SEVENTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )

Third Regular Session )
SENATE

S.B.No, 1923

INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO

AN ACT
ESTABLISHING THE AUTONOMOUS REGION OF THE CORDILLERA
(ARC)

EXPLANATORY NOTE

The Cordillera Administrative Region (CAR) is home of roughly 1.2 million
indigenous peoples collectively known as Igorots; and is comprised of six provinces
— Abra, Apayao, Benguet, Ifugao, Kalinga, and Mountain Province, with Baguio
City as the regional center.

In 2017, the Cordillera Administrative Region had an estimate of 12.1%
growth in the Gross Regional Domestic Product. According to the Philippine
Statistics Authority, it is the first double digit growth for CAR and is the fastest
among all the regions. In 2016, CAR’s palay, corn, and cabbage crops contributed
40.18% to the region’s agricultural output — and still remains as the highest
producer of cabbage.

Starting from the Spanish colonial period, movements for local autonomy
and self-governance has been a part of the history of the Cordilleras. During the
1970s and 1980s, various armed groups/organizations rose to defend and fight for
the autonomy of the Cordillera. In 1986, President Corazon C. Aquino
acknowledged the aspirations of liberation groups for a Cordillera Autonomy.

The 1987 Constitution recognized the need for an autonomous region in the
Cordillera. Section 15, Article X of the 1987 Constitution states that an autonomous
region of the Cordilleras shall be created consisting of provinces, cities,



municipalities, and geographical areas sharing common and distinctive historical
and cultural heritage, economic and social structures.

The Constitution requires majority of the votes cast by the constituent units
in a plebiscite to give the region autonomy in self-governance much like the
Autonomous Region of Muslim Mindanao in southern Philippines. However,
legalizing autonomy in the Cordillera region have failed in two separate plebiscites.

First, on October 23, 1989, the first Organic Act for the Cordillera
Autonomous Region was approved and a plebiscite was held on January 30, 1990.
However, due to the people’s non-readiness for autonomy, insufficiency of
information, misinformation, and very short campaign period, only the province of
Ifugao voted in favor of the region's autonomy. Nevertheless, a second plebiscite
was held on march 9, 1998 pursuant to the second organic act enacted on
December 22, 1997. Unfortunately, only the province of Apayao voted in favor for
the autonomy.

More than 31 years have passed and the Cordillera still has not achieved full
autonomy. Having grasp their autonomy would allow them to undertake measures
suitable for their region — not just politically and socially but cultural and economic
development as well.

For this reason, the passage of this bill is earnestly sought.

Oye”

SENATOR JOSEPH VICTOR G. EJERCITO



SEVENTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
Third Regular Session )
SENATE
5.B.No, 1923

INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO

AN ACT
ESTABLISHING THE AUTONOMOUS REGION OF THE CORDILLERA
(ARC)

Be it enacted by the Senate and the 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 defense, 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,
freedom, justice, love, and human solidarity through a Regional Autonomous
Government that shall ensure our human rights, 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” (ARC).

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Section 2. Purpose. — The purpose of this law is to establish a political
entity, provide for its basic structure of government in recognition of the
justness and cause of the Cordillerans and to secure their identity and posterity
and allow for meaningful governance.

ARTICLE II
TERRITORY OF THE AUTONOMOUS REGION OF THE CORDILLERA

Section 3. Area of the Autonomous Region of the Cordillera. —
The area of the Autonomous Region of the Cordillera shall consist of the city
and provinces that shall vote favorably in the plebiscite called for the ratification
of this Organic Act pursuant to Sec. 18, Article X of the Constitution. The area
of the plebiscite shall be the provinces of Abra, Apayao, Benguet, Ifugao,
Kalinga, Montain Province, and the chartered City of Baguio.

Section 4. Cordilleran Identity. — The term Cordilleran shall apply to
all citizens of the Philippines who are domiciled within the territory of the
Autonomous Region of the Cordillera

ARTICLE III
DECLARATION OF POLICIES AND PRINCIPLES

Section 5. Integral Part of the Republic. — The Autonomous Region
of the Cordillera shall remain an integral and inseparable part of the national
territory of the Republic 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.

Section 6. Equitable share in the National Budget and
Developmental Assistance. - The central government or 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

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seminars in the communities concerned explaining the benefits and Proper use
of the internal revenue allotments.

Section 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.

Section 8. Democratic Political System. - The Regional Government
is a democratic political system allowing the people to participate in the political
processes.

Section 9. Prior and preferential right. - Cordillerans shall have prior
and preferential right to the natural, material, and fiscal resources of the region.

Section 10. Fundamental Rights and Duties of People. - The
fundamental rights and duties of the people in the autonomous region are those
defined in the Constitution and this Organic Act, the Geneva Convention, the
United Nations Charter, the United Nations Declaration on the Rights of
Indigenous Peoples, the International Declaration on Human Rights, as well as
those prescribed in the laws, practices and principles binding upon members of
the community of nations, and the Indigenous Peoples Rights Act (IPRA).

Section 11. Rights to the Initiatives, Consultations, Referenda
and Plebiscites. - Without prejudice to other rights guaranteed by the
Constitution, the rights of the people to the autonomous region initiate
measures for the passage, amendment or repeal of regional or local legislation;
to be consulted on matters that affect their environment; to call for a
referendum on important issues affecting their lives; and, to recall regional or
local officials as provided by Republic Act 7160, the Local Government Code of
1991, are hereby recognized.

Section 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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Section 13. Upholding Human Rights. — The Regional Government
shall take measures to prevent torture, cruel, inhuman and degrading
punishment, illegal detention and extra-judicial killings.

Section 14. Establishment of Peace Zones. - The regional
government adheres to the policy of peace and shall establish peace and shall
establish peace zones within the region.

Section 15. jan Government. - Governance in the Autonomous
Region is the responsibility of the duly constituted civilian government.

Section 16. Devolution of Powers. - The regional government shall
adopt a policy on local autonomy whereby regional powers shall be devolved to
LGUs particularly in areas such as but not limited to education, health, human
resources, science and technology, and people empowerment. Until a law
implementing this provision is enacted by the Regional Assembly, RA 7160, the
Local Government Code of 1991, shall continue to apply to all provinces, cities,
municipalities, and barangay within the autonomous region.

The regional assembly may not pass any law to diminis, lessen or reduce
the powers, functions, and shares in the internal revenue taxes of the said local
government units as provided by RA 7160.

Section 17. Sustainable Use and Management of Resources. -
The Regional Government shall share with the national government in the
exploration, development, and utilization of natural resources, the dynamic
conservation and protection of natural resources by promoting the sustainable
use and management thereof, by adopting the use of environmentally sound
and appropriate technology and indigenous knowledge systems in the
management of natural resources.

Section 18. Community Responsive Education. The Regional
Government with the active involvement of State Colleges and Universities shall
establish a system of education that responds to the needs of the Cordillera
communities which respects and promotes indigenous knowledge, core values,
systems, institutions, culture and practice; encourages the use of indigenous
languages and methods of education; promotes science and appropriate

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technology and methodologies that encourage creative and critical thinking of
the Cordilleran youth.

Section 19. Protection and empowerment of the Cordilleran
youth and children. - The Regional Government shall formulate plans and
Programs for the youth that empowers them by guaranteeing their effective
participation and representation in all aspects of public affairs. Further, laws
shall be enacted and measures adopted to protect children against all forms of
neglect, cruelty, and exploitation which are harmful to their moral, physical, or
mental health.

Section 20. Regional Arrangements. - The Autonomous Region of
the Cordillera 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.

Section 21. 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 and/or religious belief.

Section 22. 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, quality education, appropriate services,
livelihood opportunities, affordable and progressive housing projects and water
resource development.

Section 23. Safeguards on 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
exploration 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 aid, loans special projects and the like.



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ARTICLE IV
THE AUTONOMOUS REGION OF THE CORDILLERA

A. Powers of the Autonomous Region of the Cordillera

Section 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
regional and 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.

Section 25. Devolved Powers. - The autonomous region 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 such as but not limited to:
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 such as but not limited to:

a. Authority to regulate power generation, transmission and
distribution operating exclusively in the autonomous region and not
connected to the national transmission grid, and

b. Imposition of taxes to which are not already taxed by the national
and local government.

(3)Ancestral domain and natural resources such as but not limited to:

a. Protection of the ancestral domain and ancestral lands of
indigenous cultural communities (ICCs). All lands and natural
resources in the autonomous region that have been possessed or
occupied by ICCs since time immemorial, except when prevented
by war, force majeure, or other forms of forcible usurpation, shall
form part of the ancestral domain. Such ancestral domain shall

include pasture lands, worship areas, burial grounds, forests and
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fields, mineral resources, except strategic minerals such as
uranium, coal, petroleum; and other fossil fuels, mineral oils, and
all sources of potential energy; lakes, rivers, and lagoons; and
national reserves and marine parks, as well as forest and
watershed reservations.

. Authority to grant franchises and concessions and may by law

empower the Regional Governor to grant leases, permits, and
licenses over agricultural, forest, or mineral lands. The said leases,
permits, franchises or concessions shall, however, cover areas not
exceeding the limits allowed by the Constitution and shall subsist
for a period not exceeding 25 years. Except as provided in this
Organic Act, existing leases, permits, licenses, franchises, and
concessions shall be respected until their expiration unless legally
terminated earlier as provided by law, enacted by Congress or the
Regional Assembly.

. Declaration and disestablishment of nature reserves and aquatic

parks, forests, and watershed reservations, and other protected
areas in the autonomous region.

|. Authority, power, and right to 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 except for the strategic
materials such as uranium, petroleum, and other fossil fuels,
mineral oil, and all sources of potential energy, provided the
autonomous government shall be consulted. Permits, licenses and
the granting of contracts for this purpose shall be within the
powers of ARC.

. Regulation of small-scale mining to the end that the ecological

balance, safety and health, and the interests of the affected
communities, the miners, the indigenous peoples, and the local
government units of the place where such operations are
conducted are duly protected and safeguarded.

. Enactment of a law that regulates the grant of franchises and

concessions, and empowers the Regional Governor to grant leases,
permits, and licenses over agricultural lands and for forest
management, subject to the provisions of the Constitution.

(4)Personal, family and property relations shall be governed by but not
limited to customary justice and laws;



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(5)Regional urban and rural planning development such as but not limited
to:

a. Adoption and implementation of a comprehensive urban land
reform and land use program,

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

c. Authority to conduct cadastral survey.
(6)Economic, social and tourism development such as but not limited to:

a. Establishment of transportation and communication facilities to
expedite the economic development of the autonomous region,

b. Promotion of tourism with the autonomous region, and
c. Regulation of games and amusement operations within the ARC.

(7) Educational policies such as but not as limited to education and skills
training, research councils and scholarships.

(8)Preservation and development of the cultural heritage such as but not
limited to the establishment of its own libraries and museums, and
declaration of historical and cultural sites; and culture and language.

(9)Patents, trademark, trade names, and copyrights; and such other matters
for the promotion of the general welfare of the people of the region.

Section 26. Eminent Domain - The Regional government may
exercise the power of eminent domain.

B. Intergovernmental Relations

Section 27. General Supervision. - Consistent with the principle of
autonomy, the President shall exercise general supervision over the Regional
Government to ensure that laws are faithfully executed.

Section 28. Powers of Regional line agencies whose functions
are covered by Sec. 25. - The Regional Line Agencies whose functions are
covered by Sec. 25 shall continue to exist without diminution of their mandated
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Section 29. Powers of Regional Line Agencies whose functions
are devolved under Sec. 25. -

a. Regional Line Agencies and offices shall perform those functions devolved
by the Constitution to autonomous regions as enumerated in Section 25
of this Organic Act;

b. Regional line agency officials and employees shall continue to be paid in
accordance with Sec. 33. 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.

Section 30. Tenure of Civil Service Employees. - Except for just
cause and after due process, Civil Service 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.

Section 31. Priority in Hiring. - Civil Service 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.

Section 32. 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. Filling up of third level positions of regional line agencies and
offices shall be subject to the Career Executive Service Board (CESB)
requirements, where applicable. Otherwise, the selection requirements of the
concerned agency shall apply. Filling up of vacant regional director and assistant
regional director positions of regional line agencies and offices in the
autonomous region shall follow the existing screening procedure of the
concerned agency or office and the guidelines provided by the Career Executive
Service Board (CESB). The Regional Governor shall recommend a minimum of
three (3) applicants from those who applied and who were screened from whom
the President shall select and appoint. Regional directors posted in the
autonomous region shall be as equally qualified like those in other regions for
Promotion to higher positions in the various departments, line agencies and
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Section 33. Budget Preparation. - Regional line agencies and offices
whose functions are devolved to the regional government under Sec. 25 shall
prepare their respective budgets separate and distinct from the budget of the
Regional Government. Their budgets shall however be attached and form part
of the whole budget of the Regional Government when presented to Congress
to ensure that plans and priorities of the autonomous region are harmonized
and properly considered in the budgeting processes. Provided however, after
the full implementation of Sec. 167, the budget of the absorbed RLAs and
offices shall continue to be funded by the national government.

Section 34. Management of ODA Funds. - The autonomous region
may, upon authority of the Regional Assembly, avail of Official Development
Assistance (ODA)-funded projects and other foreign financial grants or
donations and shall undertake projects through the regional line agencies,
government-owned and controlled corporations (GOCCs), state colleges and
universities, local government units or whichever is deemed appropriate.

Section 35. GOCCS. - Government Owned and Controlled Corporations
(GOCCs) such as Government Insurance Security System (GSIS), the Social
Security System (SSS), the Pagtulungan-Ikaw, Bangko, Industriya’t Gobyerno
(PAG-IBIG), PhilHealth and others shall continue to be governed by their
respective charters and other pertinent laws.

Section 36. Autonomy of Local Government Units. - The local
government units shall continue to be independent from each other shall have
the same set of local officials and employees and shall enjoy autonomy and
continue to exercise powers granted 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.

Section 37. 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 direct supervision over

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provinces and highly urbanized cities in the autonomous region to ensure that
their acts are within the scope of their prescribed powers and functions.

Section 38. 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.

Section 39. 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.

Section 40. Equitable Share in 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 national wealth within their respective areas, in the manner
provided by law and this Organic Act.

Section 41. City Charters. - Any chartered city within the autonomous
region shall be governed primarily by its charter.

Section 42. 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.

Section 43. Right of LGU’s to aggregate. - The 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

Section 44. 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.

Section 45. Qualifications. -

a. Candidates for Regional Governor and Vice-Governor positions must be

a citizen of the Philippines and a Cordilleran, at least thirty-five (35) years
of age on election day, a registered voter in the region and a resident
thereof for a period of at least five (5) years immediately preceding the
day of election, able to read and write Filipino or English or any 2 other
local languages in the region.

b. Candidates for the position of Member of the Regional Assembly must be

a citizen of the Philippines and a Cordilleran, at least thirty (30) 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 five (5) years immediately
Preceding the day of election, able to read and write Filipino or English
or any other local language in the region.

Section 46. 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 4th degree of consanguinity or affinity.

Section 47. Manner of Election. -

a. The Regional Governor and Vice-Governor shall be elected at large by

direct vote of the registered voters of the Autonomous Region of the
Cordillera.

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b. Each province and city shall select their own representatives to the

Regional Assembly. Any chartered city in the autonomous region is
entitled to two (2) representatives to the Regional Assembly. Any
component city shall be entitled to one (1) representative. Each province
shall be entitled to two (2) representatives, one (1) per provincial district.
Provided, that any political subdivision created after the effectivity of this
Organic Act shall be entitled to representation to the Regional Assembly
as may be provided by law.

c. 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.

Section 48. 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 30th 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.

Section 49. 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.)



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Section 50. Prohibitions. -

. 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.

. 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.

. No members 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 he/she be appointed to any office which has been
created or the emoluments whereof increased by the Regional Assembly
during the term for which he/she was elected.

|. The Regional Governor, 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.

. 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.

Section 51. Vacancies and Succession. -

. In the event that the position of the Regional Governor becomes

permanently vacant, the Regional Vice-Governor shall automatically
become the Regional Governor.

. If the position of the Regional Vice-Governor becomes permanently

vacant, the member of the assembly garnering the highest percentage
of votes in the district represented shall become the vice-governor or in
case of his/her permanent disability, the next higher shall assume said
position.

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. 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 his election.
Provided, however, that the appointee has all the qualifications and none
of the disqualifications as provided by this Organic Act. Provided, that
should the one causing the vacancy did not belong to any political party
shall be filled by nomination by majority members of the assembly.
Provided further, that in both cases, he/she comes from the same district
represented by the member who caused the vacancy.

|. For purposes of this article, a permanent vacancy arises when the

incumbent elective official concerned dies, voluntarily resigns, is removed
from office, fails to qualify, or is otherwise permanently incapacitated to
exercise the powers and discharge the functions of his office.

Section 52. Temporary Vacancies. —

. When the Regional Governor is temporarily incapacitated to perform his

duties for physical or legal reasons such as, but not limited to, leave of
absence, travel abroad, and suspension form 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.

. 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 concerned shall also submit
necessary documents showing that said legal causes no longer exist.

. When the incumbent Regional Governor is travelling 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 regional official concerned shall exercise except the power to
appoint, suspend or dismiss employees.

|. 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 officer
on the fourth (4"") day of absence of the Regional Governor, subject to
the limitations provided in subsection c, hereof.

. Except as provided above, the Regional Governor shall in no case

authorize any regional official to assume the powers, duties and functions
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of the office, other than the Regional Vice-Governor or the highest
ranking Member of the Regional Assembly, as the case may be.

Section 53. Approval of Leaves of Absence. -

Leaves of absence of elective officials of the Autonomous Region of the
Cordillera shall be approved as follows:

a.

Leaves 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;

. Applications for leaves of absence of other officials and employees other

than those enumerated above shall follow those stipulated in the Local
Government Code;

. Application for leave of the Regional Governor shall be approved by the

President.

Section 54. Compensation. —

. Unless otherwise provided by law or regional ordinance, 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.

. Unless otherwise provided by a regional ordinance, a member of the

Regional Assembly shall receive an annual salary not lower than that of
an assistant secretary of the national government. No increase in salary
provided for by ordinance shall take effect until after the expiration of the
term of office of all members of the Regional Assembly approving the
same.

. They shall not receive during their tenure any other emoluments from

the government or any other sources.

Section 55. Accountability. —

. Disclosure. All regional officials shall, upon their assumption of office,

make a full disclosure of their financial and business interests, including
those of their spouses and unmarried children under eighteen (18) years
of age living in their households. Members of the Regional Assembly shall

notify the Regional Assembly of any potential conflict of interest that may
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arise from the filing of measures of which they are authors. This section
shall be governed by R.A. 6713 or the Code of conduct and ethical
standards for public officials and employees.

b. Discipline of Regional Elective Officials shall be governed by Chapter 4,
Title Two of Book I of R.A. 7160 and other applicable laws.

c. Recall. Regional Elective Officials may be recalled on grounds and
procedures 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

Section 56. 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.

Section 57. 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 regional line agencies and offices absorbed by the regional
government; and supervision over local government units within the
autonomous region.

Section 58. Extent of Representation by Regional Governor. —
The Regional Governor shall represent the Autonomous Region of the
Cordillera, including the absorbed regional line agencies and offices and the
local government units within the autonomous region in Cabinet meetings called
by the President and other affairs involving the region.

Section 59. Regional Governor and Regional Assembly. — The
Regional Governor shall deliver the State of the Region Address to the Regional
Assembly at the opening of its regular sessions. He/she may also appear before
it at any time.

Section 60. Regional Governor to submit Budget. — The Regional
Governor shall submit to the Regional Assembly within thirty (30) days from
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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.

Section 61. 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.

Section 62. 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 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
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good moral character, a holder of a college degree preferably in law,
administration or any other related course from a recognized college
or university. He/she must have acquired experience in management
work for at least five (5) years.

The term of office of the Regional Executive Secretary shall be co-
terminus with that of the appointing authority.

The Regional Executive Secretary shall, subject to the control and
supervision of the Regional Governor, carry out the functions and
duties delegated to him/her and shall:

1. Directly assist the Regional Governor in the management of the

affairs pertaining to the Autonomous Region of the Cordillera.

. Implement directives, orders and decisions.

. Decide, for and in behalf of the Regional Governor, matters not

requiring personal attention of the Regional Governor.

4. Exercise supervision and control over the various units in the
Office of the Regional Governor including their internal
administrative requirements.

5. Exercise supervision, in behalf of the Regional Governor, over
the various agencies under the Office of the Regional Governor.

6. Provide overall coordination in the operation of the Regional
Executive Office.

7. Determine and assign matters to the appropriate units in the
Office of the Regional Governor.

8. Have administrative responsibility for matters in the Office of the
Regional Governor coming from the various regional offices and
agencies of government.

9. Exercise primary authority to sign papers “By authority of the
Regional Governor”, attest executive orders and other issuances
unless attestation is specifically delegated to other officials by
him or by the Regional Governor.

10. Determine, with the approval of the Regional Governor, the
appropriate assignment of offices not placed by law under any
specific regional executive department.

11. Provide consultative, research, fact-finding and advisory
service to the Regional Governor.

12. Assist the Regional Governor in the performance of functions
pertaining to legislation.

13. _ Assist the Regional Governor in the administration of special
projects.

14. Take charge of matters pertaining to protocol in the Regional
Government and ceremonial functions.

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2)
(a)

(b)

15. Provide secretarial and clerical services for the Regional
Governor and other bodies.

16. — Promulgate such rules and regulations necessary to carry out
the objectives, policies and functions of the Office of the
Regional Governor.

17. _ Perform such other functions as the Regional Governor may
direct.

Regional Accountant. -

The Regional Accountant shall be a citizen of the Philippines and a
Cordilleran, of good moral character, and a certified public accountant.
He/she must have acquired experience in the treasury or accounting
service for at least five (5) years.

The incumbent chief accountant in the office of the treasurer shall be
given preference in the appointment to the position of the regional
accountant.

The regional accountant shall take charge of both the accounting and
internal audit services of the autonomous region shall:

1. Install and maintain an internal audit system in the
autonomous region.

2. Prepare and submit financial statements to the
Regional Governor and to the Regional Assembly.

3. Apprise the Regional Assembly and other government
Officials on the financial condition and operations of
the autonomous region.

4. Certify to the availability of budgetary allotment to
which expenditures and obligation may be properly
charged.

5. Review supporting documents before preparation of
vouchers to determine completeness of requirements.

6. Prepare statements of cash advances, liquidation,
salaries, allowances, reimbursements and remittances
pertaining to the autonomous region.

7. Prepare statements of journal vouchers and
liquidation of the same and other adjustments related
thereto.

8. Post individual disbursements to the subsidiary ledger
and index cards.

9. Maintain individual ledgers for officials and employees
of the autonomous region pertaining to payrolls and
deductions.



Coraneune

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

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 shall 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, and a first
grade civil service eligible or its equivalent.

(b)He/she must have acquired experience in government budgeting
for at least five (5) years.

(c) The budget officer shall take charge of the budget office and shall:

1. Prepare forms, order, 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.

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4) Regional Administrator. —

(a) The Regional Administrator shall be a citizen of the Philippines and
a Cordilleran, of good moral character, and a holder of a college
degree preferably in law, public administration or any other related
course from a recognized college or university. He/she 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
conterminous with that of the appointing authority.

(c) 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 Assembly is empowered to provide for under
this Organic Act.

- 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, he may convene the chiefs of offices and other
Officials of the autonomous region.

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.

. Conduct a continuing organizational development of the

autonomous region with the end in view of instituting
effective administrative forms.

. 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.

. 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.

. Exercise such other powers and perform such other duties

and functions as may be 15 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, and a member of the

2



Philippine Bar. He must have practiced his profession for at least
five (5) years.

(b)The term of office of the Regional Legal Officer shall be
coterminous with that of the appointing authority

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

CeVvaneune

1. Formulate measures for the consideration of the Regional
Assembly and provide legal assistance and support to the
Regional Governor, as the case may be, in carrying out the
delivery of basic services and provisions of adequate
facilities necessary.
Develop plans and strategies and upon approval thereof
by the Regional Governor, as the case may be, 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 for under
this Organic Act.
Recommend measures and advise the Regional Governor
on all other matters related to upholding the rule of law.
4. 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
dvil actions and special proceedings wherein the
autonomous region or any official thereof, in his
official capacity, is a party.

ji. 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.

ili. Render his/her 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 Regional
Government official or employee for administrative
neglect or misconduct in office, and recommend

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1 appropriate action to the Regional Governor as the
2 case may be.

3 v. _ Investigate or cause to be in investigate any person,
4 firm or corporation holding any franchise or exercising
5 any public privilege for failure to comply with any term
6 or condition in the grant of such franchise or privilege
7 by the Regional Government, and recommending
8 appropriate action to the Regional Governor, as the
9 case may be.

10 vi. When directed by the Regional Governor, initiate and
uw prosecute in the interest of the autonomous region
12 any civil action on any bond, lease or other contract
13 upon any breach or violation thereof.

14 vii. Review and submit recommendation on ordinances
15 approved and execute orders issued.

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7 6) Regional Treasurer. —

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

24 (b)The Regional Treasurer shall take charge of the Treasury Office,
25 Perform the duties provided for under Book II of the Local
26 Government Code, and shall:

27 1. Advise the Regional Governor and other Regional
28 Government officials concerned regarding the disposition
29 of government funds, and on such other matters relative
30 to public finance.

31 2. Take custody of and exercise proper management of the
32 funds of the autonomous region.

33 3. Take charge of the disbursement of all Regional
34 Government funds and such other funds the custody of
35 which may be entrusted to him/her by law or other
36 competent authority.

37 4. Maintain and update the tax information system of the
38 autonomous region

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

42 7) Regional General Services Officer. —

43 (a)The Regional General Services Officer shall be a citizen of the

44 Philippines and a Cordilleran, of a good moral character, and a
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holder of a college degree preferably on public administration,
business administration and management or any other related
course from a recognized college or university. He/she 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 him technical assistance and
support in carrying our 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.

. 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.

. 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 cleaning up of waste materials or
debris, particularly during and in the aftermath of man-
made and natural calamities and disasters.

. Recommend and advise the Regional Governor on all

matters relative to general services

. 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.

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iii.

vi.

vii.

viii.

Recommend to the Regional Governor reasonable
rental rates of private properties which may be leased
for the official use of the Regional Government.
Maintain and supervise _ janitorial, security,
government public buildings and other real property,
whether owned or leased by the Regional
Government.

Collate and disseminate information regarding prices,
shipping and other costs of supplies and other items
commonly used by the Regional Government.
Perform archival and record management with respect
to records of offices and departments of the Regional
Government.

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

Section 63. Regional Development Council. — There shall be a
Regional Development Council (RDC) 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.

Section 64. Composition of the RDC. — The Regional Development
Council, 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.

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 organizations/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.

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e) The RDC may designate special non-voting members (SNVMs)
coming from both the public and private sectors, upon concurrence
of the majority of its regular members.

Section 65. RDC Secretariat. — The regional office of the National
Economic and Development Authority (NEDA) shall serve as the secretariat and
technical operations arm of the RDC.

Section 66. Functions of the RDC. — The Regional Development
Council shall:

(a) Coordinate the preparation, implementation, monitoring and
evaluation of short- and long-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 regional development plan.

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

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

(e) Promote and direct the inflow and allocation of private
investments in the autonomous region to support regional
development objectives, policies, strategies.

(f) 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 government agencies that
have impact on the region and projects of LGUs in the region
requiring national government exposure which may come in the
form of guarantees, national government budget appropriations or
subsidies, among others.

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(h) 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.

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

Section 67. Creation of Committees. — the RDC shall create
appropriate technical and sectoral committees to assist in its work.

Section 68. Existing committees placed under RDC.- Existing
regional coordinating committees that are created by various laws and currently
attached to specific agencies, and ad-hoc program/project-based steering
committees, such as, but not limited to Development Administration
Committee, Economic Development Committee, Social Development
Committee, Infrastructure Development Committee, Watershed and
Environmental Management Committee, Committee on Indigenous People’s
Concerns, Regional Land Use Committee, Regional Gender and Development
Committee, Regional Project Monitoring Committee, Regional Competitiveness
Committee, Regional Development Budget Coordinating Committee, Regional
Statistical Coordination Committee, and the Cordillera Geographic Information
System Network, shall be placed under the umbrella of the RDC. Secretariat at
work of these inter-agency committees shall continue to be provided by their
mother agency.

Section 69. Attendance of Representatives to the RDC. — When
the need arises, the RDC shall invite the Congressmen of the province and cities
of the autonomous region.

ARTICLE VII
THE REGIONAL VICE-GOVERNOR

Section 70. Presiding Officer. — The Regional Vice-Governor shall

automatically become the Presiding Officer of the Regional Assembly.
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Section 71. Functions of the Presiding Office. — As the Presiding
Officer of the Regional Assembly, the Regional Vice-Governor shall:

(a) Sign all warrants drawn on the Regional Treasury Office for all
expenditures appropriated for the operation of the Regional Assembly;

(b) Subject to civil service law, rules and regulations, and this Organic
Act, appoint all officials and employees of the Office of the Regional
Vice-Governor, the Regional Assembly and the Office of the Secretary
to the Regional Assembly. The appointment of the Secretary to the
Regional Assembly shall however require the concurrence of the
majority of the members of the Regional Assembly as well as
compliance to the civil service law, rules and regulations and this
Organic Act;

(c) 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;

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

(e) Exercise the powers and perform the duties and functions as may be
prescribed by an ordinance.

ARTICLE VIII
THE REGIONAL LEGISLATIVE ASSEMBLY

Section 72. 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 laws, the Regional Assembly of the Autonomous Region of the
Cordillera shall have legislative powers over those functions enumerated under
Section 25.

Section 73. Enactment of ordinances and Resolutions. — The
Regional Assembly shall enact ordinances, approve resolutions and appropriate

29



funds for the general welfare of the region and its inhabitants as well as for the
efficient and effective operation of the Regional Government.

Section 74. 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 conterminous with their overseer.

Section 75. 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
Chairperson or the Regional Governor whenever 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.

Section 76. Sessions and Quorum. —

(a) A majority of all members of the Regional Assembly shall constitute a
quorum to do business, but 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.

(b) 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.



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Section 77. Ordinance. —

(a) Every ordinance shall embrace only one (1) subject which shall be expressed
in the title thereof.

(b) No ordinance 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 Governor certifies to the necessity of its immediate enactment to meet a
public calamity or emergency affecting region, or the component provinces,
cities, municipalities or barangays.

(c) Upon the last reading of an ordinance, no amendment thereto shall be
allowed, and the vote thereon shall be taken immediately thereafter, and the
yeas and nays entered in the Journal.

(d) Every ordinance passed by the Regional Assembly shall, before it becomes
a law, be presented to the Regional Governor. If he/she approves the same,
he/she shall sign it. Otherwise, he/she shall veto it and return the same with
his objections to the Regional Assembly, which 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 ordinance, it shall become a law. The Regional Governor shall
communicate his veto of any ordinance to the Regional Assembly within ten
(10) days from receipt thereof otherwise; it shall become a law as if he/she
had signed it.

(e) 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 he/she does not object.

Section 78. People’s Question Hour. —

(a) There shall be a people’s hour at least once a month or a s often as the
rules of the Regional Assembly may provide, which shall be included in the
Order of Business, during which any member of the Cabinet may, upon his own
initiative, with the consent of the Regional Governor, or upon the request of the
Regional Assembly, appear and answer the questions and interpellations by
members of the Assembly on any matter pertaining to his department.

(b) 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.

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Section 79. 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.

Section 80. Appropriations Ordinance. — The Regional Assembly
shall pass an appropriations ordinance 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 ordinance, 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 ordinance 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 ordinance shall be passed authorizing any transfer of
appropriations. However, the Regional Governor and the presiding officer
of the Assembly may, by ordinance, be authorized to augment any item
in the general appropriations ordinance for their respective departments
from savings in other items of their respective 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.

Section 81. Expenditure of Public Funds. -

(a)No money shall be paid out the regional treasury except in pursuance of
an appropriation made by regional law.

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(b)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.

(c) All money collected on any regional tax levied for a special purpose shall
be treated as a special fund and paid out for such purpose only. If the
purpose for which a special fund was created has been fulfilled
abandoned, the balance, if any, shall be transferred to the general fund
of the Regional Government.

Section 82. Certified True Copies of Ordinance — 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
ordinances and resolutions it passed.

Section 83. 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.

Section 84. Secretary to the Regional Assembly. — There shall be
a Secretary to the Regional Assembly with a rank, status and salary grade level
equivalent to a head of a regional department. He must be a citizen of the
Philippines and a Cordilleran, of good moral character, and a holder of a college
degree preferably in law, commerce, public administration, or any other related
course from a recognized college or university. He must have at least three (3)
years of relevant experience.

Section 85. Program for development. — Subject to national laws
and, sound public administration principles, exercising the corporate powers of
the Regional Government under the Constitution and R.A. 7160 of 1991, the
Regional Assembly shall evolve a program for generating development
financing to accelerate social and economic development in the region and
implement the same, and after conducting public consultation. Provided, that
when regional revenues are insufficient, the difference shall be funded by the
national government.

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Section 86. 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.

Section 87. Enactment of necessary legislation. — When the need
arises, the Regional Assembly shall enact ordinances 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

Section 88. Coordination and Cooperation of the Regional
Government with the national government to achieve quality of life.
— 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 and aside from 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.

Section 89. Autonomous Region Cordillera Development Plan. —
The Regional Government through the Regional 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.
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Section 90. Control and Supervision over natural resources. —
Regional Government shall have control and supervision over natural resources
in accordance to this Organic Act.

Section 91. Preferential Rights of Cordilleras 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 the implementation of programs, projects, and activities related to these
natural resources in the region shall comply with the provisions of the
Constitution and this Organic Act.

Section 92. 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 and
policies and establishing mechanisms that focus on the environment dimensions
of social and economic interventions. It shall include measures for the reduction
of vulnerability of women and marginalized groups to climate change and
variability.

Section 93. 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.

Section 94. 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,

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modernize and maintain rural and urban infrastructure facilities and utilities,
including alternative transport systems within critical environments.

Section 95. Comprehensive Agrarian Reform Program. — 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.

Section 96. Standards for 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.

Section. 97. 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.

Section 98. Policies of the Autonomous Region of the Cordillera
on Renewable and other Energy Resources and Extractive Industries.
Policies on Renewable and other energy resources and extractive industries
shall be drawn up by the Legislative Assembly in accordance with its
Comprehensive Sustainable Development Plan, as well as its over-all medium-
term and long- term Regional Development Plan.

Section 99. Financial and Technical Assistance Agreements. —
The applications for financial and technical assistance agreements covering
mineral resources within the region shall be commenced at and recommended
by the Regional Government to the President.

The manner by which the Regional Government shall make the
recommendation shall be in accordance with Section 98.

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Section 100. Participation of the Autonomous Region of the
Cordillera in Government 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 full-fledged member
of the Board of the National Economic and Development Authority.

ARTICLE X:
SOURCES OF REVENUES AND OTHER FISCAL MATTERS

Section 101. 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 the operations of the Regional Government, the
Regional Government shall, in addition to the existing shares of local
government units, regional line agencies and other government institutions,
have a share of the national revenues which include but not limited to
the following:

(a) Two and a half percent (2.5%) of the national Internal Revenue Taxes.
The Regional Government shall have a share in the national internal
revenue taxes equivalent to 2.5 percent based on the collection of
the third fiscal year preceding the current fiscal year, in addition to the
internal revenue allotment shares of the local government units. Eighty
percent (80%) of such share shall be appropriated in the annual regional
budget for development projects. The internal 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 purposed.

(b) Forty percent (40%) Share of the National Wealth Tax. The Regional
Government 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 Regional Government shall likewise be entitled to ten
percent (10%) share of the gross collections from the utilization of
national wealth sourced or emanating from the autonomous region by
persons, individual or juridical, operating outside the territorial jurisdicti
on of the autonomous region. Provided that the share in national wealth

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shall be used for the preservation and further development of the
environment.

Local Government Units shall have a share of one and one-half percent
(1.5%) of the gross sales or receipts or fifty percent (50%) of the gross
collection, whichever is higher, derived from renewable energy taxes, mining
taxes, royalties, forestry and fishery charges, and such other taxes, fees and
charges, including related surcharges, interests or fines, and from its share in
any co-production, joint ventures or production sharing agreement in 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.

(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 earned or equivalent to forty
percent (40%) of total tax paid by businesses within the economic zones
found in the Cordillera, in addition to the existing shares of the local
government units of two percent (2%). The fund shall be used for Trade
and Industry programs.

Local government units shall have a separate two percent (2%) share
out of the five percent (5%) final tax on gross tax paid by businesses within the
economic zones.

(d) Twenty percent (20%) Share of Excess in Value Added Tax. The Regional
Government shall have a separate twenty percent (20%) share of the
excess in VAT collections from the immediately preceding year. 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.

(e)Fifteen percent (15%) Share of Total Excise Tax. The Regional
Government shall have a separate fifteen percent (15%) share of the
total excise tax collection on locally manufactured Virginia-type cigarettes
manufactured within the territorial jurisdiction of the autonomous region

for the second calendar year preceding the year of distribution, in
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addition to the existing shares of the local government units. The fund
shall be used for agriculture programs.

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.

Section 102.Sources of Regional Government Revenues. — The
Regional Government 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 and which include but not limited to the following:

a. Taxes, except income taxes, imposed by the Regional Government;

b. Fees and charges imposed by the Regional Government;

c. 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

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tricycles which shall be registered with the city or municipality within
whose territorial boundaries they are operated;

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

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

f. 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.

Section 103. Situs of Taxation. — All corporations, partnerships, and
other entities, including government agencies, government-owned and -
controlled corporations directly engaged in business in
the region shall 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.

Section 104. Appropriations. — Appropriations from the national
government to be downloaded to the regional government

(a) Regional line agencies. The national government shall continue to
provide appropriations for the regular operations and programs of line
agencies in the region. In addition, each national government agency
shall appropriate not less than five percent (5%) of its annual budget
to fund priority programs in the region.

(b) Regional structure. The national government shall provide appropriations
for the mandatory organizational structure and positions of the Regional
Government.

(c)The Regional Government may access other special purpose funds
appropriated in the national budget.

Section 105. Share from Fees and Charges. — Eighty percent (80%)
share of national fees and charges collected within the region (e.g. DOTr, NBI,
PSA, BI, PEZA, DFA, DOH, DPWH, DENR, PRC, DOT, DICT, and other collecting
agencies) shall be directly remitted to the regional treasury and fifty percent
(50%) of this share shall be automatically retained by the collecting agencies
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Section 106. Donations and/or Grants. — Donations and/or grants
to the region to finance, to provide for, or to be used in undertaking projects in
health, education, culture, youth and sports development, human settlements,
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.

Section 107. Economic Agreements and Trade Compacts. — The
Regional Government, in accordance with the provisions of the Constitution and
national laws and upon the recommendation of the Regional Development
Council and ratification of the Regional Assembly, shall evolve a system of
economic agreements or trade compacts to generate grants and foreign loans
for development of the region.

Section 108. 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.

Section 109. Incentives and Exemptions. — The Regional Assembly
shall have the power to grant incentives or exemption on fees and charges
which the autonomous region is empowered under this Act to impose. An
ordinance granting incentives, exemptions or both shall only be passed with the
concurrence of a majority of all the members of the Regional Assembly.

Section 110. Regional Development Bank. — The Regional
Government may establish and capitalize a Regional Development Bank which
shall administer its own funds. The bank shall be under the supervision of the
Bangko Sentral ng Pilipinas (BSP) and under the general banking laws.

Section 111. Fiscal and Regulatory Licensing Standards. — The
Regional Government shall formulate fiscal and regulatory licensing standards
appropriate for the region.

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ARTICLE XI

AGRICULTURE, AGRARIAN REFORM, TRADE AND INDUSTRY,
TOURISM AND COOPERATIVE

Section 112. 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.

(c) 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 agricultu
re 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.

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(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.

Section 113. 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.

Section 114. 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.

Section 115. 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 u
sed to improve

productivity and product quality, reduce cost of production, enhance val
ue-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

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(d)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

Section 116. 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.

(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.

Section 117. 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.

Section 118. 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.

Section 119. Marketing and Exportation of Indigenous Products.
— The Regional Government shall in coordination with the local government
units, encourage investments, development, marketing and exportation of

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indigenous and other local products in accordance with its development goals
and priorities.

Section 120. 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).

ARTICLE XII:

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

Section 121. Jurisdiction over regional educational policies. —
The Regional Government shall have jurisdiction over the formulation of
regional educational policies and on the preservation, safeguarding and
development of cultural heritage. It shall have 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;

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

(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.

Section 122. Education with highest budget allocation. — The
Regional Government shall assign the highest budgetary priority to education.

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Section 123. 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.

Section 124. 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.

Section 125. 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.

Section 126. 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.

Section 127. State colleges and universities. —

a) State colleges and universities in the region shall form part of the regional
educational sub-system of the autonomous region and shall continue to
enjoy fiscal and institutional autonomy, continue to be governed by their
respective charters and enjoy support of the Regional Government.

(b) The Regional Government shall be represented in the board of regents
or trustees in state universities and colleges in the region.

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

Section 128. School charters. — Subject to the general supervision of
the Regional Government, all schools with charters shall continue to be
governed by their respective charters.

Section 129. 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.

Section 130. 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.

Section 131. Medi of instruction. — The Regional Government
shall retain English and ino 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.

Section 132. Region-wide Physical Fitness. - The Regional
Government shall design and implement region-wide physical fitness, sports
development programs, and indigenous games and sports which shall be a
cooperative responsibility of the school, the community, and the government.

Section 133. Establishment of Council and Commissions and
Center on Research, Cultural Heritage and Research. — The Regional
Government shall:

a. Establish a Regional Research Coordinating Council, which shall
harmonize the research and development efforts of the academe,
research institutions, citizen’s research, other organizations and

community initiated research in the region.
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b. Establish Cordillera Commission for the Preservation and Promotion of
Cultural Heritage Center for the promotion, research, documentation,
coordination with other groups and institutions and, establish and
maintain a data bank on all indigenous matters.

ARTICLE XIII
SOCIAL JUSTICE, HEALTH AND WELFARE

Section 134. Measures on Social Protection. - The Regional
Government commits itself to social protection and shall among other
things, 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.

(e) 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.

Section 135. 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, among other things, 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 and productivity gain-sharing schemes that recognize the right of
workers to a just share in the profits and productivity gains of businesses,
provide incentives thereof, and the right of the enterprise to reasonable
returns on investments.

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

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

Section 136. 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.

Section 137. 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 equality.

(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.

(f) 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% if the Regional Annual Budget
to form the base of health budget.

Section 138. 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.

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Section 139. Rights of Vulnerable Sectors. — The Regional
Government shall:

(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.

(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

Section 140. Program for rebel returnees. — The Regional
Government shall adopt a social integration program responsive to the needs
of rebel returnees including adult offenders and children in conflict with the law.

Section 141. 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.

Section 142. 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.

Section 143. 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.

Section 144, 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.

Section 145. Support to Peoples’ Organization. - The Regional
Government shall promote and support duly established peoples' organizations
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and encourage the formation of organizations, especially those of
the underprivileged.

ARTICLE XIV
PEACE AND ORDER

Section 146. Peace and Order and Public Safety. - The Regional
Government shall promote and maintain peace and order and public safety in
the region. It shall not allow private armies.

Section 147. Defense and Security. — 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.

Section 148. 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.

Section 149. Military Assistance. — 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:

(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.

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

Section 150. Indigenous Institutions. - 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

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system of incorporating indigenous practices in conflict resolution wherever and
whenever applicable.

ARTICLE XV
GENERAL PROVISIONS

Section 151. Promulgation. — 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.

Section 152. Renaming. — The Regional Assembly may adopt a new
name for the Autonomous Region of the Cordillera after public consultation.

Section 153. Cordillera Symbol. — The Regional Government shall have a
regional flag, emblem and hymn.

ARTICLE XVI
PERSONAL, FAMILY, INDIGENOUS AND PROPERTY RELATIONS.

Section 154. Customary Laws. — Customary laws affecting personal,
family, tribal and property relations in the Cordillera shall be recognized.

Section 155. Protection of Family. — The family as the basic unit of
society shall be protected.

Section 156. Marriage. — 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.

Section 157. Dispute Settlement. — Settlement of dispute done in
accordance with customary practices shall be recognized.

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Section 158. Property. — Acquisition and encumbrance of property in
accordance with customary laws of the place shall be recognized and protected.

Section 159. Dispute Settlement for Property Rights and
Ownership. — Upon agreement of the parties, 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

Section 160. Amendment Requirement. — Any amendment to, or
revision of this Act may be made by Congress upon recommendation of the
majority of all members of the Regional Assembly.

Section 161. Ratification. — 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 XVIII
TRANSITORY PROVISIONS

Section 162. 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
and/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.

Section 163. Date of Election. — 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
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Section 164. Residency Requirement. — For purposes of the first
regional election, candidates must have actually resided and a registered voter
in the region for at least seven (7) years immediately preceding the election.
Provided that they meet all other qualifications and none of the disqualifications
under Article V of this Organic Act.

Section 165. Abolition of 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 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.

Section 166. Seat of Regional Government. — The seat of the
Regional Government of ARC 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.

Section 167. 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 presiding
officer of the Cordillera Legislative Assembly, two (2) senators to be designated
by the Senate President, two (2) representatives to be designated by the
Speaker of the House of Representatives, the incumbent Chairperson and Co-
Chairperson of the Regional Development Council, 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 personne! shall continue to be funded by the national
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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 President fails to act within said
period, the recommendations of the Oversight Committee shall be
deemed approved.

Section 168. Financial Assistance. — Over and above [that] 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)Twenty percent (20%) of the annual subsidy for the Regional
Government shall be for regional infrastructure, livelihood and
revenue generating projects.

(b)Six percent (6%) of the annual subsidy shall remain with the Regional
Government as Trust Fund.

(c) The remaining seventy-four percent (74%) of the annual subsidy shall be
allocated as follows:

1. Twenty-three percent (23%) of the seventy-four percent (74%) shall
be divided equally among the Provinces and Highly Urbanized Cities
which shall be for infrastructure, livelihood and revenue generating
projects.

2. Two percent (2%) of the seventy-four percent (74%) for Component
Cities which shall be for infrastructure, livelihood and
revenue generating projects.

3. Thirty-five percent (35%) of the seventy-four percent (74%) shall be
divided equally among the Municipalities which shall be for
infrastructure, livelihood and revenue generating projects.

4. Forty percent (40%) of the seventy-four (74%) shall be divided
equally among the barangays for infrastructure, livelihood and
revenue generating projects.

In the case of a chartered city, barangays shall take their shares from the
city government. Provided, that the projects shall be in accordance with
the Regional and Local Development Plans and Budgets as approved by their
respective legislative bodies.

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Section 169. 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.

Section 170. Local Government 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.

Section 171. 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 purposes.

(c) 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.

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

The Regional Development Council with the assistance of the Philippine

Information Agency, and in consultation with the provincial/city governments,
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the Cordillera Association of Regional Executives, and other key stakeholders,
shall determine the manner of campaigning and the deputization 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.

Section 172. Separability Clause. — Any provision or part of this
Organic Act found to be invalid or unconstitutional shall not invalidate the
provisions or parts thereof not affected thereby.

Section 173. Repealing Clause. — All laws inconsistent with this
Organic Act are hereby repealed or modified accordingly.

Section 174. Local Government Center. — Creation of a Local
Government Center for the Cordillera.

ARTICLE XIX
EFFECTIVITY

Section 175. Effectivity Clause. — This Act shall take effect
after fifteen (15) days following its complete publication in at least two (2)
national newspapers and all local newspapers of general circulation in the
autonomous region.

Approved,

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