FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SEN~TE 
S. No. 1934 
hO'd' ",.. 'r='-' 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
Republic Act No. 7160, otherwise known as the Local Government Code of 1991, 
provides for the following: 1) In case of doubt, any question shall be resolved in favor of 
devolution of powers and of the local government unit (Section 5 raJ); 2) The general welfare 
provisions shall be liberally interpreted to give more powers to local government units in 
accelerating economic development and upgrading the quality of life for the people in the 
community (Section 5[c]); and 3) The policy of the State to require all national agencies and 
offices to 
conduct periodic consultations with appropriate local 
government units, 
nongovernmental and people's organizations, and other concerned sectors of the community 
before any project or program is implemented in their respective jurisdiction (Section 2 [cD. 
In consonance with the said provisions of the Local Government Code, this bill seeks to 
amend the' Local Government Code by giving local governments the power to decide whether 
gambling shall be allowed in their respective localities. 
This bill strengthens the national policies that local govenunent units "shall enJoy 
genuine and meaningful local autonomy" (Sec. 2, R.A. 7160) and that the national government 
shall only exercise "general supervision" and not control over local government units (Sec. 25 
[aJ): 
• This bill was originally filed during the Thirteenth Congress, First Regular Session. 
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FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
Introduced by Senator Miriam Defensor Santiago 
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AN ACT 
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PROVIDING FOR LOCAL AUTONOMY IN THE DETERMINATION OF STATE POLICY 
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ON GAMBLING, AMENDING FOR THIS PURPOSE THE LOCAL GOVERNMENT CODE, 
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REPUBLIC ACT NO. 7160, SECTIONS 2, 27 AND 133 (0) 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. Republic Act No. 7160, otherwise known as the Local Government Code, 
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Section 2 is hereby amended to read as follows: 
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"Section 2. Declaration of Policy. - (a) It is hereby declared the policy of 
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the State that the territorial and political subdivisions of the State shall enjoy 
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genuine and meaningful local autonomy to enable them to attain their fullest 
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development as self-reliant communities and make them more effective partners 
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in the attainment of national goals. Toward this end, the State shall provide for a 
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more responsive and accountable local government structure instituted through a 
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system of decentralization whereby local government units shall be given more 
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powers, authority, responsibilities and resources. The process of decentralization 
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shall proceed from the national government to the local government units. 
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(b) It is also the policy of the State to ensure the accountability of local 
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government units through the institution of effective mechanisms of recall, 
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initiative and referendum. 
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' (c) It is likewise the policy of the State to require all national agencies and 
20 
offices to conduct periodic consultations with appropriate local government units, 
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non-governmental and people's organizations, and other concerned sectors of the 
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1 
community before any project or program is implemented in their respective 
2 
jurisdictions. 
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(D) IT IS FURTHER THE POLICY OF THE STATE TO OBSERVE 
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LOCAL AUTONOMY IN THE DETERMINATION OF STATE POLICY 
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ON 
GAMBLING. 
CONFORMABLY 
WITH 
THIS 
POLICY, 
NO 
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GAMBLING 
ENTERPRISE 
OPERATED 
BY TNDIVIDUALS 
OR 
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CORPORATIONS, OR CONTRACTED OUT BY THE NATIONAL 
8 
GOVERNMENT 
TO 
FOREIGN 
OR 
DOMESTIC 
INDIVIDUALS, 
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CORPORATIONS OR ENTITIES, OR OPERATED BY ANY OF ITS 
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INSTRUMENTALITIES 
OR 
AGENTS, 
SHALL 
BE 
OPERATED, 
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IMPLEMENTED, OR OTHERWISE UNDERTAKEN UNLESS THE 
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CONSULTATIONS MENTIONED IN SECTION 2 (C) & 26 HEREOF 
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HAVE BEEN CONDUCTED AND WITH A MAYOR'S PERMIT, AS 
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APPR9VED BY THE SANGGUNIANG BAYAN OR SANGGUNIANG 
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PANLUNSOD CONCERNED, IS OBTAINED." 
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SECTION 2. Section 133 of the same law is hereby amended to read as follows: 
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"Section 133. Common Limitations on the Taxing Powers of Local 
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Government Units. - Unless otherwise provided herein, the exercise of the taxing 
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powers of provinces, cities, municipalities, and barangays shall not extend to the 
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levy of the following: 
xxx 
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(0) Taxes, fees or charges of any kind on the National Govermnents, its 
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agencies and instrumentalities, and local govermnent units. PROVIDED, 
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HOWEVER, THAT THIS LIMITATION SHALL NOT APPLY TO 
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GAMBLING 
ENTERPRISES 
OPERATED 
BY 
THE 
NATIONAL 
25 
GOVERNMENT OR ITS AGENTS OR INSTRUMENTALITIES, OR 
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CONTRACTED 
OUT 
BY 
ITS 
FOREIGN 
OR 
DOMESTIC 
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CORPORATIONS, INDIVIDUALS OR ENTITIES, WHICH HAVE BEEN 
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GIVEN PERMITS BY THE LOCAL GOVERNMENT UNITS." 
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SECTION 3. Repealing Clause. - Any law, presidential decree or issuance, executive 
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order, letter of instruction, administrative order, rule or regulation contrary to or inconsistent 
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with, the provisions of this Act is hereby repealed, modified or amended accordingly. 
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SECTION 4. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
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publication in at least two (2) newspapers of general circulation. 
Approved, 
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