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

Fifteenth Congress
First Regular Session

HOUSE BILL NO. 2374

Introduced by Honorable Jose Carlos L. Cari

EXPLANATORY NOTE

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

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

In view of the foregoing, approval of this bill isfearnestly sought.

JOSE/CARLOS L. CARI


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

Fifteenth Congress
First Regular Session

HOUSE BILL No._2374

By Honorable Jose Carlos L. Cari

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

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

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

"Sec. 138 Tax on Sand, Gravel and Other Quarry Resources. - The
province may levy and collect not more than ten percent (10%) of fair
market value in the locality per cubic meter of ordinary stones, sand,
gravel, earth, and other quarry resources, as defined under the
National Internal Revenue Code, as amended, extracted from public
lands of from the beds of seas, lakes rivers, streams, creeks and other
waters within its territorial jurisdiction. The permit to extract sand,
gravel and other quarry resources shall be issued (exclusively by the
provincial governor, pursuant to the ordinance of the sangguniang
panlalawigan) by the Provincial Governor or the City/Municipal
Mayor, as the case may be, pursuant to an ordinance passed by
the Sanggunian concerned. The extraction of sand, gravel and
other quarry resources shall be closely monitored by the
barangay officials of the place where the actual extraction is
taking place.

‘The proceeds of the tax on sand, gravel and other quarry resources
shall be distributed as follows:

(1) Province - Thirty percent (30%)


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

(3) Barangay where the sand, gravel, and other quarry resources are
extracted - Forty percent (40%).”

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

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

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

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

Approved,