Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 5687

Introduced by Representatives Joseph Sto. Nifio B. Bernos, Elias C. Bulut Jr.,
Solomon R. Chungalao, Maximo, Jr. Y. Dalog, Nestor B. Fongwan, Mark O. Go and
Allen Jesse C. Mangaoang

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 Organic 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 in 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


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.

Y. DALOG,

NESTOR B. FONGWAN


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Eighteenth Congress
First Regular Session

HOUSE BILL No. 5587

Introduced by Representatives Joseph Sto. Nifio B. Bernos, Elias C. Bulut, Jr.,
Solomon R. Chungalao, Maximo Y. Dalog, Jr., Nestor B. Fongwan, Mark O. Go, and
Allen Jesse C. Mangaoang

AN ACT
ESTABLISHING THE AUTONOMOUS REGION OF THE CORDILLERA

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

PREAMBLE

We, the Cordillerans, 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, fairness, 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 Philippine State, do proclaim this Organic Act of the Autonomous
Region of the Cordillera.

ARTICLE I
NAME AND PURPOSE

SECTION 1. Name, - There is hereby established an autonomous region in the
Cordillera to be known as the “Autonomous Region of the Cordillera.”

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
Cordillerans and to secure their identity, posterity, and allow for meaningful governance.

ARTICLE It
AREA OF THE AUTONOMOUS REGION OF THE CORDILLERA

SEC. 3. Area of the Autonomous Region of the Cordillera. — The area of the
Autonomous Region of the Cordillera (ARC) 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 1987 Constitution. The area of the plebiscite shall be the

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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 all citizens of
the Philippines who are residents for at least one (1) year within the ARC.

ARTICLE Il
DECLARATION OF POLICIES AND PRINCIPLES

SEC. 5. Integral Part of the Republic. - The ARC 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
the laws enacted by the Regional Assembly and by this Organic Act.

SEC. 6. Equitable Share in the National Budget and Development Assistance. - The
national government shall provide the autonomous region a proportionate and equitable share
in the annual national budget and foreign assisted projects in addition to other financial
assistance, support and subsidies to accelerate its development. Whenever the Commission
on Audit finds that the internal controls set up in the region are inadequate, it may require
pre-audit and shall likewise conduct seminars in the communities concerned explaining the
benefits and proper use of the internal revenue allotments.

SEC. 7. Self-governance. - In the exercise of their right to genuine autonomy and
meaningful self-governance, Cordillerans 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 allowing the people to participate in the political processes.

SEC. 9. Prior and Preferential Right. — Cordillerans shall have prior and preferential
right to the natural, material, and fiscal resources of the ARC.

SEC. 10. Fundamental Rights and Duties of People. - The fundamental rights and
duties of the people in the ARC are those defined in the Constitution, this Organic Act and
the Indigenous Peoples Rights Act.

SEC. 11. Rights to Initiatives, Consultations, Referenda and Plebiscites. - Without
prejudice to other rights guaranteed by the Constitution, the rights of the people of the ARC
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
(RA) No. 7160, also known as the “Local Government Code of 1991,” are hereby
recognized.

SEC. 12. Accountability of Public Officers. — The Regional Government, to meet the
priority needs and service requirements of its constituents shall adopt the principles of
integrity, transparency and accountability in order to ensure an accountable, efficient and
dynamic organizational structure.


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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.

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 RA 7160 shall continue to apply to all provinces, cities,
municipalities, and barangay within ARC.

‘The regional assembly shall not pass any law to diminish, lessen or reduce the
powers, functions, and shares in the intemal revenue allotment of the said local government
units as provided by RA 7160.

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 adopts environmentally sound
and appropriate technology in the management of natural resources. The use of renewable
energy shall be promoted for power generation.

SEC. 17. Community Responsive Education. - The Regional Government shall
imegrate in the educational system a subject that responds to the needs of the Cordillera
communities which respects and promotes Cordilleran knowledge, core values, systems,
institutions, culture and practice; encourages the use of languages and methods of education;
promotes 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 guarantees 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
exploitation which are harmful to their moral, physical, or mental health.

SEC. 19. Regional Arrangements. — The Regional Government shall pursue a policy
of interregional development planning, coordination and mutual cooperation in order to
sustain the use, development as well as the protection and conservation of its resources which
benefits other regions.

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

SEC. 21. Social Justice. - The Regional Government shall minimize disparities
between the rich and the poor, rural and urban areas within the region by providing,
maintaining and ensuring the equitable delivery of basic and responsive health programs,

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quality education, appropriate services, livelihood opportunities, affordable and progressive
housing projects and water resource development.

SEC. 22. Foreign Investments. — The Regional Government shall provide incentives
to investors, corporations and other businesses, but shall adopt measures to prevent the abuse
of human rights and exploitation of natural resources. To this end, the Regional Government
shall adopt local and international safeguards to review and audit the impact of all forms of
foreign aid, loans special projects and the like.

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

ARTICLE IV
THE AUTONOMOUS REGION OF THE CORDILLERA

A. Powers of the Autonomous Region of the Cordillera

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 local government units.

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

(1) Administrative organization:

a. Declaration of holidays;

b. Public administration and bureaucracy for the region; and

c. Identification, generation, and mobilization of international human resources for
capacity-building and other activities involving the same within the region.

(2) Creation of sources of revenues:

a. Authority to regulate power generation, transmission and distribution operating
exclusively in the autonomous region; and

b. Imposition of taxes except those which are already taxed by the national and local
government.

(3) Ancestral domain and natural resources:

‘a. Protection of the ancestral domain and ancestral lands of indigenous cultural
communities (ICCs) consistent with IPRA.

b. Declaration of nature reserves and aquatic parks, forests, watershed reservations,
and other protected areas in the autonomous region.

c. 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
Constitution and the pertinent provisions of this Organic Act including strategic
minerals such as uranium, petroleum, and other fossil fuels, mineral oil, and all
sources of potential energy.

d. Regulation of small-scale mining to the end that the ecological balance, safety and
health, and the interests of the affected communities, and the local government


units of the place where such operations are conducted are duly protected and
safeguarded.

(4) Urban and rural planning development:

a. Adoption and implementation of a comprehensive land use program;

b. Land management, land distribution, and agricultural land use reclassification;
and

c. Authority to conduct cadastral survey in coordination with the Department of
Environment and Natural Resources (DENR).

(5) Economic, social and tourism development:

a. Establishment of transportation and communication facilities;

b. Promotion of tourism within the autonomous region; and

c. Regulation of games and amusement operations within ARC.

(6) Educational policies in skills training, research and scholarships.

(7) 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

(8) Such other matters for the promotion of the general welfare of its inhabitants.

B, Intergovernmental Relations

SEC. 26. General St yn. ~ Consistent with the principle of autonomy, the
President shall exercise 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 its officials and employees. Existing 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 Autonomous Region of the Cordillera.

SEC. 29. Priority in Hiring. — Officials and employees of the regional autonomous
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 Cordillerans.

SEC. 30. Appointment to Third Level Positions. — The Regional Governor shall fill
up third level positions from among at least three (3) recommendees of the Regional
Personnel Selection Board (PSB) that shall be duly constituted.

SEC. 31. Budget Preparation. - Regional line agencies and offices shall prepare their
respective budgets separate and distinct from the budget of the Regional Government. Their
budgets shall however be furnished to the regional government to ensure that plans and
priorities of the autonomous region are harmonized and properly considered in the budgeting
processes.


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SEC. 32, Management of ODA Funds. — The autonomous region may avail of
Official Development Assistance (ODA)-funded projects 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, local
government units or whichever is deemed appropriate.

SEC. 33. Government Owned and Controlled Corporations. - Government Owned
and Controlled Corporations such as the Government Service Insurance ‘System, the Social
Security System, the Pagtutulungan-Ikaw, Bangko Industriya't Gobyemo (PAG-IBIG),
PhilHealth and others shall continue to be governed by their respective charters and other
pertinent laws.

SEC. 34. Autonomy of Local Government Units. - Local government units shall
continue to be independent from each other and shall have the same set of local officials and
employees and shall enjoy autonomy and continue to exercise the powers granted them under
the Local Government Code and other existing laws. The Local Government Code shall
apply to all provinces, cities, municipalities and barangays in the autonomous region 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 local government units.

SEC. 35. 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 autonomous region to ensure that their
acts are within the scope of their prescribed powers and functions.

SEC. 36. Revenues and Taxes Accruing to LGUs. — Revenues, taxes, fees and
charges generated by the local government units and the regional government from their
respective local tax ordinances shall exclusively accrue to them.

SEC. 37. Just Share in National Taxes. — The local government units in the
autonomous region, including the Regional Government, shall have a just share in the
national taxes and applicable revenues which shall be automatically released to them.

SEC. 38, Equitable Share in the Utilization of Resources. ~ The local government
units in the autonomous region 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 by law and this Organic Act.

SEC. 39. City Charters. ~ Chartered cities within the autonomous region shall be
governed primarily by their charters.

SEC. 40. 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 shall be entitled to
their own local executive and legislative bodies. The jurisdiction of the metropolitan
authority that will thereby be created shall be limited to basic services requiring coordination.

SEC. 41. Right of LGU’s to Aggregate. - Local government units 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.


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ARTICLE V
ELECTIVE OFFICIALS OF THE AUTONOMOUS REGIONAL GOVERNMENT —
THEIR QUALIFICATIONS, TERMS OF OFFICE, VACANCIES AND
SUCCESSION, AND ACCOUNTABILITY

SEC. 42. Elective Officials. - The elective officials of the Autonomous Region of the
Cordillera are the (a) Regional Governor, (b) Regional Vice-Governor, and (c) Members of
the Regional Assembly.

SEC. 43. Qualifications. - (a) Candidates for Regional Governor and Vice-Governor
positions must be a citizen of the Philippines and a Cordilleran, at least twenty-five (25) years
of age on election day, a registered voter in the region and a resident thereof for a period of at
least one (1) year immediately preceding the day of election, able to read and write Filipino
or English; (6) Candidates for the position of Member of the Regional Assembly must be a
citizen of the Philippines and a Cordilleran, at least twenty five (25) years of age on election
day, a registered voter in the provincial district or city and a resident thereof for a period of at
least one (1) year immediately preceding the day of election, able to read and write Filipino
or English o any other local language in the region.

SEC. 44, Disqualifications. - In addition to the disqualifications provided under Book
I, Title Two, Chapter 1, Section 40 of the Local Government Code, candidates for Regional
Governor, Vice-Governor and members of the Regional Assembly must not be related to the
incumbent elected regional officials within the fourth degree of consanguinity or affinity

SEC. 45. 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
registered voters of the Autonomous Region of the Cordillera. A vote to the Regional
Governor shall be counted as a vote to the Regional Vice-Governor.

(a) Each province and city shall elect their own representatives to the Regional
Assembly. Any highly urbanized city in the autonomous region is entitled to four (4)
representatives to the Regional Assembly. Each province shall be entitled to four (4)
representatives, two (2) per provincial district, and one (1) for the component city. 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 by law.

(b) Unless otherwise provided, the regular election of the Regional Governor, Vice
Governor, and members of the Regional Assembly shall be held on the second Monday of
May.

SEC. 46. Term of Office. - (a) The term of office of all elective regional officials
elected after 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 assembly 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. 47. Oath of Office. — The Regional Governor, Vice-Governor and Members of
the Regional Assembly on assuming office shall take the following oath or affirmation:


“I 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
‘Autonomous Region of the Cordillera, 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 Autonomous Region of the Cordillera. So help me God.” (In case
of affirmation, the last sentence will be omitted.)

SEC. 48. 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 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-Governor 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
government-owned or controlled corporations, 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.

(d) 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.

(e) 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 any government-owned or-controlled corporations or in
any of their subsidiaries. They shall not intervene in any matter before any office of the
‘Autonomous Region of the Cordillera for their pecuniary benefit or where they may be called
upon to act on account of their office.

SEC. 49, Vacancies and Succession. - (a) In the event that the position of the
Regional Governor becomes permanently vacant, the Regional Vice-Govemor 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 concerned 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.

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SEC. 50. Temporary Vacancies. - (a) When the Regional Governor is temporarily
incapacitated to perform his 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) Said temporary incapacity shall terminate upon submission to the Regional
Assembly of a written declaration by the Regional Governor that he has reported back to
office. In cases where the temporary incapacity is due to legal causes, the regional official
concemed 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
his territorial jurisdiction for a period not exceeding three (3) consecutive days, he may
designate in writing, the officer-in-charge of the said office. Such authorization shall specify
the powers and functions that the regionat officia! 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 in subsection c, hereof.

(e) Except as provided 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.

SEC. 51. Approval of Leaves of Absence. - Leave of absence of elective officials of
the Autonomous Region of the Cordillera 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 his duly authorized representative;

(b) Applications for leave of absence of other officials and employees other than those
enumerated above shall follow those stipulated in the Local Government Code; and

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

SEC. 52. Compensation. — (a) Unless otherwise provided by law, the Regional
Governor and Regional Vice-Governor shall receive an annual salary equivalent to that of a
department secretary and undersecretary, 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 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.

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

SEC. 53. Accountability. — (a) Disclosure. All regional officials shall, upon their
assumption of office, make a full disclosure of their financial and business interests,

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including those of their spouses and unmarried children under eighteen (18) years of age
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
R.A. 6713 or 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 R.A 7160 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 by Chapter 5, Title Two of Book I of R.A. 7160 and other applicable laws.

ARTICLE VI
THE REGIONAL EXECUTIVE DEPARTMENT

SEC. 54, Executive Authority. - The executive power in the region shall be vested in
a Regional Governor. He shall exercise such powers and perform such duties and functions as
provided by this Organic Act and other laws.

SEC. 55. Scope of Executive Authority. — As chief executive of the Regional
Government, the Regional Governor shall exercise control and supervision over all programs,
projects, services and activities of the Regional Government and supervision over regional
line agencies and local government units within the autonomous region subject to existing
laws.

SEC. 56. 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. 57. 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. 58. 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. 59. Mandatory Staff. — The regional autonomous 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 to 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 regional line agencies. They shall receive

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compensation, allowances and other emoluments and benefits allowed by law or ordinance.
With the exception of the Regional Executive Secretary, the heads of the regional
departments shall be mandatory.

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

1) Regional Executive Secretary
(a) The Regional Executive Secretary of the Autonomous Region of the Cordillera shall
be a citizen of the Philippines and a Cordilleran, 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.
(b) The term of office of the Regional Executive Secretary shall be co-terminus with that
of the appointing authority.
(c) The Regional Executive Secretary shall, subject to the control and supervision of the
Regional Governor, carry out the following functions:
1. Directly assist the Regional Governor in the management of the affairs
pertaining to the Autonomous Region of the Cordillera;
2. Implement directives, orders and decisions of the Regional Governor;
3. Exercise supervision and control over the various units in the Office of the
Regional Governor including their internal administrative requirements;
4. Exercise supervision, in behalf of the Regional Governor, over the various
agencies under the Office of the Regional Governor,
5. Provide overall coordination in the operation of the Regional Executive
Office;
6. Determine and assign matters to the appropriate units in the Office of the
Regional Governor,
7. Act on matters referred to the Office of the Regional Governor coming from
the various regional offices and agencies of the government;
8 Provide consultative, research, fact-finding and advisory service to the
Regional Governor,
9. Assist the Regional Governor in the performance of functions pertaining to
legislation;
10. Assist the Regional Governor in the administration of special projects;
11. Take charge of matters pertaining to protocol in the Regional Government
and ceremonial functions;
12. Provide secretarial and clerical services for the Regional Governor and other
bodies;
13. Promulgate such rules and regulations necessary to carry out the objectives,
policies and functions of the Office of the Regional Governor, and
14. Perform such other functions as the Regional Governor may direct.

2) Regional Accountant
(a) The Regional Accountant shall be a citizen of the Philippines and a Cordilleran, of
‘good moral character, certified public accountant, and must have acquired experience
in the treasury or accounting service for at least five (5) years.
(b) The regional accountant shall take charge of both the accounting and internal audit
services of the autonomous region and shall:
1. Install and maintain an internal audit system in the autonomous region,


wCwud AVEwWNe

Prepare and submit financial statements to the Regional Governor and to the
Regional Assembly;

. Apprise the Regional Assembly and other government officials on the

financial condition and operations of the autonomous region,
Certify to the availability of budgetary allotment to which expenditures and
obligations may be properly charged,

. Review supporting documents before preparation of vouchers to determine

completeness of requirements;
Prepare statements of cash advances, liquidation, salaries, allowances,
reimbursements and remittances pertaining to the autonomous region;

| Prepare statements of journal vouchers and liquidation of the same and other

adjustments related thereto;

Post individual disbursements to the subsidiary ledger and index cards;
Maintain individual ledgers for officials and employees of the autonomous
region pertaining to payrolls and deductions;

10. Record and post in index cards details of purchased furniture, fixtures, and

‘equipment, including disposal thereof, if any;

11. Account for all issued requests for obligations and maintain and keep all

records and reports related thereto,

12. Prepare journals and the analysis of obligations and maintain and keep all

records and reports related thereto; and

13. Exercise such other powers and perform such other duties and functions as

may be provided by law or ordinance.

3) Regional Budget Officer
(a) The Regional Budget Officer shalll be a citizen of the Philippines and a Cordilleran, 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, first grade civil service eligible or its equivalent, and must have acquired
experience in government budgeting for at least five (5) years.
(b) The budget officer shall take charge of the budget office and shall:
1

2.

3.

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

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

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

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

Submit periodic budgetary reports to the Department of Budget and

Management;

. Coordinate with the treasurer, accountant, and the planning officer for the

purpose of budgeting,

Assist the Regional Assembly in reviewing the approved budgets of the

provincial and highly urbanized cities;

. Coordinate with the regional planning officer in the formulation of the

regional development plan; and
Exercise such other powers and perform such other duties and functions as
may be prescribed by law or ordinance.

4) Regional Administrator

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(a) The Regional Administrator shall be a citizen of the Philippines and a Cordilleran, 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 experience in management and administration work for at least
five (5) years.

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

(©) Subject to the control and supervision of the Regional Governor, the Regional
Administrator shall:

1. 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,

2. 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 for this purpose, may convene the chiefs of offices and other officials of
the autonomous region;

3. Establish and maintain a sound personnel program for the autonomous region
designed to promote career development and uphold the merit principle in the
local government service;

4, Conduct a continuing organizational development of the autonomous region
with the end in view of instituting effective administrative reforms,

5. 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;

6. 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 autonomous government; and

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

5) Regional Legal Officer

(a) The Regional Legal Officer shall be a citizen of the Philippines and a Cordilleran, of
good moral character, member of the Philippine Bar, and must have been in the
practice of law for at least five (5) years.

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

(c) The Regional Legal Officer shall be the chief legal counsel of the regional
autonomous government, shall take charge of the office of legal services, and shall
perform the following:

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

2. 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;

3, Recommend measures and advise the Regional Governor on all other matters
related to upholding the rule of law;

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4.

5.

6.

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,

Exercise such other powers and perform such other duties and functions as

may be prescribed by law or ordinance.

In addition to the foregoing duties and functions, the legal officer shall:

i. Represent the regional autonomous government in all civil actions and
special proceedings wherein the autonomous region or any official
thereof, in his official capacity, is a party,

ii, When required by the Regional Governor, draft ordinances, contracts,

bonds, leases and other instruments, involving any interest of the
autonomous region and provide comments and recommendations on any
instrument already drawn;

iii, Render opinion in writing on any question of law when requested to do so

by the Regional Governor,

iv. Investigate or cause to be investigated any official or employee of the

Regional Government for administrative neglect or misconduct in office
and recommend appropriate action to the Regional Governor,

v. 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 recommending appropriate
action to the Regional Governor,

vi, When directed by the Regional Governor, initiate and prosecute in the

interest of the autonomous region any civil action on any bond, lease or
other contract upon any breach or violation thereof; and

vii. Review and submit recommendations on ordinances approved and

execute orders issued.

6) Regional Treasurer

(a) The Regional Treasurer shall be a citizen of the Philippines and a Cordilleran, of good
moral character, holder of a college degree preferably in commerce, public
administration or law from a recognized college or university, and must have acquired
experience in treasury or accounting service for at least five (5) years.

(b) The Regional Treasurer shall take charge of the Treasury Office, perform the duties

provi
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ided for under Book II of the Local Government Code, and shall:
_ 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;

. Take custody of and exercise proper management of the funds of the

autonomous region;

. 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;

Maintain and update the tax information system of the autonomous region;
and

. Exercise such other powers and perform such other duties and functions as

may be prescribed by law or ordinance,


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7) Regional General Services Officer
(a) The Regional General Services Officer shall be a citizen of the Philippines and a

Cordilleran, 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, and must have acquired experience in general
services, including management of supply, property, solid waste disposal, and general
sanitation, for at least five (5) years.

(b) The Regional General Services Officer shall take charge of the Office on General

Services and shall:

1. 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 and this Organic Act which require general services expertise
and technical support services;

2. Develop plans and strategies, and upon approval thereof by the Regional
Governor implement the same, particularly those which have to do with the
general services supportive of the welfare of the inhabitants which the Regional
Governor is empowered to implement,

3. 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;

4. Recommend and advise the Regional Governor on all matters relative to general
services;

5. In addition to the foregoing duties and functions, the General Services Officer
shall:

i. Take custody of and be accountable for all properties, real or personal,
owned by the autonomous government and those granted to it in the form
of donation, reparation, assistance and counterpart of joint projects;

ii, 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;

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

iv. Maintain and supervise janitorial, security, government public buildings
and other real property, whether owned or leased by the Regional
Government,

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

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

vii. 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

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


SEC. 60. Cordillera Development Council. — There shall be a Cordillera
Development Council (CDC) which shall function as the main planning and advisory body of
the autonomous government, setting the direction ‘of economic and social development of the
autonomous region and through which regional development efforts shall be coordinated.

SEC. 61. Composition. — The CDC, which shall be headed by the Regional Governor,
shall be composed of the Regional Governor as chair, Private Sector Representative as co-
chair, the Regional Director of NEDA as vice-chair, and the following as members:
(a) All the provincial governors, the city and capital town mayors in ARC.
(b) Two (2) members of the Regional Assembly to be designated by its presiding officer.
(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.
(e) The Council may designate special non-voting members coming from both the public
and private sectors, upon concurrence of the majority of its regular members.

SEC. 62, Technical Support. — The regional office of the National Economic and
Development Authority (NEDA) shall serve as the seeretariat and technical operations arm of
the Council.

SEC. 63. Functions. - The Cordillera Development Council shall:

(@) Coordinate the preparation, implementation, monitoring and evaluation of short- and
jong- term regional development plans and investment programs, regional physical
framework plans and special development plans, including the formulation of policy
recommendations.

(b) Integrate approved development plans of provinces and cities, line agencies, state
universities and colleges, government owned and controlled corporations and special
development authorities in the autonomous region into the regional development plan

(© Review, prioritize, and endorse to the autonomous government the annual and multi-
year sectoral investment programs of the autonomous region for funding and
implementation.

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

(© Promote and direct the inflow and allocation of private investments in the autonomous
region to support regional development objectives, policies, 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 goverment agencies that have impact on the region and projects
bf LGUs in the region requiring national government exposure which may come in
the form of guarantees, national government budget appropriations or subsidies,
among others.

(hy Initiate and coordinate the development, funding and implementation of regional and
special development projects such as those involving several agencies or LGUs.

(i) Coordinate the monitoring and evaluation of development projects undertaken by
government agencies, local government units, state colleges and universities,
government-owned and/or controlled corporations and special development
authorities in the autonomous region.

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

18


SEC. 64. Creation of Committees. - The Council may create appropriate technical and
sectoral committees to assist in its work.

SEC. 65. 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,

ional 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

ARTICLE Vit
‘THE REGIONAL VICE-GOVERNOR

SEC. 66. Functions. — The Regional Vice-Governor shall assist the Regional
Governor in the day to day operation of the Regional Government, and shall:

1, Assume the office of the Regional Governor for the unexpired term of the latter in
the event of a permanent vacancy as provided in this Organic Act,

2. Exercise the powers and perform the duties and functions of the Regional
Governor in cases of temporary vacancy as provided in this Organic Act;

3, Exercise the powers and perform the duties and functions as may be prescribed by
aw.

‘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 VII
‘THE REGIONAL ASSEMBLY

SEC. 67. Legislative Authority. - The legislative power of the Regional Government
in the Autonomous Region of the Cordillera 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
Jaws, the Regional Assembly shall have legislative powers over those functions enumerated
under Section 25.

SEC. 68. Regional Speaker - There shall be a Regional Speaker, who shall be
lected. from among the members of the Regional Assembly, on its first regular session. The
‘Assembly shall promulgate its rules and regulations for the conduct of its proceedings.

The Speaker, as the political and administrative head of the Assembly, is responsible

for the overall management of the proceedings, activities, resources, facilities and employees
of the Assembly. The Speaker shall:

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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
nay, 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 concems affecting the Regional Government
and the performance of its functions;

c. 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,

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

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 concerns inclusive of facilitating, as far as
practicable, broadcast coverage of plenary and committee proceedings;

¢. 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;

f. 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, among others:

1, Appointment of personnel of the Regional Assembly with authority to
delegate this power;

2. Suspension, dismissal or imposition of other 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, Consolidation or splitting of vacant positions carrying salaries and wages
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, Implementation of merit-based policies and programs on personnel
recruitment, training and development, promotions, incentives and benefits to ensure

20


wCeIAUVEWNS

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,
with the authority to delegate this power.

j. Prepare the annual budget of the Regional Assembly;

{. 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, which may provide for the testing of any Member, officer, or employee of the
Regional Assembly, and otherwise shall be comparable in scope to the system for drug
testing in the executive branch of the Regional Government. Provided, That the expenses of
the system may be paid from applicable accounts of the Regional Assembly for official
expenses; and

‘0, 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 Assembly’s delegation to any local or international conference or forum of
parliamentarians and legislators and the secretariat support staff to be mobilized for the
purpose

SEC. 69. Enactment of Laws and Resolutions. — ‘The Regional Assembly shall enact
ordinances, approve resolutions and appropriate funds for the general welfare of the region
and its inhabitants as well as for the efficient and effective operation of the Regional
Government.

SEC. 70. Creation, Division, Merger and Abolition of Local Government Units. —
‘The Regional Assembly may, by law create, divide, merge or abolish municipalities or
barangays. The municipalities or barangays created, divided or merged shall be entitled to
their appropriate share in the national taxes or Internal Revenue Allotment (IRA). Provided,
that it shall be approved by a majority of the votes cast in a plebiscite in the political units
directly affected.

SEC. 71. 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 however be co-terminus with their
overseer.

SEC. 72. 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 Assembly may be
called to a special session by the Regional Speaker or the Regional Governor whenever

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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. 73. 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, among other things, the organization of the 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 determination of quorum, and the necessary votes to pass any measure, and recall
proceedings in accordance with the Local Government Code.

SEC. 74. 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 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 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.

(4) 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 with the objections. 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 signed.
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
alaw.

(©) 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. 75. People's Question Hour. - There shall be a people's 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, during which, upon initiative of 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.

22


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. 76. 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. 77. Appropriations Bill. - The Regional Assembly shall pass an appropriations bill
for the ensuing year at or 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.

(c) 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 Department of Budget and
Management.

SEC. 78. 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
fas 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. 79. 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. 80. 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.

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SEC. 81. Program for Development. - Subject to national laws and, sound public
administration principles, exercising the corporate powers of the Regional Government under
the Constitution and RA 7160, the Regional Assembly shall evolve 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.
Provided, that when regional revenues are insufficient, the difference shall be funded by the
national government.

SEC. 82. 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,

SEC. 83. 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.

ARTICLE IX
PATRIMONY, ECONOMY AND DEVELOPMENT

SEC. 84. 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 Cordillerans 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
Autonomous Region of the Cordillera by appropriating such sums as may be
necessary to accelerate the development of the autonomous region, on top of the
Internal Revenue Allotment (IRA) provided therewith and the Local Government
Units as well as the allocations already provided through the regional line agencies.

b. The national government shall consult and coordinate with the autonomous Regional
Government before programs and projects are undertaken in the autonomous region.

SEC. 85, Cordillera Development Plan. - The Regional Government through the
Cordillera Development Council shall formulate its development plans taking into
consideration the Cordilleran’s unique needs and aspirations, 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. 86. Control and Supervision over Natural Resources. — The Regional Government
shall have control and supervision over natural resources in accordance to this Organic Act.

SEC. 87. Preferential Rights of Cordillerans to Utilize and Develop 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 be given to Cordillerans in the implementation of programs, projects, and activities

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related to these natural resources in the region and shall comply with the provisions of the
Constitution and this Organic Act.

SEC. 88, 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. 89. Development of Lands 18° Above in Slope. - The Regional Government in
partnership with the communities, especially the indigenous peoples or indigenous cultural
communities, and their government units, and support of the national government shall adopt
measures for the development of communities occupying lands eighteen degrees in slope or
over, by providing the necessary infrastructure, financial and technical support.

SEC. 90. Transportation and Communication System. — The Regional Government
shall, in coordination with the national government, establish a transportation and
communication system interconnecting the various areas of the autonomous region with each
other and to other regions adjacent to the Cordilleras. Likewise, the Regional Government in
close coordination with component local government units shall plan, construct, modernize
and maintain rural and urban infrastructure facilities and utilities, including alternative
transport systems within critical environments.

SEC. 91. 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 Constitution and national laws and
policies to ensure the just and sustainable utilization of land within its jurisdiction.

SEC. 92. 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. 93. 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 years.

SEC. 94. 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.

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SEC. 95. 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. 96, 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 Board of the National Economic and Development Authority.

ARTICLE X
SOURCES OF REVENUES AND OTHER FISCAL MATTERS

SEC. 97. Share from the National Revenues. - To conserve, protect and develop the
national patrimony and heritage located in the Autonomous Region of the Cordillera, 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 which include the following:

(a) Three percent (3%) of the National Internal Revenue Taxes. The Regional
Government shall have a share in the national intemal revenue taxes equivalent to 3
percent 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. The intemal revenue allotment share of the Regional
Government shall be released directly to the Regional Government Treasurer and
shall not be subject to any lien or holdback that may be imposed by the national
government for whatever purpose.

(b) Forty percent (40%) Share of the National Wealth Tax. The Regional Goverment
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 government agencies and government
‘owned or controlled corporations engaged in the utilization and development of the national
wealth within the region irrespective of existing contrary laws, rules and regulations of
national application.

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

(2) Component City/ Municipality — Forty percent (40%)

(3) Barangay Thirty percent (30%)

(4) Region — Ten percent (10%)

(c) Two percent (2%) 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 eamed or equivalent to forty percent (40%) of total tax paid by

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businesses within the economic zones found in the Cordillera, in addition to the
existing shares of the local government units of two percent (2%).

(A) Twenty percent (20%) Share of Excess in Value Added Tax. The ARC shall have a
separate twenty percent (20%) share of the excess in VAT collections from the
immediately preceding year within the territorial jurisdiction of the autonomous
region. The fund shall support cottage industry programs.

Local Government Units shall have a separate twenty percent (20%) share of the excess
in VAT collections from the immediately preceding year.

(©) Fifteen percent (15%) Share of Total Excise Tax, The ARC shall have a separate
fifteen percent (15%) share of the total excise tax collection on all products subject to
excise tax within the territorial jurisdiction of the autonomous region for the second
calendar year preceding the year of distribution, in addition to the existing shares of
the local government units.

Local Government Units 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 (15%) 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 collected on burley and native tobacco products collected within the
region.

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

(g) Forty percent (40%) Share of Renewable and other energy Tax. The Regional
Government shall have a separate forty percent (40%) 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.

Local Government Units’ share from the renewable and other energy resources tax shall
be based on the computation provided under the Local Government Code (RA 7160).

(h) Three percent (3%) of net income of Philippine Amusement and Gaming Corporation
(PAGCOR) and Philippine Charity Sweepstakes Office (PCSO) for construction and
maintenance of school buildings, hospitals and related structures and services.

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

SEC. 98. Downstream Benefits. ~ The ARC shall be entitled to one and one-half percent
(1.5%) of the gross receipts from the utilization of national wealth sourced or emanating from
the Autonomous Region by persons, individual or juridical entities operating outside the
territorial jurisdiction of the Autonomous Region.

SEC. 99. Sources of Regional Government Revenues. ~The ARC shall be entitled to the
following sources of revenues:

a. Fees and charges imposed by the Regional Government;

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b. 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
operated;

c. Shares and revenue generated from the operations of public utilities within the
autonomous region;

4. Appropriations, shares in the internal revenue taxes, block grants, and other budgetary
allocations coming from the central goverment or national government, and

e. 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.

SEC. 100. Power of Taxation. — The ARC shall have the power to create its own sources
of revenues and to levy fees, charges and taxes subject to such guidelines and limitations of
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.

SEC. 101. Situs of Taxation. - All corporations, partnerships, and other entities,
including government agencies, government-owned and controlled corporations directly
engaged in business in the region shalll pay their corresponding taxes, fees, and charges to the
province, city, municipality or barangays where such establishments are conducting their
business operations irrespective of the location of their principal or main offices.

SEC. 102. Appropriations from the National Government. — The national government
shall continue to provide appropriations for the regular operations and programs of devolved
line agencies in the region to be prepared by the Autonomous Region of the Cordillera and
incorporated under the General Appropriations Act. The National Government shall provide
appropriations for the mandatory organizational structure and positions of the Autonomous
Region of the Cordillera and the latter may access other special purpose funds appropriated in
the national budget.

SEC. 103. Donations to the Regional Government. — Donations or grants to the region to
be used in undertaking projects in health, education, culture, youth and sports development,
housing, science and technology, and in economic development, shall be deductible in full in
determining the taxable income of the donor or grantor. Provided, that the validation and

certification processes for such donations or grants shall have been done according to
regional law.

SEC. 104. Trade Agreements. — The Regional Governor, in accordance with the
provisions of the Constitution and national laws, and upon the recommendation of the
Cordillera Development Council may 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.

SEC. 105. 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. 106. Banks and other financial institutions. - The ARC shall encourage the
establishment of banks and other financial institutions and their branches to facilitate the

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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. 107. 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 be accessible to the 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 concept of farming and protect the farmers from unfair trade practices
and unfair competition.

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

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

SEC. 108. Development of Water Resources. — The Regional Government shall give
top priority to 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 specie endemic to the Cordillera.

SEC. 109. 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 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. 110. Agriculture Production. - The Regional Government shall pursue the
following strategies to develop and increase agricultural productivity.
(a) Pursue a 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-

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addition and improve processing, and enhance abilities to protect the environment and
agricultural resources;

(b) Initiate, encourage and give 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 in a day.

SEC. 111. Prevent Flight of Labor and Capital, - To promote investments and
employment and to prevent flight of capital and labor from the region, the Regional
Government shall adopt measures:

(a) Against 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) To 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, the ecological needs of the area and the protection, conservation and
development of resources.

SEC. 112. Eco-cultural Tourism. — Consistent with the preservation of cultural heritage
and the protection of ecology, the Regional Government shall promote eco-cultural tourism
in the region. Sites with historical, scientific, cultural significance including natural and man-
made landmarks and scenic vistas shall likewise be preserved, maintained and protected.

SEC. 113. Promote Economic Zones. ~ The Regional Government shall 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 region, including the
necessary support infrastructure in accordance with land use and other environmental
considerations.

SEC. 114. Marketing and Exportation of Indigenous Products. - The Regional
Government shall, in coordination with local government units, encourage investments,
development, marketing and exportation of indigenous and other local products in accordance
with its development goals and priorities.

SEC. 115. 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).

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

SEC. 116. 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 but subject to regional laws. 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 Cordillerans;

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

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

SEC. 117. Education with Highest Budget Allocation. — The Regional Government shall
assign the highest budgetary priority to education.

SEC. 118. Exemption from Taxes and Duties. — Private educational institutions, colleges
and universities shall enjoy the protection and support of the Regional Government. All
revenues and assets of non-stock, non-profit educational institutions used actually, directly
and exclusively for educational purposes shall be exempt from taxes and duties.

SEC. 119. Creation of Regional Scholarship Committee for Education. - The Regional
Government shall assist the national government to provide free basic education and shall
likewise endeavor to provide free tertiary education through scholarship programs, subsidies,
research grants and other incentives to poor, gifted, and deserving individuals. Towards this
end, there shall be created a Regional Scholarship Committee for Education.

SEC. 120. 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. 121. Culture Sensitive Education. - The educational system in the region shall
develop a program, research, instruction and extension that will promote consciousness and
appreciation of the ethnic identity of the people in the region and shall provide a better
understanding of their cultural heritage for the attainment of national unity and harmony in all
levels of education. 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. 122. State Colleges and Universities. — State colleges and universities in the region
shall form part of the regional educational sub-system of the autonomous region and shall

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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 shall continue to receive funding
from the national government while the Regional Government shall provide
additional funding.

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

SEC. 123. 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. 124. 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. 125. Intellectual Property Rights. — Incentives and safeguards for intellectual
property rights, and assistance in the registration of patents and copyrights shall be accorded
to Cordillera artists, writers, scientists, researchers and inventors.

SEC. 126. Medium of Instruction. — The Regional Government shall retain English and
Filipino as a 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 strengthen and enrich the various languages and
dialects in the region as well as the national language as maybe appropriate.

SEC. 127. 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. 128. 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 XM
SOCIAL JUSTICE, HEALTH AND WELFARE

SEC. 129. 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 region;

(b) Reduce or eradicate poverty to ensure that all Cordillerans are free from all forms of
deprivation, vulnerability, and abuse;

(c) Create equal opportunities for assistance and protection for all Cordillerans;

(d) Promote gender and development (GAD) through the creation, adoption and
sustainability of programs and policies that are gender sensitive; and

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(©) 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. * 2

SEC. 130. 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:

(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
retums on investments;

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

(d) Mandatory corporate social responsibility towards employees and host community

SEC. 131. Hiring of Qualified Cordillerans. — The Regional Government shall promote
the hiring of qualified Cordillerans in government projects and private businesses located in
the autonomous region.

SEC. 132. Health as Basic Human Right. - The Regional Government recognizes health
as a basic human right and 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, among other things:
(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;
(c) Promote health knowledge and skills that will enable its people to take responsibility
for their health;
(d) Give relevant training and appropriate standards for health workers and professionals;
(e) 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;
(8) 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 5% of the Regional Annual Budget to form the
base of health budget.

SEC. 133. 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. 134. Rights of Vulnerable Sectors. —- The Regional Government shall:

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(a) Promote the well-being of differently-abled persons, the mentally handicapped, the
elderly, the homeless, widowed and orphans, retirees, and veterans, adult offenders
and children in conflict with the law and victims; 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. 135. Program for Rebel Returnees. — The Regional Government shall adopt a
social integration program responsive to the needs of rebel retumees including adult
offenders and children in conflict with the law.

SEC. 136. Social and Insurance Measures. - The Regional Government shall adopt
insurance and social security measures responsive to the needs of its people to supplement
existing privileges.

SEC. 137. Housing Programs. - The Regional Government, in cooperation with the
private sector, shall promote housing programs where needed, which 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. 138. Role of Cordilleran Women. - The Regional Government shall recognize and
strengthen the role of the Cordillera women in nation-building. It shall ensure the full
implementation of the Magna Carta of Women and all other existing laws that promote the
welfare and protection of women.

SEC. 139. Comprehensive Program on Youth. - The Regional Government shall
establish a comprehensive program on youth development, create the structures to implement
the same and appropriate adequate funds to provide support for the program.

SEC. 140. 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. 141. Prohibition on Private Armies, — The Regional Government shall promote and
maintain peace and order and public safety in the region. It shall not allow private armies.

SEC. 142. Defense of the Region. - The defense and security of the autonomous region
shall be the responsibility of the national government with due recognition to
recommendations from the Regional Government.

SEC. 143. Peace Keeping Programs. — The Regional Government shall have co-
management over 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. 144. 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:

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(a) To prevent or suppress lawlessness, violence, invasion or rebellion, when the public
safety so requires, in accordance with the provisions of the Constitution;

(b) To suppress the danger to or breach of peace in the autonomous region, when the
police forces of the autonomous region are not able to do so; and

(0) To avert any imminent danger to public order and security in the autonomous region.

SEC. 145. Traditional Conflict Resolution. — The Regional Government shall strengthen
and enhance indigenous institutions or systems as may be applicable and 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. 146, 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 autonomous
region. In case of conflict, the English text shall prevail.

SEC. 147. Change of Name. - The Regional Assembly may adopt a new name for the
Autonomous Region of the Cordillera after public consultation.

SEC. 148, Regional Symbol, - The Regional Government shall have a regional flag,
emblem and hymn.

ARTICLE XVI
PERSONAL, FAMILY, INDIGENOUS AND PROPERTY RELATIONS

SEC. 149. Customary Laws. — Customary laws affecting personal, family, tribal and
property relations in the Cordillera shall be recognized.

SEC. 150. Protection of the Family. — The family as the basic unit of society shall be
protected.

SEC. 151. 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. 152. 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. 153. Amendment or Revision. - Any amendment to, o revision of this Act may be

made by Congress upon recommendation of the majority of all members of the Regional
Assembly.

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SEC. 154, 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.

ARTICLE XVI
TRANSITORY PROVISIONS

SEC. 155. Coverage of the Plebiscite. - The coverage of 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 Autonomous Region of the Cordillera while those voting
unfavorably for this Organic Act in the plebiscite shall remain within their current region.

SEC. 156. Election Date. - Unless otherwise provided by law, the date of election of
the first set of officials of the Regional Government shall be in the next local election
following the ratification of this Organic Act in the plebiscite. Subsequent elections shall
coincide with the nationwide local elections.

SEC. 157. Residency Requirement for the First Election. — For purposes of the first
regional election, candidates must have actually resided and a registered voter 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. 158. 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. 159. 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. 160. 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 Department of Budget and Management, 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 autonomous region 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 government-owned or controlled corporations that may be absorbed by the
Regional Government and, with respect to the latter, also the terms and conditions of their
turnover, without diminution of their compensation and other benefits. Provided, the salaries
of these 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
recommendations within ninety (90) days after receipt thereof: Provided, however, that if the

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President fails to act within said period, the recommendations of the Oversight Committee
shall be deemed approved

SEC. 161. 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. 162. Fifty percent 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. 163. Disclosure and Transparency. ~ Funds shall be available exclusively for
the specific purpose for which they have been appropriated. Any officer of the Autonomous
Region of the Cordillera 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 maybe necessary.

SEC. 164. Direct Release of LGUs Share. ~ The share of each local government unit
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. 165. Plebiscite. — The creation of the Autonomous Region of the Cordillera
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 this Act takes effect: Provided, that
only the provinces and cities voting favorably in such plebiscite shall be included in the ARC.

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 for the conduct of IEC

(©) 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.

(e) Two billion five hundred million (P2,500,000,000) for the construction of the regional
government center.

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Par (a) and (b) shalll be released upon the effectivity of this Organic Act.

The Cordillera Development Council with the assistance of the Philippine Information
Agency, and in consultation with the provincial/city governments, the Cordillera Association
of Regional Executives, and other key stakeholders, shall 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 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 funds of the national government.

SEC. 166, 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.

SEC. 167. Repealing Clause. - All laws inconsistent with this Organic Act are hereby
repealed or modified acxcordingly.

SEC. 168. Effectivity. - This Act shall take effect after fifteen (15) days following its
complete publication in the official gazette and in at least two (2) newspapers of nationwide
circulation.

Approved,

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