Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL nov34 3

Introduced by Representatives
TEDDY B. BAGUILAT, JR.; JOSEPH STO. NINO B. BERNOS;
ELEANOR BULUT-BEGTANG; RONALD M. COSALAN; MAXIMO B.
DALOG; MARK O. GO; and ALLEN JESSE C. MANGAOANG

EXPLANATORY NOTE

Article X, Section 15 of the 1987 Constitution mandates the creation of
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 the Constitution, the national sovereignty, and the territorial
integrity of the country.

Pursuant to this mandate, the Autonomous Region in Muslim Mindanao (ARMM)
was created under R.A. 6734 and was strengthened and expanded under R.A. No.
9054. The Autonomous Region of the Cordillera, however, has yet to be realized.

On July 15, 1987, President Corazon C. Aquino issued Executive Order No. 220
creating the Cordillera Administrative Region with the mandate to administer the affairs
of goverment in the region, accelerate the economic and social growth and
development of the unit of the region, and prepare for the establishment of the
Autonomous Region of the Cordillera

Two Organic Acts for an Autonomous Region of the Cordillera were enacted in
1990 and 1998. Both failed ratification, however, mainly because of the people's lack of
information and discussion on the pros and cons of self-governance.


In 2006, the Regional Development Council-Cordillera Administrative Region
(RDC-CAR) decided to renew the pursuit of regional autonomy after it had determined
that the only way to drastically address underdevelopment and poverty in the
Cordilleras would be through regional autonomy. With policy and budgetary support
from the national government, the RDC-CAR has since then engaged in information,
education and communication (IEC) and capability building activities towards regional
autonomy at all levels in the region down to the grassroots.

The RDC-CAR prepared a working draft on Cordillera Regional Autonomy
through intensive public consultation with various political and community leaders,
government agencies, civil society organizations and the private sector. Draft Organic
Acts were adopted and were filed in the 15" Congress as House Bill No. 5595 and in
the 16" Congress as House Bill No. 4649. More recent pulse surveys reveal an
increasing support to regional autonomy.

Cordillera autonomy is seen as the most effective option to provide the region
with the needed solid foundation to pursue sustainable development as the region
hopes to benefit from the management and use of its natural resources. Cordillera
autonomy will bring to the national attention as well as the benefits of accepting and
promoting cultural diversity through the formulation of multi-cultural policies for
Indigenous Peoples (IPs).

Such therefore is a manifestation that regional autonomy is no longer just a
lifelong dream but a vigorous desire. With broad sectoral consultations, stronger
information campaign, active participation and clearer understanding of autonomy by
the people of the Cordilleras, it is imperative and timely that an Organic Act for the
creation of the Autonomous Region of the Cordillera be enacted

The foregoing considered, approval of this Bill is earnestly requested

10 B. DALOG . va

= [
ALLEN JESSE C. MAN ANG ~


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
Seventeenth Congress
First Regular Session

House BILL NODS 43

Introduced by Representatives
‘Teddy Brawner Baguilat Jr., Joseph Sto. Nifio B. Bernos, Eleanor C. Bulut-Begtang,
Ronald M. Cosalan, Maximo B. Dalog, Mark O. Go, Allen Jesse C. Mangaoang

AN ACT ESTABLISHING
‘THE AUTONOMOUS REGION OF THE CORDILLERA (ARC)

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 defense,
protection, conservation and development of our patrimony and cultural heritage, in order to
secure for ourselves and our posterity a region of peace and prosperity founded on truth, freedom,
justice, love and human solidarity through a Regional Autonomous Government that shall ensure
‘our human rights, our human development, and our active participation as citizens in the affairs
of united Philippine State, do proclaim this Organic Act of the Autonomous Region of the
Cordillera.

ARTICLE!
NAME AND PURPOSE

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

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

ARTICLE It
TERRITORY OF THE AUTONOMOUS REGION OF THE CORDILLERA

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

Section 4. Cordilleran Identity. The term Cordilleran shall apply to all citizens of the
Philippines who are domiciled within the territory of the Autonomous Region of the Cordillera.


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ARTICLE IIL
DECLARATION OF POLICIES AND PRINCIPLES

Scetion 5, Integral Part of the Republic. The Autonomous Region of the Cordillera shall

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 concemed explaining
the benefits and proper use of the internal revenue allotments.

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

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

Section 9. Prior and preferential right. Cordillerans shall have prior and preferential right to
the natural, material, and fiscal resources of the region.

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

Section 11. Rights to Initiatives, Consultations, Referenda and Plebiscites. Without prejudice
to other rights guaranteed by the Constitution, the rights of the people to the autonomous region
{o initiate measures for the passage, amendment or repeal of regional or local legislation; to be
consulted on matters that affect their environment; to call for a referendum on important issues

affecting their lives; and, to recall regional or local officials as provided by Republic Act 7160,
the Local Goverment Code of 1991, are hereby recognized.

Section 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

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

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


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

Section 16. Devolution of Powers. The regional government shall adopt a policy on local
autonomy whereby regional powers shall be devolved to LGUs particularly in areas but not
limited to education, health, human resources, science and technology, and people empowerment.
Until a law implementing this provision is enacted by the Regional Assembly, RA 7160, the
Local Government Code of 1991, shall continue to apply to all provinces, cities, municipalities,
and barangay within the autonomous region.

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

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

jate technology and indigenous knowledge systems in the management of natural
resources.

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

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

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

Section 21, Equal Access and non-diserimination. The Regional Government shall ensure
equal access by Cordillerans to resources, employment opportunities and services regardless of
ethnic origin, gender, language, political conviction, economic, social status and/ or religious
beli

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

Section 23. Safeguards on foreign investments. The Regional Government shall provide
incentives to investors, corporations and other businesses, but shall adopt measures to prevent the
abuse of human rights and exploration of natural resources. To this end, the regional government

5



shall adopt local and international safeguards to review and audit the impact of all forms of
foreign aid, loans special projects and the like.

ARTICLE IV:
‘THE AUTONOMOUS REGION OF THE CORDILLERA

A. Powers of the Autonomous Region of the Cordillera

Section 24. Powers and Functions. The regional government shall exercise powers and

Pile Arlee ranonics he Receeion of ie porns a ertions ates
enjoyed by local government units.

Section 25. Devolved Powers. The autonomous region is a corporate entity with jurisdiction in
all matters devolved to it by the Constitution and this Organic Act as herein enumerated:
(1) Administrative organization such as but not limited to:

a. Declaration of holidays,

b. Public administration and bureaucracy for the region, and

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

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

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

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

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

4. Protection of the ancestral domain and ancestral lands of indigenous cultural
communities (ICCs). All lands and natural resources in the autonomous region that
have been possessed or occupied by ICCs since time immemorial, except when

by war, force majeure, or other forms of forcible usurpation, shall form part
‘of the ancestral domain. Such ancestral domain shall include pasture lands, worship
‘areas, burial grounds, forests and fields, mineral resources, except strategic minerals
such as uranium, coal, petroleum; and other fossil fuels, mineral oils, and all sources
of potential energy; lakes, rivers, and lagoons; and national reserves and marine
pska, seal as rat sid wotcshad masa

b. Authority to grant franchises and concessions and may by law empower the Regional
‘Governor to grant leases, permits, and licenses over agricultural, forest, or mineral

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

©. Declaration and disestablishment of nature reserves and aquatic parks, forests, and

minerals such as uranium, petroleum, and other fossil fuels, mineral oil, and all
6


sources of potential energy, provided that the autonomous government shall be
consulted. Permits and licenses and the granting of contracts for this purpose shall be
within the powers of the ARC.
€. Regulation of small-scale mining to the end that the ecological balance, safety and
health, and the interests of the affected communities, the miners, the indigenous
peoples, and the local government units of the place where such operations are
conducted are duly protected and safeguarded.
£ Enactment of a law that regulates the grant of franchises and concessions, and
empowers the Regional Governor to grant leases, permits, and licenses over
agricultural lands and for forest management, subject to the provisions of the
Constitution.
(4) Personal, family and property relations shall be governed by but not limited to customary
justice and laws;
(5) Regional urban and rural planning development such as but not limited to:
a. Adoption and implementation of a comprehensive urban land reform and land use

program,
', Land management, land distribution, and agricultural land use reclassification, and
¢. Authority to conduct cadastral survey.

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

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

b. Promotion of tourism with the autonomous region, and

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

(7) Educational policies such as but not limited to education and skills training, research
councils and scholarships.

(8) Preservation and development of the cultural heritage such as but not limited to the
‘establishment of its own libraries and museums, and declaration of historical and cultural
sites; and culture and language,

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

Section 26. The Regional Government may exercise the power of eminent domain,
B. Intergovernmental Relations

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

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

Section 29. Powers of Regional Line Agencies whose functions are devolved under See 25
a. Regional Line Agencies and offices shall perform those functions devolved by the
Constitution to autonomous regions as enumerated in Section 25 of this Organic Act;
b. Regional line agency officials and employees shall continue to be paid in accordance with
Sec. 33, There shall be no diminution of their compensation and other benefits due its
officials and employees

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


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

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

Section 32. Appointment to Third Level Positions. The Regional Governor shall fill up third
level positions from among at least three (3) recommendces of the regional Personnel Selection
Board (PSB) that shall be duly constituted. Filling up of third level positions of regional line
agencies and offices shall be subject to the Career Executive Service Board (CESB)
requirements, where applicable. Otherwise, the selection requirements of the concerned agency
shall_apply. FILLING UP OF VACANT REGIONAL DIRECTOR AND. ASSISTANT
REGIONAL DIRECTOR POSITIONS OF REGIONAL LINE AGENCIES AND
OFFICES IN THE AUTONOMOUS REGION SHALL FOLLOW THE EXISTING
SCREENING PROCEDURE OF THE CONCERNED AGENCY OR OFFICE AND THE
GUIDELINES PROVIDED BY THE CAREER EXECUTIVE SERVICE BOARD (CESB).
THE REGIONAL GOVERNOR SHALL RECOMMEND A MINIMUM OF THREE (3)
APPLICANTS FROM THOSE WHO APPLIED AND WHO WERE SCREENED FROM
WHOM THE PRESIDENT SHALL SELECT AND APPOINT. REGIONAL DIRECTORS
POSTED IN THE AUTONOMOUS REGION SHALL BE AS EQUALLY QUALIFIED
LIKE THOSE IN OTHER REGIONS FOR PROMOTION TO HIGHER POSITIONS IN
THE VARIOUS DEPARTMENTS, LINE AGENCIES AND OFFICES OF THE
NATIONAL GOVERNMENT.

Section 33. Budget Preparation. Regional line agencies and offices whose functions are
devolved to the regional government under Sec. 25 shall prepare their respective budgets separate
and distinct from the budget of the Regional Government. Their budgets shall however be
attached and form part of the whole budget of the Regional Government when presented to
Congress to ensure that plans and priorities of the autonomous region are harmonized and
properly considered in the budgeting processes. Provided however, after the full implementation
of Sec. 167, the budget of the absorbed RLAs and offices shall continue to be funded by the
national government,

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

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

Section 36. Autonomy of Local Government Units. The local government units shall continue
to be independent from each other and shall have the same set of local officials and employees
and shall enjoy autonomy and continue to exercise the powers granted them under the Local
Government Code and other existing laws. The Local Govemment Code shall apply to all
provinces, cities, municipalities and barangays in the autonomous region until the Regional


‘Assembly shall enact @ 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.

Section 37. 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 direct supervision over provinces and highly urbanized cities in the autonomous
region to ensure that their acts are within the scope of their prescribed powers and functions.

Section 38, Revenues and Taxes accruing to LGUs. Revenues, taxes, fees and charges

generated by the local government units and the regional government from their respective local
tax ordinances shall exclusively accrue to them.

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

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

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

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

Section 43. Right of LGU’s to aggregate. The 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

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

Section 45. Qualifications
a. Candidates for Regional Governor and Vice-Governor positions must be a citizen of the
Philippines and a Cordilleran, at least thirty-five (35) years of age on election day, a
registered voter in the region and a resident thereof for a period of at least five (5) years
immediately preceding the day of election, able to read and write Filipino or English or
any 2 other local languages in the region.

b. Candidates for the position of Member of the Regional Assembly must be a citizen of the
Philippines and a Cordilleran, at least thirty (30) years of age on election day, a registered


voter in the provincial district or city and a resident thereof for a period of at least five (5)
years immediately preceding the day of election, able to read and write Filipino or
English or any other local language in the region.

Section 46. Disqualifications. In addition to the disqualifications provided under Book 1, 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 4"degree of consanguinity or affinity.

‘Section 47. Manner of Election
a. The Regional Governor and Vice-Goveror shall be elected at large by direct vote of the
registered voters of the Autonomous Region of the Cordillera.

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

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

Section 48, Term of Office
a, The term of office of all elective regional officials elected after the effectivity of this
‘Organic Act shall be three (3) years which shall begin at noon on the 30"day of June next
following the day of election and shall end at noon of the same date three (3) years
thereafter, No Regional Governor, Vice-Governor, or Member of the 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.

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

“Ido solemnly swear (or affirm) that I will faithfully and conscientiously fulfill my duties
as Governor/Vice-Governor/Member of the Regional Assembly of the Autonomous
Region of the Cordillera, preserve and defend the Constitution of the Republic of the
Philippines and the Organic Act of the Autonomous Region of the Cordillera, execute
these laws, do justice to alt 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.)

Section 50. Prohibitions

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

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

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¢. No members ofthe Regional Assembly may hold any other office or employment inthe

created or the emoluments whereof increased by the Regional Assembly during the term
for which he/she was elected.

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.

Section 51. Vacancies and Succession

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

official concerned dies, voluntarily resigns, is removed from office, fills up a higher
vacant office, refuses to assume office, fails to qualify, or is otherwise permanently
incapacitated to exercise the powers and discharge the functions of his office.

Section 52. Temporary Vacancies

a. When the Regional Governor is temporarily incapacitated to perform his duties for
physical or legal reasons such as, but not limited to, leave of absence, travel abroad, and
suspension from office, the regional vice governor shall automatically exercise the
powers and perform the duties and functions of the former except the power to appoint,
suspend or dismiss employees which can only 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
wipe Sates yn Rael oprah Nt need kw B= Io

the temporary incapacity is due to legal causes, the regional official
Seoced oun et ahah tetany donmsots dovieg G21 stlt'keol cases to
longer exist.

¢. When the incumbent Regional Governor is traveling within the country but outside his
territorial jurisdiction for a period not exceeding three (3) consecutive days, he may
designate in writing, the officer-in-charge of the said office. Such authorization shall

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specify the powers and functions that the regional official concerned shall exercise except
the power to appoint, suspend or dismiss employees.

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

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 affice, other than the Regional
Vice-Governor or the highest ranking Member of the Regional Assembly, as the case may
be.

Section $3. Approval of Leaves of Absence
Leaves of absence of elective officials of the Autonomous Region of the Cordillera shall be
sproved as follows:
Leaves of absence of regional officials, provincial governor, mayor of a highly urbanized
city or an independent component city shall be approved by the Regional Governor or his
duly authorized representative;
b. Applications for leaves of absence of other officials and employees other than those
enumerated above shall follow those stipulated in the Local Government Code;
c. Application for leave of the Regional Governor shall be approved by the President.

Section $4. Com
&. Unless otherwise provided by law or regional ordinance, the Regional Governor and
Vice-Governor shall receive an annual salary equivalent to that of a department
secretary and undersecretary, respectively, of the national government, which shall not be
decreased during their tenure. No increase in the salary of the Regional Governor and
Regional Vice-Governor shall take effect until after the expiration of the term of the
Regional Governor and Regional Vice-Governor approving the same.

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

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

Section 55, Accountability

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

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

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

ARTICLE VE
‘THE REGIONAL EXECUTIVE DEPARTMENT


REGRESS em vaneune

Section $6. 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.

Section 57. Scope of Executive Authority. As lle ect te Ragiael Govprament Ge
Regional Governor shall exercise control and supervision over all programs, projects, serv

and activities of the Regional Government and regional line agencies and offices abort by the
regional government; and supervision over local government units within the autonomous region.

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

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

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

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

Regional Assembly and availability of funds, create other offices deemed necessary.
The Regional Excetive Secretary andthe heads ofthe varios regional fics and employes

Regional Assembly and compliance to civil service law, rules and regulations and this Organic
Act. The Regional Assembly shall act on said appointment within fifteen (15) days from the date
of submission otherwise the same shall be deemed confirmed.

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

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

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

8


(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 functions and duties delegated to him/her and shall:

en

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

Implement directives, orders and decisions.

Decide, for and in behalf of the Regional Governor, matters not requiring
personal attention of the Regional Governor.

. Exercise supervision and control over the various units in the Office of the

Regional Governor including their internal administrative
Exercise supervision, in behalf of the Regional Governor, over the various
agencies under the Office of the Regional Governor.

|. Provide overall coordination in the operation of the Regional Executive Office.
. Determine and assign matters to the appropriate units in the Office of the

Regional Governor.
Have administrative responsibility for matters in the Office of the Regional
Governor coming from the various regional offices and agencies of government.

). Exercise primary authority to sign papers "By authority of the Regional

Governor”, attest executive orders and other issuances unless attestation is
specifically delegated to other officials by him or by the Regional Governor.
Determine, with the approval of the Regional Governor, the appropriate
assignment of offices not placed by law under any specific regional executive
department.

. 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 Govemor 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.

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

2) Regional Accountant

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

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

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

1.
2,

kM
4.

Install and maintain an intemal 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 autanomous region.

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

4


weNvanveune

5. Review supporting documents before preparation of vouchers to determine
completeness of requirements.
6. Prepare statements of cash advances, liquidation, salaries, allowances,
reimbursements and remittances pertaining to the autonomous region.
7. Prepare statements of journal vouchers and liquidation of the same and other
adjustments related thereto,
Post individual disbursements to the subsidiary ledger and index cards.
|. Maintain individual ledgers for officials and employees of the autonomous region
pertaining to payrolls and deductions.
10. Record and post in index cards details of purchased furniture, fixtures, and
‘equipment, including disposal thereof, if any.
11, Account for all issued requests for obligations and maintain and keep all records
and reports related thereto.
12, Prepare journals and the analysis of obligations and maintain and keep all records
and reports related thereto,
13, Exercise such other powers and perform such other duties and functions as may
be provided by law or ordinance.

3) Regional Budget Officer
(a) The Regional Budget Officer shall be a citizen of the Philippines and a Cordilleran, of
g00d moral character, a holder of a college degree preferably in accounting, economics,
public administration or any related course from a recognized college or university, and a
first grade civil service eligible or its equivalent.
(b) He/she must have acquired experience in government budgeting for at least five (5) years.
(c) The budget officer shall take charge of the budget office and shall:
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

Suit peraic tiger reports to tho Deyarttont of Buigt and Management;
. 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.

ay

4) Regional Administrator
(a) The Regional Administrator shall be a citizen of the Philippines and a Cordilleran, of
good moral character, and a holder of a college degree preferably in law, public
administration or any other related course from a recognized college or tniversity. He/she
must have acquired experience in management and administration work for at least five
(5) years.
(b) uo term of office of the Regional Administrator shall be coterminus with that of the
authority.
(6) Subject to the ‘control and supervision of the Regional Govemor, the Regional
‘Administrator shall:

rc


BESwmevauaune

5)
‘moral

be 15 prescribed by law or by ordinance.
Officer

Regional Legal
(a) The Regional Legal Officer shall be a citizen of the Philippines and a Cordilleran, of good

character, and a member of the Philippine Bar. He must have practiced his

profession or at least five (5) years.
(b) The term of office of the Regional Legal Officer shall be coterminus with that of the

authority.

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

=

. Formulate measures for the consideration of the Regional Assembly and provide
egal assistance and support to the Regional Governor, as the case may be, in
Ses oat eae oa meee pest mae as

Deveiog rin ach ‘ghana wll apa ys Raalonad
Governor, as the case may be, implement the same, particularly those which have
to do with programs and projects related to legal services which the Regional
Govemor is empowered to implement and which the Regional Assembly is
empowered o provide fox ender this Orpc Aci.
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 man-made
oor natural disasters or calamities.
Exercise such other powers and perform such other duties and functions as may
be prescribed by law or ordinance.
Session to ts foregut sd frctons, te lope fcr sal
i. 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.
ii. When required by the Regional Governor, draft ordinances, contracts, bonds,
leases and other instruments, involving any interest of the autonomous region

16


47

vi.

vii.

and provide comments and recommendations on any instrument already
drawn.

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

Investigate or cause to be investigated any Regional Government official or
employee for administrative neglect or misconduct in office, and recommend
‘appropriate action to the Regional Governor as the case may be.
Investigate or cause to be investigated any person, firm or corporation
holding any franchise or exercising any public privilege for failure to comply
with any term or condition in the grant of such franchise or privilege by the
Regional Government, and recommending appropriate action to the Regional
Governor, as the case may be.

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.

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

6) Regional Treasurer

(a) The Regional Treasurer shall be a citizen of the Philippines and a Cordilleran, of good
moral character, and a holder of a college degree preferably in commerce, public
administration or law from a recognized college or university. He/she must have acquired

experience in treasury or accounting service for at least five (5) years.
(b) The Regional Treasurer shall take charge of the Treasury Office, perform the duties

ee for under Book II of the Local Government Code, and shall:
Advise the Regional Governor and other Regional Government officials
concemed 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 fimnds 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 to hinv/her by law or other
competent authority.

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

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

7) Regional General Services Officer

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

(b) The Regional General Services Officer shall take charge of the Office on General
Services and shall:
1. eh emis ft eel of i Rogan Caper aad rani

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

services.

support
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

v7


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 othe foegsing css and functions the General Services OMe aba
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.

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

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

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

Section 64.The Regional Development Council, which shall be headed by the Regional
Governor, shall be composed of the Regional Governor as chair, Private Sector Representative as
co-chair, the Regional Director of NEDA as vice-chair, and the following as members:
(a) All the provincial governors, the city and capital town mayors.
(b) Two (2) members of the Regional Assembly to be designated by its presiding officer.
(©) Private sector representatives of duly accredited private sector and non-government
‘organizations/people's organizations, Provided that their composition shall not be more
than one-fourth of the total membership.
(d) Regional heads of line agencies who are members of the NEDA Board.
(€) The Council may designate special non-voting members (SNVMs) coming from both the
public and private sectors, upon concurrence of the majority of its regular members.

‘Section 65.The regional office of the National Economic and Development Authority (NEDA)
shall serve as the secretariat and technical operations arm of the Council.


Section 66.The Regional Development Council shall:
(@) 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 endore to the national goverment the annual bgt of gency regional
offices, state colleges and universities and special development authoriti

(6 Breese unt nD te hi aid Giboet lst pighetovectoas fn acon
region to support regional development objectives, policies, strategies.

() 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 goverment 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.

(i) Coordinate the monitoring and evaluation of development projects undertaken by
govemment agencies, local govemment units, state colleges und 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,

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

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

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

ARTICLE Vil:
‘THE REGIONAL VICE-GOVERNOR

Section 70. Presiding Officer. The Regional Vice-Govemor shall automatically become the
Presiding Officer of the Regional Assembly.


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

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

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

(©) 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;

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

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

ARTICLE VIE:
‘THE REGIONAL LEGISLATIVE ASSEMBLY

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

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

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

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

Section 76. Sessions and Quorum

(a) 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.

(b) 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

20


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 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.

Section 77. Ordinance

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

(8) No ondimce sll become «bw unless i bas pasod thee readings on separate day, and

inted copies thereof in its final form have been distributed to the members three (3)

days before its passage, except when the Governor certifies to the necessity of its

immediate enactment to meet a public calamity or emergency affecting the region, or the
component provinces, cities, municipalities or barangays.

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

(@ Every ordinance passed by the Regional Assembly shall, before it becomes a law, be

Section 78. People’s Question Hour

dignity of persons appearing in or affected by such inquiries shall be respected.

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

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

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


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

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

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

(€) 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.

Section 81. Expenditure of Public Funds

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

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

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

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

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

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

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


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

Section 87. Enactment of necessary legislation. When the nced arises, the Regional Assembly
shall enact ordinances and necessary legislative measures that shall strengthen and supplement
the implementation of national laws, devolved functions and address conflicting laws.

ARTICLE IX:
PATRIMONY, ECONOMY AND DEVELOPMENT

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

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

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

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

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

Section 91. Preferential Rights of Cordilleras 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 the implementation of
programs, projects, and activities related to these natural resources in the region shall comply
with the provisions of the Constitution and this Organic Act.

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


Section 93. 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.

Section 94. Transportation and communication system. The Regional Government shall, in
coordination with the national government, establish a transportation and communication system
interconnecting the various areas of the autonomous region with each other and to other regions
Gl ar cane es iret operon Geerimnalon eo emo
component local government units shall plan, construct, modemize and maintain rural and urban
infrastructure facilities and utilities, including altemative transport systems within critical
environments.

Section 95. Comprehensive Agrarian Reform Program. 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.

natural resources, appropriate to the socio- cultural and environmental uniqueness of the
Cordillera.

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

eR ea Commies mera ote Rael een, Dope ot
Environment and Natural Resources, National Commission on Indigenous Peoples,

‘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.

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

Section 99. Financial and Technical Assistance Agreements. - The applications for financial
and technical assistance agreements covering mineral resources within the region shall be
commenced at and recommended by the Regional Government to the President.

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

Section 100. Participation of the Autonomous Region of the Cordillera in Government in
Natiowsl Development Fhensing, To ensure tht th Ragjooel development plant ore eet
the national development plans, the Regional Government shall participate in national

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development planning. The Regional Governor shall be a full-fledged member of the Board of the
National Economic and Development Authority.

ARTICLE X:
SOURCES OF REVENUES AND OTHER FISCAL MATTERS:

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

(a) Two and a half percent (2.5%) of the national Internal Revenue Taxes. The Regional
Government shall have @ share in the national internal revenue taxes equivalent to 2.5
percent based on the collection of the third fiscal year preceding the current fiscal year, in
addition to the internal revenue allotment shares of the local goverment units. 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 Goverment
shall be released directly to the Regional Government Treasurer and shall not be subject
to any lien or holdback that may be imposed by the national government for whatever
purpose.

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

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

region irrespective of existing contrary laws, rules and regulations of national application,

(©) 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 eared 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%). The fund shall be used for Trade and Industry
Programs.


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

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

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

(€) Fifteen percent (15%) Share of Total Excise Tax. The Regional Government shall have a
separate fifteen percent (15%) share of the total excise tax collection on locally
manufactured Virginia-type cigarettes manufactured within the territorial jurisdiction of
di ainorice ogi the second call yea precio feat Of Sanaa, ia
addition to the existing shares of the local government units. The fund shall be used for
agriculture programs.

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.

(0) ites percent (15%) Shore of increment Escve Tix be Berkey ond Naive Tobacco
Products. The Regional Government shall have a separate fifteen percent (15%0 share of
the excise tax collected on burley and native tobacco products collected within the region.

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

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

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

Section 102.Sources of Regional Government Revenues. The Regional Government shall have
the power to create its own sources of revenues and to levy fees, charges and taxes subject to such
guidelines and limitations of the Constitution and this Act, consistent with the basic policy of
ees manny et eh a Se ot ad Bee

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

b. Fees and charges imposed by the Regional Government;

¢. 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
Fe Ce


RES wevaueune

13

4d. Shares and revenue generated from the operations of public utilities within the
‘autonomous region;

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

£ Block grants derived from economic agreements or conventions entered into or
authorized by the Regional Assembly, donations, endowments, foreign assistance, and
ther forms of aid, subject to the pertinent provisions of the Constitution.

Section 103. Situs of Taxation. All corporations, partnerships, and other entities, including

Trapt afiae bastoe ora wiaseal orem cline
‘Section 104. Appropriations from the national government to be downloaded to the regional

government
(0) aioe Te ape, Te mein perms Sl ie prove secre
the regular operations and programs of line agencies in the region. In addition, each

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

Section 105. Eighty percent (80%) share of national fees and charges collected within the region

(eg. DOTr, NBI, NSO, BID, PEZA, DFA, DOH, DPWH, DENR, PRC, DOT, DICT, and other

collecting agencies) shall be directly remitted to the regional treasury and fifty percent (50%) of

this share shall be automatically retained by the collecting agencies to augment their regular

“operating expenses.

ep eco ge ce els
jects in health, education, culture, youth and sports

certification processes for such donations or grants shall have been done according to regional
law.

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

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

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


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

Section 111.The Regional Government shall formulate fiscal and regulatory licensing standards
appropriate for the region.

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

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

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

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

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

(d) The Regional Government shall formulate and implement measures to promote indigenous
concept of farming and protect the firmers 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 optimum returns on investments and to
benefit a greater number of constituents.

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

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

Section 114, Promoting the rights of fisher folks.The Regional Government shall recognize,
promote, and protect the rights and welfare of fisher folks, their associations and cooperatives.
The provinces and cities concemed 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.


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

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

(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.

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

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

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

(b) To initiate, encourage and support industrialization in the region, 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,

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

Section 118. 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.

Section 119, Marketing and Exportation of Indigenous Products. The Regional Government
shall in coordination with the local government units, encourage investments, development,
marketing and exportation of indigenous and other local products in accordance with its
development goals and priorities.
Section 120. Cooperatives. The Regional Government shall promote cooperatives registered
with the Cooperative Development Authority as tools for economic development, social justice,
and people empowerment to initiate policies and develop mechanisms to enjoin the participation
a


BRSERE BS eevaneune

BURESSES

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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 XH:
EDUCATION, SCIENCE AND TECHNOLOGY,
LANGUAGE, ARTS AND CULTURE AND SPORT

‘Section 121. Jurisdiction over regional educational policies. The Regional Government shall
have jurisdiction over the formulation of regional educational policies and on the preservation,
safeguarding and development of cultural heritage. It shall have the following plans and
Programs:

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

charters;

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

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

and programs of
both formal and informal education for schools, colleges and universities in the region

Section 122. Education with highest budget allocation. The Regional Government shall assign
the highest budgetary priority to education.

Section 123. Exemption from taxes and duties. Private educational institutions, colleges and
universities shall enjoy the protection and support of the Regional Government. Alll 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.

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

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

SOS 2S Sars Semen Ore Seer cee eco meeenl eeeen Sh regime eins
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.

Section 127. State colleges and universities.


Boevaneune

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

Government.

Regional

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

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

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

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

Section 129. Priority om Indigenous and appropriate technology. The management o'
“otic anne ech an appr too al ee of than cig
research institutions shall be given priority by the Regional Government.

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

Section 131. Medium of instruction, The Regional Government shall retain English and Filipino
as a medium of instruction in all levels of education. Consistent with its regional and cultural
identity, and whenever possible, it shall adopt a system of multi-lingual or mother tongue-based
approach in basic education to strengthen and enrich the various languages and dialects in the
region as well as the national language as maybe appropriate.

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

Section 133. Establishment of Council and Commissions and Center on Research, Cultural
Heritage and Research.
‘The Regional Government shall:
a. Establish a Regional Research Coordinating Council, which shall harmonize the research
and development efforts of the academe, research institutions, citizen's research, other
initiated research in the region.

Center for the promotion, research, documentation, coordination with other groups and
institutions and, establish and maintain a data bank on all indigenous matters

ARTICLE XE
SOCIAL JUSTICE, HEALTH AND WELFARE

Section 134, Measures on Social Protection. The Regional Government commits itself to social
protection and shall among other things, adopt measures to:
(a) Empower and improve the quality of life of the poor, disadvantaged, marginalized, and
vulnerable individuals, families, sectors and communities of the region.

Fi]


BERSSREEEESeevaueune

BSYSSSSHFSESSSSSLSRES LES BRYRKRONE

(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.

(©) Enact eseasures and develop programs tht will protect the people ftom any treat 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.

Employment Opportunities.
parsley peor My Sprncytinaeath pasate ceasater op aloha
all. Towards this end, it shall, among other things, provide for:

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

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

(©) Protection of workers against unhealthy and unsafe working conditions.

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

Section 136, Hiring of Qualified Cordillerans. The Regional Government shall promote the
hiring of qualified Cordillerans in government projects and private businesses located in the
autonomous region.

Section 137. Health as Basic Human Right. The Regional Government recognizes health as a
basic human right and the attainment, maintenance and protection thereof shall be its
responsibility. It affirms health as an instrument for and a product of socio-economic
development. For this purpose, it shall, among other things:
(a) Establish, maintain, and support an effective health care delivery system utilizing primary
health care as a comprehensive and integrated approach.
(b) Ensure that the health care system is governed by the principles of service, social justice
and equity.
(c) Promote health knowledge and skills that will enable its people to take responsibility for
their health.
(4) 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.

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

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

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

Section 139. Rights of Vulnerable Sectors.


BEEBE See vaueunn

‘The Regional Government shall:
(a) Promote the well-being of differently-abled persons, the mentally handicapped, the
elderly, the homeless, widowed and orphans, retirees, and veterans, adult offenders and
children in conflict with the law and victims.
(b) Assist victims of calamities, abused and depressed children and women in crisis
situations, including victims of adult offenders and children in conflict with the law

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

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

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

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

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

Section 145. Support to Peoples’ Organization. The Regional Government shall promote and
support duly established peoples’ organizations and encourage the formation of organizations,
especially those of the underprivileged.

ARTICLE XIV:
PEACE AND ORDER

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

Section 147. The defense and security of the autonomous region shall be the responsibility of the
national government with duc recognition to recommendations from the Regional Govemment.

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

Section 149. The provisions of the preceding sections notwithstanding, the Regional Governor
‘may request the President of the Philippines to call upon the Armed Forces of the Philippines:
(a) To prevent or suppress lawlessness, violence, invasion or rebellion, when the public
safety so requires, in accordance with the provisions of the Constitution.
(b) To suppress the danger to or breach of peace in the autonomous region, when the police
forces of the autonomous region are not able to do so,
(©) To avert any imminent danger to public order and security in the autonomous region.


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

ARTICLE XV:
GENERAL PROVISIONS,

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

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

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

ARTICLE XVI:
PERSONAL, FAMILY, INDIGENOUS AND PROPERTY RELATIONS

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

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

Scetion 156. Marriages solemnized in accordance with the indigenous customary laws of the
place shall be valid, and the dissolution of such marriages in accordance with these laws shall be
recognized.
Section 157. Settlement of dispute done in accordance with customary practices shall be
recognized.

Section 158. Acquisition and encumbrance of property in accordance with customary laws of the
place shall be recognized and protected.

‘Section 159. Upon agreement of the parties, settlement of disputes involving property rights and
ownership shall be governed by the customary laws of the place where the property is located.

ARTICLE XVII:
AMENDMENTS OR REVISIONS,

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

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

Section 162. Coverage of the Plebiscite. The coverage of the plebiscite shall be the provinces of
‘Abra, Apayao, Benguet, Ifugao, Kalinga, Mountain Province, and the chartered City of Baguio.

u


Any two or more provinces and/or cities voting favorably for this Organic Act in the plebiscite
shall comprise the Autonomous Region of the Cordillera while those voting unfavorably for this
‘Organic Act in the plebiscite shall remain within their current region.

‘Section 163. Unless otherwise provided by law, the date of election of the first set of officials of
the Regional Government shall be in the next local election following the ratification of this
Organic Act in the plebiscite. Subsequent elections shall coincide with the nationwide local
elections.

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

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

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

SEUARSEREScavaneune

25 Section 167. Within one (1) month from the organization of the Regional Government, an

26 Ovenigh Commits composed of he exeutve crear a Chaiperon the sera ofthe
27 Department of Budget and Management, the Cordillera Regional Governor, the presiding officer
28 of the Cordillera Legislative Assembly, two (2) senators to be designated by the Senate President,

30 incumbent Chairperson and Co-Chairperson of the Regional Development Council, the Secretary
31 of the Department of the Interior and Local Government, the Chairperson of NCIP as members,
32 shall be organized for the purpose of supervising the transfer to the autonomous region of such
33 powers and functions vested in it by this Organic Act and the appropriations of the offices or
34 agencies including the transfer of properties, assets and liabilities, and all personne! of the line
35 agencies and government-owned or controlled corporations that may be absorbed by the
36 Regional Government and, with respect to the latter, also the terms and conditions of their
37 tumover, without diminution of their compensation and other benefits. Provided, the salaries of
38 these absorbed personnel shall continue to be funded by the national government.

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

pains
49 Cordillera an annual assistance of Ten billion pesos (P10,000,000,000.00) for the first five (5)
50 years and Five billion pesos (PS,000,000,000.00) for the next five (5) years to be allocated in the
51 following manner:

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

3%


BRSSEESHRSERE Som vaneune

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

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

1. Twenty-three percent (23%) of the seventy-four percent (74%) shall be divided
equally among the Provinces and Highly Urbanized Cities which shall be for
infrastructure, livelihood and revenue generating projects.

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

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

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

In the case of a chartered city, barangays shall take their shares from the city government.
Provided, that the projects shall be in accordance with the Regional and Local Development Plans
and Budgets as approved by their respective legislative bodies.

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

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

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

The sum of Two billion six hundred ninety five million (P2,695,000,000) is hereby appropriated
for the following purposes:
(a) Twenty million pesos (PhP20,000,000.00) to be allotted to the Regional Development
Council Council forthe conduct of well-coordnaed intersecoral and inter-agency Regional,
Provincial, Municipal and Barangay information campaign on this Act.
(b) Seventy million pesos (PhP70,000,000.00) shall be equitably divided among the
provinces and the city for the conduct of IEC
© md) Five million pesos (PhP25,000,000.00) to be allotted to the Commission on

(dd) ego million pesos (PhP80,000,000.00) to be allotted to the Regional Government for

its initial organizational requirements.
(c) Two billion five hundred million (P2,S00,000,000) for the construction of the regional
government center.

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


URE SSRESRRESEESeevanewne

‘The Regional Development Council with the assistance of the Philippine Information Agency,

prsansoape hearts dae gov dar arsionr al anceps ay ayenaibal
after the passage of this Act.

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

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

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

‘Section 174, Creation of a Local Government Center for the Cordillera,

ARTICLE XIX:
EFFECTIVITY

Section 175.This Act shall take effect after fifteen (15) days following its complete publication in

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

Approved,