NINETEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATI
3186

House Bill No.

Introduced by Representative Ralph G. Recto

AN ACT
PROVIDING THE DIRECT REMITTANCE TO THE HOST LOCAL GOVERNMENT
UNITS OF THEIR FORTY PERCENT (40%) SHARE DERIVED FROM THE
NATIONAL WEALTH AMENDING FOR THE PURPOSE SECTION 293 OF
REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE LOCAL
GOVERNMENT CODE OF 1991

EXPLANATORY NOTE

As mandated in the Local Government Code, local government units (LGUs)
are entitled to forty percent (40%) of the gross collections derived by the national
government from the utilization and development of the national wealth by private
persons or entities. These monies are used by the LGUs in financing development
and livelihood projects. Unfortunately, such projects may be put on hold due to the
delay in the release of the LGUs’ share by the national government.

The present guidelines and procedures for the release of LGU shares require
that the revenue-collecting agencies and national government agencies concerned
submit to the Department of Budget and Management various documents before the
shares are released to the host LGUs concerned. Hence, the evaluation of
documents and the status of the government's overall cash position can cause the
delay.

This proposal seeks to amend Section 293 of the Code to expedite the release
of LGUs’ shares by mandating that the forty percent (40%) share pertaining to the

' DOF-DBM-DILG-DENR Joint Circular No. 2009-1 March 31, 2009


host LGUs be remitted directly to the LGU concerned. On the other hand, the sixty
percent (60%) share of the national government shall be remitted to the national
treasury.

In view of the foregoing, the immediate approval of this measure is hereby
requested.

mjma



NINETEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

House Bill No. 3156

Introduced by Representative Ralph G. Recto

AN ACT
PROVIDING THE DIRECT REMITTANCE TO THE HOST LOCAL
GOVERNMENT UNITS OF THEIR FORTY PERCENT (40%) SHARE
DERIVED FROM THE NATIONAL WEALTH AMENDING FOR THE
PURPOSE SECTION 293 OF REPUBLIC ACT NO. 7160, OTHERWISE
KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991

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

Section 1. Section 293 of Republic Act No. 7160, otherwise known
as the “Local Government Code of 1991” is hereby amended to read as
follows:

“Sec. 293. Remittance of the Share of Local Government

Units. — The share of local government units from the utilization

and development of national wealth shall be remitted in

accordance with Section 286 of this Code: Provided, however, That

PERSONS, NATURAL OR JURIDICAL, INCLUDING [ifthe

ease-of-any] government agenc[yJIES or government-owned or

controlled corporationS engaged in the utilization and development

of the national wealth, [sueh-share] shall [be] directly remit[ted]

to the provincial, city, municipal or barangay treasurer of the

HOST LOCAL GOVERNMENT UNIT CONCERNED ITS FORTY

PERCENT (40%) SHARE DERIVED FROM NATIONAL

WEALTH TAXES UNDER SECTION 290 OF THIS CODE AND

THE REMAINING SIXTY PERCENT (60%) TO THE


NATIONAL GOVERNMENT [eoncerned-within-five-(5}-days-after

the end-of each quarter].”

Sec. 2. Implementing Rules and Regulations. ~ The Secretaries of the
Department of Finance, Department of the Interior and Local Government
and the Department of Finance, shall, within ninety (90) days from the
effectivity of this Act, jointly formulate and issue the appropriate rules and
regulations necessary to implement and carry out the intent, objective,
purpose and provisions of this Act.

Sec. 3. Repealing Clause. — Any law, presidential decree or issuance,
executive order, letter of instruction, rule or regulation inconsistent with the
provisions of this Act is hereby repealed or modified accordingly.

Sec. 4. Effectivity. — This Act shall take effect fifteen (15) days
following its complete publication in two (2) newspapers of general circulation
or in the Official Gazette.

Approved,