Republic of the Philippines

HOUSE OF REPRESENTATIVE!
Quezon City fe}
X DATEDG JUL 205
TWENTIETH CONGRESS

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First Regular Session

HOUSE BILL No. _1637

Introduced By Representative Paolo Henry M. Marcoleta

EXPLANATORY NOTE

The Philippine legal system recognizes the Barangay as the most basic
political unit.' With history dating back pre-colonial times, it is deemed as the
administrative body closest to the people. It provides basic social and health
services, and facilitates neighborhood planning and assembly.

Barangay officials facilitate community reconciliation and even serve as
an essential response unit in times of emergencies and disasters. With more or
less 42,000 barangays in the country, the barangay undoubtedly plays an
indispensable role to the country's current political landscape and development’,

Barangays today, however, face various challenges. Among such issues
is the fact that barangays and barangay officials—especially those in rural and
remote areas—often lack resources and support. This is despite the extensive
nature of their work, which often always requires them to be on-standby 24
hours a day, 7 days a week.

Politics also considerably impacts the distribution of resources and
projects at the barangay level. A mayor’s political priorities may lead to the
concentration of resources and development projects in certain areas while
neglecting others. Various factors, including political alliances, personal biases,
and the availability of funds, can influence this. As a result, economic
development is not cascaded to the barangays the way it should.

' Section 384. Local Government Code.

2 Department of Interior and Local Government. “Regional Summary ~ Number of Provinces, Cities, and
Municipalities and Barangays as of March 31, 2025.” (29 April 2025). Accessed from:

hutps:/www.dilg. gov. ph facts-and-figures/Regional-Summary-Number-of-Provinces-Cities-Municipalities-and-
Barangays-as-of-March-31-2025/32


Thus, it is crucial to re-examine the functions of the barangay not only as
a political unit but also as an enabler of the community’s socioeconomic
affairs. Equipping barangays with the necessary skills to manage their limited
resources effectively, generate economic gains, and provide basic local
services to their constituents is essential.

This bill seeks to establish a Barangay Affairs and Development
Commission — a government agency that will focus on the development and
welfare of barangays. The proposed commission will formulate policies, plans,
and programs for the development of barangays, monitor and evaluate the
implementation of barangay development programs, provide technical
assistance and capacity-building initiatives, and coordinate with relevant
government agencies for resource generation and allocation for barangay
development.

This measure also proposes the creation of a Barangay Development
Fund, which will be utilized exclusively for the development projects and
programs of the barangays, including subsidies to poor barangays for the
honoraria of barangay officials and employees. This will ensure that barangays
have the financial resources to implement their local development initiatives
and pay reasonable honoraria for their officials and employees.

The creation of the Barangay Affairs and Development Commission will
enhance the capacity of barangays to address the needs of their constituents,
particularly in rural areas where many barangays need more resources and
expertise to provide essential services. The commission will also bridge the
national government and the barangays, ensuring that national policies and
programs are effectively implemented.

With the passage of this bill, the country takes a significant step towards
strengthening our barangays, empowering our citizens at the grassroots level,
and realizing the true potential of effective local governance.

In view of the foregoing, the passage of this bill is earnestly sought.

PAOLO HENRY M. MARCOLETA
Representative, SAGIP Partylist


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No. _ 1637

Introduced By Representative Paolo Henry M. Marcoleta

AN ACT

CREATING THE BARANGAY AFFAIRS AND DEVELOPMENT
COMMISSION, DEFINING ITS POWERS AND _ FUNCTIONS,
ESTABLISHING THE BARANGAY DEVELOPMENT FUND, AND
APPROPRIATING FUNDS THEREFOR

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

SECTION 1. Short Title. - This Act shall be known as the “Barangay Affairs
and Development Commission Act."

SEC. 2. Declaration of Policy. - The State recognizes the barangay as the basic
political unit that serves as the primary planning and implementing unit of government
policies, plans, programs, projects, and activities in the community, and as a forum
wherein the collective views of the people may be expressed, formed and considered,
and where disputes may be amicably settled. The State also recognizes the barangay’s
important role in supporting good governance, promoting public participation and
achieving sustainable development. Towards this end, the State shall uplift the social,
economic and political status of barangays by institutionalizing a body focused on
barangay welfare and development.

SEC. 3. Barangay Affairs and Development Commission. ~The Barangay
Affairs and Development Commission, hereinafter referred to as the “Commission,” is
created to oversee barangay affairs, support the development of barangays, and
implement the programs and projects of the national government that promote the
welfare and development of the barangays.


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The Commission shall be an agency attached to the Department of the Interior
and Local Government (DILG) for policy and program coordination. It shall establish
its principal office in the National Capital Region and may set-up field offices as may
be necessary to fulfill its mandate and in coordination with appropriate government
agencies.

SEC. 4. Composition. — The Commission shall be composed of seven (7)
regular Commissioners to be appointed by the President of the Philippines. Three (3)
Commissioners shall represent Luzon, two (2) shall represent Visayas and two (2)
shall represent Mindanao: Provided, That at least two (2) Commissioners are women.
The Secretary of the Interior and Local Government and President of the National
Liga ng mga Barangay shall serve as ex-officio Chairperson and ex-officio member,
respectively.

SEC. 5. Term of Office. - The regular Commissioners shall have a term of
office of four (4) years, without prejudice to reappointment by the President of the
Philippines. Of those first appointed, the three (3) Commissioners shall hold office for
four (4) years, two (2) Commissioners shall hold office for three (3) years, and two (2)
Commissioners shall hold office for two (2) years. Appointment to any vacancy shall
only be for the unexpired term of the predecessor.

SEC. 6. Qualifications. —'The regular Commissioners must be citizens and
residents of the Philippines; at least forty-five (45) years old at the time of their
appointment; of good moral character; have not been convicted by final judgment of a
crime involving moral turpitude; and possessed a working knowledge in public
administration with a minimum of five (5) years of experience in the administration of
local government units, preferably with legal or financial knowledge on local
government programs.

SEC. 7. Powers and Functions. ~ The Commission shall exercise the following
powers and functions:

a. Formulate, coordinate, and undertake development programs, plans,
policies, and projects for the advancement of barangays, with due
consideration to national and local development plans;

b. Identify the problems and needs of a barangay and recommend
appropriate solutions necessary for its development and conduct
research, study and analysis for the purpose;


c. Assess, monitor, and evaluate the performance of the barangays and
initiate measures and interventions to improve their operations and
services;

d. Provide technical assistance, advisory services and trainings to barangay
officials and personnel;

. Coordinate with other national and local government agencies, as well
as non-government organizations, civil society groups, and other
stakeholders involved in barangay development efforts;

f Administer and manage the Barangay Development Fund established
under Section 17 of this Act, and other resources allocated to the
Commission for barangay development;

g. Issue and promulgate rules, regulations and guidelines as may be
necessary to implement and enforce its powers and functions under this
Act;

h. Appoint, hire and maintain adequate staff and personnel, advisers or
consultants with suitable qualifications and experience, as may be
necessary; and

i, Exercise such other powers and functions necessary or incidental or that
which the President may, from time to time, assign to the Commission
to carry out the objectives of this Act and for the effective
administration, management and development of barangays

SEC. 8. Organizational Structure. — Subject to the approval of the Department
of Budget and Management, the Commission shall determine its organizational
structure and staffing pattern, create offices, divisions, or units as it may deem
necessary, and appoint its officers and employees in accordance with civil service
laws, rules and regulations.

In addition to any office that the Commission may create, the Commission
shall establish the following permanent offices:

a. Administrative and Human Resource Management Service;

b. Barangay Affairs Monitoring and Evaluation Service;


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¢. Barangay Development and Planning Service;
d. Financial Management Service;

e. Legislative and Legal Service;

£. Regional Offices

The Office of the Undersecretary for Barangay Affairs and National Barangay
Operations Office, including their powers and functions, under the DILG are hereby
transferred to the Commission.

The remuneration and other emoluments for the positions in the staffing pattern
shall strictly conform with existing laws on compensation and position classification.

SEC. 9. Executive Director. The Commission shall appoint an Executive
Director who shall implement the policies, rules, regulations and directives of the
Commission, and manage, coordinate and supervise the daily operations of the
Commission.

The Executive Director shall be a Career Executive Service Officer and must
possess working knowledge in public administration and must have a minimum of
five (5) years of experience in the administration of local government units, preferably
with legal or financial knowledge of local government programs.

SEC. 10. Administrative and Human Resource Management Service. ~ The
Administrative and Human Resource Management Service of the Commission shall
be responsible for providing the Commission with efficient and effective staff services
relating to personnel, information, records, supplies, equipment, collection,
disbursement, security, and custodial work. For such purposes, it shall exercise the
following functions:

a. Advise the Commission on all matters relating to internal administration
and human resources management;

b. Prepare and implement an integrated personnel plan that includes
provisions on merit promotions, performance evaluation, job rotation,
suggestions and incentive awards systems, and health and welfare
services;


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c. Provide services related to human resources trail
development, including manpower, career planning and forecasting, and
development of indigenous training materials:

ing, education, and

d. Establish and maintain an efficient and cost-effective property
procurement system, in line with existing laws, and coordinate or
otherwise interface with relevant agencies, whether government or
private, for the purpose of developing or upgrading the system;

e. Secure and maintain necessary facilities, and develop, establish, and
maintain an efficient and effective security system covering, among
others, personnel, physical installations, equipment, documents, and

materials, including the conduct of security investigations:

f. Coordinate with the appropriate government agencies for a more
efficient conduct of administrative processes;

g. Develop, establish, and maintain an efficient records system;
h. Provide assistance in its area of specialization to the Commission; and

i. Perform such other related duties and responsibilities as may be
assigned or delegated by the Commission or as may be required by law.

See. 11. Barangay Affairs Monitoring and Evaluation Service. ~ The Barangay
Affairs Monitoring and Evaluation Service shall be responsible for providing the
Commission with effective staff services relating to monitoring and evaluation of
programs and projects, including timely reports on the status of various Com
projects and activities, regulatory compliance of barangays, and barangay statistics,
status, and evaluation.

ion

The National Barangay Operations Office under the DILG shall serve as the
Barangay Affairs Monitoring and Evaluation Service and exercise the following

a. Advise the Commission on all matters relating to monitoring, evaluation
and functionality of barangays;

b. Assess, monitor and evaluate the performance of barangays and initiate
measures to improve their operations and services;


¢. Develop policies, plans and programs related to barangay governance
and administration;

d. Develop and maintain a system for retrieving and processing monitoring
information on all projects and activities of concer, including the

regulatory compliance of barangays, to the Commission;

e. Provide technical assistance and advisory services to the barangay

f. Coordinate with the appropriate national government agencies tasked
with management of barangay affairs; and

g. Perform such other related duties and responsibilities as may be
assigned or delegated by the Commission or as may be required by law.

See, 12. Barangay Development and Planning Service. — The Barangay
Development and Planning Service shall be responsible for developing policies, plans
and programs related to barangay development. For this purpose, it shall exercise the
following functions:

a. Advise the Commission on all matters relating to barangay development
and planning;

b. Develop policies, plans and programs related to barangay development
and coordinate with other stakeholders involved in barangay
development efforts;

c. Formulate strategies and priorities for sustainable development in
barangays consistent with national development objectives and initiate
or undertake relevant surveys for development planning;

d. Assist in the formulation of Barangay Development Master Plan and
gather, analyze and organize necessary data and information;

. Provide relevant technical assistance to other offices of the Commission
as needed; and

f Perform such other related duties and responsibilities as may be
assigned or delegated by the Commission or as may be required by law.


See. 13. Financial Management Service. - The Financial Management Service
shall be responsible for providing the Commission with coordinated services relating
to financial systems and procedures, budget, cash, accounting, and all financial
housekeeping matters, including the management of the Barangay Development Fund.
For such purposes, it shall have the following functions:

a, Advise the Commission on all matters relating to the accounting of
government expenditures and receipts, budgeting and cash management,
project finances, and financial systems and procedures;

b. Prepare budget proposals and pursue formal budget authorizations,
undertake budget execution, and prepare and submit all appropriate reports
to the proper offices;

c. Develop and maintain accounting, financial, and assets management
systems, procedures, and practices in the Commission, including the
management of the Barangay Development Fund;

d. Provide assistance in its area of specialization to any unit of the
Commission;

e. Review and appraise systems and procedures, organizational structure,
assets management practices, accounting, and other records, reports, and
performance standards such as budgets and standard costs of the
Commission; and

f. Perform such other related duties and responsibilities as may be assigned or
delegated by the Commission or as may be required by law

See. 14. Legislative and Legal Service. - The Legislative and Legal Service
shall be responsible for providing the Commission with services on legislative and
legal affairs such as contract letting and litigation, legal and legislative research,
complaints investigation, legal counseling, and other matters of law. For such
purposes, it shall have the following functions:

a. Advise the Commission on all matters relating to legislative and legal
affairs;


. Prepare Department contracts and legal instruments, review and

interpret all contracts and agreements entered into by the Commission,
and evaluate all legal proposals;

Conduct administrative investigation as well as the review of

administrative charges against officers and employees of the
Commission;

|. Exercise functional jurisdiction over the legislative and legal staff of

regional offices;

. Provide legal assistance to the Commission and its offices; and

Perform such other related duties and responsibilities as may be
assigned or delegated by the Commission or as may be required by law.

See. 15. Regional Office. - Regional offices shall be responsible for providing
support and assistance to barangays within their regional jurisdiction. For this
purpose, their duties and responsibilities are as follows:

. Facilitate the implementation of national government programs and

projects in the barangays within the region;

. Provide technical assistance and capacity-building programs to barangay

officials and workers to enhance their skills and knowledge in
governance, administration, and community development:

. Conduct research, surveys, and studies to identify the needs and

concerns of the barangays and their residents, and develop appropriate
policies and programs to address them;

. Coordinate with other government agencies, non-governmental

organizations, and other stakeholders to ensure the effective and
efficient delivery of services to the barangays:

. In coordination with relevant offices, monitor and evaluate the

performance of barangay officials and workers and providing fecdback
and recommendations for improvement;


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£. Provide support and assistance to barangays in times of emergencies and
disasters, including natural calamities, conflicts, and other crises;

g. Promote the empowerment and participation of barangay residents,
particularly women, youth, and marginalized groups, in governance and
development processes;

h. Assist in the resolution of conflicts and disputes within and among
barangays and facilitate the peaceful settlement of issues and concerns;
and

i. Perform such other related duties and responsibilities as may be
assigned or delegated by the Commission.

See. 16. Regional Director. — The regional office shall be headed by a regional
director who shall be responsible for efficiently and effectively carrying out the duties
and responsibilities of the regional office. The regional director shall, within the
defined powers, exercise functional and administrative supervision over barangays
within the region.

The Regional Director shall also perform such other related duties and
responsibilities as may be assigned or delegated by the Commission or as may be
required by law. The regional director shall be assisted by one (1) assistant regional
director who shall exercise supervision in the planning, evaluation, and technical
assistance functions of the regional office.

See. 17. Barangay Development Fund; Sources. ~ There is hereby created a
Barangay Development Fund (BDF), which shall be administered by the Commission
for the accelerated development of all barangays and implementation of the programs,
projects and activities under the Barangay Development Master Plan provided under
Section 18 of this Act. The BDF shall be sourced from the following:

a. Three percent (3%) of the provinces’ share on National Tax Allotment
(NTA) under Republic Act No. 7160 or the Local Government Code of
1991, as amended (LGC);

b. Three percent (3%) of the cities’ share on NTA under the LGC;

c. Four percent (4%) of the municipalities’ share on NTA under the LGC;
and


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d. Donations, grants, and endowments from private individuals,
organizations and corporations.

See. 18. Barangay Development Master Plan. — ‘The Commission shall, in
coordination with the Department of Economy, Planning, and Development
(DEPDev) and other concerned government agencies and stakeholders, formulate a
Barangay Development Master Plan. The Master Plan shall include:

a. Priority listing of barangays that require immediate social and economic
development;

b. Common and specific program for all barangays;

c. Utilization of the BDF that includes the following, in coordination with

relevant government agencies:

vi.

vii.

viii.

Construction and maintenance of barangay infrastructure, such as
roads, bridges, health centers, and schools:

Livelihood and employment programs for the residents of the
barangay;

Promotion of economic development by supporting small
businesses and attracting investment;

Improvement of access to education and equality of learning
opportunities for residents of the barangay;

Environmental protection and conservation projects;
Disaster preparedness and mitigation programs;
Health and sanitation programs;

Subsidies to poor barangays for the honoraria of barangay
officials and employees; and

Any other projects and programs that promote the development
of the barangay;


d. Oversight, audit, and accountability functions of the Commission,
DILG, and the barangays; and

e. Other components of the program may be determined by the
Commission, DILG and DEPDev.

Sec. 19. Management, Administration, and Audit. ~The Commission shall,
through the Executive Director, oversee the management and administration of the
BDF, establish guidelines and procedures for the allocation, disbursement, and
monitoring of funds, and ensure that the funds are utilized for their intended purposes.

The management and administration of the BDF, including its allocation and
disbursement, shall be subject to relevant accounting and auditing rules and
regulations of the Commission on Audit (COA).

See. 20. Annual Report. — The Commission shall submit an annual report to the
President of the Philippines and Congress of the Philippines on the status of the BDF,
including the amount of funds collected and disbursed and the projects and programs
implemented.

Sec. 21. Interface with Other Sector Regulators. - DILG shall continue to
assist the President of the Philippines in the exercise of general supervision and
establishment of rules, regulations and other issuances implementing the LGC and
promotion of local autonomy, community empowerment and monitor compliance over
provinces, cities and municipalities, while the Commission shall exercise such general
supervision and establishment of rules and regulations implementing the LGC and
promotion of local autonomy, community empowerment and monitor compliance over
the barangays.

Sec. 22. Transfer of Rights and Obligations. — The Commission shall, by virtue
of this Act, be subrogated to all the rights, and assume all the obligations of the
relevant parts of any government agency or unit whose powers and functions have
been transferred to the Commission.

The transfer of powers and functions as indicated in the preceding paragraph,
as applicable and as herein provided for, shall take effect within one hundred cighty
(180) days after the effectivity of this Act. The foregoing transfer of powers and
functions shall include all applicable funds, personnel, records, property, and


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equipment, as may be necessary. All offices shall continue to function under their
present mandates until transition is effected as provided for under this Act.

All rights and obligations of affected government agencies are hereby
transferred to and assumed by the Commission and shall be acted upon in accordance
with the rules and regulations of COA and other pertinent laws, rules, and regulations.

See. 23. Separation from Service. - Employees separated from government
service as a result of this Act shall, within one (1) month from their separation from
the service, receive the benefits to which they may be entitled under existing laws,
rules, and regulations.

See. 24. Appropriations, ~ The amount necessary for the organization of the
Commission and its initial operations shall be charged against the current
appropriations of the Contingent Fund. Thereafter, such sums as necessary to fully
carry out the objectives, powers, and functions of the Commission shall be included in
the annual General Appropriations Act.

‘The Commission shall include in its annual budget detailed information on the
compensation and benefits received by their employees.

Sec. 25. Periodic Performance Evaluation. - The Commission is hereby
required to formulate and enforce a system of measuring and evaluating periodically
and objectively the performance of the Commission and submit the same annually to
the President.

Sec. 26. Implementing Rules and Regulations. — Within one hundred twenty
(120) days from the effectivity of this Act, the Commission shall, in coordination with
the Department of Budget and Management, DEPDev, and the Civil Service
Commission, and in consultation with other relevant government agencies,
promulgate the necessary rules and regulations to effectively implement the provisions
of this Act.

Sec. 27. Separability Clause. — If any provision or part of this Act is declared
invalid or unconstitutional, the remaining parts not affected shall remain in full force
and effect.

Sec. 28. Repealing Clause. - The provisions of the LGC which are inconsistent
with this Act are hereby amended or modified accordingly. All laws, presidential
decrees, executive orders, letters of instructions, administrative orders. proclamations


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or administrative regulations that are inconsistent with the provisions of this Act are
hereby repealed, amended, or modified accordingly.

Sec. 29. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,