Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
FIFTEENTH CONGRESS
First Regular Session

House Bill No. 239

INTRODUCED BY CONGRESSMAN PEDRO P. ROMUALDO

EXPLANATORY NOTE

This bill proposes to remove the internal revenue allotment of the Metropolitan
Manila Development Authority, amending its existing Charter, Republic Act No.
7924, entitled “An Act Creating the Metropolitan Manila Development Authority
(MMDA), Defining its Powers and Functions, Providing Funds Therefore and For
Other Purposes”.

Prior to the creation of the Metropolitan Manila Development Authority, the
original agency was the Metropolitan Manila Commission (MMC). It was
established by virtue of Presidential Decree No. 824 dated 27 February 1975
and it was classified as a public corporation with sources of funds representing
20% of the Annual Income of the cities and municipalities comprising the Metro
Manila Commission.

The MMC was replaced by the Metro Manila Authority (MMA) by virtue of the
passage of Executive Order No. 392 issued on 9 January 1990. The MMA was
also classified as a public corporation and it was also given an authority to
continue collecting contributions at a rate of 15% of the Annual Income of these
local government units.

When MMA was changed into the Metropolitan Manila Development Authority by
virtue of the passage of Republic Act No. 7924, Section 1 clearly states that the
Metropolitan Area is treated as a special development and administrative region
and is classified as a public corporation and is governed by a Metro Manila
Council, the policy-making body of this agency.

All local government units only started receiving their internal revenue
allocation when Republic Act No. 7160, otherwise known as the “Locall
Government Code” was passed into law in 1991. The Internal Revenue
Allocation (IRA) are released like block grants to local government units and
they enjoy a wide discretion in the priority utilization of these funds.

It is clear with the preceding historical facts that MMDA is a public corporation
and not created like any province, city, municipality and barangay as
contemplated under the Local Government Code. Therefore, it should not be
entitled to any share of the internal revenue allotments.


The local government units comprising the MMDA are among the largest, richest
and progressive cities and municipalities in the country. These LGU’s are the
political and economic centers of the country. Thus, removing the IRA of MMDA
will not affect their operations. The IRA for MMDA can therefore be reverted
back to the coffers of the government and can be apportioned proportionately to
4'", 5" and 6" class municipalities in the country to accelerate further growth in
these areas and be able to somehow catch up with progressive LGU’s.

In vies of the foregoing, the immediate approval of this bill is hereby requested.



Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City, Metro Manila

FIFTEENTH CONGRESS

First Regular Session

239

18)

House Bill No.

INTRODUCED BY CONGRESSMAN PEDRO P. ROMUALDO

AN ACT
REMOVING THE INTERNAL REVENUE ALLOTMENT FROM = THE
METROPOLITAN MANILA DEVELOPMENT AUTHORITY (MMDA), AMENDING
FOR THE PURPOSE REPUBLIC ACT NO. 7924, ENTITLED “AN ACT CREATING
THE METROPOLITAN MANILA DEVELOPMENT AUTHORITY, DEFINING ITS
POWERS AND FUNCTIONS, PROVIDING FUNDS THEREFORE AND FOR OTHER
PURPOSES”

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

SECTION 1. Section 10 of Republic Act No. 7924, is hereby amended by
deleting paragraph (b) of said section to read as follows:

“Section 10. Sources of Funds and the Operating Budget of the
Metropolitan Manila Development Authority:

(a) To carry out the purposes of this Act, the amount of One billion pesos
(PW 1,000,000,000.00) is hereby authorized to be appropriated for the
initial operation of the MMDA. Thereafter, the annual expenditures
including capital outlays of the MMDA shall be provided in the General
Appropriations Act.

{(b) The MMDA shall continue to receive the Internal Revenue Allotment

(IRA) currently allocated to the present MMA.]

((c)] (B) The MMDA is likewise empowered to levy fines, and impose fees

and charges for various services rendered.

((d)] (C) Five percent (5%) of the total annual gross revenue of the

preceding year, net of the internal revenue allotment, of each local

government unit mentioned in Section 2 hereof, shall accrue and become
payable monthly to the MMDA by each city or municipality. In case of
failure to remit the said fixed contribution, the DBM shall cause the
disbursement of the same to MMDA chargeable against the IRA allotment
of the city or municipality concerned the provision of Section 286 of RA
7160 to the contrary notwithstanding.”

SEC. 2. This Act shall take effect fifteen (15) days after publication in the
Official Gazette or in two (2) national newspapers of general circulation.

Approved,