Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH (18™) CONGRESS
First Regular Session

House Bill No. 354

Introduced by REPRESENTATIVE MARIA LAARNI L. CAYETANO

EXPLANATORY NOTE

Republic Act No. 7160, otherwise known as “The Local Government Code of 1991,” as
amended, was enacted precisely to breathe life into the constitutional mandate of local autonomy
by establishing a more responsive and accountable local government structure instituted through
an efficient system of decentralization. Essentially, this system is geared towards empowering
local government units to achieve their full development as self-reliant communities, making them.
more effective and meaningful partners in the attainment of the nation’s goals.

Being the basic political unit, the barangays serve as “the primary planning and
implementing unit of government policies, plans, programs, projects and activities in the
community, and as a forum wherein the collective views of the people may be expressed,
crystallized and considered” (Section 384 of the Local Government Code). As such, it is the
country’s ultimate front-liner in the provision of a broad range of basic services to the community,
as well as in the delivery to the citizenry of their first taste of the fruits of local public service.

In this sense, the creation of barangays, upon proper compliance with the requirements set
by the Constitution and the Local Government Code, thus only serves to bolster the capability of
local governments to efficiently and effectively perform their respective functions, duties and
responsibilities in the name of autonomy, decentralization and national growth and prosperity.

Further, the policy of establishing, protecting and enhancing fiscal autonomy on all levels
of local governance is integral to the proper exercise of local government functions. This policy
refers not just to the power to allocate one’s resources in accordance with one’s priorities but also
the power to create one’s own sources of revenue in addition to one’s equitable share in the
national taxes released by the central government.

Section 6, Article X of the Constitution states: “Local government units shall have a just
share, as determined by law, in the national taxes which shall be automatically released to them.”
The Internal Revenue Allotment (IRA) as incorporated in the general appropriations law enacted
annually by the legislature is the “just share” contemplated by the constitutional mandate.
Therefore, it is clearly an indispensable component in the grant of meaningful and true fiscal
autonomy to local government units. Further, Sec. 25 of RA 7160 bolsters the Constitutional grant
of a just share of LGUs in the IRA.

Thus, this bill seeks to invoke the 1987 Constitution and RA 7160 by allowing Barangay
South Daang Hari to be entitled to a just share from the national taxes.


Barangay South Daang Hari, located within the City of Taguig, Metro Manila, is one such
barangay excluded from a share in the IRA. It has a land area of One Hundred Seventy Eight
Thousand Seven Hundred square meters (178,700 sq.m.), more ot less, and a population of
Seventeen Thousand Six Hundred and Fifteen (17,615). It is bounded on the North by the property
line of Perpetual Village Phase-lII; on the East, by the Manila Railroad Company (Railroad Tract);
and on the South, by Lot-4547 Psu-13088 (Parafiaque Cadastre), Lot-8042 Case 16 Taguig
Cadastral Mapping and the Bagumbayan River. Having thus complied with the requisites
prescribed under Section 386 of the Local Government Code and the plebiscite requirement
contained in Section 10, Article X of the Constitution, it was separated from the original Barangay
Bagong Tanyag and created as a separate barangay by the City Government of Taguig, acting
through the Sangguniang Panlungsod, under City Ordinance No. 26-2008 approved on July 15,
2008. Its corporate existence began on October 25, 2010 when its first set of regular officials was
elected, pursuant to Section 14 of the Local Government Code.

In view of these considerations, and in the face of resonating and unified public clamor for
a clear and immediate legislative remedy to the matter at hand, the immediate approval of this bill
is highly and earnestly sought.

MARIA UNARNIL. CAYETANO
Hpresentative
Second District, City of Taguig


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH (18™) CONGRESS
First Regular Session

House Bill No. 354

Introduced by REPRESENTATIVE MARIA LAARNI L. CAYETANO

AN ACT CREATING A BARANGAY TO BE KNOWN AS BARANGAY SOUTH
DAANG HARI IN THE CITY OF TAGUIG, METRO MANILA

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

SECTION 1. Creation of Barangay South Daang Hari. — South Daang Hari Proper in
Barangay Bagong Tanyag, City of Taguig, Metro Manila is hereby separated from Barangay
Bagong Tanyag and constituted into a distinct and independent barangay to be known as Barangay
South Daang Hari.

SEC. 2. Territorial Boundaries. — The territorial boundaries of Barangay South Daang
Hari shall consist of permanent natural boundaries identified as follows:

“Bounded on the North by the property line of Perpetual Village Phase-II;
On the East by Manila Railroad Company (Railroad Tract); and

On the South by Lot-4547 Psu-13088 (Parafiaque Cadastre), Lot-8042 Case 16 Taguig
Cadastral Mapping and the Bagumbayan River.”

SEC. 3. Conduct and Supervision of Plebiscite.—The plebiscite conducted and supervised
by the Commission on Elections (COMELEC) in Barangay Bagong Tanyag pursuant to City
Ordinance No. 26, Series of 2008 of the Sangguniang Panlungsod of the City of Taguig, which
ratified the creation of Barangay South Daang Hari as proclaimed by the City Board of Canvassers
on December 28, 2008, shall serve as substantial compliance with the plebiscite requirement under
Section 10 of Republic Act No. 7160, as amended, otherwise known as the “Local Government
Code of 1991”.

SEC. 4. Incumbent Barangay Officials. The incumbent barangay officials of Barangay
South Daang Hari, City of Taguig shall continue to hold office until such time that their successors
have been duly elected and qualified.

SECS. Public Infrastructure and Facilities. — All public infrastructure and facilities for
public use existing therein at the time of the approval of this Act are hereby transferred without
cost or compensation to and shall be administered by the new barangay.


SEC. 6. Internal Revenue Allotment Shares. — Barangay South Daang Hari shall be
entitled to Internal Revenue Allotment (IRA) shares pursuant to Section 285 of Republic Act No.
7160, as amended, otherwise known as the “Local Government Code of 1991”.

SEC. 7. Separability Clause. — If, for any reason, any part or provision of this Act is
declared unconstitutional or invalid, other parts or provisions hereof which are not affected thereby
shall continue to be in full force and effect.

SEC. 8. Effectivity.—This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in any newspaper of general circulation.

Approved,