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

Seventeenth Congress
First Regular Session

BILL yo 8EO1

HOUSE

Introduced by Honorable Jose Carlos L. Cari

EXPLANATORY NOTE

This bill seeks to empower cities and municipalities to exercise police power on sand, gravel
and other quarry resources on their territory to be used exclusively for public purpose. Section 138 of
Republic Act No. 7160, otherwise known as the Local Government Code, grants the provincial
governor the exclusive power to issue permits for the extraction of sand, gravel and other quarry
resources, Likewise, under Section 49 of Republic Act No. 7942 otherwise known as the Philippine
Mining Act of 1995, the provincial governor has the authority to issue the government gratuitous
permits to extract sand, gravel and other quarrying resources, It has been observed however, that no
proper monitoring of extracted sand, gravel and other quarry resources is made in sites which are far
from provincial offices and during non-working days resulting in non-payment of correct taxes.
Moreover, city and municipal infrastructure projects become dependent on the approval of gratuitous
permits by the provincial office that are sometimes delayed.

With the enactment of this bill, the city and municipality where the extraction site is located will
be given the responsibility of effectively monitoring the extraction activities in its territory by giving it
the authority to issue the necessary government gratuitous permits and utilizing its barangay executives
to supervise the extraction of sand, gravel and other quarrying resources. The bill likewise grants
authority to cities and municipalities for the development of their territory by expediting the granting of
government gratuitous permits for the extraction of sand, gravel and other quarry materials that are used
in the construction of building/infrastructure projects for public use, The result of efficient monitoring
would be an inerease for the income of all local governments while the granting by the city/municipal
mayors of government gratuitous permits allows for the timely completion of building and
infrastructure projects for the benefit of the local government.

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

‘

i bPAAK

JOSE CARLOS L. CARI


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

Seventeenth Congress
First Regular Session

House BILL No 8804

By Honorable Jose Carlos L. Cari

ANA
AUTHORIZING CITIES AND MUNICIPALITIES TO ISSUE GOVERNM. 3RATUITOUS
PERMITS FOR SAND, GRAVEL AND OTHER QUARRY RESOURCES IN THEIR
TERRITORIAL JURISDICTION, AMENDING FOR THIS PURPOSE SECTION 138 OF
REPUBLIC ACT 7160 OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF
1991 AND SECTION 43 OF REPUBLIC ACT NO, 7942 OTHERWISE KNOWN AS THE
PHILIPPINE MINING ACT OF 1995

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

SECTION 1, Section 138 of Republic Act No. 7160 otherwise known as the Local
Government Code is hereby amended to read as follows:

“See, 138 Tax on Sand, Gravel and Other Quarry Resources, ~ The province may levy and
collect not more than ten percent (10%) of fair market value in the locality per cubic meter of
ordinary stones, sand, gravel, earth, and other quarry resources, as defined under the National
International Revenue Code, as amended, extracted from public lands or from the beds of seas,
lakes, rivers, streams, crecks, and other public waters within its territorial jurisdiction,

The permit to extract sand, gravel and other quarry resources shall be issued (exclusively by
the provincial governor, pursuant to the ordinance of the sangguniang pantalawigan) by the
Provincial Governor or the City/Municipal Mayor, as the ease may be, pursuant to an
ordinance passed by the Sanggunian concerned, The extraction of sand, gravel and other
quarry resources shall be closely monitored by the barangay officials of the place where
the actual extraction is taking pla

The proceeds of the tax on sand, gravel and other quarry resour
follows:

s shall be distributed as

(1) Province ~ Thirty percent (30%);

(2) Component City or Municipality where the sand, gravel and other quarry resources are
extracted — Thirty percent (30%); and

(3) Barangay where the sand, gravel and other quarry resources are extracted ~ Forty percent
(40%)"

SECTION 2. Section 49 of Republic Act No. 7942 is hereby amended to read as follows:

ection 49, Government Gratuity Permit. — Any government entity or instrumentality may
be granted a gratuitous permit by the (provincial governor) city or municipal mayor to extract sand
and gravel, quarry or loose unconsolidated material needed in the construction of building and/ or
infrastructure for public use or other purposes over an area of not more than two hectares (2 has.) for a
period coterminous with said construction.”

SECTION 3. Repealing Clause. All laws, executive orders, rules and regulations or parts
thereof which may be inconsistent with the provisions of this Act are hereby repealed or amended
accordingly.

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

Approved, | AE