Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House BillNo,__ 3772
Introduced by Honorable Joseph F. Violago

Explanatory Note

One of the fundamental state policies enshrined in our Constitution is the genuine and
meaningful autonomy of local government units (Art. Il, Sec. 25) to enable them to attain their
fullest development as self-reliant communities and make them more effective partners in the attain
of national goals, and pursuant to the mandate given by the Constitution, Congress enacted Republic
Act No, 7160, otherwise known as the Local Government Code of 1991, replacing the old local
government code (Batas Pambansa Blg. 337).

As envisioned and designed by the framers of the Constitution and by members of Congress,
the local government structures in the Philippines are divided into four levels namely the
autonomous regions, provinces and cities independent from a province, component cities and
municipalities and the barangays-—all called "local government units (LGUs). The barangay---the
smallest political unit--- was given the most important recognition when the Code clearly decribed
and stated therein that, "as the basic political unit, the barangay 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,
crystallized and considered, and where disputes may be amicably settled."

The law, therefore, provided all the essential mechanisms to fulfill this mandate, among
which is the provision of a more responsive and accountable local government structure and among
others, the allocation among the different local government units their powers, responsibilities and
resources.

Ttalso ensured that the vesting of duty, responsibility, and accountability in local government
hall be accompanied with provision for reasonably adequate resources to discharge their
powers and effectively cary out their functions; hence, they shall have the power to create and
broaden their own sources of revenue and the right to a just share in national taxes and an equitable
share in the proceeds of the utilization and development of the national wealth within their
respective areas. Together with this, it also ensured that the capabilities of local government units,
especially the municipalities and barangays, shall be enhanced by providing them with opportunities
to participate actively in the implementation of national programs and projects.

It, also, through the General Welfare Clause, made all LGUs as co-partners of the national
government in the duty and responsibility of managing and maintaining ecological balance within
their territorial jurisdiction, while at the same time stressed that the realization of local autonomy
shall be facilitated not only through the extension of adequate technical and material assistance to
less developed and deserving local government units but also through an improved coordination of
national government policies and programs.


It is unfortunate, however, that due to inadvertence, perhaps, and possibly, by the sheer
length (four volumes) and the intricacies of the law, that the ideal balance or sharing of powers and
responsibilities were not fully effected, particularly in the management and utilization of sand,
gravel and other quarry resources.

Hence, as mandated by the Local Government Code itself, there shall be a continuing
mechanism to enhance local autonomy not only through administrative and organization reforms
but also by legislation---and which gives support for the very spirit and reason for the filing of this
proposed initiative.

In essence, this bill seeks to empower municipalities and cities to exercise police powers on
sand, gravel and other quarry resources on their territory to be used exclusively for public purposes
by introducing amendments in the Local Government Code of 1991 and the Philippine Mining Act
of 1995. This will pave the way for a more equitable sharing of power and responsibilities and also
result to a much improved monitoring and coordination of infrastructure projects, with both
contributing verily to a more enhanced and meaningful local autonomy on all levels of local
governance,

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

GPR
2
foseph F. Violago


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No,__ 8772

Introduced by Honorable Joseph F. Violago

ANACT.
PROVIDING FOR A MORE EQUITABLE SHARING OF DUTIES AND RESPONSIBLITIES BY
AND BETWEEN LOCAL GOVERNMENT EXECUTIVES IN THE MANAGEMENT OF SAND,
GRAVEL AND OTHER QUARRY RESOURCES IN THEIR RESPECTIVE JURISDICTIONS,
AMENDING FOR THIS PURPOSE CERTAIN PROVISIONS OF REPUBLIC ACT 7160, ALSO
KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991 AND REPUBLIC ACT NO. 7941, ALSO
KNOWN AS THE PHILIPPINE MINING ACT OF 1995

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
SECTION 1. Section 138 of Republic Act 7160 is hereby amended to read as follows:

SEC. 138. Tax on Sand, Gravel and Other Quarry Resources. - The province may
levy and collect not more than ten percent (10%) of fair market value in the locality
per cubic meter of ordinary stones, sand, gravel, earth, and other quarry resources, as
defined under the National Internal Revenue Code, as amended, extracted from
public lands or from the beds of seas, lakes, rivers, streams, creeks, and other public
waters within its territorial jurisdiction. The permit to extract sand, gravel and other
quarry resources shall be issued [ exclusively | by the provincial governor OR THE
‘CITY/MUNCIPAL MAYOR, AS THE CASE MAY BE, pursuant to the ordinance of
the [sangguniang panlalawigan] CONCERNED SANGGUNIAN.

THE EXTRACTION OF THESE RESOURCES SHALL BE CLOSELY
MONITORED, CHECKED AND AUDITED BY THE BARANGAY OFFICIALS OF
THE PLACE WHERE SUCH ACTIVITY IS BEING MADE OR CONDUCTED.

x eg x x x
SEC. 2. Section 43 of Republic Act No. 7942 is hereby amended to read as follows:

Sec. 43 Quarry Permit. Any qualified person may apply to the provincial/city mining
regulatory board for a quarry permit on privately-owned lands and/or public lands for
building and construction materials such as marble, basalt, andesite, conglomerate,
tuff, adobe, granite, gabbro, serpentine, inset filing materials, clay for ceramic tiles
and building bricks, pumice, perlite and other similar materials that are extracted by
quarrying from the ground. The provincial governor, WITH THE CONCURRENCE
OF THE CITY/MUNICIPAL MAYOR, AS THE CASE MAY BE, shall grant the
permit after the applicant has complied with all the requirements as prescribed by the
tules and regulations. CONSULTATIONS SHALL ALSO BE CONDUCTED AT THE



BARANGAY/S AFFECTED BY THE QUARRYING OPERATIONS TO ACCORD
THE LOCAL OFFICIALS AND RESIDENTS THEREIN SUFFICIENT AND
REASONABLE TIME TO DISCUSS THEIR CONCERNS OR ANY ISSUE
RELATIVE TO SUCH ACTIVITIES,

x x x x x

SEC. 3. Section 45 of Republic Act No. 7942 is hereby amended to read as follows:

Sec. 45 Cancellation of Quarry Permit, A quarry permit may be cancelled by the
provincial governor AND/OR BY THE CITY OR MUNICIPAL MAYOR for
violations of the provisions of this Act or its implementing rules and regulations ot
the terms and conditions of said permit: Provided, That before the cancellation of
such permit, the holder thereof shall be given the opportunity to be heard in an
investigation conducted for the purpose.

SEC, 4, Section 46 of Republic Act No. 7942 is hereby amended to read as follows

Sec. 46 Commercial Sand and Gravel Permit, Any qualified person may be granted a
permit by the provincial governor WITH THE CONCURRENCE OF THE
CITY/MUNICIPAL MAYOR, AS THE CASE MAY BE, to extract and remove sand
and gravel or other loose or unconsolidated materials which are used in their natural
state, without undergoing processing from an area of not more than five hectares (5
has.) and in such quantities as may be specified in the permit.

EC. 5. Section 47 of Republic Act No. 7942 is hereby amended to read as follows:

Sec. 47 Industrial Sand and Gravel Permit. Any qualified person may be granted an
industrial sand and gravel permit by the Bureau WITH THE CONCURRENCE OF
THE PROVINCIAL GOVERNOR, CITY OR MUNICLPAL MAYOR, AS THE CASE
MAY BE, BARANGAY CHAIRMAN AND MAJORITY OF THE BARANGAY
COUNCIL for the extraction of sand and gravel and other loose or unconsolidated
materials that necessitate the use of mechanical processing covering an area of more
than five hectares (5 has.) at any one time, ‘The permit shall have a term of five (5)
years, renewable for a like period but not to exceed a total term of twenty-five (25)
years,

SEC. 6. Section 48 of Republic Act No. 7942 is hereby amended to read as follows:

Sec. 48 Exclusive Sand and Gravel Permit. Any qualified person may be granted an
exclusive sand and gravel permit by the provincial governor WITH THE
CONCURRENCE OF THE CITY OR MUNICIPAL MAYOR, AS THE CASE MAY
BE, AND BARANGAY CHAIRMAN to quarry and utilize sand and gravel or other
loose or unconsolidated materials from public lands for his own use, provided that
there will be no commercial disposition thereof.

‘A mineral agreement or a financial technical assistance agreement contractor MAY [
shall, however] have the right to extract and remove sand and gravel and other loose


unconsolidated materials [without need of a permit] within the area covered by the
mining agreement for the exclusive use in the mining operations ONLY AFTER THE
APPROVAL OF A PERMIT FOR SUCH PURPOSE THAT MAY BE BE GRANTED
BY THE PROVINCIAL GOVERNOR WITH THE CONCURRENCE OF THE CITY
OR MUNCIPAL MAYOR, AS THE CASE MAY BE, THE BARANGAY CHAIRMAN,
AND MAJORITY OF THE BARANGAY COUNCIL: Provided, That monthly reports
of the quantity of materials extracted therefrom shall ALSO be submitted to the
mines regional office concerned: Provided, further, That said right shall be
coterminous with the expiration of the agreement,

Holders of existing mining leases shall likewise have the same rights as that of a
contractor, AND SUBJECT TO THE SAME AFOREMENTIONED CONDITIONS:
Provided, That said right shall be coterminous with the expiry dates of the lease.

SEC. 7. Section 49 of Republic Act No. 7942 is hereby amended to read as follows:

Sec, 49 Government Gratuitous Permit. Any government entity or instrumentality
may be granted a gratuitous permit by the [provincial governor] CITY OR
MUNICIPAL MAYOR to extract sand and gravel, quarry or loose unconsolidated
materials needed in the construction of building and/or infrastructure for public use
or other purposes over an area of not more than two hectares (2 has.) for a period
coterminous with said construction,

SEC. 8. Section 50 of Republic Act No. 7942 is hereby amended to read as follows:
Sec. 50 Private Gratuitous Permit. Any owner of land may be granted a private
gratuitous permit by the provincial governor, THE CITY OR MUNCIPAL MAYOR,

SEC. 9. Section 51 of Republic Act No. 7942 is hereby amended to red as follows:

Sec. 51 Guano Permit. Any qualified person may be granted a guano permit by the
provincial governor WITH THE CONCURRENCE OF THE BARANGAY
CHAIRMAN AND MAJORITY OF THE BARANGAY COUNCIL to extract and
utilize loose unconsolidated guano and other organic fertilizer materials in any
portion of a municipality where he has established domicile. The permit shall be for
specific caves and/or for confined sites with locations verified by the Department's
field officer in accordance with existing rules and regulations.

SEC. 10. Section 52 of Republic Act No. 7942 is hereby amended to read as follows:

Sec. 52 Gemstone Gathering Permit. Any qualified person may be granted a non-
exclusive gemstone gathering permit by the [provincial governor] BY THE CITY OR
MUNICIPAL MAYOR, AS THE CASE MAY BE, to gather loose stones useful as
gemstones in rivers and other locations. THE CONCERNED BARANGAY SHALL
CLOSELY MONITOR SAID ACTIVITY AND SHALL FILE THE NECESSARY
REPORT WITH THE CITY OR MUNCIPAL GOVERNMENT FOR ANY
VIOLATIONS OF CONDITIONS STATED IN THE PERMIT.


SEC. 11, Repealing Clause. All laws, executive orders, rules and regulations or parts thereof
which may be inconsistent with the provisions of this Act are hereby repaled or amended
accordingly.

SEC. 12. Effectivity Clause. This Act shall take effect within fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved,