Republic of the Phitippines
House of Representatives
@uesen Gity
EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO.. 3603

Introduced by Representative EDGAR R. ERICE

EXPLANATORY NOTE

With its population of more than 12.8 million’, Metro Manila is currently the 6th
largest megacity in the world, outranking Mumbai, Seoul, New York, Cairo, Osaka,
and Bangkok2. Concomitant with this ever-growing sea of humanity, the metropolis is
constantly besieged by such perennial problems as overpopulated slums,
homelessness, traffic congestion, flash floods, pollution and urban blight. This is
compounded by the limited ability of the agency presently tasked to coordinate the
delivery of basic metro-wide services and facilities, hobbled by the fact that it cannot
exercise the police power and other municipal powers traditionally wielded by its
component local government units.

As organized under Republic Act No. 7924, the Metropolitan Manila
Development Authority is confined only to strictly defined planning, monitoring and
coordinative functions, as well as regulatory and supervisory authority over the
delivery of metro-wide services within the National Capital Region. It cannot even
‘open private roads in gated private subdivisions for the purpose of easing traffic
gridlocks*; neither can it dismantle indiscriminately-installed signages or billboards in
the Metro-Rail Transit for the promotion of the public interest‘. This is because in both
cases, the Supreme Court has held that the MMDA, not being a political subdivision
like provinces and cities, does not possess police or legislative powers.

Yet, the MMDA is unfairly expected to solve all the gargantuan issues spawned
by a burgeoning urban agglomeration. If the metropolitan agency is to deal with NCR's
challenges in a more effective and decisive manner, then it must be invested with
broader political powers and greater financial resources. It must be supported by a
more coer legal and policy framework that empowers, rather than emasculates,
it.

Census of Population (2015). "National Capital Region (NCR)". Total Population by Province, City,
Municipality and Barangay as of August 1, 2015. PSA. Retrieved 25 July 2019 from httpsi/www psa.gov.ph.

2 Major Agglomerations of the World (2019). All urban agglomerations of the world with a population of 1
million inhabitants or more (reference date: 2019-01-01). Retrieved 25 July 2019 from http://eitypopulation.de/
world/Agglomerations.html

3 MMDA vs. Bel-Air Village Association, G:R. No. 135962

“MMDA vs. Trackworks Rail Transit Advertising, GR. No. 167514


Hence, the time has come for the establishment of a metropolitan entity that
will not be a mere administrative coordinating body like the MMDA, but a regional
Political subdivision more akin to the Autonomous Region of Muslim Mindanao. This
Proposed legislation seeks to form a special metropolitan regional government in
Metro Manila vested with the police power and other typical municipal powers, in
addition to the administrative and coordinative functions of the MMDA. It will not result
to the diminution of the local autonomy of the 17 component LGUs of NCR.

The bill defines the jurisdiction of the proposed Metropolitan Manila
Regional Adi ration to the coordination of the following specific metro-wide
services: development planning; transportation and traffic management; solid waste
disposal and management; flood control and sewerage management; urban renewal,
Zoning and land use planning, and shelter services; health and sanitation, urban
Protection and pollution control; public safety and disaster management; public works
and highways; and social welfare and services. It shall have an elected governor,
vice-governor, and members of the metropolitan legislative assembly.

The creation of an empowered regional government in Metro Manila is actually
in step with trends in many countries that implement the concepts of “conurbation”
(which is a region comprising a number of cities, large towns, and other urban
areas that, through population growth and physical expansion, have merged to form
‘one continuous urban and industrially developed area) and "urban agglomeration"
(which is an extended city area comprising the built-up area of a central place and
any suburbs linked by a continuous urban area). The most notable examples are
Metro Tokyo, New York Tri-State Area, Greater London Area, Metro Seoul, Montreal
Urban Agglomeration and Metro Bangkok Administration.

It is respectfully submitted that in order to improve the present state of
governance in Metro Manila, the MMRA should be established to replace the MMDA,
and the metropolitan body's enormous responsibility and accountabilities must be
accompanied by the commensurate augmentation of its political authority and
financial capabilities. Thus, support and approval of this bill is hereby earnestly
enjoined.



Republic of the Philippines
House of Representatives
Quezon City
EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No._3603

Introduced by Representative EDGAR R. ERICE

AN ACT
CREATING A SPECIAL METROPOLITAN POLITICAL SUBDIVISION IN THE
NATIONAL CAPITAL REGION, TO BE CALLED THE “METROPOLITAN MANILA
REGIONAL ADMINISTRATION" (MMRA), DEFINING ITS STRUCTURE OF
GOVERNMENT, ENUMERATING ITS POWERS AND FUNCTIONS, PROVIDING
FUNDING THEREFOR, AND FOR OTHER PURPOSES

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

ARTICLE |
Name and Purpose

Section 1. The name of the Special Metropolitan Political Region in the National
Capital Region shall be the "Metropolitan Manila Regional Administration", unless
provided otherwise by Congress upon the recommendation of the Metropolitan
Legislative Assembly.

Section 2. It is the purpose of this Act to establish, by authority of Section 11, Article
X of the 1987 Constitution, the Special Metropolitan Political Region in the present
National Capital Region, to provide its basic structure of government within the
framework of the Constitution and the national sovereignty and territorial integrity of
the Republic of the Philippines, and to ensure the effective and efficient planning,
Supervision, coordination and delivery of certain metro-wide basic services that
transcend the political and territorial boundaries of the component local government
units of the region.

ARTICLE Il
Area and Seat of Government

Section 1. (a) There is hereby created the Special Metropolitan Political Subdivision
in the National Capital Region (NCR), to be composed of the local government units
(LGUs) voting favorably in the plebiscite called for the purpose, in accordance with


Section 10, Article X of the-Constitution.

(b) The plebiscite shall be conducted in the Cities of Caloocan, Las Pifias, Makati,
Malabon, Mandaluyong, Manila, Marikina, Muntinlupa, Navotas, Parafiaque, Pasay,
Pasig, Quezon, San Juan, Taguig, and Valenzuela, and the Municipality of Pateros.

Section 2. The Metropolitan Legislative Assembly, hereinafter referred to as the
Metropolitan Assembly, shall fix by ordinance the permanent seat of government for
the Metropolitan Manila Regional Administration, taking into consideration
accessibility and efficiency in carrying out its mandate under this Act: Provided, That
the provisional seat of the Regional Government shall be in Makati City.

ARTICLE Ill
Declaration of Policies

Section 1. It is hereby declared to be the policy of the State to treat the National
Capital Region as a special highly-urbanized region where certain metro-wide basic
services can be more effectively and efficiently planned, supervised, coordinated and
delivered by a special metropolitan political subdivision as created herein.

Section 2. In consonance with this policy, the affairs of the NCR shall henceforth be
administered by the Metropolitan Manila Regional Administration (MMRA) to replace
the Metropolitan Manila Development Authority (MMDA) organized under Republic
Act No. 7924. In addition to the planning, monitoring and coordinative functions, as
well as the regulatory and supervisory authority currently exercised by the MMDA
over the delivery of metro-wide services within the NCR, as provided under Section
5 of Republic Act No. 7924, the MMRA shall enjoy the police power, the power of
eminent domain and the power of taxation, without prejudice to, or diminution of, the
autonomy of the affected LGUs concerning purely local matters.

Section 3. The MMRA shall be governed and administered in accordance with
the1987 Constitution, the Local Government Code of 1991, and this Act.

ARTICLE IV
Jurisdiction of the Metropolitan Manila Regional Government

Section 1. Pursuant to Section11, Article X of the 1987 Constitution, the jurisdiction
of the Metropolitan Manila Regional Administration shall be limited to basic services
requiring coordination. As defined under this Act, basic services under the jurisdiction
of the MMRA are those services which have metro-wide impact and transcend legal
Political boundaries or entail huge expenditures such that it would not be viable for
Said services to be provided by the individual LGUs comprising the NCR. These
services are hereby enumerated in the succeeding sections of this Article.


Section 2. Development planning, which includes the preparation of medium and
long-term development plans; the development, evaluation and packaging of projects;
investment programming; and coordination and monitoring of plan-, program- and
project- implementation.

Section 3.Transportation and traffic management, which includes the
formulation, coordination and monitoring of policies, standartis, programs and
Projects to rationalize the existing transport operations, infrastructure requirements,
the use of thoroughfares, and promotion of safe and convenient movement of persons
and goods: provision for the mass transportation system and the institution of a
system to regulate road users; administration and implementation of all traffic
enforcement operations, traffic engineering services and traffic education programs,
including the institution of a single ticketing system in the NCR.

Section 4. Solid waste disposal and management, which includes the formulation
and implementation of policies, standards, programs and projects for proper and
sanitary waste disposal. It shall likewise include the establishment and operation of
Sanitary landfill and related facilities and the implementation of other alternative
Programs intended to reduce, reuse and recycle solid waste.

Section 5. Flood control and sewerage managementwwhich includes the
formulation and implementation of policies, standards, programs and projects for an
integrated flood control, drainage and sewerage system.

Section 6. Urban renewal, zoning and land use planning, and shelter services,
which includes the formulation, adoption and implementation of policies, standards,
rules and regulations, programs and projects to rationalize and optimize urban land
use and provide direction to urban growth and expansion, the rehabilitation and
development of slum and blighted areas, the development of shelter and housing
facilities and the provision of necessary social services thereof.

Section 7. Health and sanitation, urban protection and pollution control, which
includes the formulation and implementation of policies, rules and regulations,
‘standards, programs and projects for the promotion and safeguarding of the health
and sanitation of the region and for the enhancement of ecological balance and the
Prevention, control and abatement of environmental pollution.

Sections, Public ‘safety and disaster management, which includes the formulation
and implementation of programs and policies and procedures to achieve public
safety, especially preparedness for preventive or rescue operations during times of
calamities and disasters such as conflagrations, earthquakes, flood and tidal waves;
and coordination and mobilization of resources and the implementation for
rehabilitation and relief operations in coordination with national agencies concerned.


Section 9. Public works and highways, which includes the formulation and
implementation of policies, standards, programs and projects for an integrated
‘system of inter-LGU highways, roads, bridges, flyovers, waterworks and other
infrastructure facilities intended to service the needs of the residents of the region
and which are funded out of regional funds.

Section 10. Social welfare and services, which includes the formulation and
implementation of programs, policies and procedures on poverty alleviation,
population management and development, drug and alcohol Geo rehabilitation,
livelihood training, and other inter-LGU services.

ARTICLE V
Institutional Linkages of the MMRA

Section 1. The President of the Philippines shall exercise general supervision over
the Metropolitan Manila Regional Administration, to ensure that national laws are
faithfully executed. The MMRA Governor shall exercise general supervision over the
component LGUs of the region, to see to it that regional ordinances in connection
with the metro-wide basic services mentioned under the preceding Article are duly
observed and complied with

Section2.The Regional Government shall maintain close coordination with the
National Government for the orderly implementation and administration of national
programs, policiesand activities within the MMRA.

Section 3. The MMRA shall, in carrying out its functions, consult, coordinate and work
closely with its component LGUs, the National Economic Development Authority
(NEDA) and other national government agencies and accredited people's
organizations (POs); non-governmental organizations (NGOs), and the private sector
Operating in the NCR. The Governor or his authorized representative from among the
Metropolitan Cabinet, shall be ex-officio member of the boards of government
corporations, and of the departments and offices of government whose activities are
relevant to the objectives and responsibilities of the MMRA which shall include but
not limited to Metropolitan Waterworks and Sewerage (MWSS), Department of
Transportation (DoT), Department of Public Works and Highways (DPWH),
Department of Interior and Local Government (DILG), and Housing and Urban
Development Coordinating Committee (HUDCC),

The MMRA shall have a master plan that shall serve as the framework for the
local development plans of the component LGUs.

The MMRA shall submit its development plans and investment programs to
the NEDA for integration into the Medium-Term Philippine Development Plan
(MTPDD) and public investment program.

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The MMRA shall, in coordination with the NEDA and the Department of
Finance (DoF), interface with the foreign assistance agencies for purposes of
obtaining financing support, grants and donations in support of its Programs and
projects.

ARTICLE VI
The Legislative Department

Section 1. The legislative power shall be vested in the Metropolitan Assembly, except
to the extent reserved to the people of Metropolitan Manila Regional Administration
by provisions on initiative and referendum as provided by law.

Section 2, The Members of the Assembly shall be elected by popular vote, with one
(1) member elected from each of the congressional districts corresponding to the
seventeen (17) LGUs within NCR. They shall be elected in the same manner as the
Members of the House of Representatives.

Section 3.No person shall be a Member of the Assembly unless he/she is: (a) a
natural-born citizen of the Philippines; (b) at least twenty-one (21) years of. age on the
day of the election; (c) able to read and write; (d) a registered voter of the district in
which he/she shall be elected on the day he/she files his/her certificate of candidacy;
and (e) a resident thereof for a period of not less than five (5) years immediately
preceding the day of the election.

Section 4. The Assembly shall be composed of the MMRA Vice-Governor as
Presiding Officer, the regular elected Members, the president of the Metro Manila
Mayors League, the president of the Metro Manila Vice-Mayors League, and the
president of the Metro Manila Councilors League.

Section 5.The Assembly, as the legislative body of the MMRA, shall enact
ordinances, approve resolutions and appropriate funds for the general welfare of the
Tegion and its inhabitants pursuant to Section 16 of the Local Government Code, and
in the proper exercise of the corporate powers of the region as provided for under
Section 22 of the Local Government Code. Specifically, the Assembly shall

(a) Approve ordinances and pass resolutions necessary for an effective and
efficient regional government;

(b) Promulgate rules and regulations, and set policies and standards for metro-
wide application governing the delivery of basic services, and prescribe and
collect service and regulatory fees;


(c) Approve metro-wide plans, programs and projects, and issue rules and
regulationsandresolutions deemed necessary by the MMRA to carry out the
Purposes of this Act;

(d) Review all ordinances approved by the sanggunians of component LGUs and
executive orders issued by the mayors of said component units, with respect
to the metro-wide basic services identified under Article IV of this Act, to
determine whether these are within the scope of the prescribed powers of the
sanggunians and of the mayors;

(e) Determine the positions and fix the compensation of the officers and personnel
of the MMRA, regional commissions, boards and offices;

(f) Enact the annual and supplemental budgets of the regional government for
submission to the Department of Budget and Management;

(g) Subject to the provisions of Book II of the Local Government Code and
applicable laws, and upon the majority vote of all the members of the
Assembly, enact ordinances levying taxes, fees and charges, prescribing the
rates thereof for general and specific purposes, and granting tax exemptions,
incentives or reliefs, in connection with the metro-wide basic services
identified under Article IV of this Act;

(h) Subject to the provisions of Book II of the Local Government Code and
applicable laws, and upon the majority vote of all the members of the
Assembly, authorize the MMRA Governor to negotiate and contract loans
and other forms of indebtedness;

(i) Subject to the provisions of Book II of this Code and applicable laws and upon
the majority vote of all the members of the Assembly, enact ordinances
authorizing the floating of bonds or other instruments of indebtedness, for the
Purpose of raising funds to finance development projects;

(@) Appropriate funds for the construction and maintenance or the rental of
buildings for the use of the MMRA; and upon the majority vote of all the
members of the Assembly, authorize the MMRA Governor to lease to private
parties such public buildings held in a proprietary capacity, subject to existing
laws, rules and regulations;

(k) Prescribe reasonable limits and restraints on the use of property within the
jurisdictionof the region;

(1) Review the comprehensive land use plans and zoning ordinances of
component cities and municipalities and adopt a comprehensive regional land
use plan;


(m)Impose and collect fines and penalties for violations of regional ordinances
and regulations; and

(n) Perform such other functions as the law may provide.

Section 6. The Members of the Assembly shall have a term of three (3) years which
shall begin, unless otherwise provided by law, at noon on the 30th day of June next
following their election. No Member of the Assembly shall serve for more than three
(3) consecutive terms. Voluntary renunciation of or removal from office for any length
of time shall not be considered as an interruption in the continuity of his service for
the full term for which he was elected

Section 7. In case of vacancy in the Assembly occurring at least one (1) year before
the expiration of the term of office, a special election shall be called to fill the vacancy
in the manner prescribed by regional ordinance: Provided, That the Member elected
shall serve only for the unexpired term. .

Section 8. Every Member of the Assembly shall take an oath or affirmation of
allegiance to the Republic of the Philippines before taking his/her seat.

Section 9. Unless otherwise provided by Congress, a Member of the Assembly shall
Feceive a monthly compensation corresponding to Salary Grade twenty-eight (28) as
Prescribed under Republic Act No. 6758 and its implementing rules, except the
Presiding Officer of the Assembly who shall receive a monthly compensation
corresponding to Salary Grade thirty (30). They shall not receive during their tenure
any other emoluments from the Government.

Section10. Any Member of the Assembly who accepts an appointment and qualifies
for any position in the Government, including government-owned or controlled
Corporations or their subsidiaries, shall automatically forfeit his/her seat in the
Assembly.

Section11. All Members of the Assembly 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. They shall notify the Assembly of any potential conflict of interest that
may arise from the filing of measures of which they are authors. Any Member found
guilty of non-disclosure as required under this section may be expelled by a two-thirds
(2/3) vote of all the Members of the Assembly, without prejudice to his/her other
liabilities under pertinent legislation.

Section 12. No Member of the Assembly may personally appear as counsel before
Courts of justice or quasi-judicial and other administrative bodies. Neither shall
he/she, directly or indirectly, be interested financially in any contract with, or in any

7


franchise or special privilege granted by the Government, or any subdivision, agency
or instrumentality thereof, including any government-owned or controlled corporation
or its subsidiary, during his/her term of office. He/She shall not intervene in any matter
before any office of the Government for his/her pecuniary benefit or where he/she
may be called upon to act on account of his/her office.

Section 13. No Member shall be questioned or be held liable in any other place for
any speech or debate made in the Assembly or in any committee thereof.

Section 14, The Assembly shall adopt its own internal rules of procedure by a
majority vote of all its Members, which shall include the selection of members of its
standing committees and the suspension or expulsion of its Members.

The Assembly shall elect from among its Members a Majority Floor Leader
and such other officers as the rules may provide.

A majority of all the Members of the 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.

The Assembly or any of its committees may conduct inquiries or public
consultations in aid of legislation in accordance with its rules. The rights of persons
appearing in or affected by such inquiries shall be respected.

The Assembly shall keep a Journal of its proceedings and a record of its
Caucuses and meetings. The records and books of accounts of the Assembly shall
be preserved and be open to public scrutiny. The Commission on Audit shall publish
an annual report of the itemized list of expenditures incurred by the Members of the
Assembly within sixty (60) days from the end of every regular session.

Section 15. The Assembly may request the presence of the MMRA Governor, the
members of the Metropolitan Cabinet or their deputies, as the rules shall provide, for
questioning on matters falling within the scope of their responsibilities. Subject to the
rules of the Assembly, the legislative power to inquire on matters relating to the
exercise of administrative functions by an agency of government within the MMRA.
shall be in the form of written questions.

Section 16. Except as provided by its rules, the Assembly shall meet in open session.
Regular session shall commence on the 4th Monday of July and shall continue to be
in session for such number of days as may be determined by the Assembly until thirty
(30) days before the opening of its next regular session, exclusive of Saturdays,
Sundays and legal holidays. The Assembly may meet in special sessions at the
request of one-third (1/3) of all its Members or by call of the MMRA Governor. Such
special session must be convened with a special agenda.

8


Section 17. No proposed ordinance shall become a law of regional application unless
it has passed three (3) readings on separate days, and printed copies thereof in its
final form have been distributed to its Members three (3) days before its passage,
except when the MMRA Governor certifies to the necessity of its immediate
enactment to meet a public calamity or emergency.

Section 18. Every proposed ordinance passed by the Assembly, shall, before it
becomes a law of regional application, be presented to the MMRA Governor. If he/she
approves the same, he/she shall sign it on each and every page; otherwise, if it
contains ultra vices provisions, or if he/she finds it objectionable on policy grounds, or
both, he/she shall veto it and return it with his/her written objections to the Assembly,
which shall enter the objections at large in its Journal and proceed to reconsider it. If,
after such reconsideration, two-thirds (2/3) of all Members of the Assembly shall agree
to pass the proposed ordinance, it shall become a law of regional application. In all
such cases, the vote shall be determined by yeas or nays, and the names of the
Members voting for or against shall be entered in the Journal. The MMRA Governor
shall communicate his/her veto of any bill to the Assembly within thirty (30) days after
the date of receipt thereof; otherwise, it shall become a law of regional application as
if he/she had signed it.

Section 19. The Presiding Officer of the 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 approved by the Assembly.

ARTICLE VII
The Executive Department

Section 1. The executive power shall be vested in the Regional Governor who shall
be elected at large by direct vote of the people of the Metropolitan Manila Regional
Administration,

Section 2.No person may be elected Governor of the MMRA unless he/she is: (a) 2
naturalborn citizen of the Philippines; (b) a registered voter of the MMRA; (c) able to
Tead and write; (d) at least thirty-five (35) years of age on the day of the election; and
(e) a resident of the MMRA for at least five (5) years immediately preceding the
election,

Section 3. The Governor, as the chief executive of the regional government, shall
exercise such powers and perform such functions as provided by this Act, the Local
Government Code, and other laws. The Governor shall

(a) Execute the regional laws, policies and measures approved by the
Metropolitan Assembly and be responsible for the effective and efficient day-

9


to-day management of the operations of the MMRA;

(b) Exercise general supervision and control over all programs, projects,
servicesand activities of the regional government;

(c) Enforce all laws and ordinances relative to the governance of the MMRA and
theexercise of the appropriate corporate powers provided for under Section
22 of the Local Government Code;

(d) Ensure that the acts of the component LGUs of the region and of their
Officialsand employees, with respect to the metro-wide basic services
identifiedunder Article IV hereof, are within the scope of their prescribed
powers, duties and functions;

(e) Exercise control over all the regional executive departments, commissions,
boards, and offices;

(f) Appoint, subject to civil service laws, rules and regulations, all subordinate
officers and employees, who shall enjoy security of tenure and may be
removed only for cause in accordance with law. The Governor is hereby
authorized to engage the services of experts/consultants either on full time or
part-time basis, as may be required in the performance of his functions and
duties as may be determined by him;

(g) Prepare the annual budget for the operations of the MMRA for submission to
the Assembly;

(h) Represent the regional government in all its business transactions and sign in
its behalf all bonds, contracts, and obligations, and such other documents
upon prior authority of the Assembly or pursuant to law or ordinance;

(i) Carry out such emergency measures as may be necessary during and in the
aftermath of man-made and natural disasters and calamities;

(i) Ensure that all executive officials and employees of the regional government
faithfully discharge their duties and functions as provided by law and this Act,
and cause to be instituted administrative or judicial proceedings against any
Official or employee of the MMRA who may have committed an offense in the
performance of his official duties;

(k) Submit for consideration of the Assembly such other policies and measures
as may be deemed necessary to carry out the purposes and provisions of this
Act;

(1) Subject to the guidelines and policies set by the Assembly, prepare the staffing

10


pattern and fix the number of subordinate officials and employees of the
MMRA; and exercise the power to discipline subordinate officials and
employees under the provision of law;

(m) Prepare an annual report on the accomplishments of the MMRA at the close
of each calendar year for submission to the Assembly and to the President of
the Philippines; and

(n) Perform such other duties as may be assigned to him/her by law or by the
Assembly.

Section 4. Unless otherwise provided by Congress, the Governor shall receive a
monthly compensation corresponding to Salary Grade thirty-one (31) as prescribed
under Republic Act No. 6758 and its implementing rules. He/She shall not receive
during his/her tenure any other emoluments from the Government.

Section 5. There shall be a Regional Vice-Governor of the MMRA who shall have the
same qualifications and term of office, and be elected with and in the same manner
as the MMRA Governor. He/She may be removed from office in the same manner as
the Governor. The Vice Governor shall:

(a) Be the Presiding Officer of the Metropolitan Legislative Assembly and sign
all warrants drawn on the regional treasury for all expenditures appropriated
for the operation of the Assembly;

(b) Subject to civil service law, rules and regulations, appoint all officials and
employees of the Assembly, except those whose manner of appointment is
‘specifically provided in thisCode;

(c) Assume the office of the Governor for the unexpired term of the latter in the
event of permanent vacancy as provided for in Section 44, Book 1 of the Local
Government Code;

(d) Exercise the powers and perform the duties and functions of the Governor in
cases of temporary vacancy as provided for in Section 46, Book | of the
Local Government Code; and

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

Section 6. (a) The terms of office of the Governor and Vice-Governor shall be for a

Period of three (3) years which shall begin at noon on the 30th day of June next
following the day of the election and shall end at noon of the same date three years

11


thereafter.

(b) No Governor or Vice-Governor shall serve for more than three (3)
consecutive terms. Voluntary renunciation of or removal from office for any length of
time shall not be considered an interruption in the continuity of the service for the full
term for which he was elected.

Section 7. Before they enter on the execution of their Office, the Governor and the
Vice-Governor shall take the following oath or affirmation: "I do solemnly swear (or
affirm) that | will faithfully and conscientiously fulfill my duties as Regional Governor
(Regional Vice-Governor) of the Metropolitan Manila Regional Administration,
preserve and defend the Constitution of the Republic, and the national and regional
laws, do justice to every man, and consecrate myself to the service of the Metropolitan
Manila Regional Administration and the nation. So help me God.”

Section 8. In case of death, permanent disability, removal from office, or resignation
of the Governor, the Vice-Governor shall become the Governor to serve the unexpired
term. In which case, the Senior Member of the Assembly shall become the Presiding
Officer. In case of death, permanent disability, removal from office, or the resignation
of both the Governor and the ViceGovernor, the Senior Member of the Assembly shall
become the Governor to serve the unexpired term.

Section 9. In case of temporary incapacity of the Governor to perform his/her duties
‘on account of physical or legal causes, or when he/she is on official leave of absence
or travel outside the territorial jurisdiction of the Republic of the Philippines, the Vice-
Governor, or if there be none or in case of his/her permanent or temporary incapacity
or refusal to assume office, the Senior Member of the Assembly shall exercise the
Powers, duties and functions of the Governor.

Section 10. The Governor or the Vice-Governor may be removed from office for
culpable violation of the Constitution, treason, bribery, graft and corruption, other high
crimes or betrayal of public trust by a three-fourths (3/4) vote of-all the Members of
the Assembly.

The Assembly may initiate the removal of the Governor or the Vice-Governor
under this Section by a majority vote of all its Members. The Assembly shall
promulgate the necessary rules to carry out effectively the purposes of this Section

Section 11. The Governor or the Vice-Governor may be recalled once during his/her
term of office for loss of confidence. The Assembly shall provide the procedure and
system whereby such recall can be made: Provided, That no recall shall take place
within one year from the date of the official's assumption of office or one year
immediately preceding a regional election.

12


Section 12. The Governor shall be assisted by a Metropolitan Cabinet of ten (10)
members, consisting of the Regional Manager, who shall act as the Secretary of the
Cabinet, and the heads of the nine (9) departments corresponding to the nine (9)
metro-wide services mentioned under Article IV of this Act. The Members of the
Cabinet shall come from the local government units within MMRA: Provided, That no
two (2) or more members of the Cabinet shall come from the same LGU.

The members of the Cabinet must be registered voters and residents of the
NCR for at least three (3) years immediately preceding their appointment.

The Governor shall appoint the members of the Cabinet subject to
confirmation by the Assembly.

Section 13. The Governor, the Vice-Governor, and the Members of the Metropolitan
Cabinet and their deputies shall not hold any other office or employment during their
tenure. They shall not, during said tenure, directly or indirectly, practice any other
Profession, participate in any business, or be financially interested in any contract
with, or in any franchise, or special privilege granted by the Government or any
subdivision, agency, or instrumentality thereof, including government-owned or
controlled corporations or their subsidiaries. They shall strictly avoid conflicts of
interest in the conduct of their office.

The spouse and relatives by consanguinity or affinity within the fourth civil
degree of the Governor shall not, during his/her tenure, be appointed members of the
Cabinet or chairpersons of regional commissions, or heads of bureaus or offices,
including government-owned or controlled corporations and their subsidiaries located
in the MMRA.

Section 14. Appointments extended by the Acting Governor within ninety (90) days
before the assumption of office by the elected Governor shall remain effective, unless
revoked by the elected Governor within ninety (90) days from such assumption or
resumption of office.

Section 15. The Governor shall not issue appointments, remove personnel, or unless
authorized by the Commission on Elections, undertake public works projects, within
the prohibited period before and after a regional election as provided by law.

Section 16. The Governor shall appoint, in addition to the members of the Cabinet,
their deputies, the chairpersons and members of the commissions and the heads of
bureaus of the Regional Government, and those whom he may be authorized by
regional law to appoint. The Assembly may, by law, vest the appointment of other
officers or officials lower in rank to the heads of departments, agencies, commissions,
or boards.

Section 17. The Governor shall address the Assembly at the opening of its regular

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session, He/She may also appear before it at any time. The Assembly may invite the
President of the Philippines and other government officials to address it.

ARTICLE VIII
Other Officials of the Metropolitan Manila Regional Administration

Section 1. In addition to the afore-named officials, the MMRA shall have a
Metropolitan Regional Manager, a Secretary to the Metropolitan Assembly, a
Regional Legal Officer, a Regional Treasurer, a Regional Budget Officer, a Regional
Accountant, a Regional Engineer, a Regional Architect, a Regional General Services
Officer, and a Regional Information Officer. They shall be appointed by the MMRA
Governor with the consent and concurrence of the majority of the Metropolitan
Assembly, subject to civil service laws and regulations. They shall enjoy security of
tenure and may be removed for cause in accordance with law.

Section 2. The Assembly may: (a) Create such other offices as may be necessary to
carry out the purposes of the metropolitan regional government; or (b) Consolidate
the functions of any office with those of another in the interest of efficiency and
economy.

Unless otherwise provided herein, heads of departments and offices shall be
appointed by the Governor with the concurrence of the majority of all the Assembly
Members, subject to civil service law, rules and regulations. The Assembly shall act
on the appointment within fifteen (15) days from the date of its submission; otherwise
the same shall be deemed confirmed;

Appointive regional officials shall receive such compensation, allowances, and
other emoluments as may be determined by law or ordinarice, subject to the
budgetary limitations on personal services prescribed under Title Five, Book II of the
Local Government Code: Provided, That no increase in compensation shall take
effect until after the expiration of the full term of all the elective officials approving
such increase.

ARTICLE IX
The Budget Process

Section 1. (a) Each head of department or office shall submit a budget proposal for
his/her department or office to the MMRA Governor on or before the 15th of July of
each year: Provided, That the budget proposal of each department or office shall be
categorized under either economic, social or general services: Provided, further, That
each service shall be covered by the budget of at least one (1) department or office
of the regional government. The said budget proposal shall be prepared in
accordance with such policy and program guidelines as the Governor may issue in
conformity with the regional development plan, the budgetary ceilings prescribed by

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the regional finance committee, and the general requirements prescribed in Title 5,
Book II of the Local Government Code.

(b) Budget proposals of departments or offices shall be divided into two (2)
primary categories, namely: the current operating expenditures and the capital
outlays. Such budget proposals shall contain the following information:

(1) Objectives, functions, and projects showing the general character and
relative importance of the work to be accomplished or the services to
be rendered, and the cost thereof;

(2) Organizational charts and staffing patterns indicating the list of plantilla
positions with their corresponding salaries, and proposals for
reclassification of positions and salary changes, as well as the creation
of new positions with their proposed salary grade, duly supported by
proper justification;

(3) Brief description of the functions, projects and activities for the ensuing
fiscal year, expected results for each function, project and activity, and
the nature of work to be performed, including the objects of expenditure
for each function, project and activity;

(4) Relation of the work and financial proposals to approved local
development plans;

(5) Estimated current operating expenditures and capital outlays with
comparative data for the last two (2) preceding, current, and ensuing
fiscal years; and

(6) Accomplishment reports for the last two (2) preceding and current
fiscal years.

Section 2. Upon receipt of the statements of income and expenditures from the
Regional Treasurer, the budget proposals of the heads of departments and offices,
and the estimates of income and budgetary ceilings from the regional finance
committee, the Governor shall prepare the executive budget for the ensuing fiscal
year in accordance with the provisions of this Article. The Governor shall submit the
Said executive budget to the Metropolitan Assembly not later than the 16th of October
of the current fiscal year. Failure to submit such budget on the date prescribed herein
shall subject the Governor to such criminal and administrative penalties as provided
for under the Local Government Code and other applicable laws.

Section 3. On or before the end of the current fiscal year, the Assembly shall enact,

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through an ordinance, the annual budget of the MMRA for the ensuing fiscal year on
the basis of the estimates of income and expenditures submitted by the Governor.

Section 4. The ordinance enacting the annual budget shall take effect at the
beginning of the ensuing calendar year. An ordinance enacting a supplemental
budget, however, shall take effect upon its approval or on the date fixed therein. The
responsibility for the execution of the annual and supplemental budgets and the
accountability there for shall be vested primarily in the Governor.

Section 5. All budgetary proposals shall be included and considered in the budget
Preparation process. After the Governor shall have submitted the executive budget
to the Assembly, no ordinance providing for a supplemental budget shall be enacted,
except when supported by funds actually available as certified by the local treasurer
or by new revenue sources.

A supplemental budget may also be enacted in times of public calamity by way
of budgetary realignment to set aside appropriations for the purchase of supplies and
materials or the payment of services which are exceptionally urgent or absolutely
indispensable to prevent imminent danger to, or loss of, life or property, in the
jurisdiction of the regional government or in other areas declared by the President of
the Philippines in a state of calamity. Such ordinance shall clearly indicate the sources
of funds available for appropriations, as certified under oath by the Regional
Treasurer and Regional Accountant and attested by the Governor, and the various
items of appropriations affected and the reasons for the change. °

Section 6. Unexpended balances of appropriations authorized in the annual
appropriations Ordinance shall revert to the unappropriated surplus of the general
fund at the end of the fiscal year and shall not thereafter be available for expenditure
except by subsequent enactment. However, appropriations for capital outlays shall
continue and remain valid until fully spent, reverted or the project is completed.
Reversions of continuing appropriations shall not be allowed unless obligations there
for have been fully paid or otherwise settled. The balances of continuing
appropriations shall be reviewed as part of the annual budget preparation and the
Assembly may approve, upon recommendation of the Governor, the reversion of
funds no longer needed in connection with the activities funded by said continuing
appropriations subject to the provisions of this Section.

Section 7. In case the Assembly fails to pass the ordinance authorizing the annual
appropriations at the beginning of the ensuing fiscal year, it shall continue to hold
sessions, without additional remuneration for its Members, until such ordinance is
approved, and no other business may be taken up during such sessions. If the
Assembly still fails to enact such ordinance after ninety (90) days from the beginning
of the fiscal year, the ordinance authorizing the appropriations of the preceding year
shall be deemed re-enacted and shall remain in force and effect until the ordinance

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authorizing the proposed appropriations is passed by the Assembly. However, only
the annual appropriations for salaries and wages of existing positions, statutory and
contractual obligations, and essential operating expenses authorized in the annual
and supplemental budgets forthe preceding yearshall be deemed re-enacted
and disbursement of funds shall be in accordance therewith. In the implementation
of such re-enacted ordinance, the Regional Treasurer shall exclude from the
estimates of income for the preceding fiscal year those realized from nonrecurring
sources, like national aids, proceeds from loans, sale of assets, prior year
adjustments, and other analogous sources of income. No ordinance authorizing
‘supplemental appropriations shall be passed in place of the annual appropriations. In
case the revised income estimates be less than the aggregate re-enacted
appropriations, the Regional Treasurer shall accordingly advise the Assembly which
shall, within ten (10) days from the receipt of such advice, make the necessary
adjustments or reductions. The revised appropriations authorized by the Assembly
shall then be the basis for disbursements.

Section 8. The budgets of the MMRA for any fiscal year shall comply with the
following requirements:

(a) The aggregate amount appropriated shall not exceed the estimates of
income;

(b) Full provision shall be made for all statutory and contractual obligations of
the MMRA: Provided, however, That the amount of appropriations for debt
servicing shall not exceed twenty percent (20%) of the regular income of
the regional government; and

(c) Five percent (5%) of the estimated revenue from regular sources shall be
set aside as an annual lump sum appropriation for unforeseen expenditures
arising from the occurrence of calamities: Provided, however, That such
appropriation shall be used only in the area, or a portion thereof, of the
MMRA declared by the President in a state of calamity.

Section 9. The use of the MMRA funds shall be subject to the following limitations:

(a) The total appropriations, whether annual or supplemental, for personal
services of the Regional Government for one (1) fiscal year shall not
exceed forty-five percent (45%) of the total annual income from regular
sources realized in the next preceding fiscal year. The appropriations for
salaries, wages, representation and transportation allowances of officials
and employees of the public utilities and economic enterprises owned,
Operated, and maintained by the Regional Government concemed shall
not be included in the annual budget or in the computation of the maximum
amount for personal services. The appropriations for the personal services

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of such economic enterprises shall be charged to their respective budgets;

(b) No official or employee shall be entitled to a salary rate higher than the
maximum fixed for his position or other positions of equivalent rank by
applicable laws or rules and regulations issued there under,

(c) No regional fund shall be appropriated to increase or adjust salaries or
wages of officials and employees of the national government, except as
may be expressly authorized by law;

(d) In cases of abolition of positions and the creation of new ones resulting
from the abolition of existing positions in the career service, such abolition
or creation shall be made in accordance with pertinent provisions of this
code and the civil service law, rules and regulations;

(e) Positions in the official plantilla for career positions which are occupied by
incumbents holding permanent appointments shall be covered by
adequate appropriations;

(f) No changes in designation or nomenclature of positions resulting in a
promotion or demotion in rank or increase or decrease in compensation
shall be allowed, except when the position is actually vacant, and the filling
of such positions shall be strictly made in accordance with the civil service
law, rules and regulations;

(g) The creation of new positions and salary increases or adjustments shall in
no case be made retroactive; and

(h) The annual appropriations for discretionary purposes of the Governor shall
not exceed two percent (2%) of the actual receipts derived from MMRA
service fees in the next preceding calendar year. Discretionary funds shall
be disbursed only for public purposes to be supported by appropriate
vouchers and subject to such guidelines as may be prescribed by law. No
amount shall be appropriated for the same purpose except as authorized
under this Section.

Section 10.The Governor shall have the power to veto any particular item or items in
an appropriation or revenue ordinance, but the veto shall not affect the item or items
to which he/she does not object. The veto may be reconsidered and overridden by
the Assembly by a vote of two-thirds (2/3) of all its Members.

Section 11. The Department of Budget and Management shall review ordinances
authorizing the annual or supplemental appropriations of the MMRA.

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Section 12. Appropriations for ordinary administrative purposes not duly obligated
shall terminate with the fiscal year and all unexpended balances thereof shall be
automatically reverted on the 31st of December of each year to the general fund of
the Regional Government.

Section 13. The formulation and enactment of budgets in the MMRA shall observe
the following fundamental principles:

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

(b) No public money or property shall be appropriated, applied, paid or
employed, directly or indirectly, for the use, benefit, or support of any
sect, church, denomination, sectarian institution, or system of religion or
of any priest, imam, preacher, minister, or other religious teacher or
dignitary as such, except when such priest, imam, preacher, minister or
dignitary is assigned to the regional police force or to any penal
institution, or government orphanage or leprosarium within the NCR.

(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 special purpose only.
If the purpose for which a special fund was created has been fulfilled or
abandoned, the balance, if any, shall accrue to the general funds of the
Regional Government.

(d) No funds or resources shall be disbursed unless duly approved by the
Governor or by his/her duly authorized representative.

(e) Trust funds shall only be paid out of the Regional Treasury upon
fulfilment of the specific purpose for which said funds were created or
received.

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

(g) The procedure in approving appropriations for the Metropolitan
Assembly shall strictly follow the procedure for approving appropriations
for other departments and agencies of the Regional Government.

(h) 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

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revenue proposal therein.

(i) No regional ordinance shall be passed authorizing’ any transfer of
appropriations; however, the Governor may, by regional law, be
authorized to augment any item for his/her office from savings in other
items of the appropriations for his/her office.

Section 14. There is hereby created in the MMRA a regional finance committee to
be composed of the Member of the Metropolitan Cabinet who heads the Development
Planning Department, the Regional Budget Officer, and the Regional Treasurer. It
shall exercise the following functions:

(a) Determine the income reasonably projected as collectible for the
ensuing fiscal year;

(b) Recommend the appropriate tax and other revenue measures or
borrowings which may be appropriate to support the budget;

(c) Recommend to the Governor the level of the annual expenditures and
the ceilings of spending for economic, social, and general services based
‘on the approved regional development plans;

(d) Recommend to the Governor the proper allocation of expenditures for
each development activity between current operating expenditures and
capital outlays;

(e) Recommend to the Governor the amount to be allocated for capital
outlay under each development activity or infrastructure project; and

(f) Conduct semi-annual review and general examination of cost and
accomplishments against performance standards applied in undertaking
development projects. A copy of this report shall be furnished the
Governor and the Assembly, and shall be posted in conspicuous and
Publicly accessible places in the component LGUs of the MMRA.

Section 15.The Governor shall inform the Assembly every quarter on the conduct of
regional affairs and the state of regional finances.

Section 16. The financial accounts of the expenditures and revenues of the MMRA
shall be audited by the Commission on Audit. The financial accounts of the MMRA,
including all payments from the reserve fund, shall be submitted by the Governor to
the Assembly, together with the statement of audit prepared by the Commission on
Audit within ten (10) working days from receipt thereof.

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ARTICLE X
Transitory Provisions 1
Section 1. (a) The existing Metropolitan Manila Development Authority shall be
deemed abolished and the officials thereof considered as having ceased in office
upon the election and qualification of the officials of the MMRA as provided in this
Act.

(b) All regular and permanent personnel of the MMDA shall continue to hold
office unless they are replaced by the Regional Government within six
(6) months from the organization thereof, otherwise, they shall be
considered regular and permanent employees of the Regional
Government. Nothing in this Act, however, shall derogate from any right
or privilege enjoyed by any public official or employee under existing
laws. Retiring employees shall be given full benefits under existing laws
Those who opt to transfer to another government office shall be allowed,
‘subject to Civil Service laws and regulations.

(c) Properties and assets of the present MMDA shall be turned over to the
Regional Government. Those lands, buildings and other permanent
structures located in the local government units that do not vote favorably
in the plebiscite for the ratification of this Act may be acquired by the LGU
concerned for value.

Section 2. All personnel of the National Government and of government-owned or
controlled corporations who are absorbed by the Regional Government shall retain
their seniority rights, compensation and benefits.

Section 3.Within one (1) month from the organization of the MMRA, an Oversight
Committee composed of the Executive Secretary as Chair, the Secretary of Budget
and Management, the Secretary-General of the National Economic and Development
Authority, the Regional Governor of the MMRA, the Presiding Officer of the
Metropolitan Legislative Assembly, two (2) Senators to be designated by the Senate
President and two (2) Representatives to be designated by the Speaker of the House
of Representatives, as Members, shall be organized for the purpose of supervising
the transfer to the MMRA of such powers and functions vested in it by this Act and
the appropriations of the offices or agencies, including the trarisfer of properties,
assets and liabilities, and such personnel as may be necessary, and of identifying the
other line agencies and government-owned or controlled corporations that may be
absorbed by the Regional Government and, with respect to the latter, also the terms
and conditions of their turnover.

Within six (6) months after its organization, the Oversight Committee shall
submit its report and recommendations to the President of the Philippines who shall

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act on the report and recommendations within ninety (90) days after receipt thereof:
Provided, however, That if the President fails to act within said period, the
recommendations of the Oversight Committee shall be deemed approved.

Section 4. Upon the organization of the MMRA, the line agencies and offices of the
National Government dealing with local government; development planning;
transportation and traffic management; solid waste disposal and management; flood
control and management; urban renewal, zoning and land use planning, and shelter
services; health and sanitation, urban protection and pollution control; public safety
and disaster management; public works and highways; and social services, including
their personnel, equipment, properties and budgets, shall be immediately placed
under the control and supervision of the Regional Government.

The National Government shall continue such levels of expenditures as may
be necessary to carry out the functions devolved under this Act: Provided, however,
That the annual budgetary support shall, as soon as practicable, terminate as to the
line agencies or offices devolved to the Regional Government.

Section 5. Notwithstanding the provisions of the preceding Section, the Government
Service Insurance System, the Social Security System, the Pagtutulungan-lkaw,
Bangko, Industriya’t Gobyerno (PAG-IBIG) and other funds of similar trust or fiduciary
nature shall be exempt from the coverage of this Act. 3

‘Section 6. Pending the enactment of a regional budgetary law, the budgeting process
of the Regional Government shall be governed by pertinent rules and regulations
prescribed by the Department of Budget and Management.

Section 7. The first regular elections of the MMRA Governor, MRA Vice-Governor
and Members of the Metropolitan Assembly under this Act shall be held not earlier
than sixty (60) days or later than ninety (90) days after the ratification of this Act. The
Commission on Elections shall promulgate such rules and regulations as may be
necessary for the conduct of said election.

Section 8. To carry out the purposes of this Act, the amount of Seven Billion Pesos
(Php 7,000,000,000) every year is hereby authorized to be appropriated for the initial
Operation of the MMRA, and as its operating budget for the first three years of its
existence. Thereafter, the annual expenditures including capital outlays of the MMRA
shall be provided in the General Appropriations Ordinance to be enacted by the
Metropolitan Assembly.

The MMRA shall continue to receive the Internal Revenue Allotment (IRA)
currently allocated to the present MMDA. Five percent (5%) of the total annual gross
revenue of the preceding year, net of the intemal revenue allotment, of each local
government unit voting to be integrated into the MMRA, shall accrue and become
payable monthly to the MMRA by each city or municipality. In case of failure to remit

22


the said fixed contribution, the DBM shall cause the disbursement of the same to
MMRA chargeable against the IRA allotment of the city or municipality concerned,
the provisions of Section 286 of Republic Act No. 7160 to the contrary
notwithstanding.

Section 9. The provisions of this Act are hereby declared to be separate and in the
event one or more of such provisions are held unconstitutional, the validity of other
provisions shall not be affected thereby.

Section 10. All laws, decrees, orders, rules and regulations, and all other issuances,
or parts thereof, which are inconsistent with this Act are hereby repealed or modified
accordingly.

Section 11. The Local Government Code of 1991 shall apply in all matters that are
not covered by this Act.

Section 12. The creation of the Metropolitan Manila Regional Administration shall
take effect when approved by a majority of the votes cast by the constituent units
Provided in paragraph (b) of Section 1 of Article II of this Act in a plebiscite which shall
be held not earlier than ninety (90) days or later than one hundred twenty (120) days
after the approval of this Act: Provided, That only the local government units voting
favorably in such plebiscite shall be included in the MMRA. The LGUs which in the
plebiscite do not vote for inclusion in the MMRA shall remain in the existing
administrative regions: Provided, however, That the President may, by administrative
determination, merge the existing regions.

Section 13. This Act shall take effect after fifteen (15) days following its complete
publication in the Official Gazette and at least one (1) newspaper of general
circulation.

Approved,

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