Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City

‘ RECEIVED “\
pares os ave te

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 3267

INTRODUCED BY REPRESENTATIVES MENCHIE B. BERNOS, ELEANOR C.
BULUT-BEGTANG, SOLOMON R. CHUNGALAO, MAXIMO Y. DALOG, JR.,
MARK O. GO, ALLAN JESSE C. MANGAOANG AND ERIC GO YAP

EXPLANATORY NOTE

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

Pursuant to this mandate, the Autonomous Region in Muslim Mindanao (ARMM)
was created in 1989 through Republic Act No. 6374. In 2001, Congress passed Republic Act
No. 9054 to expand the territory and powers of the ARMM. During the 17th Congress,
Republic Act No. 11054, also known as the “Bangsamoro Organie Law” (BOL) was enacted
to establish the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) and
abolish the ARMM. In early 2019, the BOL was ratified through a plebiscite, marking the
transition from ARMM to BARMM. On the other hand, an autonomous region in the
Cordilleras has yet to be realized.

On July 15, 1987, President Corazon C. Aquino issued Executive Order No. 220
creating the Cordillera Administrative Region (CAR). The CAR was created for the purposes
of administrative decentralization in order to accelerate the economic and social growth and
development of the units in the region and to fill the resulting gap im the process of
transforming a group of adjacent territorial and political subdivisions already enjoying local
or administrative autonomy into an autonomous region vested with political autonomy. CAR
is mandated to serve merely as a transitory coordinating agency in preparation for political
autonomy, however, more than three decades since its creation, CAR continues to discharge
administrative functions and coordinate the implementation of government programs within
the Cordilleras.

Two Organic Acts for an autonomous region were enacted in 1990 and in 1998.
However, both measures were rejected by the Cordillerans. Following these two failed
attempts, extensive information dissemination campaigns and public consultations were
conducted to craft a legislative measure that truly reflects the need and aspiration of the
people of the Cordilleras for regional autonomy. In recent years the movement for autonomy

1


finds fortitude in the commitment of the Duterte Administration to support this Constitutional
mandate.

The quest for autonomy continues, as many areas in the Cordilleras remain
underdeveloped. Autonomy shall serve as the foundation upon which the people of Cordillera
shall be empowered to pursue sustainable and inclusive growth, through the management,
protection and development of their natural and human resources, and the promotion of the
rights and culture of the Cordilleran people. It is through its progress and growth as an
autonomous political entity that the Cordillerans can tap its potentials and contribute to
national success.

The collective aspiration of the Cordillerans for genuine autonomy is rooted on the
right to self-determination of the people fueled by a long history of struggle for the
recognition of their rights. It is high time that we make good on this Constitutional mandate,
and allow the Cordillerans to determine their political status and to freely pursue their
economic, social, and cultural development. By adopting necessary amendments and
proposals, we have consistently endeavored to evolve this legislative measure as a product of
the collaborative participation of all stakeholders. With clearer understanding of autonomy,
its implications and effects on the lives of our people and on the future of Cordillera, the time
is ripe for us to once again present to the Cordillerans the opportunity to realize this deeply
ingrained desire.

Towards this end, the immediate consideration and approval of this proposed measure
is earnestly sought.

SOLOMON MAXIMO Y. DALOG, JR.

ERIC GO YAP



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS

First Regular Session

HOUSE BILL NO. 3267

INTRODUCED BY REPRESENTATIVES MENCHIE B, BERNOS, ELEANOR C.
BULUT-BEGTANG, SOLOMON R. CHUNGALAO, MAXIMO Y. DALOG, JR.
MARK O. GO, ALLAN JESSE C. MANGAOANG AND ERIC GO YAP

AN ACT
ESTABLISHING THE CORDILLERA AUTONOMOUS REGION

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

PREAMBLE

We, the people of the Cordillera region, imploring the will of Divine Providence,
exercising our fundamental and Constitutional right to self-determination, faithful to the
pursuit of our forebears for the protection, conservation and development of our patrimony
and cultural heritage, in order to secure for ourselves and our posterity a region of peace and
prosperity founded on truth, faimess, freedom, justice, love and solidarity through an
autonomous region that shall ensure our human development and our active participation as
citizens in the affairs of a united Philippines, do proclaim this Organic Act of the Cordillera
Autonomous Region

ARTICLE I
NAME AND PURPOSE

SECTION I. Name. — There is hereby established an autonomous region in the
Cordillera to be known as the "Cordillera Autonomous Region (CAR).”

SEC. 2. Purpose. ~ The purpose of this law is to establish an effective political entity,
provide for its basic structure of government in recognition of the justness and cause of the
people of the Cordilleran region, their fundamental and Constitutional right to self-
determination and the faithful pursuit of the duty to protect, conserve and develop their
patrimony and cultural heritage, in order to secure for themselves and their posterity a region
of peace and prosperity founded on truth, fairness, freedom, justice, love and solidarity, the
preservation of their identity and posterity, and the attainment of meaningful and effective
governance.


ARTICLE II
AREA AND IDENTITY

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

SEC. 4, Cordilleran Identity. - The term "Cordilleran” shall apply to the following
citizens of the Philippines:

1.) Those whose mothers or fathers are indigenous people of the Cordillera Region;
2.) Those who are born in the Cordillera Autonomous Region; and

3.) Those who are residing in the Cordillera Autonomous Region for at least one (1)
year.

ARTICLE III
DECLARATION OF POLICIES AND PRINCIPLES

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

SEC. 6, Equitable Share in the National Budget and Development Assistance. - The
national government shall provide the autonomous region with a proportionate and equitable
share in the annual national budget and foreign assisted projects based on the defined
programs, functions and performance goals of CAR in addition to other financial assistance,
support and subsidies to accelerate its development. The Commission on Audit (COA) may
require a pre-audit whenever it finds that the internal controls set up in the Region are
inadequate. It shall likewisc conduct seminars in the communities concerned explaining the
benefits and proper use of the National Tax Allotments.

SEC. 7. Self-governance. - In the exercise of their right to genuine autonomy and
meaningful self-governance, inhabitants of the CAR are free to pursue their political,
economic, social and cultural development within the framework of national sovereignty and
in accordance with the Constitution.

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

SEC. 9. Prior and Preferential Right. ~ The inhabitants of the CAR shall have prior
and preferential right to the natural, material, and fiscal resources of the CAR in accordance
with the Constitution and other pertinent laws.

SEC. 10. Fundamental Rights and Duties of People. - The fundamental rights and
duties of the people in the CAR are those defined in the Constitution, this Organic Act,
and other pertinent laws.

4


SEC. 11. Rights to Initiatives, Consultations, Referenda and Plebiscites. - The
rights of the people of the CAR to initiate measures for the passage, amendment or repeal of
regional or local legislation, to be consulted on matters that affect their welfare; to call for a
referendum on important issues affecting their lives; and, to recall regional or local officials as
provided by Republic Act No. 7160, as amended, otherwise known as the Local Government
Code of 1991, are hereby recognized without prejudice to the other rights guaranteed by the
Constitution.

SEC. 12. Accountability of Public Officers. — Public office is a public trust. Public
officers and employees shall at all times be accountable to the people, serve them with utmost
responsibility, integrity, loyalty, and efficiency, act with patriotism and justice, and lead
modest lives.

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

SEC. 14. Establishment of Peace Zones. - The Regional Government adheres to
the policy of peace and shall establish peace zones within the region when applicable.

SEC. 15. Devolution of Powers. - The Regional Government shall adopt a policy on
local autonomy whereby regional powers shall be devolved to local government units (LGUs)
particularly in areas of education, health, human resources, science and technology, and
people empowerment. Until a law implementing this provision is enacted by the Regional
Assembly, the provisions of the Local Government Code of 1991, as amended shall continue
to apply to all provinces, cities, municipalities, and barangays within CAR.

The regional assembly shall not pass any law to diminish, lessen or reduce the powers,
functions, and shares in the National Tax Allotment of the said LGUS as provided for by the
Local Government Code of 1991, as amended.

SEC. 16. Sustainable Use and Management of Resources, — The Regional
Government shall share with the national government in the exploration, development and
utilization of its natural resources, conservation, and protection of natural resources by
promoting the sustainable use and management thereof and shall adopt environmentally sound
and appropriate technology in the management of natural resources. The use of renewable
energy for the power needs of the inhabitants of the CAR and the conduct of business and
commerce thereat shall be promoted.

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

SEC. 18, Protection and Empowerment. - The Regional Government shall formulate
plans and programs for the empowerment of the youth and guarantee their effective
participation and representation in all aspects of public affairs. Laws shall be enacted, and
measures adopted to protect women and children against all forms of neglect, cruelty, and

5



exploitation which are harmful to their moral, physical, or mental health, in accordance with
the provision of the Constitution and other pertinent laws.

SEC. 19. Regional Arrangements. ~ The Regional Government shall pursue a policy
of interregional development planning, coordination, and mutual cooperation in order to
promote sustainable development as well as protect and conserve resources.

SEC. 20. Equal Access and Non-discrimination. — The Regional Government shall
ensure equal access by inhabitants of the CAR to resources, employment opportunities and
services regardless of ethnic origin, gender, language, political conviction, economic, and
social status or religious belief.

SEC. 21. Social Justice. - The Regional Government shall endeavour to minimize
social, economic and political inequalities within the region by providing, maintaining and
ensuring the equitable delivery of basic services, and creating economic opportunities
based on freedom of initiative and self-reliance.

SEC. 22. Foreign Investments, - The Regional Government shall provide incentives
to investors, corporations, and other businesses, in accordance with the Constitution, this Act,
Republic Act No. 11534 otherwise known as the Corporate Recovery and Tax Incentives for
Enterprises (CREATE) Act, and other pertinent laws.

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

ARTICLE IV
THE CORDILLERA AUTONOMOUS REGION

A. Powers and Functions

SEC. 24, Powers and Functions. ~ The Regional Government shall exercise powers
and functions necessary for the proper governance and development of all provinces, cities,
municipalities, and barangays within the autonomous region consistent with the declared
constitutional policy on local autonomy and decentralization: Provided: That nothing in this
‘Act shall be construed as to authorize the diminution of the powers and functions already
enjoyed by LGUs.

SEC. 25. Devolved Powers. - The Cordillera Autonomous Region is a corporate entity
with jurisdiction in all matters devolved to it by this Organic Act as herein enumerated in
accordance with the provisions of the Constitution and other pertinent laws:

(a) Administrative organization:
(1) Declaration of holidays;
(2) Public administration and bureaucracy for the region; and
(3) Identification, generation, and mobilization of international human resources for
capacity-building and other activities involving the same within the region.

(b) Creation of sources of revenues:
(1) Authority to regulate power generation, transmi

ion and distribution operating

6



President shall exe

exclusively in the autonomous region, in coordination with appropriate national
government agencies; and

(2) Imposition of appropriate and reasonable taxes except those which are
already taxed by the national government, and LGUs;

(©) Ancestral domain and natural resources:
(1) Protection of the ancestral domain and ancestral lands of indigenous cultural
communities (ICs) consistent with Republic Act No. 8371, otherwise known as the
“Indigenous Peoples Rights Act (IPRA) of 1997”,
(2) Declaration of nature reserves and aquatic parks, forests, watershed reservations,
and other protected areas in the autonomous region.
(3) Authority, power, and right to the control and supervision over the exploration,
utilization, development, and protection of the lands, forests, water, minerals and other
natural resources, within the autonomous region in accordance with the provisions of
the Constitution, pertinent provisions of this Organic Act, and other pertinent laws.
(4). Regulation of small-scale mining.

(d) Urban and rural planning development:
(1) Adoption and implementation of a comprehensive land use program;
(2) Land management, land distribution, and agricultural land use reclassification; and
(3) Authority to conduct cadastral survey in coordination with the Department of
Environment and Natural Resources (DENR): Provided, that sub-sections 4a, 4b and
4c shall be exercised in coordination with LGUs within the CAR, DENR and other
appropriate national government agencies.

(e) Economic, social and tourism development:
(1) Establishment of transportation and communication facilities;
(2) Promotion of tourism within the autonomous region; and
(3) Regulation of games and amusement operations within CAR.

(f) Educational policies in skills training, research and scholarships

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

(h) Such other matters for the promotion of the general welfare of its inhabitants. The
Regional Government, in the exercise of its devolved powers as herein defined, shall
coordinate with the appropriate national government agencies.

B. Intergovernmental Relations

SEC. 26. General Supervision. — Consistent with the principle of local autonomy, the
general supervision over the Regional Government to ensure that laws

are faithfully executed.

SEC. 27. Regional Line Agencies.

Regional line agencies shall continue to exist

without diminution of their mandated authority. Regional line agency officials and employees
shall continue to be paid by the national government. There shall be no diminution of their
compensation and other benefits due the officials and employees of line agencies. Existing

7



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

SEC. 28. Tenure of Civil Service Employees. — Except for just cause and after due
process, officials and employees of the regional line agencies and offices in the region shall
not be laid off, dismissed or removed as a result of any reorganization attendant to the
establishment of the CAR.

SEC. 29. Priority in Recruitment, Selection and Placement- Officials and employees
of the Regional 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 inhabitants of the CAR.

SEC. 30. Appointment of CAR employees. - The regional governor shall fill up
second level positions in the Regional Government from among at least three (3)
recommendees of the Regional Human Resource Merit Promotion and Selection board that
shall be duly constituted.

SEC. 31. Management of ODA Funds. — The autonomous region may avail of
Official Development Assistance (ODA) 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, LGUS or whichever is
deemed appropriate, subject to review and approval of the national government in accordance
with Republic Act No. 8182, otherwise known as the Official Development Assistance Act of
1996 and the prior clearance and approval by the President of the Republic of the Philippines.

SEC. 32. Government Owned and Controlled Corporations. - Government owned
and Controlled Corporations (GOCCs) such as the Government Service Insurance System
(GSIS), the Social Security System (SSS), the Pagtutulungan-lkaw, Bangko Industriya't
Gobyerno (PAG-IBIG), PhilHealth and other GOCCs shall continue to be governed by their
respective charters and other pertinent laws.

SEC. 33. Autonomy of Local Government Units. - All LGUs within the CAR shall
continue to be independent from each other, shall have the same set of local officials and
employees, shall enjoy autonomy and continue to exercise the powers granted them under the
Local Government Code of 1991, as amended, and other existing laws. The Local
Government Code of 1991 shall apply to all provinces, cities, municipalities and barangays in
the CAR until the Regional Assembly shall enact a regional Local Government Code.
Nothing herein provided shall be construed in any manner as to diminish the powers and
functions as well as benefits and privileges already being enjoyed by the LGUs.

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

SEC. 35. Revenues and Taxes Accruing to Local Government Units. — Revenues,
taxes, fees and charges generated by the LGUs and the Regional Government from their
respective local tax ordinances shall exclusively accrue to them.



SEC. 36. Just Share in National Taxes. - The LGUs in the CAR including the
Regional Government, shall have a just share in the national taxes and applicable revenues
which shall be automatically released to them.

SEC. 37. Equitable Share in the Utilization of Resources, - The LGUs in the CAR,
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 for by law and this Organic Act.

SEC. 38. City Charters. — All cities within the CAR shall be governed primarily by
their charters.

SEC. 39. 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 shalll be entitled to
their own local chief executive and legislative bodies consistent with the Local Government
Code of 1991, as amended, and the Constitution. The jurisdiction of the metropolitan
authority that will thereby be created shall be limited to basic services requiring coordination.

SEC. 40. Right of Local Government Units to Cooperate and Consolidate Resources
for Common Goals and Programs. - LGUs 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:
QUALIFICATIONS, TERMS OF OFFICE, VACANCIES AND SUCCESSION, AND
ACCOUNTABILITY

SEC. 41. Elective Officials. — The elective officials of the CAR are the (a) Regional
Governor, (b) Regional Vice-Governor, and (c) Members of the Regional Assembly.

SEC. 42. Qualifications. ~ (a) Candidates for Regional Governor and Vice-Governor
positions must be citizens of the Philippines and inhabitants of the CAR, who are at least
twenty-five (25) years of age on election day, are registered voters in the CAR and are
residents thereof for a period of at least one (1) year immediately preceding the day of
election, and are able to read and write Filipino or English;

(b) Candidates for the position of Member of the Regional Assembly must be citizens
of the Philippines and inhabitants of the CAR who are at least twenty five (25) years of age on
election day, are registered voters in the provincial district or city, are resident thereof for a
period of at least one (1) year immediately preceding the day of election, and are able to read
and write Filipino or English or any other local language in the region.

SEC. 43. Disqualifications. - In addition to the disqualifications provided for under
Section 40 of the Local Government Code of 1991, as amended, candidates for Regional
Governor, Vice-Governor and members of the Regional Assembly must not be related to
incumbent elected regional officials within the fourth degree of consanguinity or affinity.

SEC. 44. Manner of Election. ~ The Regional Governor and Vice-Governor, who
shall belong to the same political party, shall be elected at large by direct vote of the
9


registered voters of the CAR. A vote for the Regional Governor shall be counted as a vote for
the Regional Vice-Governor.

(a) Each province and city shall elect their own representatives to the Regional
Assembly according to the following seats allocated to them:

(1) Highly urbanized city ~ four (4) seats;

(2) Province — four (4) seats to be allocated two (2) per provincial district;

(3) Component city — One (1) seat
Provided, That any component city created after the effectivity of this Organic Act shall be
entitled to representation to the Regional Assembly as may be provided for by law.

(b) Unless otherwise provided for by law, the regular elections of the Regional
Governor, Vice Governor, and members of the Regional Assembly shall be held
simultaneously with the national and local elections on the second Monday of May, and every
three (3) years thereafter.

SEC. 45. Term of Office. — (a) The term of office of all elective regional officials
elected afier the effectivity of this Organic Act shall be three (3) years which shall begin at
noon on the thirtieth day of June next following the day of election and shall end at noon of
the same date three (3) years thereafter. No Regional Governor, Vice-Governor, or Member
of the Regional Assembiy shall serve for more than three (3) consecutive terms.

(b) Voluntary renunciation of, or removal from office for any length of time shall not
be considered as an interruption in the continuity of the service for the full term for which
officials were elected.

SEC. 46. Oath of Office. - The Regional Governor, Vice-Governor and Members of

the Regional Assembly on assuming office shall take the following oath or affirmation:
“T do solemnly swear (or affirm) that I will faithfully and conscientiously fulfill my
duties as Governor/Vice-Governor/Member of the Regional Assembly of the
Cordillera autonomous region, preserve and defend the constitution of the Republic of
the Philippines and the organic act of the autonomous region of the cordillera,
execute these laws, do justice to all and consecrate myself to the service of the nation
and the cordillera autonomous region. So help me God.”

SEC. 47. 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 for 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-Govemnor shall not, during their
tenure, be appointed officers or employees of the Regional Government , except as members
of their confidential staff.

(c) No member of the Regional Assembly may hold any other office or employment in
the government or any subdivision, agency or instrumentality thereof, including GOCCS or
their subsidiaries, during their term without forfeiting their seat. Neither shall any member of
the regional assembly be appointed to any office which has been created or the emoluments
whereof increased by the Regional Assembly during the term for which such member was
elected.

(4) The Regional Governor, and Regional Vice-Governor, and Members of the
Regional Assembly shall not personally appear as counsel before any court of justice or
before the Electoral Commission or quasi-judicial and other administrative bodies.

10



(©) The Regional Governor, Regional Vice-Governor, and Members of the Regional
‘Assembly shall not participate directly or indirectly in any contract with or in any franchise or
special privilege granted by the Regional Government or any subdivision, agency or
instrumentality thereof, including GOCCS or in any of their subsidiaries. They shall not
intervene in any matter before any office of the CAR for their pecuniary benefit or where they
may be called upon to act on account of their office.

SEC. 48. Vacancies and Succession. — (a) In the event that the position of the
Regional Governor becomes permanently vacant, the Regional Vice-Governor shall
automatically become the Regional Governor.

(b) If the position of the Regional Vice-Governor becomes permanently vacant, the
member of the assembly belonging to the same political party, garnering the highest
percentage of votes in the district represented shall become the vice-governor or in case of
permanent disability, the second highest shall assume said position.

(c) In case of a permanent vacancy in the assembly where automatic succession does
not apply, the Regional Governor shall appoint to the position so vacated the nominee of the
political party to which the member who caused the vacancy belonged at the time of such
members’ election. If the one causing the vacancy does not belong to any political party, the
Regional Governor shall appoint the nominee of the majority of the members of the assembly.
Provided: That the appointee has all the qualifications and none of the disqualifications as
provided by this Organic Act: Provided further, That in both cases the appointee comes from
the same district.

(d) For purposes of this Article, a permanent vacancy arises when the incumbent
elective official concemed dies, voluntarily resigns, is removed from office, fills up a higher
vacant office, refuses to assume office, fails to qualify, or is otherwise permanently
incapacitated to exercise the powers and discharge the functions of the office.

SEC. 49. Temporary Vacancies. - (a) When the Regional Governor is temporarily
incapacitated to perform the official duties for physical or legal reasons such as leave of
absence, travel abroad, and suspension from office, the regional Vice Governor shall
automatically exercise the powers and perform the duties and functions of the former except
the power to appoint, suspend or dismiss employees which can only be exercised if the period
of temporary incapacity exceeds thirty (30) working days.

(b) The vacancy due to temporary incapacity shall be terminated upon the submission
to the Regional Assembly of a written declaration of the Regional Governor's return to carry
out the duties of the office. In cases where the temporary incapacity is due to legal causes, the
regional official concerned shall also submit necessary documents showing that said legal
causes no longer exist.

(c) When the incumbent Regional Governor is traveling within the country but outside
the territorial jurisdiction of the CAR for a period not exceeding three (3) consecutive days,
the Regional Governor may designate in writing, the officer-in-charge of the said office. Such
authorization shall specify the powers and functions that the regional official concerned shall
exercise except the power to appoint, suspend or dismiss employees.

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

(e) Except as provided for above, the Regional Governor shall in no case authorize any
regional official to assume the powers, duties and functions of the office, other than the
Regional Vice-Governor or the highest-ranking Member of the Regional Assembly, as the
case may be.

mn



SEC. 50. Approval of Leaves of Absence. — Leave of absence of elective officials of
the CAR shall be approved as follows:

(a) Applications for leave of absence of regional officials, provincial governor, mayor
of a highly urbanized city or an independent component city shall be approved by the
Regional Governor or a duly authorized representative;

(b) Applications for leave of absence of other officials and employees other than those
‘enumerated above shall be approved by the authority designated under the Local Government
Code of 1991, as amended; and

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

SEC. 51. Compensation. - (a) Unless otherwise provided for by law, the Regional
Governor and Regional Vice-Govemor shall receive an annual salary equivalent to that of a
department Undersecretary and Assistant secretary, 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 for by law, the Regional Speaker shall receive an
annual salary equivalent to that of the Regional Governor and Members of the Regional
Assembly shall receive an annual salary equivalent to the salary of the Regional Vice-
Governor. No increase in salary provided for by law shall take effect until after the expiration
of the term of office of all members of the Regional Assembly approving the same.

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

SEC. 52. 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 who are living
in their households. Any member who has a potential conflict of interest that may arise from
the measures filed shall notify the Regional Assembly. This section shall be governed by
Republic Act No. 6713, otherwise known as the Code of Conduct and Ethical Standards for
Public Officials and Employees.

(b) Governing law. Discipline of Regional Elective Officials shall be governed by
Chapter 4, Title Two of Book I of the Local Government Code of 1991, as amended, and
other applicable laws. Discipline of Members of the Regional Assembly shall be governed by
their internal rules.

(c) Recall, Regional elective officials may be subject to recall proceedings as provided
for under Chapter 5, Title Two of Book I of the Local Government Code of 1991, as
amended, and other applicable laws.

ARTICLE VI
THE REGIONAL EXECUTIVE DEPARTMENT.

SEC. 53. Executive Authority. ~ The executive power in the region shall be vested in
the Regional Governor who shall exercise such powers and perform such duties and functions
as provided for by this Organic Act and other laws.

SEC. 54, Scope of Executive Authority. — As chief executive of the Regional
Government, the Regional Governor shall exercise control and supervision over all programs,

12


projects, services and activities of the Regional Government and supervision over regional
line agencies and LGUs within the CAR, subject to existing laws.

SEC. 55. State of the Region Address. - The Regional Governor shall deliver the
State of the Region Address to the Regional Assembly at the opening of its regular sessions.

SEC. 56. Submission of Regional Budget. - The Regional Governor shall submit the
proposed budget to the Regional Assembly within thirty (30) days from the opening of every
regular session, as the basis of the regional appropriations bill, budget of expenditures and
sources of financing, including receipts from existing and proposed revenue measures.

SEC. $7. 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.

SEC. 58. Mandatory Staff. — The Regional Government shall have the following
mandatory staff: (1) Regional Executive Secretary, (2) Regional Accountant, (3) Regional
Budget Officer, (4) Regional Administrator, (5) Regional Legal Officer, (6) Regional
Treasurer, and (7) Regional General Services Officer. In addition thereto, the Regional
Governor may, subject to the approval of the Regional Assembly and availability of funds,
create other offices deemed necessary.

The Regional Executive Secretary and the heads of the various regional offices and
employees under the executive department shall be appointed by the Regional Governor. The
appointment of the heads of regional offices requires the concurrence of the majority of the
members of the Regional Assembly and compliance with 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 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 positions of the different department heads
of the Regional Government shall be mandatory.

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

(a) Regional Executive Secretary

(1) The Regional Executive Secretary of the CAR must be a citizen of the
Philippines and a resident of the CAR, of good moral character, a holder of a college
degree preferably in law, administration or any other related course from a recognized
college or university, and must have acquired supervisory or managerial experience
for at least five (5) years.
(2) The term of office of the Regional Executive Secretary shall be co-terminus
with that of the appointing authority.
(3) The Regional Executive Secretary shall, subject to the control and supervision
of the Regional Governor, carry out the following functions:

(i) Directly assist the Regional Governor in the management of the affairs

pertaining to the CAR;

13



(ii) Implement directives, orders and decisions of the Regional Governor;

(iii) Exercise supervision and control over the various units in the Office of the
Regional Governor including their internal administrative requirements;

(iv) Exercise supervision, in behalf of the Regional Governor, over the various
agencies under the Office of the Regional Governor,

(v)Provide overall coordination in the operation of the Regional Executive
Office;

(vi) Determine and assign matters to the appropriate units in the Office of the
Regional Governor;

(vii) Act on matters referred to the Office of the Regional Governor by the
various regional offices and agencies of the government;

(viii) Provide consultative, research, fact-finding and advisory services to the
Regional Governor;

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

(x) Assist the Regional Governor in the administration of special projects;

(xi) Take charge of matters pertaining to protocol and ceremonial functions in the
Regional Government;

(xii) Provide secretarial and clerical services for the Regional Governor and other
bodies;

(xiii) Promulgate such rules and regulations necessary to carry out the objectives,
policies and functions of the Office of the Regional Governor, and

(xiv) Perform such other functions as the Regional Governor may direct.

(b) Regional Accountant

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

(2) The Regional Accountant shall take charge of both the accounting and intemal
audit services of the CAR and shall:
(i) Install and maintain an internal audit system in the CAR
(ii)Prepare and submit financial statements to the Regional Governor and to the
Regional Assembly;
(iii) Apprise the Regional Assembly and other government officials on the
financial condition and operations of the CAR;
(iv) Certify to the availability of budgetary allotment to which expenditures and
obligations may be properly charged;
(v)Review supporting documents before preparation of vouchers to determine
completeness of requirements;
(vi) Prepare statements of cash advances, liquidation, salaries, allowances,
reimbursements and remittances pertaining to the CAR;
(vii) Prepare statements of journal vouchers and liquidation of the same and other
adjustments related thereto;
(viii) Post individual disbursements to the subsidiary ledger and index cards;
(ix) Maintain individual ledgers for officials and employees of the Regional
Government pertaining to payrolls and deductions;
(x) Record and keep subsidiary ledgers containing the details of purchased
furniture, fixtures, and equipment, and records of the disposal of the same;
(xi.) Account for all issued requests for obligations and maintain and keep all
records and reports related thereto;

14


(xii.) Prepare journals and the analysis of obligations and maintain and keep all
records and reports related thereto; and

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

(©) Regional Budget Officer
(1) The Regional Budget Officer must be a citizen of the Philippines and a resident of
the CAR, of good moral character, a holder of a college degree preferably in
accounting, economics, public administration or any related course from a
recognized college or university, a Career Service Professional or a second level
eligible, and must have acquired at least five years experience in government
budgeting.

(2) The Regional Budget Officer shall take charge of the budget office and shall:

(i) Prepare forms, orders, and circulars embodying instructions on budgetary and
appropriation matters for the signature of the Regional Governor;

(ii) Review and consolidate the budget proposals of different departments and
offices of the Regional Government;

(iii) Assist the Regional Governor in the preparation of the budget and during
budget hearings;

(iv) Study and evaluate budgetary implications of proposed legislation and submit
comments and recommendations thereon;

(v) Submit periodic budgetary reports to the Department of Budget and
‘Management (DBM);

(vi) Coordinate with the treasurer, accountant, and the planning officer for the
purpose of budgeting;

(vii) Assist the Regional Assembly in reviewing the approved budgets of the
provincial and highly urbanized cities;

(viii) Assist the Regional Development Planning Officer in Formulating the
Regional Development Plan

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

(d) Regional Administrator

(1) The Regional Administrator must be a citizen of the Philippines and an inhabitant
of the CAR, of good moral character, holder of a college degree preferably in law,
public administration or any other related course from a recognized college or
university and must have acquired at least five (5) years experience in
management and administration work.

(2) The term of office of the Regional Administrator shall be co-terminus with that of
the appointing authority.

(3) Subject to the control and supervision of the Regional Governor, the Regional
Administrator shall:
(i) Develop plans and strategies and upon approval thereof by the Regional
Governor, implement the same particularly those which have to do with the
management and administration-related programs and projects which the Regional
Governor is empowered to implement and which the Regional Assembly is
‘empowered to provide under this Organic Act;
(ii)Assist in the coordination of the work of all the officials of the autonomous
region, under the supervision, direction, and control of the Regional Governor, and

15



for this purpose, may convene the chiefs of offices and other officials of the
Regional Government ;

(iii) Establish and maintain a sound personnel program for the Regional
Government designed to promote career development and uphold the merit
principle in the local government service;

(iv) Conduct a continuing organizational development of the CAR with the end in
view of instituting effective administrative reforms;

(v)Be in the frontline of the delivery of administrative support services,
particularly those related to the situations during and in the aftermath of man-made
and natural disasters and calamities;

(vi) Recommend to the Regional Assembly and advise the Regional Governor, as,
the case may be, on all other matters relative to the management and
administration of the Regional Government; and

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

(e) Regional Legal Officer

(1) The Regional Legal Officer must be a citizen of the Philippines and a resident of
the CAR, of good moral character, a member of the Philippine Bar, and must
have practiced the law profession for at least five (5) years.

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

(3) The Regional Legal Officer shall be the chief legal counsel of the Regional
Government and shall take charge of the office of legal services. In addition the
Regional Legal Officer shall:

(i Formulate measures for the consideration of the Regional Assembly and
provide legal assistance and support to the Regional Governor,

(ii)Develop plans and strategies and upon approval thereof by the Regional
Governor, implement the same, particularly those which have to do with programs
and projects related to legal services which the Regional Governor is empowered
to implement and which the Regional Assembly is empowered to provide under
this Organic Act;

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

(iv) 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
or natural disasters or calamities;

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

(vi) In addition to the foregoing duties and functions, the Regional Legal Officer
shall:

a) Represent the Regional Government in all civil actions and special
proceedings wherein the autonomous region or any official thereof in an
official capacity, is a party;

b) When required by the Regional Governor, draft ordinances, contracts,
bonds, leases and other instruments, involving any interest of the CAR
and provide comments and recommendations on any instrument already
drawn;

c) Render a written opinion on any question of law when directed by the
Regional Governor;

16



4d) Investigate or cause to be investigated any official or employee of the
Regional Government for administrative neglect or misconduct in office
and recommend the appropriate action to the Regional Governor;

€) Investigate or cause to be investigated any person, firm or corporation
holding any franchise or exercising any public privilege for failure to
comply with any term or condition in the grant of such franchise or
privilege by the Regional Government, and recommend the appropriate
action to the Regional Governor;

f) When directed by the regional Governor, initiate and prosecute in the
interest of the Regional Government any civil action on any bond, lease or
other contract upon any breach or violation thereof; and

g)Review and submit recommendations on ordinances approved and
executive orders issued.

(0 Regional Treasurer
(1)The Regional Treasurer must be a citizen of the Philippines and a resident of the
CAR, of good moral character, holder of a college degree preferably in commerce,
public administration or law from a recognized college or university, a Career
Service Professional or a second level eligible and must have acquired at least five
(5) years experience in treasury or accounting service.

(2)The Regional Treasurer shall take charge of the Treasury Office, perform the duties
provided for under Book II of the Local Government Code, as amended, and shal

(i) Advise the Regional Governor and other Regional Government officials
concerned regarding the disposition of government funds, and on such other
matters relative to public finance;
(ii) Take custody ef and exercise proper management of the funds of the CAR;
(iii) Take charge of the disbursement of all Regional Government funds and such
other funds the custody of which may be entrusted by law or other competent
authority;
(iv) Maintain and update the tax information system of the CAR; and
(v)Exercise such other powers and perform such other duties and functions as
may be prescribed by law or ordinance.

(g) Regional General Services Officer

(1) The Regional General Services Officer must be a citizen of the Philippines and an
inhabitant of the CAR, of good moral character, holder of a college degree
preferably on public administration, business administration and management or
any other related course from a recognized college or university, a Career Service
Professional or a second level eligible, and must have acquired at least five (5)
years experience in general services, including management of supply, property,
solid waste disposal, and general sanitation:

(2) The Regional General Services Officer shall take charge of the Office on General
Services and shall:
(i Formulate measures for the consideration of the Regional Governor and
provide technical assistance and support in carrying out measures to ensure the
delivery of basic services and provision of adequate facilities pursuant to the
Local Government Code, as amended, and this Organic Act which require general
services expertise and technical support services;
(ii)Develop plans and strategies, and upon approval thereof by the Regional
Governor implement the same, particularly those which have to do with the

17



general services that are supportive of the welfare of the inhabitants which the
Regional Governor is empowered to implement;

(iii) 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;

(iv) Recommend and advise the Regional Governor on all matters relative to
general services;

(v)In addition to the foregoing duties and functions, the General Services Officer
shall:

a) Take custody of and be accountable for all properties, real or personal,
‘owned by the Regional Government and those granted to it in the form of
donation, reparation, assistance, and counterpart of joint projects;

) 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;

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

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

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

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

g) 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; and

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

SEC. 59. Cordillera Development Council. — There shall be a Cordillera Development
Council (CDC) which shall function as the main planning and advisory body of the Regional
Government, setting the direction of economic and social development of the CAR and
through which regional development efforts shall be coordinated.

SEC. 60. Composition of the CDC. - The CDC shall be composed of the Regional
Govemor as chairperson, a Private Sector Representative as co-chairperson, the Regional
Director of the National Economic and Development Authority (NEDA) as vice-chairperson,
and the following as members:

(a) All the provincial govemors, the city and capital town mayors in the CAR;

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

(c) Private sector representatives of duly accredited private sector and non-government or
people's organizations, provided that their composition shall not be more than one-
fourth of the total membership.

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

18


(e) The CDC may designate special non-voting members from both the public and private
sectors, upon concurrence of the majority of its regular members.

SEC. 61. Functions. - The CDC shall:

(a) Coordinate the preparation, implementation, monitoring and evaluation of short- and
long-term Regional Development Plans and investment programs, regional physical
framework plans and special development plans, including the formulation of policy
recommendations;

(b) Integrate into the Regional Development Plan the approved development plans of
provinces and cities, line agencies, state universities and colleges, GOCCs and special
development authorities in the autonomous region;

(c) Review, prioritize, and endorse to the Regional Government the annual and multi-year
sectoral investment programs of the CAR for funding and implementation;

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

(c) Promote and direct the inflow and allocation of private investments in the CAR to
support regional development objectives, policies, and 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 CAR 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.

(® Coordinate the monitoring and evaluation of development projects undertaken by
government agencies, LGUs, state colleges and universities, GOCCs and special
development authorities in the CAR.

(j) Perform other related functions and activities as may be necessary to promote and
sustain the socio-economic development of the CAR.

SEC. 62. Technical Support to the CDC. - The regional office of the NEDA shall serve
as the secretariat and technical operations arm of the CDC.

SEC. 63. Creation of Committees. - The CDC may create appropriate technical and
sectoral committees to assist in its work.

SEC. 64. Existing Committees. — Existing regional coordinating committees that are
created by various laws and currently attached to specific agencies, and ad-hoc program or
project-based steering committees, such as the Development Administration Committee,
Economic Development Committee, Social Development Committee, Infrastructure
Development Committee, Watershed and Environmental Management Committee,
Committee on Indigenous Peoples’ Concerns, Regional Land Use Committee, Regional
Gender and Development Committee, Regional Project Monitoring Committee, Regional
Competitiveness Committee, Regional Development Budget Coordinating Committee,
Regional Statistical Coordination Committee, and the Cordillera Geographic Information
System Network, shall be placed under the umbrella of the CDC. Secretariat work of these
inter-agency committees shall continue to be provided by their mother agency.

19


ARTICLE VII
THE REGIONAL VICE-GOVERNOR

SEC. 65. Functions. - The Regional Vice-Governor shall assist the Regional
Governor in the day to day operations of the Regional Government, and shall:

(a) Assume the office of the Regional Governor for the unexpired term of the latter in
the event of a permanent vacancy as provided for in this Organic Act;
(b) Exercise the powers and perform the duties and functions of the Regional
Governor in cases of temporary vacancy as provided for in this Organic Act;
(©) Exercise the powers and perform the duties and functions as may be prescribed by
law.
The Regional Vice-Governor may be appointed to the position of head of regional
office as may be created by the Regional Assembly, without the need of confirmation of the
Regional Assembly and the Civil Service Commission.

ARTICLE VIII
THE REGIONAL ASSEMBLY

SEC. 66. Legislative Authority. - The legislative power of the Regional Government
in the CAR shall be vested in the Regional Assembly, except to the extent reserved by the
Constitution and this Organic Act on initiative and referendum. Within its territorial
jurisdiction and subject to the provisions of the Constitution and national laws, the Regional
‘Assembly shall have legislative powers over those functions enumerated under Section 25
hereof.

SEC. 67. Speaker of the Regional Assembly — There shall be a Speaker of the
Regional Assembly, who shall be elected, from among the members of the Regional
Assembly, on its first regular session. The Regional Assembly shall promulgate its rules and
regulations for the conduct of its proceedings.

The Regional Speaker, as the political and administrative head of the Regional
Assembly, is responsible for the overall management of the procccdings, activitics, resources,
facilities and employees of the Assembly. The Speaker shall:

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

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

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

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

20



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

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

(3) Sustain a public information program that will provide accessible, timely
and accurate information relating to the Regional Assembly, its Members and officers,
its committees and its legislative concems inclusive of facilitating, as far as
practicable, broadcast coverage of plenary and committee proceedings;

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

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

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

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

(i) Perform administrative functions such as the following:

(1) Appoint the personnel of the Regional Assembly with authority to delegate
this power;

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

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

(4) Implement merit-based policies and programs on human resource
recruitment, selection and placement, learning and development, performance
management and rewards and recognition to ensure that the Regional Assembly has a
corps of competent professionals able to provide needed legislative support services;
and

(5) Review, approve, and sign contracts entered into by the Regional
Assembly, and to delegate this power when necessary.

(i) Prepare the annual budget of the Regional Assembly;

(k) Prepare, in consultation with the appropriate committee of the Regional Assembly,
the rules and regulations governing public access to personal data and related information,
including statements of assets and liabilities, of Members of the Regional Assembly;

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

2



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

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

SEC. 68. Enactment of Laws and Resolutions. ~ The Regional Assembly shall enact
ordinances, approve resolutions and appropriate funds for the general welfare of the CAR and
its inhabitants as well as for the efficient and effective operation of the Regional Government.

SEC. 69. Creation, Division, Merger and Abolition of Local Government Units. —
The Regional Assembly may, by law, create, divide, merge or abolish municipalities or
barangays subject to the approval by a majority of the votes cast in a plebiscite in the political
units directly affected. The municipalities or barangays created, divided, or merged shall be
entitled to their appropriate share in the national taxes.

SEC. 70. 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 be co-terminus with the appointing
officer.

SEC. 71. 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 Regional
‘Assembly may be called to a special session by the Regional Speaker or the Regional
Governor whenever necessary and a notice of meeting shall be sent to the member's place of
residence at least twenty-four (24) hours before the special session is held. Unless otherwise
concurred in by two-thirds (2/3) votes of the members, there being a quorum, no other matters
may be considered at a special session except those stated in the notice. The Regional
Assembly may invite the President and other government officials to address it.

SEC. 72. Sessions and Quorum. — A majority of all the members of the Regional
Assembly shall constitute a quorum to do business, but a smaller number may adjourn from
day to day and may compel the attendance of absent members in such manner, and under such
penalties as the Assembly may provide in its rules.

On the first regular session following the election of its members, and within ninety

(90) days thereafter, the Regional Assembly shall adopt or update its rules of proceedings

which shall include, the organization of the Regional 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
22



determination of quorum, and the necessary votes to pass any measure, and recall proceedings
in accordance with the Local Government Code, as amended.

SEC. 73. Law. — (a) Every bill shall embrace only one (1) subject which shall be
expressed in the title thereof.
(b) No bill shall become a law unless it has passed three (3) readings on separate days, and
printed copies thereof in its final form have been distributed to the members three (3) days
before its passage, except when the Regional Governor certifies to the necessity of its
immediate enactment to meet a public calamity or emergency affecting the region, or the
‘component provinces, cities, municipalities or barangays.
(c) On the third reading of a bill, no amendment thereto shall be allowed, and the vote
thereon shall be taken immediately thereafter, and the yeas and nays entered in the
Journal.
(d) Every bill passed by the Regional Assembly shall, before it becomes a law, be
presented to the Regional Governor. If the Regional Governor approves the same, the
Regional Governor shall sign it, otherwise, the Regional Governor shall veto it and return
the same to the Regional Assembly expressing in a written message the objections thereto.
The Regional Governor shall communicate the veto on any bill to the Regional Assembly
within ten (10) days from receipt thereof, otherwise, it shall become a law as if it was duly
approved:
(e) Upon receipt of the veto, the Regional Assembly shall enter the objections in its
journal and proceed to reconsider it. If, after such reconsideration, two-thirds (2/3) of all
the members of the Regional Assembly shall agree to pass the bill, it shall become a law.
(f) The Regional Governor shall have the power to veto any particular item or items in an
appropriation or revenue, but the veto shall not affect the item or items to which the
Regional Governor does not object.

SEC. 74. People's Question Hour, ~ There shall be a people's question Hour at least once
a month or as often as the rules of the Regional Assembly may provide, which shall be
included in the Order of Business, and during which any Member of the cabinet may, with
the consent of the Regional Governor, or upon the request of the Regional Assembly, appear
and answer questions and interpellations by Members of the Assembly on any matter
pertaining to the Cabinet Member's department.

The Regional Assembly or any of its committees may conduct inquiries in aid of
legislation in accordance with its duly published rules of procedure. The rights and dignity of
persons appearing in or affected by such inquiries shall be respected.

SEC. 75. Immunity from Suit. - No Member shall be questioned or be held liable in any
other place for any speech or debate in the Regional Assembly or in any committee thereof.

SEC. 76. Appropriations Bill. - The Regional Assembly shall pass an appropriations bill
for the ensuing year before the end of each year, based on the budget of expenditures and
sources of funds submitted to it by the Regional Governor.

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

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

23


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

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

(e) 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 DBM.

SEC. 77. Expenditure of Public Funds. - No money shall be paid out of the regional
treasury except in pursuance of an appropriation made by regional law.

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

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

SEC. 78. Certified True Copies of Law. - The Regional Assembly shall, within ten (10)
working days from approval thereof, submit to the President and to both Houses of Congress
a certified true copy of all laws and resolutions it passed.

SEC. 79. Creation of Offices. - The Regional Assembly may create such other offices and
positions as may be necessary to carry out the purpose of the Regional Government subject to
availability of funds.

SEC. 80. Program for Development. — Subject to national laws and, sound public
administration principles, and exercising the corporate powers of the Regional Government
under the Constitution and the Local Government Code, the Regional Assembly shall
establish a program for generating development funds to accelerate social and economic
development in the region. The Regional Government shall implement the same, after
conducting public consultation.

SEC. 81. 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 in consonance with the timeline of the national
government.

SEC. 82. Enactment of Necessary Legislation. - When the need arises, the Regional
Assembly shall enact laws and necessary legislative measures that shall strengthen and
supplement the implementation of national laws, devolved functions and address conflicting
laws.

24


ARTICLE IX
PATRIMONY, ECONOMY AND DEVELOPMENT

SEC. 83. Coordination and Cooperation. — The Regional Government, with the support
of the national government, shall, pursuant to regional autonomy and poverty alleviation,
initiate, stimulate, facilitate, support and coordinate development in the region towards
attaining equitable distribution of opportunities, income, and wealth; a sustained increase in
the amount of goods and services available to inhabitants of the CAR 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 CAR on
top of the National Tax Allotment (NTA) provided for it and its component LGUs as well as
the allocations provided to the Regional Line Agencies by appropriating such sums as may
be necessary to accelerate the development of the autonomous region.

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

SEC. 84. Cordillera Development Plan. ~ The Regional Government through the CDC
shall formulate its development plans taking into consideration the unique needs and
aspirations of the CAR, 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.

SEC. 85. Control and Supervision over Natural Resources. ~ The Regional Government
shall have control and supervision over natural resources in accordance with the Constitution,
this Organic Act, and other pertinent laws.

SEC. 86. Preferential Rights of the Inhabitants of the CAR Over the Utilization and
Development of Its Natural Resources. - The exploration, development, utilization, and
enjoyment of natural resources shall be allowed to citizens of the Philippines and to private
enterprises, including corporations, cooperatives, and similar collective organizations with at
least sixty percent (60%) of their capital investment or capital stocks directly controlled or
owned by Filipinos: Provided, That priority shall be given to inhabitants of the CAR in the
implementation of programs, projects, and activities related to these natural resources in the
region and shall comply with the provisions of the Constitution , this Organic Act, and other
pertinent laws.

SEC. 87. Comprehensive Framework for Sustainable Development. - The Regional
Government shall develop a comprehensive framework for sustainable development through
the proper conservation, utilization, and development of natural resources. Such framework
shall guide the Regional Government in adopting programs, policies, and mechanisms that
focus on the protection of the environment, and reduction of vulnerability from climate
change.

SEC. 88. Development of Lands with a Slope of 18% and Above. - The Regional
Government in partnership with the communities, especially the indigenous peoples (IPs) or
indigenous cultural communities (ICCs), and their government units, and support of the
national government shall adopt measures for the development of communities occupying
lands with a slope of eighteen percent (18%) or over, by providing the necessary
infrastructure, financial and technical support.

25



SEC. 89. Transportation and Communications System. — The Regional Government
shall, in coordination with the national government, establish a transportation and
communications system interconnecting the various areas of the CAR with each other and to
other regions adjacent to the CAR. Likewise, the Regional Government in close coordination
with component LGUs shall plan, construct, modernize and maintain rural and urban
infrastructure facilities and utilities, including alternative transport systems within critical
environments.

SEC. 90. Agrarian Reform. — Subject to ecological considerations, the Regional
Government shall adopt and implement a comprehensive rural agrarian reform program, as
well as an urban development program consistent with the provision of the Constitution and
national laws and policies to ensure the just and sustainable utilization of land within its
jurisdiction.

SEC. 91. Environmental Protection. — The Regional Government shall develop standards
pertaining to the protection, conservation, and enhancement, of the environment and natural
resources, appropriate to the socio- cultural and environmental uniqueness of the Cordillera.

SEC. 92. Transfer of Existing Nature Reserves and Protected Areas. ~ The management
and protection of nature reserves and aquatic parks, forests, watershed reservations, and other
protected areas in the Autonomous Region that have already been defined by and under the
authority of the national government shall be transferred to the Regional Government.

The Regional Transition Committee composed of the Regional Governor, Department of
Environment and Natural Resources, National Commission on Indigenous Peoples,
representatives of IPs and ICCs affected, as well as other relevant government agencies shall
cause the process of transferring these areas including the conduct of surveys of all affected
areas and the planning and transition for each and every protected area. Such process shall be
completed within a period not exceeding two (2) years.

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

SEC. 94. Financial and Technical Assistance Agreements. — The Regional Governor
shall initiate and recommend to the President the applications for financial and technical
assistance agreements covering mineral resources within the region

SEC. 95. Participation in National Development Planning. ~ To ensure that the Regional
Development Plans are reflected in the national development plans, the Regional Government
shall participate in national development planning. The Regional Governor shall be a member
of the NEDA Board.

26



ARTICLE X
SOURCES OF REVENUES AND OTHER FISCAL MATTERS

SEC. 96. Share from the National Revenues. — To conserve, protect and develop the
national patrimony and heritage located in the CAR, and devolved to the region by this
Organic Act, and to fund its operations, the Regional Government shall have a share of the
national revenues, in addition to existing shares already being received by the LGUs and regional line
agencies, which include the following:

(a) Two and one half percent (2.5%). The Regional Government shall have a share in the national
taxes equivalent to two and one half precent (2.5%) based on the collection of the third fiscal
year preceding the current fiscal year. Eighty percent (80%) of such share shall be
appropriated in the annual regional budget for development projects.

(b) Forty percent Share of the National Wealth Tax. The Regional Government shall
have a separate forty percent (40%) share of the gross collections in the preceding
fiscal year from mining taxes, royalties, environmental services, forestry and fishery
charges, energy production charges, and such other taxes, fees and charges, including
related surcharges, interests and fines derived from the utilization and development of
the national wealth within its territorial jurisdiction: Provided, That the share in
national wealth shall be used for the preservation and further development of the
environment.

The Regional Government shall have a share of one and one-half percent (1.5%) of the
gross sales or receipts derived from the utilization and development of the national wealth
within their territorial jurisdiction. This provision shall be applicable to all corporations,
partnership, individuals and other entities including goverment agencies and GOCCs
engaged in the utilization and development of the national wealth within the CAR irrespective
of existing contrary laws, rules and regulations of national application.

The share in the preceding paragraph shalll be distributed in the following manner:
(a) Province / Highly Urbanized City — Twenty percent (20%)

(b) Component City/ Municipality ~ Forty percent (40%)

(©) Barangay — Thirty percent (30%)

(4) Region — Ten percent (10%)

(c) Two percent share out of the Economic Zones Tax. The Regional Government shall
have a separate two percent (2%) share out of the five percent (5%) final tax on gross
income earned or equivalent to forty percent (40%) of total tax paid by businesses
within the economic zones in the CAR, in addition to the existing shares of the local
government units of two percent (2%).

(d) Twenty percent Share of Excess in Value Added Tax. - The CAR shall have a separate
twenty percent (20%) share of the excess of value added tax (VAT) collections from
the immediately preceding year within the territorial jurisdiction of the autonomous
region. The fund shall be used to support cottage industry programs.

The LGUs shall have a separate twenty percent (20%) share of excess VAT collections
from the immediately preceding year.

() Fifteen percent Share of Total Excise Tax. ~ in addition to the existing shares of the
LGUs, the CAR shall have a separate fifteen percent (15%) share of the total excise

27


taxes collected within the territorial jurisdiction of the CAR on all products subject to
excise tax for the second calendar year preceding the year of distribution:

The LGUs 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.

(f) Fifteen percent Share of Incremental Excise Tax in Burley and Native Tobacco

Products. The Regional Government shall have a separate fifteen percent (15%) share
of the excise tax on burley and native tobacco products collected within the CAR.

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

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

‘The LGU’s share from the renewable and other energy resources tax shall be based on the
computation provided under the Local Government Code, as amended.

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

SEC. 97. Downstream Benefits. - The CAR shall be entitled to one and one-half percent
(1.5%) of the gross receipts from the utilization of national wealth sourced or extracted from
the CAR by persons, individual or juridical entities operating outside the territorial
jurisdiction of the CAR.

SEC. 98, Sources of Regional Government Revenues. ~ The CAR shall be entitled to
the following sources of revenues:

(®) Fees and charges imposed by the Regional Government;
(0) Taxes, fees, or charges for the registration of motor vehicles and for the
issuances of all kinds of licenses or permit for the driving thereof, except
tricycles which shall be registered with the city or municipality within whose
territorial boundaries they are operating;

(© Shares and revenue generated from the operations of public utilities within
the CAR;

(@ Appropriations, shares in the internal revenue taxes, block grants, and other
budgetary allocations coming from the national government, and

(@) Block grants derived from economic agreements or conventions entered
into or authorized by the Regional Assembly, donations, endowments, foreign
assistance, and other forms of aid, subject to the pertinent provisions of the
Constitution:

Provided, That the taxing power of the Regional Government shall not extend to
the following:

(a) Income tax, except when levied on banks and other financial institutions;

(b) Customs duties, tonnage dues, and all other kinds of customs fees, charges, and

dues;

(©) Taxes, fees, or charges and other impositions upon goods carried into or out

of, or passing through the territorial jurisdiction of the provinces, cities,

28



municipalities, or barangays in the CAR in the guise of tolls for bridges or
otherwise, or other taxes, fees, or charges in any form whatsoever upon such
goods or merchandise, except tolls on bridges or roads constructed and
maintained by the Regional Government or its constituent provinces, cities,
municipalities, or barangays concerned;

(a) Taxes, fees, or charges on agricultural and aquatic products when sold by
marginal farmers or fisherfolk;

(@) Taxes on business enterprises certified by the Board of Investments or by
the Regional Assembly as registered business enterprises;

(Excise taxes on articles enumerated under the national internal revenue code
of 1997, as amended, and taxes, fees, or charges on petroleum products;

(g) Percentage or value-added tax on sales, barters, or exchanges or similar
transactions on goods or services except as otherwise provided by national law;
(bh) Taxes on the gross receipts of transportation contractors and persons
engaged in the transportation of passengers or freight by hire and common
carriers;

(@ Taxes on premiums paid by way of reinsurance or retrocession;

(Taxes, fees, or other charges on Philippine products actually exported,
except as otherwise provided by law enacted by the Congress of the
Philippines;

(k) Taxes, fees, or charges on countryside and barangay business enterprises and
cooperatives duly registered under Republic Act No. 6810, otherwise known as
the "Magna Carta for Countryside and Barangay Business Enterprises," and
Republic Act No. 6938, otherwise known as the "Cooperative Code of the
Philippines,’ as amended; and

() Taxes, fees, or charges of any kind on the national government, its agencies
and instrumentalities, and LGUs except on GOCCs or entities that are primarily
organized to do business.

SEC. 99. Power of Taxation. — The CAR shall have the power to create its own
sources of revenues and to levy fees, charges and taxes subject to the concurrence
of the Regional Assembly, and such guidelines and limitations mandated under
the Constitution and this Act, consistent with the basic policy of local autonomy.
It shall likewise have the power to grant incentives or exemption on fees and
charges which it is empowered to impose under this Act The LGUs within the
territorial jurisdiction of CAR shall continue to levy, impose, and collect taxes and
fees as provided under the Local Government Code of 1991, as amended.

Sec. 100. Payment of Taxes by Corporations, Partnerships or Firms. -
Corporations, partnerships, or firms directly engaged in business in the CAR
shall pay their corresponding taxes, fees, and charges in the province or city
where the corporation, partnership, or firm is doing business. Corporations,
partnerships, or firms whose central, main or head offices are located outside the
CAR but are doing business within its territorial jurisdiction, shall pay the income
taxes for income derived from their business operations in the CAR to the city or
municipality where their branch office is located or WHERE THEIR business
operations or activities are conducted.

SEC. 101. Appropriations from the National Government. - The national goverment
shall continue to provide the necessary funds for the regular operations and programs of
devolved line agencies in the region to be prepared by the Cordillera Autonomous Region and

29


incorporated under the General Appropriations Act including the mandatory organizational
structure and positions of the Cordillera Autonomous Region charged against the 2.5% share
of the CAR as provided for under Section 96 (A).

SEC. 102. Donations to the Regional Government. - All grants, bequests,
endowments, donations and contributions made to and used actually, directly
and exclusively by the CAR, shall be exempt from donor’s tax and the same shall
be considered as allowable deduction from gross income for purposes of
computing the taxable income of the donor in accordance with the provisions of
the National Internal Revenue Code of 1997, as amended.”

SEC. 103, Trade Agreements. - The Regional Governor may, in accordance with the
provisions of the Constitution and national laws, and upon the recommendation of the CDC
enter into agreements or trade compacts and contract loans subject to the ratification of the
Regional Assembly to generate grants and foreign loans for development of the region.

The Regional Government shall respect and adhere to all international treaties and
agreements entered into and are binding upon the national government.

SEC. 104. Limitations on Contracting of Loans. ~ The Regional Governor may contract
loans only in accordance with the provisions of the Constitution and national laws and subject
to the approval of the Regional Assembly.

SEC. 105. Banks and other Financial Institutions. — The CAR shall encourage the
establishment of banks and other financial institutions and their branches to facilitate the
accumulation of capital and investment and the delivery of credit assistance to business in the
region.

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

SEC. 106. 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 are accessible to 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 concepts of farming and protect the farmers from unfair trade practices
and unfair competition.

30



(e) The Regional Government shall ensure the equitable and rational distribution of
public resources and investments in order to obtain the optimum retums on
investments and to benefit a greater number of constituents.

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

SEC. 107. Development of Water Resources. - The Regional Government shall
prioritize the conservation, protection, testing, utilization and development of water resources
for agriculture, fisheries development, domestic water supply and power development. It shall
enact appropriate legislation which shall enhance, develop, conserve, and protect natural
fishery resources especially on species endemic to the CAR.

SEC. 108. Promoting the Rights of Fisher Folks. - The Regional Government shall
recognize, promote, and protect the rights and welfare of fisher folks, their associations and
cooperatives. The provinces and cities concerned shall provide support to subsistence fisher
folk through adequate funds, appropriate technology and research, marketing assistance, and
other support services like fishery processing facilities and access to credit.

SEC. 109. Agriculture Production. — The Regional Government shall pursue the
following strategies to develop and increase agricultural productivity.

(a) Pursue 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 the 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;

(c) Formulate and implement product standards and regulatory rules that will ensure the
production, processing, distribution and marketing of safe and globally-competitive
products, and simultaneously promote environmental conservation; and

(4) 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 ine-dey.

SEC. 110. Prevention of the Flight of Labor and Capital. — To promote investments and
employment and to prevent flight of capital and labor from the CAR, the Regional
Government shall, in coordination and cooperation with the Philippine Competition
Commission (PCC) adopt measures to:

(a) Inhibit monopolies, cartels and unfair competition in public utilities, development,

trading and similar concerns. It may, in the interest of regional welfare and security,
establish and operate pioneering public utilities. Upon payment of just compensation,
it may transfer the ownership of such utilities to cooperatives or other collective
organizations; and

(b) 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,

31



the ecological needs of the area, and the protection, conservation and development of
resources.

SEC. 111. Eco-cultural Tourism. — Consistent with the preservation of cultural heritage
and the protection of ecology, the Regional Government shall promote eco-cultural tourism.
Sites with historical, scientific, cultural significance including natural and man-made
landmarks and scenic vistas shall likewise be preserved, maintained, and protected.

All other kinds of tourism-oriented activities that are consistent with the principles of
sustainable and responsible tourism shall be promoted and developed in the CAR.

SEC. 112. Promote Economic Zones. - The Regional Government shall, in
coordination with the Philippine Economic Zone Authority (PEZA), 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 CAR, including the necessary support infrastructure in accordance with land
use and other environmental considerations, and tax incentives to needed
investments in the Special Economic Zones. Registered enterprises under
established economic zones may be entitled to pertinent fiscal incentives granted
under Title XIII (Tax Incentives) of the National Internal Revenue Code, as
amended.

SEC. 113. Marketing and Exportation of Indigenous Products, - The Regional
Government shall, in coordination with LGUs, encourage investments in the development,
marketing, exportation, and protection of community intellectual rights, indigenous and other
local products in accordance with its development goals and priorities.

SEC. 114. Cooperatives. — The Regional Government shall promote cooperatives
registered with the Cooperative Development Authority as tools for economic development,
social justice, and people empowerment, to initiate policies and develop mechanisms to enjoin
the participation of the banking sector and financial institutions in the delivery of credit
assistance for the establishment and building of rural enterprises and small-medium
enterprises (SMES).

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

SEC. 115. Regional Educational Policies. - The Regional Government shall formulate
educational policies to preserve, safeguard and develop cultural heritage guided by the
following plans and programs:

(a) The establishment of educational institutions, colleges, and universities which shall
enjoy fiscal and administrative autonomy. 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 inhabitants of the CAR;

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

32


(@) The creation of a Regional Educational Board that will supervise, govern and
intervene in the establishment, adoption, and implementation of both formal and
informal education policies and programs for schools, colleges, and universities in the
region.

SEC. 116. Education with Highest Budget Allocation. ~ The Regional Government shall
assign the highest budgetary priority to education.

SEC. 117. Tax Treatment of Educational Institutions. — Private educational
institutions, colleges and universities shall enjoy the protection and support of the
Regional Government and shall pay taxes in accordance with Section 27 (b) of the
National Internal Revenue Code, as amended. Importations of private educational
institutions, colleges and universities of economic, technical and cultural books or
publications, which are for economic, technical, vocational, scientific, philosophical,
historical or cultural purposes, shall be exempt from customs duties in accordance
with the provisions of Republic Act No. 10863, otherwise known as the “Customs
Modernization and Tariff Act (CMTA).

SEC. 118. Creation of Regional Scholarship Committee for Education. - The Regional
Government shall assist the national government in providing free basic education and shall
likewise endeavor to provide free tertiary education through scholarship programs, subsidies,
research grants and other incentives for poor, gifted, and deserving individuals. Towards this
end, there shall be created a Regional Scholarship Committee for Education.

SEC. 119. Rights of Teachers and Parents to Organize. — The right of teachers,
employees, students and parents to organize themselves and to participate in school policy
and decision-making shall be guaranteed.

SEC. 120. Culture Sensitive Education. - The educational system in the CAR shall
develop a research, instruction, and extension program that will promote consciousness and
appreciation of the ethnic identity of the people in the region in all levels of education, and
shall provide a better understanding of their cultural heritage for the attainment of national
unity and harmony. It shall provide, promote, enhance or adopt a curriculum in all levels that
includes Cordillera languages, customs and traditions and other indigenous knowledge
systems and practices, as may be applicable.

SEC. 121. State Colleges and Universities. — State colleges and universities in the CAR
shall form part of the regional educational sub-system and shall continue to enjoy fiscal and
institutional autonomy, continue to be governed by their respective charters, and enjoy
support of the Regional Government.

(a) The Regional Government shall be represented in the board of regents or trustees in

state universities and colleges in the region.

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

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

33


SEC. 122. School Charters, - Subject to the general supervision of the Regional
Government, all schools with charters shall continue to be governed by their respective
charters.

SEC. 123. Priority on Indigenous and Appropriate Technology. - The management of
scientific and indigenous research and appropriate technology on all levels of education
including research institutions shall be given priority by the Regional Government.

SEC. 124. Intellectual Property Rights. — The incentives for the creation and
commercialization of intellectual properties, and assistance in the registration, protection, and
enforcement of intellectual property rights shall be accorded to Cordilleran artists, writers,
creators, innovators, scientists, researchers, and inventors from the CAR.

SEC. 125. Medium of Instruction. - The Regional Government shall retain English and
Filipino as 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 preserve the various languages and dialects in the
region, as well as the national language as maybe appropriate.

SEC. 126. Sports Development. — The Regional Government shall design and implement
sports development programs and indigenous games and sports which shall be a cooperative
responsibility of the school, the community, and the government.

SEC. 127. Cultural Heritage Center. — The Regional Government shall establish a
Cordillera Commission for the Preservation and Promotion of Cultural Heritage to promote,
research, document, coordinate with other groups and institutions and establish and maintain a
data bank on all indigenous matters.

ARTICLE XII
SOCIAL JUSTICE, HEALTH AND WELFARE

SEC. 128. Measures on Social Protection. — The Regional Government commits itself to
social protection and shall adopt measures to:
(a) Empower and improve the quality of life of the poor, disadvantaged, marginalized,
and vulnerable individuals, families, sectors and communities of the CAR;
(b) Reduce or eradicate poverty to ensure that all inhabitants of the CAR are free from all
forms of deprivation, vulnerability, and abuse;
(©) Create equal opportunities for the inhabitants of the CAR;
(d) Promote gender sensitivity by promoting the gender and development bias in the
formulation and implementation of sustainable programs and policies; and
(e) Enact measures and develop programs that will protect the people from any threat of
violence and exploitation, eliminate trafficking in persons, and mitigate pressures for
involuntary migration and servitude of persons, not only to support trafficked persons
but more importantly, to ensure their recovery, rehabilitation, and reintegration into
the mainstream of society.

SEC. 129. Equality of Employment Opportunities. - The Regional Government shall
undertake steps to protect the labor sector and promote equality of employment opportunities
for all. Towards this end, it shall provide for:

34


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

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

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

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

SEC. 130. Hiring of Qualified Cordillerans. ~ The Regional Government shall promote
the hiring of qualified inhabitants of the CAR in government service, government projects,
and private businesses located in the autonomous region.

SEC. 131. Health as a Basic Human Right. - The Regional Government recognizes
health as a basic human right, thus 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:

(a) Establish, maintain, and support an effective health care delivery system utilizing

primary health care as a comprehensive and integrated approach;

(b) Ensure that the health care system is governed by the principles of service, social
justice and equity;

(©) Promote health knowledge and skills that will enable its people to take responsibility
for their health;

(4) Provide relevant training programs and appropriate standards for health workers and
professionals;

(c) 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;

(f) 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 five percent (5%) of the Regional Annual
Budget to form the base of health budget.

SEC. 132. Rights of Workers. - The Regional Government shall, in consonance with the
Constitution, guarantee the rights of all workers to self-organization, collective bargaining and
negotiations, and peaceful concerted activities, including those provided by law.

SEC. 133. Rights of Vulnerable Sectors. ~The Regional Government shall:

(a) Promote the well-being of differently-abled persons, the mentally handicapped, the
elderly, the homeless, widowed and orphans, retirees, and veterans, and children in
conflict with the law; and

(b) Assist victims of calamities, abused and depressed children and women in crisis
situations, including victims of adult offenders and children in conflict with the law.

SEC. 134. Program for Rebel Returnees. — The Regional Government shall adopt a social
integration program that is responsive to the needs of rebel retumees, including children in
conflict with the law show shall be provided the appropriate rehabilitative psycho-social
services.

35


SEC. 135. Social and Insurance Measures. ~ The Regional Government shall adopt
insurance and social security measures that are responsive to the needs of its people to
supplement existing privileges.

SEC. 136. Housing Programs. - The Regional Government shall, in cooperation with the
private sector, promote housing programs where needed. The housing programs shall be
financed under liberal credit terms and shall utilize indigenous materials, architecture and
technology. Participation of housing cooperatives to administer the projects shall be
encouraged.

SEC. 137. Role of Cordilleran Women. - The Regional Government shall recognize and
strengthen the role of women in nation-building. It shall ensure the full implementation of RA
9710, otherwise known as the” Magna Carta of Women” and all other existing laws that
promote the welfare and protection of women.

SEC. 138. Comprehensive Program on Children and Youth. - The Regional Government
shall establish a comprehensive program on children and youth development, create the
structures to implement the same, and appropriate adequate funds to support for the
program.

SEC. 139. Support to Peoples’ Organization. - The Regional Government shall promote
and support duly established peoples’ organizations and encourage the formation of
organizations, especially those of the underprivileged.

ARTICLE XIV
PEACE AND ORDER

SEC. 140. Prohibition on Private Armies. — The Regional Government shall promote and
maintain peace and order and public safety in the region. It shall not allow the establishment
and maintenance of private armies.

SEC. 141. Defense of the Region. — The defense and security of the CAR shall be the
responsibility of the national government with due recognition to recommendations from the
Regional Government .

SEC. 142. Peace Keeping Programs. — The Regional Government shall co-manage peace-
keeping programs and initiatives and undertake close coordination with the Philippine
National Police as well as the Armed Forces of the Philippines and other national law
enforcement Agencies.

SEC. 143. Regional Emergency. - The provisions of the preceding sections
notwithstanding, the Regional Governor may request the President of the Philippines to call
upon the Armed Forces of the Philippines to:
(a) Prevent or suppress lawlessness, violence, invasion or rebellion, when the public
safety so requires, in accordance with the provisions of the Constitution;
(b) Suppress a breach of peace or any threat against it in the CAR, when its police forces
are not able to do so; and
(©) To avert any imminent danger to public order and security in the CAR.

36


SEC. 144. Traditional Conflict Resolution. - The Regional Government shall strengthen
and enhance indigenous institutions or systems, as may be applicable, that are found to be
acceptable and effective in the promotion of social, political, economic and peace and order in
the region. It shall provide for a system of incorporating indigenous practices in conflict
resolution wherever and whenever applicable.

ARTICLE XV
GENERAL PROVISIONS

SEC. 145. Text of the Organic Act. ~ This Organic Act shall be officially promulgated in
Filipino and English and translated into the languages widely spoken in the CAR. In case of
conflict, the English text shall prevail.

SEC. 146. Change of Name. — The Regional Assembly may adopt a new name for the
CAR after public consultation,

SEC. 147. Regional Symbol. - The Regional Government shall have a regional flag,
emblem and hymn.

ARTICLE XVI
PERSONAL, FAMILY, INDIGENOUS AND PROPERTY RELATIONS

SEC. 148. Customary Laws. - Customary laws affecting personal, family, tribal and
property relations in the CAR shall be recognized.

SEC. 149. Protection of the Family. — The family as the basic unit of society shall be
protected.

SEC. 150. Indigenous Marriages. — Marriages solemnized in accordance with the
indigenous customary laws of the place shall be valid, and the dissolution of such marriages
in accordance with these laws shall be recognized.

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

ARTICLE XVII
AMENDMENTS OR REVISIONS

SEC. 152. Amendment or Revision. — Any amendment to, or revision of this Act may be
made by Congress upon recommendation of the majority of all Members of the Regional
Assembly.

SEC. 153. Effectivity of Amendment or Revision. — Any amendment to or revision of this
Organic Act shall become effective when ratified by a majority of the votes cast 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 or revisions.

37


ARTICLE XVIII
‘TRANSITORY PROVISIONS

SEC. 154. Coverage of the Plebiscite. — The areas covered by the plebiscite shall be the
provinces of Abra, Apayao, Benguet, Ifugao, Kalinga, Mountain Province, and the chartered
City of Baguio. Any two or more provinces or cities voting favorably for this Organic Act in
the plebiscite shall comprise the Cordillera Autonomous Region while those voting
unfavorably for this Organic Act in the plebiscite shall remain within their current region.

The creation of the Cordillera Autonomous Region 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 the effectivity of this Act: Provided, that only the provinces and cities voting
favorably in such plebiscite shall be included in the CAR.

SEC. 155. Date of Election. - Unless otherwise provided for by law, the election of
the first set of officials of the Regional Government shall be held during the next local
election following the ratification of this Organic Act in the plebiscite. Subsequent elections
shall coincide with the nationwide local elections.

SEC. 156. Residency Requirement for the First Election. ~ For purposes of the first
regional election, candidates must have actually resided and must be registered voters in the
region for at least one (1) year immediately preceding the election: Provided, That they meet
all other qualifications and none of the disqualifications under Article V of this Organic Act.

SEC. 157. Cessation of Administrative Offices. — Except for the regional line
agencies, the Cordillera Executive Board, the Cordillera Regional Assembly, and the
Cordillera Bodong Administration as a commission, created under Executive Order No. 220,
and the Cordillera Regional Development Council created by Executive Order No. 30 after
the de-activation of the above-mentioned Cordillera bodies, shall cease to exist immediately
upon the assumption of office of the Regional Governor.

SEC. 158. Seat of the Regional Government . ~ The seat of the Regional Government
shall be determined by the majority of all members of the Regional Assembly: Provided,
however, That the interim seat of the Regional Government shall be in the City of Baguio,

SEC. 159. Oversight Committee. ~ Within one (1) month from the organization of the
Regional Government, an Oversight Committee composed of the executive secretary as
Chairperson, the secretary of the DBM, the Cordillera Regional Governor, the Regional
Speaker of the Assembly, the Secretary of the Department of the Interior and Local
Government, the Chairperson of NCIP as members, shall be organized for the purpose of
supervising the transfer to the CAR of such powers and functions vested in it by this Organic
‘Act and the appropriations of the offices or agencies including the transfer of properties,
assets and liabilities, and all personnel of the line agencies and GOCCs that may be absorbed
by the Regional Government and, with respect to the latter, also the terms and conditions of
their tumover: Provided, That such transfer of powers and functions shall not result in any
diminution of their compensation and other benefits: Provided further, That the salaries of
absorbed personnel shall continue to be funded by the national government.

Within six (6) months after its organization, the oversight committee shall submit its
report and recommendation to the President of the Philippines who shall act on the report and
38


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

SEC. 160. Government Allocations, — Over and above the regularly given to Local
Government Units and regional line agencies, the national government shall continue its
annual allotment to the Regional Government. In addition, the national government shall
provide the Autonomous Region of the Cordillera an annual assistance of Ten billion pesos
(P10,000,000,000.00) for the first five (5) years and Five billion pesos (P5,000,000,000.00)
for the next five (5) years to be allocated in the following manner:
(a) Ninety percent (90%) of the annual subsidy for the Regional Government shall be
invested exclusively for revenue generating projects.
(b) Ten percent (10%) of the annual subsidy shall remain with the Regional Government
as Trust Fund.

SEC. 161. Revenue Allocation. Fifty percent (50%) of the revenues generated
mentioned in Sec. 160 (a) shall be re-invested for income generating projects. The remaining
revenues generated shall be distributed as follows:
(a) Fifteen percent (15%) to the Regional Government;
(b) Thirty five percent (35%) to the Province/highly urbanized city;

SEC. 162. Disclosure and Transparency. — Funds shall be available exclusively for
the specific purpose for which they have been appropriated. Any officer of the CAR 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 may be necessary.

SEC. 163. Direct Release of Local Government Units’ Share. - The share of each
LGU 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.

SEC. 164. Appropriations. 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 for the conduct of a well-coordinated inter-sectoral 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 of Baguio for the conduct of Information, Education, and
Communication purposes.

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

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

() Two billion five hundred million (P2,500,000,000) for the construction of the
Regional Government center.

The amount herein allotted to the Regional Development Council, and provinces and the
City of Baguio under paragraphs (a) and (b) respectively shall be released upon the
effectivity of this Organic Act.

39


The Cordillera Development Council shall, with the assistance of the Philippine
Information Agency, and in consultation with the provinciaV/city governments, the Cordillera
Association of Regional Executives, and other key stakeholders, determine the manner of
campaigning and the deputation of government agencies, non-government organizations and
other stakeholders for purposes of conducting a well-coordinated information campaign
within the first three (3) months after the passage of this Act.

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

SEC. 165. Separability Clause. — If any provision or part of this Organic Act is declared
as invalid or unconstitutional, the remaining part or parts thereof not affected thereby shall
remain valid and effective.

SEC. 166. Repealing Clause. — All laws, decrees, orders, rules and regulations which are
inconsistent with this Organic Act are hereby repealed, amended or modified accordingly.

SEC. 167. Effectivity. - This Act shall take effect after fifteen (15) days after its

publication in the Official Gazette and in a newspaper of general circulation.

Approved,

40