Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

House BittNo.__ 461.0

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
INSTITUTIONALIZING REFORMS IN REAL PROPERTY APPRAISAL AND
ASSESSMENT PRACTICES IN THE PHILIPPINES, CREATING FOR THE
PURPOSE THE NATIONAL APPRAISAL AUTHORITY AND FOR OTHER
PURPOSES

PLANA’

One of the main issues contributing to the inefficiency of the Philippine
real estate market is the current valuation system. This, in tum, has
temendously constrained the optimal management and use of our valued land
resources.

To date, there are at least twenty-three (23) national goverment agencies
(NGAs) undertaking real property appraisals, each using its own system and
methodology. The lack of a single agency responsible for property valuations
has created inadequate technical supervision on valuation matters. And the use
of multiple appraisal systems and procedures has resulted in the lack of
uniformity and equity in real property appraisal in the country.

To maintain integrity, equity, and uniformity in the base record, it is
important to keep it separate from the tax assessment process, which is carried
out by the local treasurer as the taxing authority on behalf of the local council.

While the grant of authority for LGUs to prepare, legislate and implement
the Schedule of Market Values (SMVs), which is the basis for the assessment of


the real property tax has enhanced local autonomy, traditional politics come into
play as when there are: 1) minimal, selective and subjective increases on
valuations and 2) frequent deferment of the generat revision of property
assessments contrary to the Local Goverment Code's requirement of increases
in every three (3) years. Valuations used by LGUs therefore, tend to be outdated
and nat reflective of the changes occurring within the market.

The same is true in the use of zonal values developed by the BIR.
Because zonal value systems have no fixed statutory review period, the reviews
of these are not made on regular intervals. Moreover, the four-step approval
process is time consuming that by the time the zonal values have been
approved, changes had occurred in the property market. This resulted in
distortions in zonal values ranging from 25%-70% af the prevailing land prices.

Distortions in the LGUs’ market values are relatively higher. To illustrate,
sampled properties in Metro Manila showed that the zonal values are on the
average 262% higher than the LGU market values. Below market value
assessment of real property leads to a relatively low tax intake and undermines
the generation of significant revenues from property ownership and transfers.

To ensure equity in real property taxation, the separation of the valuation
and assessment function from tax setting and political influence is necessary.
The establishment of an appraisal authority, responsible for regulating and
overseeing all LGUs and NGAs' appraisal activities, as is provided in this
measure, will address this need. Said authority will maintain the integrity of reat
property appraisal and will ensure that a nationally consistent, equitable and
dependable valuation system for real property taxation is in place. Eventually,
this will provide a wider taxation base resulting in improved and enhanced tax
collection, which will rightly address the fiscal woes that beset the country today.

It is for these considerations that we urge our colleagues in the Chamber
to favor the passage of this bill,

DIOSDADO M: ‘AGAL ARROYO exch cicscarnont ARROYO
Second District, Camarines Sur Second District, Pampanga


Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

FIFTEENTH CONGRESS
First Regular Session

* 4610

r
House Bill No.

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
INSTITUTIONALIZING REFORMS IN REAL PROPERTY APPRAISAL AND
ASSESSMENT PRACTICES IN THE PHILIPPINES, CREATING FOR THE
PURPOSE THE NATIONAL APPRAISAL AUTHORITY AND FOR OTHER
PURPOSES

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

CHAPTER I
INTRODUCTORY PROVISIONS

SECTION 1. Short Title. — This Act shall be known as the "The Real
Property Appraisal and Assessment Reform Act of 2011.”

SECTION 2. Declaration of Policy and Objectives. — It is the policy of the
State to institutionalize reforms in real property appraisal to develop and ensure a
just, holistic, and nationally consistent real property valuation system, in
conformity with the Philippine Valuation Standards developed under this Act and
the generally accepted valuation principles.

Towards this end, the State shall:


(a) Establish a National Appraisal Authority that shall provide a
strong leadership in the appraisal of real property, principally for
taxation;

(b) Devetop and maintain valuation standards and adopt a schedule
of market values as the single real property valuation base for the
assessment of all real property related taxes in the country and for
the valuation of real property by all goverment agencies and units
requiring real property valuation;

(c) Separate the function of vatuing / appraising real properties from
the function of administering the taxes due thereon; and

(d) Develop and professionalize the valuation practice in the
country.

SECTION 3. Definition of Terms — For purposes of this Act, the following
terms shall, unless the context indicates otherwise, have the following meanings:

(a) “Appraisal” shall mean providing a systematic and analytic
determination, opinion or conclusion relating to the nature, quality, value
or utility of specified interests in or aspects of property resulting in a
supportable estimate and opinion of value of the property involved at a
given point in time for a specific purpose;

(b) ‘Appraiser’ or “Valuer,” is a person qualified by education, training, and
experiance to estimate the value of real or personal property;

(c) ‘Assessor" is a person, usually a government official, or an
independent contractor for a taxing body who estimates the assessed
value of real estate properties for ad valorem purposes:

(d) ‘Real Property” are those which cannot be removed from place to
place, like land, including those which are attached therein, by nature or
by people, in such a manner as to form an integral part thereof, like trees,
buildings, machineries and other improvements; including interests,
benefits and other real rights inherent in the ownership of real property;

(e) ‘Land’ refers to resources, both natural and man-made, found on
‘surface, below and above the ground including inland waters and the air
therein;

() “Machineries” shall embrace machines, equipment, mechanical
contrivances, instruments, appliances or apparatus which may or may not
be attached, permanently or temporarily, to the real property.


(g) “Fair Market Value” or “True Value in Money” shall refer to the most
probable price in terms of money which a property should bring in a
competitive and open market under all conditions requisite to a fair sale,
the buyer and seller, each acting prudently, knowledgeably and without
compulsion;

(h) “Special Purpose Properties” shall refer to properties which are
designed, constructed and developed for a specific use or purpose. By its
very nature this type of property is rarely offered for sale in the open
market except as part of an ongoing concem. Because of the special
design and function, conversion of special purpose properties to other
types of development or application is generally nat economically feasible;

(i) “National Appraisal Authority” shall be the lead agency of the
govemment on matters conceming the appraisal and assessment of real
properties in the Philippines: and

g) Private Appraisal Organization” refers to a professional organization of
licensed real estate appraisers which has been active in the promation
and pursuit of its objectives for the last five (5) years.

CHAPTER Il
ARTICLE One, GREATION, MANDATE, POWERS AND
FUNCTIONS OF
THE NATIONAL APPRAISAL AUTHORITY (NAA)

SECTION 4. Creation of the National Appraisal Authority (NAA). - To
achieve the policy declared in this Act, there shall be established a National
Appraisal Authority, hereinafter referred to as the “Authority.”

SECTION 5. Mandate of the Authority. - The Authority's mandate is to
lead and manage the implementation of the provisions of this Act, thraugh the
powers and functions set forth in Section 5 hereof.

The Authority shall be the lead agency of the government on matters
concerning the appraisal of real propesties in the Philippines. It shall be attached
to the Department of Finance, which attachment shall be subject to review under
Section 36 of this Act.

SECTION 6. Powers and Functions of the Authority. — The Authority shall
exercise the following powers and functions:

(a) Set valuation standards, regulations, and specifications consistent with
generally accepted valuation standards for real property appraisal and

we


ensure compliance therewith by LGUs, NGAs, and other concemed
parties in both government and private sectors;

(b) Review and approve the Schedule of Market Values (SMVs) prepared
by the provincial, city, and municipal assessors of Metro Manila for tax
purposes;

(c) Provide technical assistance on real property appraisal matters to
government agencies and instrumentalities, and conduct, when requested,
the appraisal of special purpose properties for real property tax purposes;

{d) Provide leadership and direction to local government units (LGUs).
national government agencies (NGAs), private sector institutions and
individuals on matters pertaining to appraisal including, but not limited to,
the promotion of appraisal education and continuing educational
development programs, development and maintenance of valuation
standards, and regulation of appraisal activities;

{e) Develop and maintain a database of real property transactions and
Prices of materiats for buildings and other structures and machineries;

() Determine, fix, and collect such reasonable amount to be charged as
administration fees, charges, fines, and penalties relative to the
implementation of this Act; and

(g) Perform such other functions as are necessary, proper, and incidental
to implement the provisions of this Act.

SECTION 7. Creation of an Advisory Board. — The Authority shalt be
assisted by an Advisory Board, hereinafter referred to as the “Board,” composed
of the following:

(1) Representative from the Department of Finance (DOF);

(2) Representative from the Bureau of Local Government Finance (BLGF);

(3) Representative from the Bureau of internal Revenue (BIR);

(4) Representative from the Department of Environment and Natural
Resources (DENR);

(5) Representative from private appraisal organizations; and

(6) The Executive Director.


The President shall designate the Chairperson from among the members
of the Board, excluding the Executive Director.

The representatives from the concemed government agencies shall be
designated by their respective agency heads while the representative from the
Private appraisat organizations shall be appointed by the Executive Director from
among the list of nominees submitted by their respective organizations. The
members shall serve for a maximum of three (3) years unless their designation or
appointment is shortened or terminated by the designating agency, private
appraisal organization, or Executive Director, as the case may be.

in case of vacancy in the Board, the person so appointed or designated
shall serve only for the unexpired term. The chairperson and members of the
Board shall not receive additional salary for the performance of their functions but
they shall be entitled to honoraria pursuant to existing laws and regutations.

SECTION 8. Functions of the Advisory Board. — The Board shall advise
the Executive Director on matters pertaining to: (a) the preparation, review and
approvat of the Schedule of Market Values as found in Section 18 of this Act; and
(b) the setting, maintenance, and compliance monitoring of the valuation
standards prepared and developed pursuant to Section 16 of this Act.

SECTION 9. Meetings of the Board. - The Chair of the Advisory Board
shalt convene regular meetings of the Board, which shall be once every two (2)
months. Special meetings may be called by the Chair, as he/she may deem
necessary, or at the initiative of at least five (5) members. The Board may also

formulate and adopt its intemal rules and regulations for the conduct of its
meetings.

ARTICLE Two. MANAGEMENT, PERSONNEL,
IMPLEMENTING
AND COORDINATING MECHANISM
SECTION 10. Structural Organization, ~The Authority shall consist of:
a) The Office of the Executive Director:
b) The Office of the Deputy Director,
c) The Offices of the Regional Directors;

d) Field Offices.


SECTION 11. The Executive Director. — The Authority and responsibility
for the exercise of the mandate of the Authority, the accomplishment of its
objectives and the discharge of its powers and functions shall be vested in the
Executive Director, who shall supervise the Authority and shall be appointed by
the President of the Philippines, upon the recommendation of the Secretary of
Finance.

The Executive Director shall be a Filipino citizen, of good moral character,
holder of an engineering, accounting or appraisat-related degree, and a licensed
appraiser or assessor, with at least ten (10) years of experience in the appraisal
or assessment of real properties. He or she shall have the salary grade
equivalent to the rank of a Director IV under the Salary Standardization Law,
exclusive of allowances and other emoluments.

For this purpose, the Executive Director shall have the following functions:

{a) Develop policies, plans, programs, and operating standards for the
attainment of the objectives and mandate of the Authority;

(b) Provide policy direction and leadership as well as coordinate and
support the functions of the regional offices;

(c) Advise and assist the Secretary of Finance on matters pertaining to
real property appraisal and assessment; and

(d) Perform such other functions as may be provided by law.

SECTION 12. Deputy Director. - The Executive Director shail be assisted
by at least three (3) Deputy Directors, who shall likewise be appointed by the
President of the Philippines, upon the recommendation of the Secretary of
Finance. The Deputy Director shall be a Filipino citizen, of good moral character,
holder of engineering, accounting or appraisal-related degree, and a licensed
appraiser or assessor, with at least five (5) years experience in the appraisal or
assessment of reat properties. He or she shall have a salary grade equivalent to
the rank of Director Ii under the Salary Standardization Law exclusive of
allowances and other emoluments.

The Executive Director is hereby authorized to delineate, assign and/or re-
assign the respective functional areas of responsibility of the Deputy Director:
Provided, however, That such responsibility shall be with respect to the mandate
and objectives of the Authority, Provided, further, That no Deputy Director shail
be assigned primarily administrative responsibilities.

Within his functional area of responsibility, a Deputy Director shall have
the following functions:


a) Advise the Executive Director in the promulgation of department orders,
administrative orders and other issuances, with respect to his area of
responsibility;

b) Exercise supervision over the offices, operating units and officers and
employees under his responsibility;

c) Exercise authority on substantive and administrative matters related to
the functions and activities of units under his responsibility as may be
delegated by the Executive Director; and

4) Perform ather functions as may be provided by law or assigned by the
Executive Director.

SECTION 13. Regional Offices. - There shall be established in every
administrative region of the country a Regional Office headed by a Regional
Director who shall be appointed by the Secretary of Finance upon the
recommendation of the Authority's Executive Director. The Regional Director
shall be a Filipino citizen, of good moral character, holder of engineering,
accounting or appraisal-retated degree, a licensed appraiser or assessor, with at
least five (5) years of experience in appraisal or assessment of real property. He
or she shatl have a salary grade equivalent to Director Ill under the Salary
Standardization Law exclusive of allowances and other emoluments.

SECTION 14. Functions of the Regional Director. ~ The Authority's
Regional Director shall:

(a) Implement the laws, policies, plans, programs, rules and regulations of
the Authority in the Region;

{b) Provide and ensure the efficient and effective service relating to the

Authority's mandate to local government units and government agencies
within the region;

(©) Coordinate with regional offices of other goverment departments,
bureaus, and agencies within the region dealing with real property
appraisal and assessment,

(d) Provide leadership and direction in the area of real properly appraisal
and assessment to local government units in the region; and

(e) Perform other functions as may be assigned by the Executive Director.


CHAPTER fil
ARTICLE One. APPRAISAL AND ASSESSMENT OF PROPERTIES

SECTION 15. Development of Valuation Standards. ~ Notwithstanding the
provisions of existing laws to the contrary, the Authority shall develop, maintain
and implement uniform feal property valuation standards, which shall be used by
all appraisers and assessors alike, from both the national and local governments
for taxation and other purposes. The valuation standards must conform with
generally accepted valuation principles and standards.

SECTION 16. Appraisal of Real Property. ~ All real property, whether
taxable or exempt, shall be appraised at the market value prevailing in the
locality where the property is situated, in conformity with the valuation standards
prepared under this Act. The Authority shall promulgate the rules and
regulations for the classification and appraisal of real property pursuant to the
provisions of this Act.

SECTION 17. Preparation of the Schedule of Market Values (SMVs). -
The Executive Director shall determine the program of the general revisions of
property values each year. Before any general revision of property assessment
is made, there shall be prepared a Schedule of Fair Market Values by the
provincial, city and the municipal assessors of the municipalities within the
Metropolitan Manila Area for the different classes of real property and special
purpose property situated within their respective local government units pursuant
to the appraisal standards and specifications set by the Authority.

Said schedule shall be submitted by the assessor concemed to the
Authority's regional office for initial review and completion of the compliance
report. Thereafter, it shall be submitted to the Authority's central office for
approval, The Executive Director shall act within ninety (90) days after receipt of
the said schedule and inform the Regional Director and Assessor concemed of
any action thereon within the said period, otherwise, the said schedule shall be
deemed approved.

The SMV, as herein approved by the Authority, shall be used for the
general revision of property assessments and for computing all applicable real
property taxes imposed by both the national and local goverment units. Further,
it shall be published in a newspaper of general circulation in the province, city or
municipality concerned, or in the absence thereof, shall be posted in the
provincial capitol, city or municipal hall and in two (2) other conspicuous public
places therein.

SECTION 18. Revision of Schedule of Market Values. — The pravincial,
city and municipal assessors of Metro Manila shall undertake a general revision
of the Schedule of Fair Market Values within one (1) from the effectivity of this


Act, and every three (3) years thereafter. In the event the provincial, city or
municipal assessor is unable to undertake the said revision, the Executive
Director is hereby authorized to approve, after due consuttation with the LGU
concemed, the extension of the validity of the SFMV and property assessment.

The provincial, city or municipal assessor, in Metropolitan Manita Area or
in the province, may recommend to the Authority revisions to the SFMV, shouki
there be any significant change in the market where the property is located, after
the said SFMV has been approved and prior to its next revision,

SECTION 19. Saving Clause. ~ The zonal values as determined by the
Bureau of Internal Revenue and approved by the Secretary of Finance and the
Schedule of Fair Market Values prepared by the provincial, city assessors and
municipal assessors of the Metropolitan Manila Area approved by their
respective Sanggunians, shall continue to be in full force and effect, unless
superseded, modified, revised, set aside, or repealed by the values provided
under the Schedule of Fair Market Values approved in accordance with Section
18 of this Act.

ARTICLE Two. DEVELOPMENT AND MAINTENANCE OF
REAL PROPERTY DATABASE

SECTION 20. Development of Real Property Database. — The Authority
shall develop and maintain an updated database on reat property transactions in
the country, including details on the cost of construction or renovation of
buildings and other structures, and on the cost of machineries. For this purpose,
the Authority is hereby authorized to require the production of necessary
documents or to obtain information from the concerned officials or employees of
National government offices or instrumentalities, local government units, and
private sectors.

The updated database shall be made availabie to the LGUs, NGAs, and to
the private sector as well.

SECTION 21. Duty of Registrar of Deeds to Fumish Assessors of Real
Property Transactions Data. - The Registrar of Deeds shall prepare and submit
to the provincial, city or municipal assessor in Metropolitan Manila Area, within
six (6) months from effectivity of this Act and every year thereafter, an abstract of
his registry, which shall include a brief but sufficient description of the real
properties entered therein, their present owners, and the dates of their most
recent transfer or alienation accompanied by copies of corresponding deeds of
sale, donation, or partition or other forms of alienation.



He shall also fumish the assessors copies of all contracts of sale, lease,
mortgage, and all other forms of encumbrance registered by him/her, within thirty
(30) days from the date of registration.

SECTION 22. Duty of Official issuing Building Permits or Certificates of
Registration of Machinery to Transmit Copy to the Assessor. — Any public official
or employee required by law or regulation to issue permits for the construction,
addition, repair, or renovation of a building, or permanent improvement on land,
or a certificate of registration for any machinery, including machines, mechanical
contrivances, and apparatus attached or affixed on land or to another real
property, shall transmit a copy of such permit or certification within thirty (30)
days from issuance thereof, to the assessor of the province, city or municipality
where the property is situated.

SECTION 23. Duty of Geodetic Engineers to Fumish Copy of Plans to
Assessors, - It shall be the duty of all geodetic engineers, public or private, to
fumish free of charge, to the assessor of the province, city or municipality where
the land is located with a white or blue print copy of each of alt approved original
or subdivision plans or maps of surveys executed by them within thirty (30) days
from receipt of such approved plans from the Land Management Bureau (LMB),
the Land Registration Authority (LIRA), or the Housing and Land Use Regulatory
Board (HLURB), as the case may be.

SECTION 24. Duty of Assessors to Transmit Documents to the Authority.
— It shall be the duty of the Assessors to transmit alt data pertaining to real
property transactions from the Registrar of Deeds to the official issuing building
permit and from Geodetic Engineers to the Regional Office of the Authority within
one (1) month after the receipt thereof. The Authority's regional office shalt
record, and make a summary report of the data and submit the same to the
Central Office within thirty (30) days from receipt thereof.

SECTION 25. Appointment of Assessors, — The Executive Director shall
recommend to the Secretary of Finance the appointment of the following
assessors, who shall be under the administrative and technical supervision of the
Authority:

(a) Provincia! and Assistant Provincial Assessors and City and Assistant
City Assessors, from the fist of persons suitable and qualified for
appointment within the region;

(b) Municipal and Assistant Municipal Assessors, from the list of suitable
and qualified for appointment within the Province; and

{c) City and Assistant City Assessors and Municipal and Assistant
Municipal Assessors, from the list of persons suitable and qualified for
appointment within the Metropolitan Manila Area


A Local Assessor must be a citizen of the Philippines, of good moral
character, a resident of the region or provinee (for provincial or city assessor and
municipal assessors, respectively), a licensed appraiser, a holder of an
engineering, accounting or appraisal related degree, and must have experience
in real property assessment work or in any related field for at least five (5) years,
in the case of the provincial or city assessor and three (3) years, in the case of
the municipal assessor.

ARTICLE Three. TRANSITORY PROVISIONS

SECTION 26, Implementing Guidelines. — Within one hundred eighty days
(180) days after the effectivity of this Act, the Authority's Central Office shall be
organized. The President shall appoint the Executive Director and the Deputy
Directors of the Authority, upon recommendation of the Secretary of Finance.

The personnel of the Real Property Assessment and Local Assessment
Operations Divisions of the Bureau of Local Goverment Finance (BLGF),
including such other personnel whose functions may be necessary in the
organization of the Authority, shall be absorbed as the Authority's core staff until
the orgetizetione| structure and staffing pattern of the Authority shall have been
approved.

For this purpose, there is hereby created an Ad Hoc Committee composed
of the Executive Director as ex-officio chairperson and representatives from the
DOF, BLGF, BIR, National Tax Research Center (NTRC) and Land
Administration and Management Project (LAMP) as members. The Ad Hoc
Committee shall be responsible for the formulation of the Authority's Organization
and Implementation Plan: Provided, however, That the preparation and approval
of the Authority's Organization and implementation Plan shall, as far as
practicable, respect and ensure the security of tenure, rank and salary of affected
government employees;

The personnel of the concemed divisions of BLGF composing the core
staff who may not be absorbed by the Authority shall be reassigned by the said
office in any of its sections or divisions without diminution of the employee's rank,
position and salary.

As early as possible, the Executive Director shall organize the Board
pursuant to Section 9 of this Act.

After the organization of the Authority's Central Office, the Authority's
regional offices shall be organized taking into consideration the organizational


criteria such as, but not limited to, availabitity of qualified personnel, facilities,
budgetary support and others.

SECTION 27. Transfer of Recoris and Assets. ~ All pertinent records,
documents, office equipment and other properties exclusively used by and/or
assigned in, under the custody of, the affected divisions of BLGF shall be
transferred to the Authority.

SECTION 28. Budgetary Requirements. - The amount necessary to
finance the initial implementation of this Act shall be charged to the
corresponding appropriations of the BLGFs Real Property Assessment Division
and Local Assessments Operations Division, and other divisions of the said
agency where the other core staff came from. Thereafter, such funds as may be
necessary for the continued implementation af this Act shall be included in the
annual General Appropriations Act.

ARTICLE Four, PENAL PROVISIONS

SECTION 29. Failure/Neglect to Provide Information or Data, — Any
government official or employee who fails without justifiable reasons to furnish
any information required by the Authority, pursuant to Sections 23, 24, 25 and 26
of this Act shall be punished by a fine equivalent to not more than three (3)
months basic salary or suspension from service for a period not exceeding one
(1) year, or both, at the discretion of the Civil Service Commission (CSC).

SECTION 30. Failure to Comply With the Valuation Standards. - An
assessor or appraiser who fails to comply with the Valuation Standards adopted
pursuant to this Act, or deliberately conceals any deviations or departures from
such Standards, shall be punished by a fine equivalent to not more than six (6)
months basic salary, and suspension from the government service or from the
practice of profession for a period not exceeding one (1) year, or permanent
revocation of his/her license at the discretion of the competent authonty.

SECTION 31. Failure fo Prepare Schedule of Market Values. - An
assessor who intentionally refuses of fails to prepare the Schedule of Market
Values within the period required by the Authority shall be punished, upon
conviction, by a fine equivalent to not more than six (6) months basic salary or by
suspension from government service for not mare than one (1) year, or both, at
the discretion of the competent authority.

SECTION 32. Violations of Other Provisions. - Any person who violates
any provision of this Act other than those punishable under Sections 32, 33, and
34 hereof shall, when warranted, be dealt with under the applicable existing laws.


ARTICLE Five. MISCELLANEOUS PROVISIONS

SECTION 33. Joint Congressional Oversight Committee. - There is
hereby created a Joint Congressional Oversight Committee to monitor the
implementation’ of this Act and to review the implementing rules and regulations
promulgated by the Authority, which shalt be composed of seven (7)
Representatives to be appointed by the Senate President and the Speaker of the
House of Representatives, respectively, within five (5) years from effectivity of
this Act. It shall likewise review the organizational and functional relationship of
the Authority to other government agencies and stakeholders and shall make
Tecommendations, based on its findings to the President and to both Houses of
Congress.

SECTION 34. implementing Rules and Regulations. — The Authority shail
prepare, promulgate and adopt the implementing rules and regulations to carry
out the provisions of this Act not later than 90 days after effectivity of this Act.

SECTION 35. Suppletory Application Clause. — The provisions of Republic
Act No. 7160, otherwise known as the Local Goverment Code of 1991, and
other laws not inconsistent with this Act shall have suppletory effect.

SECTION 36. Repealing Clause. - All laws, presidential decrees,
executive orders, presidential prociamations, rules and regulations or parts
thereof, including pertinent provisions of RA 8424, or the National Intemal
Revenue Code of 1997; Presidential Decree No. 921 dated April 12, 1976; and
RA 7160, otherwise known as the "Local Government Code of the Philippines,”
contrary to or inconsistent with this Act are hereby repealed, superseded or
modified accordingly.

SECTION 37. Separability Clause. — Any portion or provision of this Act
that may be declared unconstitutional or invalid shal! not have the effect of
nullifying other portions or provisions hereof as long as such remaining portions
or provisions can still subsist and be given effect in their entirety.

SECTION 38. Effectivity Clause. — This Act shall take effect fifteen (15)
days after its complete publication in the Official Gazette or in two (2)
newspapers of general circulation.

Approved,