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Republic of the Philipp}nes RECEIVE
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Quezon City, Metro Manila yp fh

SEVENTEENTH CONGRESS ev
First Regular Sessi

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REGISTRATION UNIT
LLS AND INDEX VICE

HOUSE BILL NO. 2.9

Introduced By:
REP. FRANCISCO JOSE F. MATUGAS II, 1°! District, Surigao del Norte
REP. PROSPERO A. PICHAY JR., 15" District, Surigao del Sur
REP. JOHNNY T. PIMENTEL, 2" District, Surigao del Sur

EXPLANATORY NOTE

This bill, which was approved by the House of Representatives of the
15!" Congress and refiled in the present Congress, seeks to provide for the
automatic and direct remittance, to the host local government unit, of its
forty percent (40%) share of the proceeds from the development and
utilization of national wealth.

By allowing the host local government units to directly receive their
just share from national wealth taxes, we will be helping our local
executives increase their operational expenses and thus, improve the
delivery of basic services to their constituents. Moreover, this bill will also
resolve the present bureaucratic intricacies where funds are first remitted
to the national government before they are apportioned to the local
government units. With the passage of this bill, local legislative bodies will
be able to immediately appropriate funds for their priority development
projects.

Our local executives are the first to respond to the needs of the
people. It is but logical that they are empowered to serve the citizens well.
This is just one of the measures that seek to broaden the local fiscal
resource generation of the local government units, Hence, immediate
approval of this bill is eamestly sought.

FRANCISCO Ji F. MATUGAS II RO A. PICHAYJR.

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Republic of the Philippines
House of Representatives

Quezon City, Metro Manila

Seventeenth Congress
First Regular Session
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HOUSE BILL NO. “>

Introduced By:
REP. FRANCISCO JOSE F, MATUGAS Il, 15" District, Surigao del Norte
REP. PROSPERO A. PICHAY JR., 1°" District, Surigao del Sur
REP, JOHNNY T. PIMENTEL, 2" District, Surigao del Sur

AN ACT
PROVIDING FOR THE DIRECT REMITTANCE TO THE HOST LOCAL GOVERNMENT
OF ITS FORTY PERCENT (40%) SHARE OF THE PROCEEDS DERIVED FROM THE
UTILIZATION AND DEVELOPMENT OF NATIONAL WEALTH, AMENDING FOR THE
PURPOSE SECTION 293 OF REPUBLIC ACT NO. 7160, AS AMENDED, 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, as amended,
otherwise known as the “Local Government Code of 1991", is hereby further

amended to read as follows:

“Sec, 293, Remittance of the Share of Local Government
Units — ANY PERSON, NATURAL OR JURIDICAL, INCLUDING
GOVERNMENT AGENCIES OR GOVERNMENT-OWNED OR -
CONTROLLED CORPORATIONS, ENGAGED IN THE UTILIZATION AND

DEVELOPMENT OF NATIONAL WEALTH SHALL DIRECTLY REMIT TO


1 THE PROVINCIAL, CITY, MUNICIPAL OR BARANGAY TREASURER, OF
2 THE HOST LOCAL GOVERNMENT UNIT CONCERNED, THE LATTER'S

3 FORTY PERCENT (40%) SHARE FROM THE UTILIZATION AND.

4 DEVELOPMENT OF NATIONAL WEALTH, WITHIN FIVE (5) DAYS AFTER
5 THE END OF EACH QUARTER: PROVIDED, THAT, SAID SHARE SHALL
6 NOT BE SUBJECT TO ANY LIEN OR HOLDBACK THAT MAY BE
7 IMPOSED BY THE NATIONAL GOVERNMENT FOR WHATEVER
8 PURPOSE,

9 THE SECRETARY OF FINANCE, IN CONSULTATION WITH THE
10 SECRETARY OF BUDGET AND MANAGEMENT, WITHIN SIX (6)
iW MONTHS FROM THE EFFECTIVITY OF THIS ACT, SHALL PROMULGATE
12 THE NECESSARY RULES AND REGULATIONS FOR THE DIRECT
13 REMITTANCE OF THE LOCAL GOVERNMENT UNITS’ SHARE TO THEM.

la [The share of local government units from the utilization and

1s development of national wealth shall be remitted in accordance
16 with Section 286 of this Code: Provided, however, That in the
W case of any government agency or government-owned or
18 controlled corporation engaged in the utilization and

19 development of the national wealth, such share shall be directly
20 remitted to the provincial, city, municipal or barangay treasurer

2 concemed within five (5) days after the end of each quarter.)”

23 SEC. 2, All laws, decrees, orders, rules and regulations or parts thereof
24 inconsistent with the provisions of this Act are hereby amended or modified

25 accordingly


1 Sec. 3. This Act shall take effect fifteen (15) days after its publication in
2. the Official Gazette or in two (2) national newspapers of general circulation.

3 Approved,