Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH ( 16TH) CONGRESS
First Regular Session

House Bill No. 4145

EXPLANATORY NOTE

Republic Act No. 7160, otherwise known as “The Local Government Code of 1991”, as
amended, was enacted precisely to breathe life into the constitutional mandate of local autonomy
by establishing a more responsive and accountable local government structure instituted through an
efficient system of decentralization, Essentially, this system is geared towards empowering local
government units to achieve their full development as self-reliant communities, making them more
effective and meaningful partners in the attainment of the nation's goals.

Being the basic political unit, the barangay serves as “the primary planning and
implementing unit of government policies, plans, programs, projects and activities in the
community, and as a forum wherein the collective views of the people may be expressed,
crystallized and considered” (Section 384 of the Local Government Code). As such, it is the
country’s ultimate front-liner in the provision of a broad range of basic services to the community,
as well as in the delivery to the citizenry of their first taste of local public service.

Section 6, Article X of the Constitution states: “Local government units shall have a just
share, as determined by law, in the national taxes which shall be automatically released to them.”
The Internal Revenue Allotment (IRA) as incorporated in the general appropriations law enacted
annually by the legislature is the “just share” contemplated by the constitutional mandate.
Therefore, it is clearly an indispensable component in the grant of meaningful and true fiscal
autonomy to local government units. However, the local government units created through their
respective local legislature bodies are prohibited from receiving the above-mentioned
constitutionally mandated equitable share in the nation’s internal revenue taxes. The Code provides:
“x x x the financial requirements of barangays created by local government units after the

effectivity of this Code shall be the responsibility of the local_government unit_concerned”

(emphasis and underscoring supplied).

Withholding these resources from the local government units covered by the last paragraph
of Section 285 of the Local Government Code is thus not in accord with the express entitlement
mandated by the Constitution.

Barangay V. Hizon, located within the City of Davao, is one such barangay excluded from a
share in the IRA. It has a land area of Two Hundred Twelve hectares (212), and a population of
‘Twelve Thousand One Hundred Fifty Four (12,154). It is bounded on the North by the Davao
International Airport runway, Barangay Alfonso Angliongto, Sr. and Barangay Lapu-Lapu in the


West, coastline of the Davao Gulf in the South, LP. Laurel Avenue (Davao-Agusan National
Highway) and Insular Creek in the Southeast, Dofia Asuncion in the East, Dofia Asuncion
Subdivision, Insular Village I, West Insular Village, Fortune Executive Homes, Nova Tierra Village
Phase 1-3, Pampanga Executive Homes Subdivision, Belen Homes, Sto. Domingo I, Donnasville,
Model Homes, Lizada Village Purok 2-3 in the Northeast. Having complied with the requisites
prescribed under Section 386 of the Local Government Code and the plebiscite requirement
contained in Section 10, Article X of the Constitution, it was separated from the original Barangay
Pampanga and created as a separate barangay by the City Government of Davao, acting through the
Sangguniang Panlungsod, under City Council Resolution No. 02565-03 and City Council
Ordinance No. 0161-03 approved on November 18, 2003. Its corporate existence began on July 25,
2004 when its first set of regular officials was elected, pursuant to Section 14 of the Local
Government Code.

An entitlement to the IRA is an indispensable element and a constitutionally and lawfully
ingrained component of the resources of any local government unit. In the case of a barangay, said
entitlement becomes even more crucial as this most basic local political subdivisions delivers the
nation’s frontline response to the needs of the Filipino citizenry. Further, it is at the barangay level
that government, both national and local, aspires to implement basic policies, plans, programs,
projects and activities, as well as settle all discussions, disputes and grievances. In the performance
of this all-important frontline response and accountability functions, diminished and uncertain
resources deliver a significant blow to the efficiency and effectiveness of barangay local
governance. At the end of the day, it is the Filipino people who will bear the prejudicial
consequences of this fiscal disparity.

In view of these considerations, and in the face of resonating and unified public clamor for a
clear and immediate legislative remedy to the matter at hand, the immediate approval of this bill is

udullunillt

MYLENE J. GARCIA-ALBANO.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH ( 16TH) CONGRESS
First Regular Session

House Bill No4145

Introduced by

AN ACT CREATING A BARANGAY TO BE KNOWN AS BARANGAY V. HIZON
IN THE 2ND DISTRICT OF DAVAO CITY

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

Section 1. Creation. - Barangay V. Hizon in Davao City is hereby separated from Barangay
Pampanga and constituted into a new Barangay to be known as Barangay V. Hizon in the City of
Davao.

Section 2. Conduct and Supervision of Plebiscite. - The plebiscite conducted and
supervised by the Commission of Elections (COMELEC) in Barangay Pampanga pursuant to City
Council Ordinance 0161-03 of the Sangguniang Panlungsod of the City of Davao, which ratified the
creation of Barangay V. Hizon shall serve as valid compliance with the plebiscite requirement under
Section 10 of Republic Act No. 7160, otherwise known as “The Local Government Code of 1991,”
as amended.

Section 3. Barangay Officials. - The incumbent officials of Barangay V. Hizon shall
continue to hold office until such time as their successors shall have been duly elected and
qualified.

Section 4. Public Infrastructure and Facilities. - Ail existing public infrastructure and
facilities for public use existing therein at the time of the approval of this Act are hereby transferred
without cost or compensation to and shall be administered by the new Barangay.

Section 5. Internal Revenue Allotment (IRA) Shares. - Barangay V. Hizon shall be
entitled to its share in the Internal Revenue Allotment (IRA) pursuant to Section 285 of the Local
Government Code of 1991.

Section 6. This Act shall take effect fifteen (15) days after its publication in any newspaper
of general circulation.

Approved,