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RECEIVED
, oar YUL 8 2018

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 1620

Introduced by HON. ALETA C. SUAREZ

EXPLANATORY NOTE

The barangay officials are at the front line of public service. Punong barangays
maintain public order in the barangay, preside over sessions of the Sangguniang Barangay,
and administer the operations of the Katarungang Pambarangay. Members of the Lupong
Tagapamayapa hear and mediate disputes at the barangay level, thereby maintaining peace
and order. Barangay Tanods enforce all barangay ordinances and take part in the
maintenance of peace and order within the barangay. Given these functions, barangay
officials are responsible for the peaceful and productive community we live in.

However, under the present Local Government Code, barangay officials, including
Barangay Tanods and members of the Lupong Tagapamayapa, are only entitled to
honoraria, allowances, and other emoluments authorized by law or ordinance. These
officials have no fixed monthly salaries. Moreover, they are not entitled to any benefits
under the Government Service Insurance System (GSIS) aside from burial benefits. Thus,
some barangay officials serve their entire lives, giving so much to the community but
receiving very littlé in return. It is but just and equitable that we recognize the contributions
of these public servants by amending the internal revenue allotment (IRA) by increasing it
to forty-one percent (41%), one percent (1%) of which shall be solely dedicated to the
Barangay Retirement Funds for the retirement of barangay officials, whether elected or
appointed, including the barangay tanods, health workers, day care workers, and members
of the Lupon. Section 393 of the Local Government Code is also amended to provide a

ium upon

retirement pay for these barangay workers equivalent to one year honor

retirement.

This bill, as re-filed, is a consolidation of the bills of Representatives Benitez,
Bagatsing, Yap (8), Acharon, Colmenares, Zarate, Yap (A), Macapagal-Arroyo, Arroyo,
Suarez, Biazon, Belmonte (JC), Abayon, Briones, Geron, Acedillo, Alejano, Fortuno, Sy-
Alvarado, Escudero, Gullas Jr., Teodoro, Rodriguez (R), Rodriguez (M), Villarice, Deloso-

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Montalla, Mendoza (ML), Haresco Jr., Collantes, Oaminal, Bello (5), Pagdilao, Loyola,
Castello, Umali (R), Primicias-Agabas, Alvarez (M), Suansing, Guiao, Mangudadatu, Villar,
Leonardia, Gerona-Robredo, Bag-ao, Banal, Acosta-Alba, Gatchalian, Andaya Jr., Uy (J),
Abu, Aliping, Dalog, Lagdameo, Mendoza (J), Nuno, Paez, Paquiz, Pichay, Salimbangon,
Teves, Paduano, Tejada, Romulo, Leonen-Pizaro, Seneres, Cortuna, and Almonte which
was deliberated upon by the Committees on Local Government and Appropriations of the
House of Representatives during the 16! Congress.

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

‘he
AJ ‘AC. SI EZ

‘epresentative
3rd District, Quezon Province

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No, 1820

Introduced by HON. ALETA C. SUAREZ

AN ACT AMENDING SECTIONS 284 AND 393 OF REPUBLIC ACT NO. 7160,
OTHERWISE KNOWN AS THE “LOCAL GOVERNMENT CODE OF 1991”

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

SECTION 1. Section 284 of Republic Act No. 7160, otherwise known as the Local
Government Code of 1991, is hereby amended to read as follows:

“Section 284, Allotment of Internal Revenue Taxes - LOCAL GOVERNMENT
UNITS SHALL HAVE A FORTY-ONE PERCENT (41%) SHARE IN THE NATIONAL
INTERNAL REVENUE TAXES BASED ON THE COLLECTION OF THE THIRD
FISCAL YEAR PRECEDING THE CURRENT FISCAL YEAR, PROVIDED THAT ONE
PERCENT (1%) FROM THE ABOVE-MENTIONED FORTY-ONE PERCENT (41%)
SHALL ACCRUE TO THE SPECIAL ACCOUNT SOLELY DEDICATED TO THE
BARANGAY RETIREMENT FUND FOR THE RETIREMENT PAY OF BARANGAY
OFFICIALS, WHETHER ELECTED OR APPOINTED, INCLUDING BARANGAY
TANODS, HEALTH WORKERS, DAY CARE WORKERS, AND MEMBERS OF THE
LUPON TAGAPAMAYAPA.”

Provided, That in the event that the national government incurs an unmanageable public
sector deficit, the President of the Philippines is hereby authorized, upon the
recommendation of the Secretary of Finance, Secretary of Interior and Local Government,
and Secretary of Budget and Management, and subject to consultation with the presiding
officers of both Houses of Congress and the presidents of the Liga, to make the necessary
adjustments in the internal revenue allotment of local government units but in no case shall
the allotment be less than thirty percent (30%) of the collection of national internal revenue
taxes of the third fiscal year preceding the current fiscal year: Provided , further, That in

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1

the first year of the effectivity of this Code, the local government units shall, in addition to
the thirty percent (30%) internal revenue allotment which shall include the cost of devolved
functions for essential public services, be entitled to receive the amount equivalent to the
cost of devolved personal services.

SEC. 2. Section 398 of the Local Government Code is hereby amended to read as

follows:

“Section 393. Benefits of Barangay Officials. - (a) x x x

(b) xxx

(xxx

(d)xxx

(c) ALL BARANGAY OFFICIALS, WHETHER ELECTED OR APPOINTED,
INCLUDING TANODS, HEALTH WORKERS, DAY CARE WORKERS, AND
MEMBERS OF THE LUPON SHALL BE ENTITLED TO A LUMP SUM RETIREMENT
PAY EQUIVALENT TO ONE YEAR HONORARIUM, BUT NOT EXCEEDING ONE
HUNDRED THOUSAND PESOS (PHP100,000.00) WHICH SHALL BE TAKEN FROM
THE BARANGAY RETIREMENT FUND UNDER SECTION 284, PROVIDED THE
RETIREE IS AT LEAST SIXTY (60) YEARS OF AGE WITH A MINIMUM OF NINE (9)
YEARS IN SERVICE AT THE TIME OF RETIREMENT.”

SEC. 3. Separability Clause. - If any provision of this Act is declared
unconstitutional or invalid, the other parts or provisions hereof which are not affected shall
continue to be in full force and effect.

SEC. 4. Repealing Clause. - All laws, orders, issuances, circulars, rules and

regulations or parts thereof which are inconsistent with the provisions of this Act are

hereby repealed or modified accordingly
SEC. 5. Effectivity - This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in any two (2) newspapers of general circulation in the

Philippines.

Approved.

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