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= DATE July 28, 2022
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasan Hills, Quezon City

NINETEENTH CONGRESS
First Regular Session

House Bill No._2718 _

Introduced by

HON. YEDDA MARIE K. ROMUALDEZ
and
HON. JUDE A. ACIDRE

AN ACT
WITHDRAWING THE INTERNAL REVENUE ALLOTMENT OF 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"

EXPLANATORY NOTE

This bill seeks to withdraw the internal revenue allotment of the Metropolitan
Manila Development Authority (MMDA), thereby amending Republic Act No. 7924 or
the act that created the Metropolitan Manila Development Authority (MMDA).

Section 6, Article X of the 1987 Philippine Constitution provides that: “Local
government units shall have a just share, as determined by law, in the national taxes
which shall be automatically released to them.” Furthermore, Section 285 of Republic
Act No. 7160 or the Local Government Code of 1991 provides:

SECTION 285. Allocation to Local Government Units. - The share
of local government units in the internal revenue allotment shall be allocated in
the following manner:

(a) Provinces — Twenty-three percent (23%);

(b) Cities - Twenty-three percent (23%);


(b) Cities ~ Twenty-three percent (23%);

(c) Municipalities — Thirty-four percent (34%); and
(d) Barangays — Twenty percent (20%)

XXX

The Supreme Court, in the case of Metropolitan Manila Development Authority
v. Bel-Air Village Association, Inc., ruled that MMDA is not a local government unit or
a public corporation endowed with legislative power. And as such, it should not be
entitled to an Internal Revenue Allotment.

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

Rep. YEDDA MARIE K. ROMUALDEZ
Representative, Tingog Sinirangan

Rep. JUDE/A. ACIDRE
Representative, Tingog Sinirangan


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasan Hills, Quezon City

NINETEENTH CONGRESS
First Regular Session

House Bill No. __2718
ee

Introduced by

HON. YEDDA MARIE K. ROMUALDEZ
and
HON. JUDE A. ACIDRE

AN ACT
WITHDRAWING THE INTERNAL REVENUE ALLOTMENT OF 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 to read as
follows:

“Sec. 10 Sources of Funds and the Operating Budget of MMDA -

(a) To carry out the purposes of this Act, the amount of One billion pesos
(Php 1,000,000,000) 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.]


[(0)] (B) The MMDA is likewise empowered to levy fines and impose fees
and charges for various services rendered.

{(a)] (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 provisions of Section
286 of RA 7160 to the contrary notwithstanding.”

Section 2. Repealing Clause. All other laws, decrees, executive orders, rules
and regulations, or parts thereof, inconsistent with the provisions of this Act are hereby

modified, amended, or repealed accordingly.

Section 3. Effectivity Clause. This Act shall take affect fifteen (15) days after
its publication in a newspaper of general circulation in the Philippines.

Approved,