor shall automatically
become the Presiding Officer of the Regional Assembly.

Sec. 71. Functions of the Presiding Officer. — As the Presiding Officer of the
Regional Assembly, the Regional Vice-Governor shall:

(a) Sign all warrants drawn on the Regional Treasury Office for all
expenditures appropriated for the operation of the Regional Assembly;

(b) Subject to civil service law, rules and regulations, and this Organic Act,
appoint all officials and employees of the Office of the Regional Vice-
Governor, the Regional Assembly and the Office of the Secretary to the
Regional Assembly. The appointment of the Secretary to the Regional
Assembly shall however require the concurrence of the majority of the
members of the Regional Assembly as well as compliance to civil
service law, rules and regulations and this Organic Act;

(c) Assume the office of the Regional Governor for the unexpired term of
the latter in the event of a permanent vacancy as provided in this
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(d) Exercise the powers and perform the duties and functions of the
Regional Governor in cases of temporary vacancy as provided in this
Organic Act;

(e) Exercise the powers and perform the duties and functions as may be
prescribed by an ordinance.

ARTICLE VIII
THE REGIONAL LEGISLATIVE ASSEMBLY

Sec. 72. Legislative Authority. — The legislative power of the Regional
Government in the Autonomous Region of the Cordillera, shall be vested in the
Regional Assembly, except to the extent reserved by the Constitution and this
Organic Act on initiative and referendum. Within its territorial jurisdiction and subject
to the provisions of the Constitution and national laws, the Regional Assembly of the
Autonomous Region of the Cordillera shall have legislative powers over those
functions enumerated under Section 25.

Sec. 73. Enactment of Ordinances and Resolutions. — The Regional Assembly
shall enact ordinances, approve resolutions and appropriate funds for the general
welfare of the region and its inhabitants as well as for the efficient and effective
operation of the Regional Government.

Sec. 74, Administrative Support. — The Regional Assembly shall have an
administrative and support staff. Each member shall have at least three (3)
confidential Legislative Assistants whose qualifications, rank and salary grade level
shall be equivalent to regional executive assistants. Their term of service shall
however be coterminous with their overseer.

Sec. 75. Regular and Special Sessions. — The Regional Assembly shall start
its regular session on the first Monday of July, and by resolution fix the day, time

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1 and place of its regular sessions, which shall be held at least once a week. However,
2 the Assembly may be called to a special session by the Chairperson or the Regional
3 Governor whenever necessary and a notice of meeting shall be sent to the member's
4 place of residence at least twenty-four (24) hours before the special session is held.
5 Unless otherwise concurred in by two-thirds (2/3) votes of the members, there being
6 a quorum, no other matters may be considered at a special session except those
7 stated in the notice. The Regional Assembly may invite the President and other
8 government officials to address it.

9 Sec. 76. Sessions and Quorum:
10 (a) A majority of all the members of the Regional Assembly shall
1 constitute a quorum to do business, but a smaller number may

. 12 adjourn from day to day, and may compel the attendance of absent
13 members in such manner, and under such penalties as the

. 14 Assembly may provide.

| 15 (b) On the first regular session following the election of its members,
16 and within ninety (90) days thereafter, the Regional Assembly shall
7 adopt or update its rules of proceedings which shall include, among
18 other things, the organization of the Assembly and the election of
19 its officers, creation of standing committees, the time, place and
20 manner of convening its regular and special sessions, the conduct
2 and discipline of its members, the conduct and discipline of every
22 Person present during its session, the preparation and publication
23 of its journal, the determination of quorum, and the necessary
24 votes to pass any measure, and recall proceedings in accordance

25 with the Local Government Code.

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Sec. 77. Ordinance:

(a) Every ordinance shall embrace only one (1) subject which shall be
expressed in the title thereof.

(b) No ordinance shall become a law unless it has passed three
readings on separate days, and printed copies thereof in its final
form have been distributed to the members three (3) days before
its passage, except when the Governor certifies to the necessity of
its immediate enactment to meet a public calamity or emergency
affecting the region, or the component provinces, cities,
municipalities or barangays.

(c) Upon the last reading of an ordinance, no amendment thereto shall
be allowed, and the vote thereon shall be taken immediately
thereafter, and the yeas and nays entered in the Journal.

(d) Every ordinance passed by the Regional Assembly shall, before it
becomes a law, be presented to the Regional Governor. If he/she
approves the same, he/she shall sign it. Otherwise, he/she shall
veto it and return the same with his objections to the Regional
Assembly, which shall enter the objections in its Journal and
Proceed to reconsider it. If, after such reconsideration, two-thirds
(2/3) of all the members of the Regional Assembly shall agree to
pass the ordinance, it shall become a law. The Regional Governor
shall communicate his veto of any ordinance to the Regional
Assembly within ten (10) days from receipt thereof otherwise; it
shall become a law as if he/she had signed it.

(e) The Regional Governor shall have the power to veto any particular
item or items in an appropriation or revenue, but the veto shall not

affect the item or items to which he/she does not object.
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Sec. 78. People's Question Hour:

(a) There shall be a people's hour at least once a month or as often as
the rules of the Regional Assembly may provide, which shall be
included in the Order of Business, during which any member of the
Cabinet may, upon his own initiative, with the consent of the
Regional Governor, or upon the request of the Regional Assembly,
appear and answer questions and interpellations by members of the
Assembly on any matter pertaining to his department.

(b) The Regional Assembly or any of its committees may conduct
inquiries in aid of legislation in accordance with its duly published
rules of procedure. The rights and dignity of persons appearing in
or affected by such inquiries shall be respected.

Sec. 79. Immunity from Suit. — No member shall be questioned or be held
liable in any other place for any speech or debate in the Regional Assembly or in any
committee thereof.

Sec. 80. Appropriations Ordinance. — The Regional Assembly shall pass an
appropriations ordinance for the ensuing year at or before the end of each year,
based on the budget of expenditures and sources of funds submitted to it by the
Regional Governor.

(a)No provision or enactment shall be embraced in the regional
appropriations ordinance, unless it relates specifically to some
particular appropriations therein. Any such provision or enactment shall
be limited in its operation to the appropriation to which it relates.

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(b) The procedure in approving appropriations for the Regional Assembly
shall strictly follow the same procedure for approving appropriations
for the regional executive department.

(c) A special appropriations ordinance shall specify the purpose for which
it is intended, and shall be supported by funds actually available as
certified by the Regional Treasurer or to be raised by a corresponding
revenue proposal therein.

(d)No ordinance shall be passed authorizing any transfer of
appropriations. However, the Regional Governor and the presiding
officer of the Assembly may, by ordinance, be authorized to augment
any item in the general appropriations ordinance for their respective
departments from savings in other items of their respective
appropriations.

(e) The Regional Assembly may not increase the appropriations
recommended by the Regional Governor for the operation of the
Regional Government as specified in the budget. The form, content
and manner of preparation of the budget shall be prescribed by
regional law: Provided, however, that pending the enactment of such a
regional law, the budgeting process of the Regional Government shall
be governed by existing national laws and rules and regulations
prescribed by the Department of Budget and Management.

Sec. 81. Expenditure of Public Funds:

(a) No money shall be paid out of the regional treasury except in
pursuance of an appropriation made by regional law.

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(b) No money or property shall be appropriated, applied, paid or used,
directly or indirectly, for the use, benefit or support, of any sect,
church, denomination, sectarian institution, or system of religion or
for the use, benefit or support of any priest, preacher, minister or
other religious teacher or dignitary as such, except when such
priest, preacher, minister or dignitary is assigned to the regional
police or government orphanage and rehabilitation centers or
similar institutions.

(c) All money collected on any regional tax levied for a special purpose
shall be treated as a special fund and paid out for such purpose
only. If the purpose for which a special fund was created has been
fulfilled or abandoned, the balance, if any, shall be transferred to
the general fund of the Regional Government.

Sec. 82. Certified True Copies of Ordinance. — The Regional Assembly shall,
within ten (10) working days from approval thereof, submit to the President and to
both Houses of Congress a certified true copy of all ordinances and resolutions it
passed.

Sec. 83. Creation of Offices. — The Regional Assembly may create such other
offices and positions as may be necessary to carry out the purpose of the regional
government subject to availability of funds.

Sec. 84. Secretary to the Regional Assembly. — There shall be a Secretary to
the Regional Assembly with a rank, status and salary grade level equivalent to a
head of a regional department. He must be a citizen of the Philippines and a
Cordilleran, of good moral character, and a holder of a college degree preferably in
law, commerce, public administration, or any other related course from a recognized
college or university. He must have at least three (3) years of relevant experience.

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Sec. 85. Program for Development. — Subject to national laws and, sound
public administration principles, exercising the corporate powers of the Regional
Government under the Constitution and R.A. 7160 of 1991, the Regional Assembly
shall evolve a program for generating development financing to accelerate social and
economic development in the region and implement the same, and after conducting
public consultation. Provided, that when regional revenues are insufficient, the
difference shall be funded by the national government.

Sec. 86. Approval of Plans. — The Regional Assembly shall approve by
ordinance the recommended regional physical framework plan, the regional
development plan, the regional development investment program, the regional
annual investment plan and regional annual budget within the prescribed timetable.

Sec. 87. Enactment of Necessary Legislation. — When the need arises, the
Regional Assembly shall enact ordinances and necessary legislative measures that
shall strengthen and supplement the implementation of national laws, devolved
functions and address conflicting laws.

ARTICLE IX
PATRIMONY, ECONOMY AND DEVELOPMENT

Sec. 88. Coordination and Cooperation of the Regional Government with the
National Government to Achieve Quality of Life. — The Regional Government, with
the support of the national government, shall pursuant to regional autonomy and
poverty alleviation initiate, stimulate, facilitate, support and coordinate development
in the region towards attaining equitable distribution of opportunities, income, and
wealth; a sustained increase in the amount of goods and services available to
Cordillerans and an expanding productivity and income as the key to raising the
quality of life for all:

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a. The national government shall provide financial support and assistance
to the Autonomous Region of the Cordillera by appropriating such
sums as may be necessary to accelerate the development of the
autonomous region, on top of and aside from the Internal Revenue
Allotment (IRA) provided therewith and the Local Government Units as
well as the allocations already provided through the regional line
agencies.

b. The national government shall consult and coordinate with the
autonomous Regional Government before programs and projects are
undertaken in the autonomous region.

Sec. 89. Autonomous Region Cordillera Development Plan. — The Regional
Government through the Regional Development Council shall formulate its
development plans taking into consideration the Cordilleran’s unique needs and
aspirations, consistent with national development goals. The Development Plan shall
include the promotion of growth and full employment, human development, and
address social and economic inequities that have resulted from decades of neglect,
historical injustice, poverty and inequality.

Sec. 90. Control and Supervision over Natural Resources. — Regional
Government shall have control and supervision over natural resources in accordance
to this Organic Act.

Sec. 91. Preferential Rights of Cordillerans to Utilize and Develop Natural
Resources.— The exploration, development, utilization, and enjoyment of natural
resources, shall be allowed to citizens of the Philippines, preferably Cordillerans and
to private enterprises, including corporations, cooperatives, and similar collective
organizations with at least sixty percent (60%) of their capital investment or capital
stocks directly controlled or owned by Cordillerans: Provided that the implementation

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of programs, projects, and activities related to these natural resources in the region
shall comply with the provisions of the Constitution and this Organic Act.

Sec. 92. Comprehensive Framework for Sustainable Development. — The
Regional Government shall develop a comprehensive framework for sustainable
development through the proper conservation, utilization and development of
natural resources. Such framework shall guide the Regional Government in adopting
Programs and policies and establishing mechanisms that focus on the environment
dimensions of social and economic interventions. It shall include measures for the
reduction of vulnerability of women and marginalized groups to climate change and
variability.

Sec. 93. Development of Lands 18 Per cent and Above in Slope. — The
Regional Government in partnership with the communities, especially the indigenous
Peoples or indigenous cultural communities, and their government units, and
support of the national government shall adopt measures for the development of
communities occupying lands eighteen per cent in slope or over, by providing the
necessary infrastructure, financial and technical support.

Sec. 94. Transportation and Communication System. — The Regional
Government shall, in coordination with the national government, establish a
transportation and communication system interconnecting the various areas of the
autonomous region with each other and to other regions adjacent to the Cordilleras.
Likewise, the Regional Government in close coordination with component local
government units shall plan, construct, modernize and maintain rural and urban
infrastructure facilities and utilities, including alternative transport systems within
critical environments.

Sec. 95. Comprehensive Agrarian Reform Program. — Subject to ecological
considerations, the Regional Government shall adopt and implement a
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Program consistent with the Constitution and national laws and policies to ensure
the just and sustainable utilization of land within its jurisdiction.

Sec. 96. Standards for Environmental Protection. — The Regional Government
shall develop standards pertaining to the protection, conservation, and
enhancement, of the environment and natural resources, appropriate to the socio-
cultural and environmental uniqueness of the Cordillera.

Sec. 97. Transfer of Existing Nature Reserves and Protected Areas. — The
management and protection of nature reserves and aquatic parks, forests,
watershed reservations, and other protected areas in the Autonomous Region that
have already been defined by and under the authority of the National Government
shall be transferred to the Regional Government.

The Regional Transition Committee composed of the Regional Governor,
Department of Environment and Natural Resources, National Commission on
Indigenous Peoples, representatives of IPs and ICCs affected, as well as other
relevant government agencies shall cause the process of transferring these areas
including the conduct of surveys of all affected areas and the planning and transition
for each and every protected area. Such process shall be completed within a period
not exceeding two years.

Sec. 98. Policies of the Autonomous Region of the Cordillera on Renewable
and other Energy Resources and Extractive Industries. — Policies on Renewable and
other energy resources and extractive industries shall be drawn up by the Legislative
Assembly in accordance with its Comprehensive Sustainable Development Plan, as
well as its over-all medium-term and long- term Regional Development Plan.

Sec. 99. Financial and Technical Assistance Agreements. — The applications
for financial and technical assistance agreements covering mineral resources within

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the region shall be commenced at and recommended by the Regional Government
to the President.

The manner by which the Regional Government shall make the
recommendation shall be in accordance with Section 98.

Sec. 100. Participation of the Autonomous Region of the Cordillera in
Government in National Development Planning. — To ensure that the Regional
development plans are reflected in the national development plans, the Regional
Government shall participate in national development planning. The Regional
Governor shall be a full-fledged member of the Board of the National Economic and
Development Authority.

ARTICLE X
SOURCES OF REVENUES AND OTHER FISCAL MATTERS

Sec. 101. Share from the National Revenues. — To conserve, protect and
develop the national patrimony and heritage located in the Autonomous Region of
the Cordillera, and devolved to the region by this Organic Act, and to fund the
operations of the Regional Government, the Regional Government shall, in addition
to the existing shares of local government units, regional line agencies and other
government institutions, have a share of the national revenues which include but not
limited to the following:

(a) Two and a half percent (2.5%) of the national Internal Revenue Taxes.
The Regional Government shall have a share in the national internal
revenue taxes equivalent to 2.5 percent based on the collection of the
third fiscal year preceding the current fiscal year, in addition to the
internal revenue allotment shares of the local government units. Eighty
percent (80%) of such share shall be appropriated in the annual
regional budget for development projects. The internal revenue

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allotment share of the Regional Government shall be released directly
to the Regional Government Treasurer and shall not be subject to any
lien or holdback that may be imposed by the national government for
whatever purpose.

(b) Forty percent (40%) Share of the National Wealth Tax. The Regional
Government shall have a separate forty percent (40%) share of the
gross collections in the preceding fiscal year from mining taxes,
royalties, environmental services, forestry and fishery charges, energy
production charges, and such other taxes, fees and charges, including
related surcharges, interests and fines derived from the utilization and
development of the national wealth within its territorial jurisdiction.
Provided, that the Regional Government shall likewise be entitled to
ten percent (10%) share of the gross collections from the utilization of
national wealth sourced or emanating from the autonomous region by
persons, individual or juridical, operating outside the territorial
jurisdiction of the autonomous region. Provided that the share in
national wealth shall be used for the preservation and further
development of the environment.

Local Government Units shall have a share of one and one-half percent
(1.5%) of the gross sales or receipts or fifty percent (50%) of the
gross collection, whichever is higher, derived from renewable energy
taxes, mining taxes, royalties, forestry and fishery charges, and such
other taxes, fees and charges, including related surcharges, interests
or fines, and from its share in any co-production, joint ventures or
Production sharing agreement in the utilization and development of the
national wealth within their territorial jurisdiction. This provision shall
be applicable to all corporations, partnership, individuals and other
entities including government agencies and government owned or
controlled corporations engaged in the utilization and development of

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the national wealth within the region irrespective of existing contrary
laws, rules and regulations of national application.

(c) Three percent (3%) share out of the Economic Zones Tax. The
Regional Government shall have a separate three percent (3%) share
out of the five percent (5%) final tax on gross income earned or
equivalent to sixty percent (60%) of total tax paid by businesses within
the economic zones found in the Cordillera, in addition to the existing
shares of the local government units. The fund shall be used for Trade
and Industry programs.

Local government units shall have a separate two percent (2%) share
out of the five percent (5%) final tax on gross tax paid by businesses
within the economic zones.

(d) Twenty percent (20%) Share of Excess in Value Added Tax. The
Regional Government shall have a separate twenty percent (20%)
share of the excess in VAT collections from the immediately preceding
year. The fund shall support cottage industry programs.

Local Government Units shall have a separate twenty percent (20%)
share of the excess in VAT collections from the immediately preceding
year.

(e) Fifteen percent (15%) Share of Total Excise Tax. The Regional
Government shall have a separate fifteen percent (15%) share of the
total excise tax collection on locally manufactured Virginia-type
cigarettes manufactured within the territorial jurisdiction of the
autonomous region for the second calendar year preceding the year of
distribution, in addition to the existing shares of the local government
units. The fund shall be used for agriculture programs.

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Local Government Units shall have a separate fifteen percent (15%)
share from the total excise tax collection on locally manufactured
Virginia-type cigarettes for the second year preceding the year of
distribution.

(f) Fifteen percent (15%) Share of Incremental Excise Tax in Burley and
Native Tobacco Products. The Regional Government shall have a
separate fifteen percent (15%0 share of the excise tax collected on
burley and native tobacco products collected within the region.

Local Government Units shall have a separate fifteen percent (15%)
share of the excise tax collected on burley and native tobacco
products.

(g) Forty percent (40%) Share of Renewable and other energy Tax. The
Regional Government shall have a separate forty percent (40%) of the
special privilege tax on Renewable and other energy resources
developed for the maintenance of watersheds and social and economic
development of the upstream host communities.

Local Government Units’ share from the renewable and other energy
resources tax shall be based on the computation provided under the
Local Government Code (RA 7160).

(h) Three percent (3%) of net income of Philippine Amusement and
Gaming Corporation (PAGCOR) and Philippine Charity Sweepstakes
Office (PCSO) for construction and maintenance of school buildings,

hospitals and related structures and services.

(i) Shares in future tax impositions by the national government.

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Taxpayers shall pay directly the share of the regional autonomous
government except national internal revenue taxes in par (a).

Sec. 102. Sources of Regional Government Revenues. — The Regional
Government shall have the power to create its own sources of revenues and to levy
fees, charges and taxes subject to such guidelines and limitations of the Constitution
and this Act, consistent with the basic policy of local autonomy and which include
but not limited to the following:

a. Taxes, except income taxes, imposed by the Regional Government;

b. Fees and charges imposed by the Regional Government;

c. Taxes, fees, or charges for the registration of motor vehicles and for
the issuances of all kinds of licenses or permit for the driving thereof,
except tricycles which shall be registered with the city or municipality
within whose territorial boundaries they are operated;

d. Shares and revenue generated from the operations of public utilities
within the autonomous region;

e. Appropriations, shares in the internal revenue taxes, block grants, and
other budgetary allocations coming from the central government or
national government, and

f. 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. 103. Situs of Taxation. — All corporations, partnerships, and other

entities, including government agencies, government-owned and -controlled
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corporations directly engaged in business in the region shall pay their corresponding
taxes, fees, and charges to the province, city, municipality or barangays where such
establishments are conducting their business operations irrespective of the location
of their principal or main offices.

Sec. 104. Appropriations from the National Government to be downloaded to
the Regional Government:

(a) Regional line agencies. The national government shall continue to
provide appropriations for the regular operations and programs of line
agencies in the region. In addition, each national government agency
shall appropriate not less than five percent (5%) of its annual budget
to fund priority programs in the region.

(b) Regional structure. The national government shall continue to provide
appropriations for the mandatory organizational structure and positions
of the Regional Government.

(c) The Regional Government may access other special purpose funds
appropriated in the national budget.

Sec. 105. Eighty percent (80%) share of national fees and charges collected
within the region (e.g. DOTr, NBI, NSO, BID, PEZA, DFA, DOH, DPWH, DENR, PRC,
DOT, DICT, and other collecting agencies) shall be directly remitted to the regional
treasury and fifty percent (50%) of this share shall be automatically retained by the
collecting agencies to augment their regular operating expenses.

Sec. 106. Donations or grants to the region to finance, to provide for, or to be
used in undertaking projects in health, education, culture, youth and sports
development, human settlements, science and technology, and in economic
development, shall be deductible in full in determining the taxable income of the

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donor or grantor. Provided, that the validation and certification processes for such
donations or grants shall have been done according to regional law.

Sec. 107. The Regional Government, in accordance with the provisions of the
Constitution and national laws and upon the recommendation of the Regional
Development Council and ratification of the Regional Assembly, shall evolve a
system of economic agreements or trade compacts to generate grants and foreign
loans for development of the region.

Sec. 108. The Regional Governor may contract loans only in accordance with
the provisions of the Constitution and national laws and subject to the approval of
the Regional Assembly.

Sec. 109. The Regional Assembly shall have the power to grant incentives or
exemption on fees and charges which the autonomous region is empowered under
this Act to impose. An ordinance granting incentives, exemptions or both shall only
be passed with the concurrence of a majority of all the members of the Regional
Assembly.

Sec. 110. The Regional Government may establish and capitalize a Regional
Development Bank which shall administer its own funds. The bank shall be under the
supervision of the Bangko Sentral ng Pilipinas (BSP) and under the general banking
laws.

Sec. 111. The Regional Government shall formulate fiscal and regulatory

licensing standards appropriate for the region.

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ARTICLE XI
AGRICULTURE, AGRARIAN REFORM, TRADE AND INDUSTRY, TOURISM AND
COOPERATIVE

Sec. 112. Agrarian Reform and Sustainable Agricultural and Fisheries
Development. — Consistent with applicable laws, the Regional Government shall, as
a basic policy, promote agrarian reform and sustainable agricultural development
within the principles of social equity and poverty alleviation, food security and food
sufficiency, global competitiveness, fair trade, rational use of resources.

(a) The Regional Government shall ensure that basic agricultural support
services and infrastructure be accessible to the small and marginalized
farmers and fisher folks. It shall likewise promote agribusiness and full
employment based on a sound agricultural development and agrarian
reform.

(b) The Regional Government shall put special emphasis on production
towards self-sufficiency of staple food commodities and shall at all
times guarantee the availability, accessibility and affordability of safe
food commodities.

(c) The Regional Government shall work on the improvement of the
quality and value of raw and processed agri-based products as a
means to enhance competitiveness of the agriculture and fisheries
sectors in the domestic and global markets.

(d) The Regional Government shall formulate and implement measures to
Promote indigenous concept of farming and protect the farmers from
unfair trade practices and unfair competition.

(e) The Regional Government shall ensure the equitable and rational

distribution of public resources and investments in order to obtain the
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optimum returns on investments and to benefit a greater number of
constituents.

(f) The Regional Government shall always consider the limited carrying
capacity of the region's natural and agricultural resources in the
development of agricultural and fisheries programs and interventions.

Sec. 113. Development of Water Resources. — The Regional Government
shall give top priority to the conservation, protection, testing, utilization and
development of water resources for agriculture, fisheries development, domestic
water supply and power development. It shall enact appropriate legislation which
shall enhance, develop, conserve, and protect natural fishery resources especially on
specie endemic to the Cordillera.

Sec. 114. Promoting the Rights of Fisher Folks. — The Regional Government
shall recognize, promote, and protect the rights and welfare of fisher folks, their
associations and cooperatives. The provinces and cities concerned shall support to
subsistence fisher folk through adequate funds, appropriate technology and
research, marketing assistance, and other support services like fishery processing
facilities and access to credit.

Sec. 115. Agriculture Production. — The Regional Government shall pursue
the following strategies to develop and increase agricultural productivity.

(a) Pursue a multidisciplinary research, development and extension
activities to produce and promote technologies and invent machinery
and facilities, that will be used to improve productivity and product
quality, reduce cost of production, enhance value-addition and improve
Processing, and enhance abilities to protect the environment and
agricultural resources.

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(b) Initiate, encourage and give highest priority support to small and
medium agribusiness enterprises and industries with linkages to
agriculture. It shall ensure the allocation of adequate public
investments to establish adequate support-agricultural infrastructure
and facilities to sustain such ventures.

(c) Formulate and implement product standards and regulatory rules that
will ensure the production, processing, distribution and marketing of
safe and globally-competitive products, and simultaneously promote
environmental conservation.

(d) Ensure that all sectors involved in the production, processing and
marketing of food and non- food products shall strictly adhere to
appropriate existing laws and regulations on the proper utilization and
disposal of synthetic and chemical inputs and materials, and industrial
and toxic wastes. Relative to this, the Regional Government shall
pursue and encourage organic methods of agriculture.

Section 116. Prevent flight of labor and capital. To promote investments and
employment and to prevent flight of capital and labor from the region, the Regional
Government shall adopt measures:

(a) Against monopolies, cartels and unfair competition in public utilities,
development, trading and similar concerns. It may, in the interest of
regional welfare and security, establish and operate pioneering public
utilities. Upon payment of just compensation, it may transfer the
ownership of such utilities to cooperatives or other collective
organizations.

(b) To initiate, encourage and support industrialization in the region,
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area to control or manage their resources, the ecological needs of the
area and the protection, conservation and development of resources.

Sec. 117. Eco-cultural Tourism. — Consistent with the preservation of cultural
heritage and the protection of ecology, the Regional Government shall promote eco-
cultural tourism in the region. Sites with historical, scientific, cultural significance
including natural and man-made landmarks and scenic vistas shall likewise be
preserved, maintained and protected.

Sec. 118. Promote Economic Zones. — The Regional Government shall
encourage, promote, establish and develop economic zones, industrial and trade
centers, and airports, in strategic areas and growth centers in the region, including
the necessary support infrastructure in accordance with land use and other
environmental considerations.

Sec. 119. Marketing and Exportation of Indigenous Products. — The Regional
Government shall in coordination with the local government units, encourage
investments, development, marketing and exportation of indigenous and other local
products in accordance with its development goals and priorities.

Sec. 120. Cooperatives. — The Regional Government shall promote
cooperatives registered with the Cooperative Development Authority as tools for
economic development, social justice, and people empowerment to initiate policies
and develop mechanisms to enjoin the participation of the banking sector and
financial institutions in the delivery of credit assistance for the establishment and
building of rural enterprises and small-medium enterprises (SMEs).

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ARTICLE XII
EDUCATION, SCIENCE AND TECHNOLOGY, LANGUAGE, ARTS AND CULTURE AND
‘SPORT

Sec. 121. Jurisdiction over Regional Educational Policies. — The Regional
Government shall have jurisdiction over the formulation of regional educational
policies and on the preservation, safeguarding and development of cultural heritage.
It shall have the following plans and programs:

(a) The establishment of educational institutions, colleges and universities
which shall enjoy fiscal and administrative autonomy but subject to
regional laws. Existing educational institutions, colleges and universities
shall continue to be governed by their respective charters;

(b) The Development of curricular programs relevant to the preservation
and development of cultural heritage and responsive to the social,
economic, political and moral needs of the Cordillerans;

(c) The adoption and enactment of educational policies that shall
recognize, support, develop and promote existing indigenous system of
learning.

(d) The creation of Regional Educational Board that will supervise, govern
and intervene in the establishment, adoption and implementation of
educational policies and programs of both formal and informal
education for schools, colleges and universities in the region

Sec. 122. Education with Highest Budget Allocation. — The Regional
Government shall assign the highest budgetary priority to education.

Sec. 123. Exemption from Taxes and Duties. — Private educational

institutions, colleges and universities shall enjoy the protection and support of the
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Regional Government. All revenues and assets of non-stock, non-profit educational
institutions used actually, directly and exclusively for educational purposes shall be
exempt from taxes and duties.

Sec. 124. Creation of Regional Scholarship Committee for Education. — The
Regional Government shall assist the national government to provide free basic
education and shall likewise endeavor to provide free tertiary education through
scholarship programs, subsidies, research grants and other incentives to poor,
gifted, and deserving individuals. Towards this end, there shall be created a Regional
Scholarship Committee for Education.

Sec. 125. Rights of Teachers and Parents to Organize. — The right of
teachers, employees, students and parents to organize themselves and to participate
in school policy and decision-making shall be guaranteed.

Sec. 126. Culture Sensitive Education. — The educational system in the region
shall develop a program, research, instruction and extension that will promote
consciousness and appreciation of the ethnic identity of the people in the region and
shall provide a better understanding of their cultural heritage for the attainment of
national unity and harmony in all levels of education. It shall provide, promote,
enhance or adopt a curriculum in all levels that includes Cordillera languages,
customs and traditions and other indigenous knowledge systems and practices, as
may be applicable.

Sec. 127. State Colleges and Universities:

(a) State colleges and universities in the region shall form part of the
regional educational sub- system of the autonomous region and shall
continue to enjoy fiscal and institutional autonomy, continue to be
governed by their respective charters and enjoy support of the
Regional Government.

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(b) The Regional Government shall be represented in the board of regents
or trustees in state universities and colleges in the region.

(c) The budget of state colleges and universities in the region while
prepared separately shall form part the budget of the Regional
Government when presented to congress for approval. The state
colleges and universities shall continue to receive funding from the
national government while the Regional Government shall provide
additional funding.

(d) The Regional Government shall capacitate state colleges and
universities in order to provide assistance to regional development.

Sec. 128. School Charters. — Subject to the general supervision of the
Regional Government, all schools with charters shall continue to be governed by
their respective charters.

Sec. 129. Priority on Indigenous and Appropriate Technology. — The
management of scientific and indigenous research and appropriate technology on all
levels of education including research institutions shall be given priority by the
Regional Government.

Sec. 130. Intellectual Property Rights. — Incentives and safeguards for
intellectual property rights, and assistance in the registration of patents and
copyrights shall be accorded to Cordillera artists, writers, scientists, researchers and
inventors.

Sec. 131. Medium of Instruction. — The Regional Government shall retain
English and Filipino as a medium of instruction in all levels of education. Consistent
with its regional and cultural identity, and whenever possible, it shall adopt a system

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of multi-lingual or mother tongue-based approach in basic education to strengthen
and enrich the various languages and dialects in the region as well as the national
language as maybe appropriate.

Sec. 132. Region-wide Physical Fitness. — The Regional Government shall
design and implement region-wide physical fitness, sports development programs,
and indigenous games and sports which shall be a cooperative responsibility of the
school, the community, and the government.

Sec. 133. Establishment of Council and Commissions and Center on Research,
Cultural Heritage and Research. — The Regional Government shall:

a. Establish a Regional Research Coordinating Council, which shall
harmonize the research and development efforts of the academe,
research institutions, citizen's research, other organizations and
community initiated research in the region.

b. Establish Cordillera Commission for the Preservation and Promotion of
Cultural Heritage Center for the promotion, research, documentation,
coordination with other groups and institutions and, establish and
maintain a data bank on all indigenous matters

ARTICLE XIII
SOCIAL JUSTICE, HEALTH AND WELFARE

Sec. 134. Measures on Social Protection. — The Regional Government
commits itself to social protection and shall among other things, adopt measures to:

(a) Empower and improve the quality of life of the poor, disadvantaged,
marginalized, and vulnerable individuals, families, sectors and
communities of the region.

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(b) Reduce or eradicate poverty to ensure that all Cordillerans are free
from all forms of deprivation, vulnerability, and abuse.

(c) Create equal opportunities for assistance and protection for all
Cordillerans.

(d) Promote gender and development (GAD) through the creation,
adoption and sustainability of programs and policies that are gender
sensitive.

(e) Enact measures and develop programs that will protect the people
from any threat of violence and exploitation, eliminate trafficking in
persons and mitigate pressures for involuntary migration and servitude
of persons, not only to support trafficked persons but more
importantly, to ensure their recovery, rehabilitation and reintegration
into the mainstream of society.

Sec. 135. Equality of Employment Opportunities. — The Regional Government.
shall undertake steps to protect the labor sector and promote equality of
employment opportunities for all. Towards this end, it shall, among other things,
provide for:

(a) Participation of the Regional Government in the regional wage board in
working out periodic adjustments and rational standardization of
compensation rates to ensure a sustainable and decent wage for all
workers,

(b) Profit and productivity gain-sharing schemes that recognize the right of
workers to a just share in the profits and productivity gains of
businesses, provide incentives thereof, and the right of the enterprise

to reasonable returns on investments.
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(c) Protection of workers against unhealthy and unsafe working conditions.
(d) Mandatory corporate social responsibility towards employees and host.
community.

Sec. 136. Hiring of Qualified Cordillerans. — The Regional Government shall
Promote the hiring of qualified Cordillerans in government projects and private
businesses located in the autonomous region.

Sec. 137. Health as Basic Human Right. — The Regional Government
recognizes health as a basic human right and the attainment, maintenance and
protection thereof shall be its responsibility. It affirms health as an instrument for
and a product of socio-economic development. For this purpose, it shall, among
other things:

(a) Establish, maintain, and support an effective health care delivery
system utilizing primary health care as a comprehensive and integrated

approach.

(b) Ensure that the health care system is governed by the principles of
service, social justice and equity.

(c) Promote health knowledge and skills that will enable its people to take
responsibility for their health.

(d) Give relevant training and appropriate standards for health workers
and professionals.

(e) Establish and maintain an effective food and drug regulatory system
which shall provide for the adoption of an essential drug ist,

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encourage the use of generic medicines or drugs, and promote the use
of herbal medicines and indigenous health resources.

(f) Conduct research on traditional healing methods and promote
indigenous health care practices.

(g) Evolve financing schemes to effectively lessen the costs of health care
without sacrificing the quality of health care services; and

(h) Prioritize health by allocating at least 5% of the Regional Annual
Budget to form the base of health budget.

Sec. 138. Rights of Workers. — The Regional Government shall, in
consonance with the Constitution, guarantee the rights of all workers to self-
organization, collective bargaining and negotiations, and peaceful concerted
activities, including those provided by law.

Section 139. Rights of Vulnerable Sectors. —The Regional Government shall:

(a) Promote the well-being of differently-abled persons, the mentally
handicapped, the elderly, the homeless, widowed and orphans,
retirees, and veterans, adult offenders and children in conflict with the
law and victims.

(b) Assist victims of calamities, abused and depressed children and women
in crisis situations, including victims of adult offenders and children in
Conflict with the law

Sec. 140. Program for Rebel Returnees. — The Regional Government shall
adopt a social integration program responsive to the needs of rebel returnees
including adult offenders and children in conflict with the law.

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Sec. 141. Social and Insurance Measures. — The Regional Government shall
adopt insurance and social security measures responsive to the needs of its people
to supplement existing privileges.

Sec. 142. Housing Programs. — The Regional Government, in cooperation
with the private sector, shall promote housing programs where needed, which shall
be financed under liberal credit terms and shall utilize indigenous materials,
architecture and technology. Participation of housing cooperatives to administer the
projects shall be encouraged.

Sec. 143. Role of Cordilleran Women. — The Regional Government shall
recognize and strengthen the role of the Cordillera women in nation-building. It shall
ensure the full implementation of the Magna Carta of Women and all other existing
laws that promote the welfare and protection of women.

Sec. 144. Comprehensive Program on Youth. — The Regional Government
shall establish a comprehensive program on youth development, create the
structures to implement the same and appropriate adequate funds to provide
support for the program.

Sec. 145. Support to Peoples’ Organization. — The Regional Government shall
Promote and support duly established peoples’ organizations and encourage the

formation of organizations, especially those of the underprivileged.

ARTICLE XIV
PEACE AND ORDER

Sec. 146. The Regional Government shall promote and maintain peace and
order and public safety in the region. It shall not allow private armies.

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Sec. 147. The defense and security of the autonomous region shall be the
responsibility of the national government with due recognition to recommendations
from the Regional Government.

Sec. 148. The Regional Government shall have co-management over peace-
keeping programs and initiatives and undertake close coordination with the
Philippine National Police as well as the Armed Forces of the Philippines and other
National Law Enforcement Agencies.

Sec. 149. The provisions of the preceding sections notwithstanding, the
Regional Governor may request the President of the Philippines to call upon the
Armed Forces of the Philippines:

(a) To prevent or suppress lawlessness, violence, invasion or rebellion,
when the public safety so requires, in accordance with the provisions
of the Constitution.

(b) To suppress the danger to or breach of peace in the autonomous
region, when the police forces of the autonomous region are not able
to do so.

(c) To avert any imminent danger to public order and security in the
autonomous region.

Sec. 150. The Regional Government shall strengthen and enhance indigenous
institutions or systems as may be applicable and found to be acceptable and
effective in the promotion of social, political, economic and peace and order in the
region. It shall provide for a system of incorporating indigenous practices in conflict
resolution wherever and whenever applicable.

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ARTICLE XV
GENERAL PROVISIONS,

Sec.151. This Organic Act shall be officially promulgated in Filipino and
English and translated into the languages widely spoken in the autonomous region.
In case of conflict, the English text shall prevail.

Sec. 152. The Regional Assembly may adopt a new name for the Autonomous
Region of the Cordillera after public consultation.

Sec. 153. The Regional Government shall have a regional flag, emblem and
hymn.

ARTICLE XVI
PERSONAL, FAMILY, INDIGENOUS AND PROPERTY RELATIONS

Sec. 154. Customary laws affecting personal, family, tribal and property
relations in the Cordillera shall be recognized.

Sec. 155. The family as the basic unit of society shall be protected.

Sec. 156. Marriages solemnized in accordance with the indigenous customary
laws of the place shall be valid, and the dissolution of such marriages in accordance
with these laws shall be recognized.

Sec. 157. Settlement of dispute, criminal or civil, done in accordance with
customary practices shall be recognized.

Sec. 158. Acquisition and encumbrance of property in accordance with
customary laws of the place shall be recognized and protected.
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Sec. 159. Upon agreement of the parties, settlement of disputes involving
property rights and ownership shall be governed by the customary laws of the place
where the property is located.

ARTICLE XVII
AMENDMENTS OR REVISIONS

Sec. 160. Any amendment to, or revision of this Act may be made by
Congress upon recommendation of the majority of all members of the Regional
Assembly.

Sec. 161. Any amendment to or revision of this Organic Act shall become
effective when ratified by a majority of the votes cast in a plebiscite called for the
Purpose which shall be held not earlier than sixty (60) days nor later than ninety
(90) days after the approval of such amendment or revisions.

ARTICLE XVIII
TRANSITORY PROVISIONS

Sec. 162. Coverage of the Plebiscite. — The coverage of the plebiscite shall
be the provinces of Abra, Apayao, Benguet, Ifugao, Kalinga, Mountain Province, and
the chartered City of Baguio. Any two or more provinces and/or cities voting
favorably for this Organic Act in the plebiscite shall comprise the Autonomous Region
of the Cordillera while those voting unfavorably for this Organic Act in the plebiscite
shall revert to their mother region prior to the establishment of the Cordillera
Administrative Region.

Sec. 163. Unless otherwise provided by law, the date of election of the first
set of officials of the Regional Government shall be in the next local election

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following the ratification of this Organic Act in the plebiscite. Subsequent elections
shall coincide with the nationwide local elections.

Sec. 164. For purposes of the first regional election, candidates must have
actually resided and a registered voter in the region for at least seven (7) years
immediately preceding the election. Provided that they meet all other qualifications
and none of the disqualifications under Article V of this Organic Act.

Sec. 165. Except for the regional line agencies, the Cordillera Executive
Board, the Cordillera Regional Assembly, and the Cordillera Bodong Administration
as a commission, created under Executive Order No. 220, and the Cordillera
Regional Development Council created by Executive Order 30 after the de-activation
of the above-mentioned Cordillera bodies, shall cease to exist immediately upon the
assumption of office of the Regional Governor.

Sec. 166. The seat of the Regional Government of ARC shall be determined
by the majority of all members of the Regional Assembly: Provided, however, that
the interim seat of the Regional Government shall be in the City of Baguio.

Sec. 167. Within one (1) month from the organization of the Regional
Government, an Oversight Committee composed of the executive secretary as
Chairperson, the secretary of the Department of Budget and Management, the
Cordillera Regional Governor, the presiding officer of the Cordillera Legislative
Assembly, two (2) senators to be designated by the Senate President, two (2)
representatives to be designated by the Speaker of the House of Representatives,
the incumbent Chairperson and Co-Chairperson of the Regional Development
Council, the Secretary of the Department of the Interior and Local Government, the
Chairperson of NCIP as members, shall be organized for the purpose of supervising
the transfer to the autonomous region of such powers and functions vested in it by
this Organic Act and the appropriations of the offices or agencies including the
transfer of properties, assets and liabilities, and all personnel of the line agencies

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and government-owned or —controlled corporations that may be absorbed by the
Regional Government and, with respect to the latter, also the terms and conditions
of their turnover, without diminution of their compensation and other benefits.
Provided, the salaries of these absorbed personnel shall continue to be funded by
the national government.

Within six (6) months after its organization, the oversight committee shall
submit its report and recommendation to the President of the Philippines who shall
act on the report and recommendations within ninety (90) days after receipt thereof:
Provided, however, that if the President fails to act within said period, the
recommendations of the Oversight Committee shall be deemed approved.

Sec. 168. Over and above that regularly given to Local Government Units and
regional line agencies, the national government shall continue its annual allotment to
the Regional Government. In addition, the national government shall provide the
Autonomous Region of the Cordillera an annual assistance of Ten billion pesos (P10,
000,000,000.00) for the first five (5) years and Five billion pesos (PS,
000,000,000.00) for the next five (5) years to be allocated in the following manner:

(a) Twenty percent (20%) of the annual subsidy for the Regional
Government shall be for regional infrastructure, livelihood and revenue
generating projects.

(b) Six percent (6%) of the annual subsidy shall remain with the Regional
Government as Trust Fund.

(c) The remaining seventy-four percent (74%) of the annual subsidy shall
be allocated as follows:

1. Twenty-three percent (23%) of the seventy-four percent
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Highly Urbanized Cities which shall be for infrastructure,
livelinood and revenue generating projects.

2. Two percent (2%) of the seventy-four percent (74%) for
Component Cities which shall be for infrastructure, livelihood
and revenue generating projects.

3. Thirty-five percent (35%) of the seventy-four percent (74%)
shall be divided equally among the Municipalities which shall
be for infrastructure, livelihood and revenue generating
Projects.

4. Forty percent (40%) of the seventy-four (74%) shall be
divided equally among the barangays for infrastructure,
livelihood and revenue generating projects.

The projects shall be in accordance with the Regional and Local Development
Plans and Budgets as approved by their respective legislative bodies.

Sec. 169. Disclosure and Transparency. — Funds shall be available exclusively
for the specific purpose for which they have been appropriated. Any officer of the
Autonomous Region of the Cordillera whose duty permits or requires the possession,
custody and disbursement of the funds shall be accountable and responsible thereof.
Financial records shall be kept, audited and made public annually or as often as
maybe necessary.

Sec. 170. The share of each local government unit shall be released without
need of any further action, directly to the provincial, city, municipal or barangay
treasurer, as the case may be on a quarterly basis within five (5) days after the end
of each quarter, and which shall not be subject to any lien or hold back that may be
imposed by the Regional Government for whatever purpose.

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Sec.171. The creation of the Autonomous Region of the Cordillera shall take
effect when approved by a majority of the votes cast by the constituent units
provided in Section 3, Article II of this Act, in a plebiscite which shall be held not
earlier than three (3) months but not later than six (6) months after this Act takes
effect: Provided, that only the provinces and cities voting favorably in such plebiscite
shall be included in the ARC.

The sum of Two billion six hundred ninety five million (P2, 695,000,000) is
hereby appropriated for the following purposes:

(a) Twenty million pesos (PhP20,000,000.00) to be allotted to the Regional
Development Council for the conduct of a well-coordinated inter-
sectoral and inter-agency Regional, Provincial, Municipal and Barangay
information campaign on this Act.

(b) Seventy million pesos (PhP70, 000,000.00) shall be equitably divided
among the provinces and the city for the conduct of IEC purposes.

(c) Twenty Five million pesos (PhP25, 000,000.00) to be allotted to the
Commission on Elections.

(d) Eighty million pesos (PhP80, 000,000.00) to be allotted to the Regional
Government for its initial organizational requirements.

(e) Two billion five hundred million (P2, 500,000,000) for the construction
of the regional government center.

Par (a) and (b) shall be released by the DBM to the RDC through NEDA-CAR
and (c) to COMELEC upon the effectivity of this Organic Act.

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The Regional Development Council with the assistance of the Philippine
Information Agency, and in consultation with the provincial/city governments, the
Cordillera Association of Regional Executives, and other key stakeholders, shall
determine the manner of campaigning and the deputization of government agencies,
non-government organizations and other stakeholders for purposes of conducting a
well-coordinated information campaign within the first three months after the
passage of this Act.

The amount of Two billion six hundred ninety-five million (P2, 695,000,000)
as herein appropriated shall be charged against the contingent fund. Any deficiency
thereof shall be taken from any available funds of the national government.

Sec. 172. Any provision or part of this Organic Act found to be invalid or
unconstitutional shall not invalidate the provisions or parts thereof not affected

thereby.

Sec. 173. All laws inconsistent with this Organic Act are hereby repealed or
modified accordingly.

Sec. 174. Creation of a Local Government Center for the Cordillera.

ARTICLE XIX
EFFECTIVITY

Sec. 175. This Act shall take effect after fifteen (15) days following its

complete publication in at least two (2) national newspapers and all local
newspapers of general circulation in the autonomous region.

Approved,