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

Eighteenth Congress
Second Regular Session

HOUSE BILL NO. 6999

Introduced by Representative AMIHILDA J. SANGCOPAN of Anak
Mindanao (AMIN) Party-List

EXPLANATORY NOTE

This bill seeks to mandate local government units with indigenous cultural
communities or indigenous people to appropriate one percent (1%) of their
internal revenue allotment for the development of indigenous cultural
communities and welfare of indigenous peoples.

It is undeniable that most indigenous cultural communities and indigenous
peoples still lack accessibility to the basic services of government due to their
geographical remoteness. Most of the indigenous peoples are illiterate caused by
lack of access to education that leads to unemployment. Another problem that
besets indigenous peoples is access to health care services, especially of pregnant
indigenous women. The accessibility to, and delivery of, these basic services
may be addressed by the one percent (1%) allocation from the internal revenue
allotment of local government units. The local government unit which has
jurisdiction over an indigenous cultural community is in the best position to
extend the basic services to indigenous peoples. With the proposed one percent
(1%) allocation, the plight of indigenous peoples as a disadvantaged sector may
come to an end.


In the case of Hermilando I. Mandanaset. al. vs. Executive Secretary
Paquito N. Ochoa Jr. et. al., G.R. No. 199802, July 3, 2018, the Supreme Court
ruled that the just share of local government units in the national taxes is not
limited to taxes collected by the Bureau of Internal Revenue as enumerated under
Section 21 of the National Internal Revenue Code. Rather, the base of the just
share of local government units includes all national taxes collected by the
national government such as the tariff and customs duties collected by the Bureau
of Customs, and taxes collected from the exploitation and development of
national wealth.

The above Supreme Court decision effectively increased the internal
revenue allotment of local government units. The proposed one percent (1%)
allocation for the development of indigenous cultural communities and welfare
of indigenous peoples will therefore not affect the normal operations of local
government units. This is a real opportunity for the local government units to
uplift the lives of their constituents, including the livesof indigenous peoples.

However, to truly address the needs and concerns of the indigenous
peoples, the local government units must coordinate with the indigenous peoples
in determining the programs and projects that may be implemented for the
indigenous peoples and their communities. The said coordination is consistent
with the rights of the indigenous peoples to determine and decide their own
priorities for development affecting their rights and beliefs sanctioned under
Republic Act No. 8371, otherwise known as the “/ndigenous Peoples’ Rights Act
of 1997.”

The national government led by the National Commission on Indigenous
Peoples is, undoubtedly, providing and implementing programs geared towards
the promotion of the well-being of indigenous peoples. Even private entities are
reported to provide and conduct social interventions for the indigenous peoples.
But in spite of the national government programs and intervention of private
entities, the indigenous peoples are still confronted by the lack of access to basic
services. The one percent (1%) allocation, though may seem small, can definitely
make a difference to the lives of the indigenous peoples.

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

J. SANGCOPAN

Anak Mindanao (AMIN) Party-List


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

Eighteenth Congress
Second Regular Session

HOUSE BILL No._6899

Introduced by Representative AMIHILDA J. SANGCOPAN of Anak
Mindanao (AMIN) Party-List

AN ACT

MANDATING LOCAL GOVERNMENT UNITS WITH INDIGENOUS
CULTURAL COMMUNITIES OR INDIGENOUS PEOPLES TO
APPROPRIATE ONE PERCENT (1%) OF THEIRINTERNAL
REVENUE ALLOTMENT FOR THE DEVELOPMENT OF
INDIGENOUS CULTURAL COMMUNITIES AND WELFARE OF
INDIGENOUS PEOPLES, AMENDING FOR THE PURPOSE REPUBLIC
ACT NO. 7160, AS AMENDED, OTHERWISE KNOWN AS THE “LOCAL
GOVERNMENT CODE OF 1991”

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

SECTION 1. Section 287 of Republic Act No. 7160, as amended,is hereby
amended to read as follows:
“SEC. 287. Local Development Projects Each local
government unit shall appropriate in its annual budget no less than
twenty percent (20%) of its annual internal revenue allotment for

development projects.


LOCAL GOVERNMENT UNITS WITH IDENTIFIED
INDIGENOUS CULTURAL COMMUNITIES OR
INDIGENOUS PEOPLES IN THEIR TERRITORY SHALL
ALSO APPROPRIATE IN THEIR ANNUAL BUDGET AT
LEAST ONE PERCENT (1%) OF THEIR ANNUAL
INTERNAL REVENUE ALLOTMENT FOR’ THE
DEVELOPMENT OF INDIGENOUS CULTURAL
COMMUNITIES AND WELFARE OF INDIGENOUS
PEOPLES IN THEIR AREA.

THE LOCAL GOVERNMENT UNITS SHALL
COORDINATE WITH THE INDIGENOUS CULTURAL
COMMUNITIES OR INDIGENOUS PEOPLES IN THEIR
AREAS TO DETERMINE THE PROGRAMS AND PROJECTS
WHICH THE COMMUNITY AND THE INDIGENOUS
PEOPLE MAY IMPLEMENTSUCH AS SUPPLY OF WATER

AND ELECTRIC!

EDUCATION, HEALTH, AND
INFRASTRUCTURE.
Copies of the development plans of local government unitsshall

be furnished the Department of Interior and Local Government.”

SEC. 2. Within six (6) months from the effectivity of this Act, the Secretary

of Interior and Local Government, in coordination with the chairperson of the


National Commission on Indigenous Peoples, shall promulgate the rules and
regulations implementing the provisions of this Act.

SEC. 3. This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved,