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

EIGHTEENTH CONGRESS
2n4 Regular Session

House Bill No,_7278

Introduced by Representative ERIC GO YAP

EXPLANATORY NOTE

According to Article X Section 15 of the 1987 Constitution, “There shall be created
autonomous regions in Muslim Mindanao and in the Cordilleras consisting of provinces, cities,
municipalities, and geographical areas sharing common and distinctive historical and cultural
heritage, economic and-social structures, and other relevant characteristics within the framework
of this Constitution and the national sovereignty as well as territorial integrity of the Republic
of the Philippines.”

Through Executive Order No. 220, which was signed into law on July 15, 1987,
the Cordillera Administrative Region was established. It is composed of Abra, Apayao,
Benguet, Ifugao, Kalinga, Mountain Province, and Baguio City. The law then states that
CAR shall have the following purposes: (a) to administer the affairs of government in
the region, (b) to accelerate the economic and social growth and development of the
units of the region, and (¢) to prepare for the establishment of the autonomous region
in the Cordilleras.

More than three decades since then, the Constitutional Mandate to create an
autonomous region in the Cordillera is yet to be fulfilled. This bill seeks to establish the
Autonomous Region of the Cordillera. it shall provide for the self-determination of the
Cordilleran people to secure their identity, posterity, and development.

This endeavor is also strengthened by the collective support from the Cordilleran
people themselves. Indicated through more than 123 resolutions, manifestos, and
statements of support gathered since 2013 from the different government units and
other stakeholders from the region, the people of Cordillera have expressed their
support to the pursuit of regional autonomy.

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

= ERIC GO YAP


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

EIGHTEENTH CONGRESS
2nd Regular Session

House Bill No. 7778

Introduced by Representative ERIC GO YAP

Sh

AN 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, imploring the will of Divine Providence, exercising our
fundamental and Constitutional right to self-determination, faithful to the pursuit of our
forebears for the 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, fairness, freedom, justice, love and solidarity through
an Autonomous Region that shall ensure 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.

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.”

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

ARTICLE II
AREA 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 (ARC) shall consist of the city and provinces that


shall vote favorably in the plebiscite called for the ratification of this Organic Act
pursuant to Section 18, Article X of the 1987 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 residents for at least one (1) year within the ARC.

ARTICLE III
DECLARATION OF POLICIES AND PRINCIPLES

SEC. 5. Integral Part of the Republic. - The ARC shall remain an integral and
inseparable part of the national territory of the Philippines as defined by the
Constitution and existing laws. The autonomous region shall be governed and
administered in accordance with the laws enacted by the Regional Assembly and by this
Organic Act.

SEC. 6. Equitable Share in the National Budget and Development Assistance. ~
The 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, economic,
social and cultural development within the framework of national sovereignty and in
accordance with the Constitution.

SEC. 8. Democratic Political System. - The Regional Government is a democratic
political system allowing the people to participate in the political processes.

SEC. 9. Prior and Preferential Right. - Cordillerans shall have prior and
preferential right to the natural, material, and fiscal resources of the ARC.

SEC. 10. Fundamental Rights and Duties of People. - The fundamental rights and
duties of the people in the ARC are those defined in the Constitution, this Organic Act
and the Indigenous Peoples Rights Act.

SEC. 11. Rights to Initiatives, Consultations, Referenda and Plebiscites. ~
Without prejudice to other rights guaranteed by the Constitution, the rights of the
people of the ARC to initiate measures for the passage, amendment or repeal of regional
or local legislation; to be consulted on matters that affect their welfare; to call for a
referendum on important issues affecting their lives; and, to recall regional or local


officials as provided by Republic Act (RA) No. 7160, also known as 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, inhumane 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. Devolution of Powers. - The Regional Government shall adopt a policy
on local autonomy whereby regional powers shall be devolved to local government
units (LGUs) particularly in areas of education, health, human resources, science and
technology, and people empowerment. Until a law implementing this provision is
enacted by the Regional Assembly, the provisions of RA 7160 shall continue to apply to
all provinces, cities, municipalities, and barangay within ARC.

The regional assembly shall not pass any law to diminish, lessen or reduce the
powers, functions, and shares in the internal revenue allotment of the said local
government units as provided by RA 7160.

SEC. 16. 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, conservation and protection of natural resources
by promoting the sustainable use and management thereof and adopts environmentally
sound and appropriate technology in the management of natural resources. The use of
renewable energy shall be promoted for power generation.

SEC. 17. Community Responsive Education. - The Regional Government shall
integrate in the educational system a subject that responds to the needs of the Cordillera
communities which respects and promotes Cordilleran knowledge, core values,
systems, institutions, culture and practice; encourages the use of languages and
methods of education; promotes science and appropriate technology and
methodologies that encourage creative and critical thinking of the Cordilleran.

SEC. 18. Protection and Empowerment. - The Regional Government shall
formulate plans and programs for the empowerment of the youth and guarantees their
effective participation and representation in all aspects of public affairs. Laws shall be
enacted, and measures adopted to protect women and children against all forms of
neglect, cruelty, and exploitation which are harmful to their moral, physical, or mental
health.


SEC. 19. Regional Arrangements, ~ The Regional Government 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.

SEC. 20. 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 or religious belief.

SEC. 21. 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. 22. 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 exploitation 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.

SEC. 23. Customary Laws. - Existing customary justice and laws on personal,
family and property relations shall be respected.

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 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 units,

SEC. 25. Devolved Powers. - The Autonomous Region of the Cordillera 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:
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:
a. Authority to regulate power generation, transmission and distribution
operating exclusively in the autonomous region; and
b. Imposition of taxes except those which are already taxed by the national
and local government.

(3) Ancestral domain and natural resources:

a. Protection of the ancestral domain and ancestral lands of indigenous
cultural communities (ICCs) consistent with IPRA.

b. Declaration of nature reserves and aquatic parks, forests, watershed
reservations, and other protected areas in the autonomous region.

c. 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 including strategic minerals such as uranium,
petroleum, and other fossil fuels, mineral oil, and all sources of potential
energy.

4. Regulation of small-scale mining to the end that the ecological balance,
safety and health, and the interests of the affected communities, and the
local government units of the place where such operations are conducted
are duly protected and safeguarded.

(4) Urban and rural planning development:
a. Adoption and implementation of a comprehensive land use program;
b. Land management, land distribution, and agricultural land use
reclassification; and
c. Authority to conduct cadastral survey in coordination with the
Department of Environment and Natural Resources (DENR).

(5) Economic, social and tourism development:
a. Establishment of transportation and communication facilities;
b. Promotion of tourism within the autonomous region; and
c. Regulation of games and amusement operations within ARC.

(6) Educational policies in skills training, research and scholarships.

(7) Preservation and development of the cultural heritage, establishment of its
own libraries and museums, and declaration of historical and cultural sites,
in coordination with the National Commission for Culture and the Arts
(NCAA); and

(8) Such other matters for the promotion of the general welfare of its inhabitants.

B. Intergovernmental Relations


SEC. 26. 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. 27. Regional Line Agencies. - Regional Line Agencies shall continue to exist
without diminution of their mandated authority. Regional line agency officials and
employees shall continue to be paid by the national government. 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. 28. Tenure of Civil Service Employees. - Except for just cause and after due
process, 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.

- Officials and employees of the regional autonomous

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. 30. 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.

SEC. 31. Budget Preparation. - Regional line agencies and offices shall prepare
their respective budgets separate and distinct from the budget of the Regional
Government. Their budgets shall however be furnished to the regional government to
ensure that plans and priorities of the autonomous region are harmonized and properly
considered in the budgeting processes.

SEC. 32. Management of ODA Funds, - The autonomous region may 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. 33. Government Owned and Controlled Corporations. - Government
Owned and Controlled Corporations such as the Government Service Insurance System,
the Social Security System, the Pagtutulungan-Ikaw, Bangko Industriya't Gobyerno
(PAG-IBIG), PhilHeaith and others shall continue to be governed by their respective
charters and other pertinent laws.

SEC. 34. Autonomy of Local Government Units. - 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. 35. Supervision of Local Government Units through the Regional Governor.
~ Consistent with the basic policy on local autonomy, the President, through the
Regional Governor shall exercise supervision over LGUs in the autonomous region to
ensure that their acts are within the scope of their prescribed powers and functions.

SEC. 36. 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. 37. 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. 38. Equitable Share in the 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. 39. City Charters. - Chartered cities within the autonomous region shall be
governed primarily by their charters.

SEC. 40. 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. 41. Right of LGU’s to Aggregate. - Local government units in the
autonomous region may group themselves, consolidate or coordinate their efforts,
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. 42. 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. 43. Qualifications, -

(a) Candidates for Regional Governor and Vice Governor positions must be a
citizen of the Philippines and a Cordilleran, at least twenty-five (25) years of
age on election day, a registered voter in the region and a resident thereof for
a period of at least one (1) year immediately preceding the day of election,
able to read and write Filipino or English;

(b) Candidates for the position of Member of the Regional Assembly must be a
citizen of the Philippines and a Cordilleran, at least twenty five (25) 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 one (1) year immediately preceding
the day of election, able to read and write Filipino or English or any other
local language in the region.

SEC. 44. Disqualifications. - In addition to the disqualifications provided under
Book I, Title Two, Chapter 1, Section 40 of the Local Government Code, candidates for
Regional Governor, Vice-Governor and members of the Regional Assembly must not be
related to the incumbent elected regional officials within the fourth degree of
consanguinity or affinity.

SEC. 45. Manner of Election. - The Regional Governor and Vice-Governor, who
shall belong to the same political party, shall be elected at large by direct vote of the
registered voters of the Autonomous Region of the Cordillera. A vote to the Regional
Governor shall be counted as a vote to the Regional Vice-Governor.

(a) Each province and city shall elect their own representatives to the Regional
Assembly. Any highly urbanized city in the autonomous region is entitled to
four (4) representatives to the Regional Assembly. Each province shall be
entitled to four (4) representatives, two (2) per provincial district, and one (1)
for the component city. Provided: That any component city created after the
effectivity of this Organic Act shall be entitled to representation to the
Regional Assembly as may be provided by law.

(b) 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. 46. 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
thirtieth 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 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. 47. Oath of Office. - The Regional Governor, Vice-Governor and Members
of the Regional Assembly on assuming office shall take the following oath or
affirmation:

“Ido solemnly swear (or affirm) that Iwill 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. 48. 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.

(6) 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.

(c) No member 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 any
member of the regional assembly be appointed to any office which has been
created or the emoluments whereof increased by the Regional Assembly
during the term for which such member 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.

() 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. 49. 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 belonging to the same political party, garnering
the highest percentage of votes in the district represented shall become the
vice-governor or in case of permanent disability, the second highest 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 such members’ election. If the one causing
the vacancy does not belong to any political party, the Regional Governor
shall appoint the nominee of the majority of the members of the assembly.
Provided: That the appointee has all the qualifications and none of the
disqualifications as provided by this Organic Act. Provided further. That in
both cases the appointee comes from the same district.

(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 the office.

SEC. 50. Temporary Vacancies. -

(a) When the Regional Governor is temporarily incapacitated to perform his
duties for physical or legal reasons such as 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 be
exercised if the period of temporary incapacity exceeds thirty (30) working
days.

(b) 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

10


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.

(d) In the event, however, that the Regional Governor concerned fails or refuses
to issue such authorization, the Regional Vice-Governor shalll have the right
to assume the powers, duties and functions of the said office on the fourth
day of absence of the Regional Governor, subject to the limitations provided
in subsection c, hereof.

(e) 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 the highest-ranking Member of the
Regional Assembly, as the case may be.

SEC. 51. Approval of Leaves of Absence. - Leave of absence of elective officials of
the Autonomous Region of the Cordillera shall be approved as follows:

(@) Applications for leave 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 leave of absence of other officials and employees other than
those enumerated above shall follow those stipulated in the Local
Government Code; and

(©) Applications for leave of the Regional Governor shall be approved by the
President.

SEC. 52. Compensation. -

(@) Unless otherwise provided by law, 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 law, the Regional Speaker shall receive an
annual salary equivalent to that of the Regional Governor and members of
the Regional Assembly shall receive an annual salary equivalent to the salary
of the Regional Vice=Governor. No increase in salary provided for by law
shall take effect until after the expiration of the term of office of all members
of the Regional Assembly approving the same.

(©) All regional elective officials shall not receive, during their tenure, any other
emoluments from the government.

i


SEC. 53. Accountability. -

(@) 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. Any member who has a potential conflict of interest that
may arise from the measures filed shall notify the regional assembly. This
section shall be governed by R.A. 6713 or the Code of conduct and ethical
standards for public officials and employees.

(b) Governing law. Discipline of Regional Elective Officials shall be governed by
Chapter 4, Title Two of Book I of R.A 7160 and other applicable laws.
Discipline of Members of the Regional Assembly shall be governed by their
internal rules.

(©) Recall. Regional elective officials may be subject to recall proceedings 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. 54. 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.

SEC. 55. Scope of Executive Authority. - As chief executive of the Regional
Government, the Regional Governor shall exercise control and supervision over all
Programs, projects, services and activities of the Regional Government and supervision
over regional line agencies and local government units within the autonomous region
subject to existing laws.

SEC. 56. State of the Region Address. - The Regional Governor shall deliver the
State of the Region Address to the Regional Assembly at the opening of its regular
sessions.

SEC. 57. Submission of Regional Budget. - The Regional Governor shall submit
the proposed budget 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. 58. 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.

12


SEC. 59. Mandatory Staff. - The regional autonomous government shall have the
following mandatory staff: (1) Regional Executive Secretary, (2) Regional Accountant,
@) Regional Budget Officer, (4) Regional Administrator, (5) Regional Legal Officer, (6)
Regional Treasurer, and (7) Regional General Services Officer. In 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. 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
Jaw, 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, and must
have acquired supervisory or managerial experience 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.

(©) The Regional Executive Secretary shall, subject to the control and supervision
of the Regional Governor, carry out the following functions:

1. Directly assist the Regional Governor in the management of the affairs
pertaining to the Autonomous Region of the Cordillera;

2. Implement directives, orders and decisions of the Regional Governor;

3. Exercise supervision and control over the various units in the Office
of the Regional Governor including their internal administrative
requirements;

4. Exercise supervision, in behalf of the Regional Governor, over the
various agencies under the Office of the Regional Governor;

13


10.
1.

14,

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;

Act on matters referred to the Office of the Regional Governor coming
from the various regional offices and agencies of the government;
Provide consultative, research, fact-finding and advisory service to
the Regional Governor;

Assist the Regional Governor in the performance of functions
pertaining to legislation;

Assist the Regional Governor in the administration of special projects;
Take charge of matters pertaining to protocol in the Regional
Government and ceremonial functions;

. Provide secretarial and clerical services for the Regional Governor

and other bodies;

. Promulgate such rules and regulations necessary to carry out the

objectives, policies and functions of the Office of the Regional
Governor; and
Perform such other functions as the Regional Governor may direct.

2) Regional Accountant

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

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

1.

2.

3.

Install and maintain an internal audit system in the autonomous
region;

Prepare and submit financial statements to the Regional Governor and
to the Regional Assembly;

Apprise the Regional Assembly and other government officials on the
financial condition and operations of the autonomous region;

. Certify to the availability of budgetary allotment to which

expenditures and obligations may be properly charged;

. Review supporting documents before preparation of vouchers to

determine completeness of requirements;

. Prepare statements of cash advances, liquidation, salaries, allowances,

reimbursements and remittances pertaining to the autonomous
region;

. Prepare statements of journal vouchers and liquidation of the same

and other adjustments related thereto;

. Post individual disbursements to the subsidiary ledger and index

cards;

14


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 alll records and reports related thereto; and

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 related course froma
recognized college or university, first grade civil service eligible or its
equivalent, and must have acquired experience in government budgeting for
at least five (5) years.

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

1. Prepare forms, orders, and circulars embodying instructions on
budgetary and appropriation matters for the signature of the Regional
Governor;

2. Review and consolidate the budget proposals of different departments
and offices of the Regional Government;

3. Assist the Regional Governor in the preparation of the budget and
during budget hearings;

4. Study and evaluate budgetary implications of proposed legislation
and submit comments and recommendations thereon;

5. Submit periodic budgetary reports to the Department of Budget and
Management;

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

7. Assist the Regional Assembly in reviewing the approved budgets of
the provincial and highly urbanized cities;

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, holder of a college degree preferably in
law, public administration or any other related course from a recognized

15


college or university and 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 co-terminus with
that of the appointing authority.

(€) 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 under this Organic Act;

. 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 purpose, 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 manmade 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; and

. Exercise such other powers and perform such other duties and

functions as may be 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, member of the Philippine Bar, and must
have been in the practice of law for at least five (5) years.

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

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

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- Formulate measures for the consideration of the Regional Assembly
and provide legal assistance and support to the Regional Governor;

. Develop plans and strategies and upon approval thereof by the
Regional Governor, 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 under this Organic Act;

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

. Be in the frontline of protecting human rights and prosecuting any
violations thereof, particularly those which occur during and in the
aftermath of manmade or natural disasters or calamities;

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

._Inaddition to the foregoing duties and functions, the legal officer shall:

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, jeases and other instruments, involving any

interest of the autonomous region and provide comments and
recommendations on any instrument already drawn;

iii, _ Render opinion in writing on any question of law when requested

to do so by the Regional Governor;

iv. Investigate or cause to be investigated any official or employee of

the Regional Government for administrative neglect or

misconduct in office and recommend appropriate action to the

Regional Governor;

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 recommending appropriate action to the Regional Governor;

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; and

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, holder of a college degree preferably in commerce,
public administration or law from a recognized college or university and
must have acquired experience in treasury or accounting service for at least
five (5) years.

17


(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;

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

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

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, holder of a college degree preferably
on public administration, business administration and management or any
other related course from a recognized college or university, and 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 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;

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:

18


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;

ii, 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
personal, which will be leased to public or private entities;

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

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

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

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

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

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

SEC. 60. Cordillera Development Council. - There shall be a Cordillera
Development Council (CDC) 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. 61. Composition. - The CDC, 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 in ARC.

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

(©) Private sector representatives of duly accredited private sector and non-

government or people's organizations, provided that their composition shall not
be more than one-fourth of the total membership.

19


(d) Regional heads of line agencies who are members of the NEDA Board.

(©) The Council may designate special non-voting members coming from both the
ry designate spec iS
public and private sectors, upon concurrence of the majority of its regular
members.

SEC. 62. Technical Support. - The regional office of the National Economic and
Development Authority (NEDA) shall serve as the secretariat and technical operations
arm of the Council.

‘SEC. 63. Functions. - The Cordillera 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.

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

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

(¢) 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 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.

20


@ Coordinate the monitoring and evaluation of development projects
undertaken by government agencies, local government units, state colleges
and universities, government-owned and/or controlled corporations and
special development authorities in the autonomous region.

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

SEC. 64. Creation of Committees, - The Council may create appropriate technical
and sectoral committees to assist in its work.

SEC. 65. Existing Committees. - Existing regional coordinating committees that
are created by various laws and currently attached to specific agencies, and ad-hoc
Program or project-based steering committees, such as, the 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 CDC. Secretariat work of these inter-agency committees shall continue to be
provided by their mother agency.

ARTICLE VII
THE REGIONAL VICE-GOVERNOR

SEC. 66. Functions. - The Regional Vice-Governor shall assist the Regional
Governor in the day to day operation of the Regional Government, and shall:

1. 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 Organic Act;

2. Exercise the powers and perform the duties and functions of the Regional
Governor in cases of temporary vacancy as provided in this Organic Act;

3. Exercise the powers and perform the duties and functions as may be
prescribed by law.

The Regional Vice-Governor may be appointed to the position of head of regional

offices as may be created by the Regional Assembly, without the need of confirmation
of the Regional Assembly and the Civil Service Commission.

ARTICLE VU
THE REGIONAL ASSEMBLY

2a


SEC. 67. 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 shall have legislative
Powers over those functions enumerated under Section 25.

SEC. 68. Officers. ~ The officers of the Regional Assembly shalll be the Regional
Speaker, two (2) Regional Deputy Speakers, Majority Leader, and a Minority Leader,
who shall be elected, based on the rules adopted and promulgated by the Regional
Assembly, on its first regular session. To head the secretariat of the Regional Assembly,
it shall also elect a Regional Secretary General and a Regional Sergeant-at-Arms.

A. THE REGIONAL SPEAKER

The Speaker, as the political and administrative head of the House, is responsible
for the overall management of the proceedings, activities, resources, facilities and
employees of the House. The Speaker shall:

(@) Prepare the legislative agenda for every regular session, establish systems and
procedures to ensure full deliberation and swift approval of measures
included therein, and may, for the purpose, avail of the assistance of the
Deputy Speakers, the Majority Leader, the chairpersons of the standing
committees and other Members of the Regional Assembly;

(b) Conduct regular monthly caucus of all Members of the Regional Assembly or
groups thereof or as often as may be necessary to discuss priority measures
and to facilitate dialogue, consensus and action on issues and concerns
affecting the Regional Government and the performance of its functions;

(©) Exercise general supervision over all committees and, in furtherance thereof,
conduct regular monthly meetings with the chairpersons and vice.
chairpersons of all standing and special committees to set legislative targets,
review performance in the attainment of targets, ensure that the priority
legislative measures of committees are attuned to the legislative agenda of the
Regional Assembly, and resolve such other issues and concerns that affect the
operations and performance of the committees;

(4) Establish, as far as practicable, an efficient information management system
of the secretariat utilizing among others, modern digital technology, that can:

1. Facilitate access to and dissemination of data and information needed
in legislation inclusive of facilitating real time translation of plenary
proceedings in the major Philippine dialects and languages;

2. Provide a simplified and comprehensive process of gathering,
recording, storage and retrieval of data and information relating to
activities and proceedings of the Regional Assembly;

3. Sustain a public information program that will provide accessible,
timely and accurate information relating to the Regional Assembly, its

22


Members and officers, its committees and its legislative concerns
inclusive of facilitating, as far as practicable, broadcast coverage of
plenary and committee proceedings;

(e) Establish an efficient and effective system to monitor and evaluate the
performance of legislative tasks and duties of the Regional Assembly, its
Members and its committees;

(f) Designate a Member as temporary presiding officer after informing the
Deputy Speakers: Provided, That any such designation shall be effective for
one session day only;

(g) Take appropriate measures as may be deemed advisable or as the Regional
Assembly may direct, to preserve order and decorum in the session hall, the
galleries, lobbies, chambers, offices, corridors and premises of the Regional
Assembly;

(h) Sign all acts, resolutions, memorials, writs, warrants and subpoena that may
be issued by or upon order of the Regional Assembly;

(i) Perform administrative functions such as, among others:

1. Appointment of personnel of the Regional Assembly with authority to
delegate this power;

2. Suspension, dismissal or imposition of other disciplinary measures on
the personnel of the Regional Assembly in accordance with Civil
Service rules: Provided, That the suspension or dismissal of the
Regional Secretary General and the Regional Sergeant-at-Arms shall
take effect only upon the concurrence of the majority of all the
Members of the Regional Assembly;

3. Consolidation or splitting of vacant positions carrying salaries and
wages which may be increased or reduced in the process, or creation
of new positions in accordance with the Regional Appropriations Act:
Provided, That the total amount involved shall not exceed the total
amount appropriated for the salaries and wages of the personnel of the
Regional Assembly;

4. Implementation of merit-based policies and programs on personnel
recruitment, training and development, promotions, incentives and
benefits to ensure that the Regional Assembly has a corps of competent
professionals able to provide needed legislative support services; and

5. Review, approve, and sign contracts entered into by the Regional
Assembly, with the authority to delegate this power.

(i) Prepare the annual budget of the Regional Assembly;
(k) Prepare, in consultation with the appropriate committee of the Regional
Assembly, the rules and regulations governing public access to personal data

and related information, including statements of assets and liabilities, of
Members of the Regional Assembly;

23


()) Develop through an appropriate entity of the Regional Assembly a system for
drug testing, which may provide for the testing of any Member, officer, or
employee of the Regional Assembly, and otherwise shall be comparable in
scope to the system for drug testing in the executive branch of the Regional
Government. Provided, That the expenses of the system may be paid from
applicable accounts of the Regional Assembly for official expenses; and

(m) Require the submission of performance reports at the end of every regular
session and fiscal year from the committee chairpersons, the Regional
Secretary General and the Regional Sergeant-at-Arms, and such other reports
as may be required from all concerned officers and offices of the Regional
Assembly.

The Regional Speaker shall be the permanent head of delegation and
representative of the Regional Assembly in all local or international parliamentary
gatherings and organizations: Provided, That Regional Speaker may designate any
Member of the Regional Assembly to be the representative of the Regional Speaker and
may also determine, upon the recommendation of the Majority Leader, in consultation
with the Minority Leader, who shall constitute the Assembly's delegation to any local
or international conference or forum of parliamentarians and legislators and the
secretariat support staff to be mobilized for the purpose.

B, THE REGIONAL DEPUTY SPEAKERS
The duties and powers of the Regional Deputy Speakers are:

(@) Toassume the duties and powers of the Speaker when so chosen by a majority
vote or by lot among themselves, as the case may be, in cases of absence or
temporary incapacity of the Speaker, until such time that the Speaker returns
to office and resumes work; and, in case of resignation, removal, permanent
incapacity or death of the Speaker, until such time that a new Speaker is
elected and qualified;

(b) To preside over the session when, even if present, the Speaker does not
preside, or has not designated any other Member as temporary presiding
officer as provided in its rules;

(6) To monitor, coordinate and facilitate action on measures filed, requests, and
other concerns of Members of the Regional Assembly representing
constituencies to which they may be assigned by the Speaker;

(d) To recommend to the Regional Speaker appropriate policies, strategies and
programs of action to improve the process of legislation and the quality of
legislative measures, and to effectively address concerns of Members of the
Regional Assembly on matters affecting them, their constituencies, and the
overall operations and integrity of the Regional Assembly; and

24


(¢) To perform such other duties and functions as may be assigned or delegated
to them by the Regional Speaker.

C. THE REGIONAL SECRETARY GENERAL
The duties and powers of the Regional Secretary General are:

(@) To call the session to order, to call the roll of Members of the Regional
Assembly by provinces and cities in alphabetical order, to designate an acting
Floor Leader, to preserve order and decorum, and to decide all questions of
order, as presiding officer pending the election of the Regional Speaker,
during the inaugural session of the Regional Assembly;

(6) To prepare the Order of Business for the inaugural session of the Regional

Assembly which shall include:

1. A Resolution informing the Regional Governor of the Autonomous
Region of the Cordillera that the Regional Assembly has been organized
and has elected its Regional Speaker, Regional Deputy Speakers, Regional
Secretary General and Regional Sergeant-at-Arms;

2. A Resolution of the Regional Assembly providing for a session to hear the
State of the Region Address of the Regional Governor; and

3. A Resolution authorizing the appointment of a committee to inform the
Regional Governor that the Regional Assembly, in session, is ready to
receive the Regional Governor for the State of the Region Address;

(©) To enforce orders and decisions of the Regional Assembly;

(4) To prepare and distribute copies of the Order of Business of the Regional
Assembly to all Members;

(©) To attend alll sessions of the Regional Assembly, call the roll of the Members
and read bills, resolutions, messages, communications, memorials, petitions
and other documents which should be reported to the Regional Assembly or
the reading of which is required by the rules;

( To note all questions of order and the decisions thereon, the records of which
shall be printed at the close of each session for the use of the Members of the
Regional Assembly as appendix to the Journal of such session;

(g) To keep and to certify the Journal of each session which shall be a clear and
succinct account of the business conducted and actions taken by the Regional
Assembly: Provided, That Journals of executive sessions shall be recorded in
a separate book and kept confidential;

(h) To provide the Regional Assembly with information on approved bills to be
transmitted to the Regional Governor for action;

25


(i) To distribute to Members of the Regional Assembly, within six (6) months
after the close of a regular session, copies of the Record of the Regional
Assembly for a regular session and the acts and resolutions passed and
adopted during the same;

@) To transmit, within six (6) months after the close of a regular session, copies
of the Record of the Regional Assembly to the Regional Governor, Regional
Cabinet members, and to other persons or entities as the Regional Assembly
may authorize;

(&) To print and deliver or mail to each Member of the Regional Assembly, at the
commencement of every regular session, a list of the reports submitted to the
Regional Assembly by each head of department of the Regional Executive
Departments;

() To procure and retain sufficient copies of books, records and documents for
the use of the Members of the Regional Assembly and its officers in the library
or archive of the Regional Assembly and in the office of the Regional Secretary
General;

(m) To attest to and affix the seal of the Regional Assembly on all writs,
Warrants and subpoena issued by or upon order of the Regional Assembly or
the Regional Speaker;

(n) To certify and affix the seal of the Regional Assembly on all approved
measures, orders, acts and resolutions;

(0) To submit to the Regional Speaker all contracts and agreements for approval;

(p) To ensure that the employees of the Regional Assembly perform their duties
competently, efficiently and effectively, and in furtherance thereof, to impose
necessary disciplinary measures and recommend dismissal of erring
employees to the Regional Speaker in accordance with Civil Service rules, and
to recommend to the Regional Speaker policies and programs on recruitment
and hiring of competent professionals, the improvement of the capabilities of
personnel to provide needed technical and other support services to the
Members of the Regional Assembly, and the acquisition, improvement and
upgrading of necessary facilities and equipment;

(q) To appoint personnel of the Regional Assembly when authorized by the
Regional Speaker;

(®) To serve as custodian of the property and records of the Regional Assembly
and all government property within its premises, and to make an inventory
of all these property and records at the beginning and end of each regular
session;

26


(6) To cause the quarterly publication of the attendance record of Members of the
Regional Assembly in its sessions and, as far as practicable, their voting
records on bills of regional application in at least two (2) newspapers of
general circulation in accordance with rules and regulations to be issued by
the Regional Speaker; and

(® To perform other duties that may be assigned or ordered by the Regional
Assembly or by the Regional Speaker.

The Regional Secretary General shall prepare and submit to the Regional
Assembly, through the Regional Speaker, at the end of each fiscal year, a comprehensive
report on the performance of the secretariat and the expenditures incurred in the
operations thereof.

D. THE REGIONAL SERGEANT-AT-ARMS
The duties and powers of the Sergeant-at-Arms are:

(a) To attend all sessions of the Regional Assembly unless excused by the
Regional Speaker or the Presiding Officer, and personally or through his
designated representatives, all meetings of the committees;

(b) To strictly enforce rules relating to admission to the session hall, the galleries,
offices, corridors and premises of the Regional Assembly buildings;

(©) To ensure that employees under the office of the Regional Sergeant-at-Arms
observe proper behavior and faithfully perform their duties;

(d) To implement orders and serve all processes issued by authority of the
Regional Assembly or by the Regional Speaker;

(e) To secure and maintain order in the session hall, galleries, offices, corridors
and premises of the Regional Assembly building during sessions, during the
conduct of meetings of committees and during such other proceedings or
activities of the Regional Assembly, whether or not the Assembly is in session;

(f) To secure the safety of the Members of the Regional Assembly while in the
premises or in any other place as the Regional Speaker may direct;

(g) To secure the properties of the Regional Assembly;

(h) To recommend and implement upon the direction of the Regional Speaker,
security management systems, policies and programs that will ensure the
maintenance of order in the premises of the Regional Assembly, protect the
safety of the Members and employees, visitors and other persons who are
within the premises on official business, and the preservation of properties,
equipment, facilities, documents and records of the Regional Assembly; and

27


(i) To act as custodian of the Mace, which shall be the symbol of authority and
shall be borne by the Regional Sergeant-at-Arms while enforcing order on the
floor.

The Sergeant-at-Arms shall prepare and submit to the Regional Assembly,
through the Regional Speaker, at the end of every fiscal year, a performance report
relative to programs and activities relating to the security and maintenance of order in
the Regional Assembly.

SEC, 69. Enactment of Laws 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. 70. Creation, Division, Merger and Abolition of Local Government Units. -
‘The Regional Assembly may, by law create, divide, merge or abolish municipalities or
barangays. The municipalities or barangays created, divided or merged shall be entitled
to their appropriate share in the national taxes or Internal Revenue Allotment (IRA).
Provided, that it shall be approved by a majority of the votes cast in a plebiscite in the
political units directly affected.

SEC. 71. 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 co-
terminus with their overseer.

SEC. 72. 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 and place
of its regular sessions, which shall be held at least once a week. However, the Assembly
may be called to a special session by the Regional Speaker or the Regional Governor
whenever necessary and a notice of meeting shall be sent to the member's place of
residence at least twenty-four (24) hours before the special session is held. Unless
otherwise concurred in by two-thirds (2/3) votes of the members, there being a quorum,
no other matters may be considered at a special session except those stated in the notice.
The Regional Assembly may invite the President and other government officials to
address it.

SEC. 73. Sessions and Quorum. - A majority of all the members of the Regional
Assembly shall constitute a quorum to do business, but a smaller number may adjourn
from day to day and may compel the attendance of absent members in such manner,
and under such penalties as the Assembly may provide in its rules.

On the first regular session following the election of its members, and within
ninety (90) days thereafter, the Regional Assembly shall adopt or update its rules of
proceedings which shall include, among other things, the organization of the Assembly
and the election of its officers, creation of standing committees, the time, place and

28


manner of convening its regular and special sessions, the conduct and discipline of its
members, the conduct and discipline of every person present during its session, the
preparation and publication of its journal, the determination of quorum, and the
necessary votes to pass any measure, and recall proceedings in accordance with the
Local Government Code.

SEC. 74. Law. -

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

(b) No bill 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 Regional
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.

(©) On third reading of a bill, 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 bill passed by the Regional Assembly shall, before it becomes a law, be
presented to the Regional Governor. If the Regional Governor approves the
same, the Regional Governor shall sign it, otherwise, the Regional Governor
shall veto it and return the same to the Regional Assembly with the objections.
The Regional Governor shall communicate the veto on any bill to the Regional
Assembly within ten (10) days from receipt thereof, otherwise, it shall become
a law as if it was signed.

Upon receipt of the veto, the Regional Assembly 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 bill, it shall become a law.

(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 the Regional Governor does not object.

SEC. 75. People's Question Hour. - 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, upon initiative of any Member of the
Cabinet, may, 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 the Cabinet Member's department.

29


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 shalll be respected.

SEC. 76. 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. 77. Appropriations Bill. - The Regional Assembly shall pass an
appropriations bill 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
bill, 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.

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

(©) Aspecial appropriations bill 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.

(4) No law shall be passed authorizing any transfer of appropriations.

(c) 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. 78. Expenditure of Public Funds. - No money shall be paid out of the
regional treasury except in pursuance of an appropriation made by regional law.

(a) 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.

(b) 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

30


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. 79. Certified True Copies of Law. ~ 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 laws and resolutions it passed.

SEC. 80. 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. 81. Program for Development. - Subject to national laws and, sound public
administration principles, exercising the corporate powers of the Regional Government
under the Constitution and RA 7160, the Regional Assembly shall evolve a program for
generating development funds to accelerate social and economic development in the
region. The Regional Government shall implement the same, after conducting public
consultation. Provided, that when regional revenues are insufficient, the difference shall
be funded by the national government.

SEC. 82. 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. 83, Enactment of Necessary Legislation. - When the need arises, the
Regional Assembly shall enact laws 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. 84. Coordination and Cooperation. - 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:

(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
the Internal Revenue Allotment (IRA) provided therewith and the Local
Government Units as well as the allocations already provided through the
regional line agencies.

31


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

SEC. 85. Cordillera Development Plan, - The Regional Government through the
Cordillera 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 shalll 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. 86. Control and Supervision over Natural Resources. - The Regional
Government shall have control and supervision over natural resources in accordance to
this Organic Act.

SEC. 87. 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 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 Filipinos: Provided, that priority be given to Cordillerans in the
implementation of programs, projects, and activities related to these natural resources
in the region and shall comply with the provisions of the Constitution and this Organic
Act.

SEC. 88. 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,
policies, and mechanisms that focus on the protection of the environment, and reduction
of vulnerability from climate change.

SEC. 89. Development of Lands 18° 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 degrees in slope or over, by providing the necessary infrastructure, financial
and technical support.

SEC. 90. 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.

32


SEC. 91. Agrarian Reform. - Subject to ecological considerations, the Regional
Government shall adopt and implement a comprehensive rural agrarian reform
Program, as well as an urban development program consistent with the Constitution
and national laws and policies to ensure the just and sustainable utilization of land
within its jurisdiction.

SEC. 92. 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. 93. 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. 94, Renewable and other Energy Resources and Extractive Industries. ~
Policies on Renewable and other energy resources and extractive industries shall be
drawn up by the Regional Assembly in accordance with its Comprehensive Sustainable
Development Plan, as well as its over-all medium-term and long- term Regional
Development Plan.

SEC. 95. Financial and Technical Assistance Agreements. - The Regional
Governor shall initiate and recommend to the President the applications for financial
and technical assistance agreements covering mineral resources within the region

SEC. 96. Participation 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 member of the Board of the National Economic and Development
Authority.

ARTICLE X
SOURCES OF REVENUES AND OTHER FISCAL MATTERS

SEC. 97. 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 its operations,

33


the Regional Government shall have a share of the national revenues which include the
following:

(a) Three percent (3%) of the National Internal Revenue Taxes. The Regional
Government shall have a share in the national internal revenue taxes
equivalent to 3 percent based on the collection of the third fiscal year
preceding the current fiscal year. Eighty percent (80%) of such share shall be
appropriated in the annual regional budget for development projects. The
internal revenue 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 share in national wealth shall be
used for the preservation and further development of the environment.

The Regional Government shall have a share of one and one-half percent
(1.5%) of the gross sales or receipts derived from 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 the
national wealth within the region irrespective of existing contrary laws, rules
and regulations of national application.

The share in the preceding paragraph shall be distributed in the
following manner:
(1) Province / Highly Urbanized City - Twenty percent (20%)
(2) Component City/ Municipality - Forty percent (40%)
(3) Barangay - Thirty percent (30%)
(4) Region - Ten percent (10%)

(c) Two percent (2%) share out of the Economic Zones Tax. The Regional Government
shall have a separate two percent (2%) share out of the five percent (5%) final
tax on gross income earned or equivalent to forty percent (40%) 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 of two percent

(2%).

(d) Twenty percent (20%) Share of Excess in Value Added Tax. The ARC shall have a
separate twenty percent (20%) share of the excess in VAT collections from the

34


immediately preceding year within the territorial jurisdiction of the
autonomous region. 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.

(€) Fifteen percent (15%) Share of Total Excise Tax. The ARC shall have a separate
fifteen percent (15%) share of the total excise tax collection on all products
subject to excise tax 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.

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.

(6) Fifteen percent (15%) Share of Incremental Excise Tax in Burley and Native Tobacco
Products. The Regional Government shall have a separate fifteen percent (15%
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.

SEC. 99. Downstream Benefits. - The ARC shall be entitled to one and one-half

percent (1.5%) of the gross receipts from the utilization of national wealth sourced or
emanating from the Autonomous Region by persons, individual or juridical entities
operating outside the territorial jurisdiction of the Autonomous Region.

SEC. 99. Sources of Regional Government Revenues. - The ARC shall be entitled

to the following sources of revenues:

35


(a) Fees and charges imposed by the Regional Government;

(b) 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;

(0) Shares and revenue generated from the operations of public utilities within
the autonomous region;

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

(e) 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. 100. Power of Taxation. - The ARC 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. It shall likewise have the power to grant incentives or exemption on fees and
charges which it is empowered to impose under this Act.

SEC. 101. Situs of Taxation. - All corporations, partnerships, and other entities,
including government agencies, government-owned and controlled 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. 102. Appropriations from the National Government. - The national
government shall continue to provide appropriations for the regular operations and
Programs of devolved line agencies in the region to be prepared by the Autonomous
Region of the Cordillera and incorporated under the General Appropriations Act. The
National Government shall provide appropriations for the mandatory organizational
structure and positions of the Autonomous Region of the Cordillera and the latter may
access other special purpose funds appropriated in the national budget.

SEC. 103. Donations to the Regional Government. - Donations or grants to the
region to be used in undertaking projects in health, education, culture, youth and sports
development, housing, science and technology, and in economic development, shalll be
deductible in full in determining the taxable income of the donor or grantor. Provided,
that the validation and certification processes for such donations or grants shall have
been done according to regional law.

36


SEC. 104. Trade Agreements. - The Regional Governor, in accordance with the
provisions of the Constitution and national laws, and upon the recommendation of the
Cordillera Development Council may enter into agreements or trade compacts and
contract loans subject to the ratification of the Regional Assembly to generate grants and
foreign loans for development of the region.

SEC. 105. Limitations on Contracting of Loans. - 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. 106. Banks and other financial institutions. - The ARC shall encourage the
establishment of banks and other financial institutions and their branches to facilitate
the accumulation of capital and investment and the delivery of credit assistance to
business in the region.

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

SEC. 107. 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.

() 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

37


optimum returns on investments and to benefit a greater number of
constituents.

(6) 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. 108. 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. 109. 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. 110. 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;

(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;

(©) 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; and

(@ 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 in a day.

38


SEC. 111. 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; and

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

SEC, 112. 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. 113. Promote Economic Zones. - The Regional Government shall
encourage, promote and support the establishment and development of 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. 114. Marketing and Exportation of Indigenous Products. - The Regional
Government shall, in coordination with local government units, encourage investments,
development, marketing and exportation of indigenous and other local products in
accordance with its development goals and priorities.

SEC. 115. 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).

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

SEC. 116. Regional Educational Policies. ~ The Regional Government shall

formulate educational policies to preserve, safeguard and develop cultural heritage
guided by the following plans and programs:

39


(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;

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

(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. 117. Education with Highest Budget Allocation. - The Regional
Government shall assign the highest budgetary priority to education.

SEC. 118. Exemption from Taxes and Duties. - Private educational institutions,
colleges and universities shall enjoy the protection and support of the 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. 119. 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. 120. 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. 121. 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. 122. State Colleges and Universities. - State colleges and universities in the
region shall form part of the regional educational sub-system of the autonomous region

40


and shall continue to enjoy fiscal and institutional autonomy, continue to be governed
by their respective charters and enjoy support of the Regional Government.

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

(b) 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.

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

SEC. 123. 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. 124. Priority om 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. 125. 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. 126. 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 of
multilingual 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. 127. Sports Development. - The Regional Government shall design and
implement sports development programs, and indigenous games and sports which
shall be a cooperative responsibility of the school, the community, and the government.

SEC. 128. Cultural Heritage Center. - The Regional Government shall establish a
Cordillera Commission for the Preservation and Promotion of Cultural Heritage to

promote, research, document, coordinate with other groups and institutions and
establish and maintain a data bank on all indigenous matters.

ARTICLE XIII SOCIAL JUSTICE, HEALTH AND WELFARE

41


SEC. 129. Measures on Social Protection. - The Regional Government commits
itself to social protection and shall 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;

(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; and

(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. 130. 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 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 sharing schemes that recognize the right of workers to a just share in
the profits of businesses, provide incentives thereof, and the right of the
enterprise to reasonable returns on investments;

(0) Protection of workers against unhealthy and unsafe working conditions; and

(d) Mandatory corporate social responsibility towards employees and host
community.

SEC. 131. 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. 132, 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:

42


(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;

(©) 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;

(©) Establish and maintain an effective food and drug regulatory system which
shall provide for the adoption of an essential drug list, encourage the use of
generic medicines or drugs, and promote the use of herbal medicines and
indigenous health resources;

(© Conduct research on traditional healing methods and promote indigenous
health care practices;

(@ 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. 133. 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.

SEC. 134. 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;
and

(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. 135. 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. 136. 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. 137. 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. 138. 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. 139, 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. 140, 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. 141. Prohibition on Private Armies. - The Regional Government shall
promote and maintain peace and order and public safety in the region. It shall not allow
private armies.

SEC. 142. Defense of the Region. - 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. 144. Peace Keeping Programs. - 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. 144. Regional Emergency. - 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; and

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

SEC. 145. Traditional Conflict Resolution. - 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.

ARTICLE XV
GENERAL PROVISIONS

SEC. 146. Text of the Organic Act. - 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. 147. Change of Name. - The Regional Assembly may adopt a new name for
the Autonomous Region of the Cordillera after public consultation.

SEC. 148. Regional Symbol. - The Regional Government shall have a regional
flag, emblem and hymn.

ARTICLE XVI
PERSONAL, FAMILY, INDIGENOUS AND PROPERTY RELATIONS

SEC. 149, Customary Laws. - Customary laws affecting personal, family, tribal
and property relations in the Cordillera shalll be recognized.

SEC. 150. Protection of the Family. - The family as the basic unit of society shall
be protected.

SEC. 151. Indigenous Marriages. - 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. 152. Indigenous Settlement of Disputes. - Settlement of tribal, personal and
family disputes shall be recognized. Acquisition and encumbrance of property done in
accordance with customary practices, and settlement of disputes involving property
rights and ownership shall be governed by the customary laws of the place where the
property is located.

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ARTICLE XVII
AMENDMENTS OR REVISIONS

SEC. 153. Amendment or Revision. - 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. 154. Effectivity of Amendment or Revision. - Any amendment to or revision
of this Organic Act shall become effective when ratified by a majority of the votes cast
ina 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. 155. 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 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 remain within
their current region.

SEC. 156. Election Date. - 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
following the ratification of this Organic Act in the plebiscite. Subsequent elections shall
coincide with the nationwide local elections.

SEC. 157. Residency Requirement for the First Election. - For purposes of the first
regional election, candidates must have actually resided and a registered voter in the
region for at least one (1) year immediately preceding the election. Provided that they
meet all other qualifications and none of the disqualifications under Article V of this
Organic Act.

SEC. 158. Cessation of Administrative Offices. - 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 No.
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. 159. Seat of the Regional Government. - The seat of the Regional
Government 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. 160. Oversight Committee. - 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 Regional Speaker of the Assembly, 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 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. 161. Government Allocations. - Over and above the 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
(P5,000,000,000.00) for the next five (5) years to be allocated in the following manner:

(a) Ninety percent (90%) of the annual subsidy for the Regional Government
shall be invested exclusively for revenue generating projects.

(b) Ten percent (10%) of the annual subsidy shall remain with the Regional
Government as Trust Fund.

SEC. 162. Fifty percent of the revenues generated mentioned in Sec. 160(a) shall
be re-invested for income generating projects. The remaining revenues generated shall
be distributed as follows:

(a) Fifteen percent (15%) to the Regional Government;
(b) Thirty five percent (35%) to the Province/ highly urbanized city;

SEC. 163. 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. 164. Direct Release of LGUs Share. - The share of each local government
unit shall be released without need of any further action, directly to the provincial, city,

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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.

SEC. 165. Plebiscite. - 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, ina 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:

(@) 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
interagency Regional, Provincial, Municipal and Barangay information
campaign on this Act.

(©) Seventy million pesos (PAP70,000,000.00) shall be equitably divided among
the provinces and the city for the conduct of IEC purposes.

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

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

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

Par (a) and (b) shall be released upon the effectivity of this Organic Act.

The Cordillera 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 deputation 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 shalll be taken from any available funds of the national government.

SEC. 166. Separability Clause. ~ If any provision or part of this Organic Act is
declared as invalid or unconstitutional, the remaining part ot parts thereof not affected
thereby shall remain valid.


SEC. 167. Repealing Clause. - All laws inconsistent with this Organic Act are
hereby repealed or modified accordingly.

SEC. 168. Effectivity. - This Act shall take effect after fifteen (15) days following
its complete publication in the official gazette and in at least two (2) newspapers of
nationwide circulation.

Approved,

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