THIRTEENTH CONGRESS OF THE 
First Regular Session 
Republic of the Philippines 
SENATE 
S.B. No. 1 
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Introduced by Senator Luisa “Loi” P. Ejercito Estrada 
EXPLANATORY NOTE 
The barangay has been historically viewed as a mere political unit tasked to 
organize the political life of a community. 
The barangay must now assume a more activist role in generating employment 
and income for its members, notably the unemployed. 
This bill seeks to empower the barangay by conferring upon it the right to 
participate with the right of first refusal in all programs and projects, notably those 
concerning the delivery of basic services affecting its jurisdiction and members. 
By giving the barangay such right, it would be able to generate employment for 
its members. 
Immediate passage of this bill is earnestly sough& 
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THNTEENTH CONGRESS OF THE 
First Regular Session 
Republic of the Philippines 
SENATE 
S.B. No. 13 
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Introduced by Senator Luisa "Loi" P. Ejercito Estrada 
AN ACT 
AUTHORIZING BARANGAYS TO ENTER INTO OFFICIAL CONTRACTS WITH 
NATIONAL GOVERNMENT AGENCIES AND LOCAL GOVERNMENT UNITS TO 
UNDERTAKE THE DELIVERY OF BASIC SERVICES FOR THE PURPOSE OF 
PROVIDING EMPLOYMENT TO BARANGAY RESIDENTS AND FOR OTHER 
PURPOSES 
Be it eiiucted by the Senate and the House of Representatives of the PhilQpines in 
Congress nssenzhled: 
Section. 1. 
Title. - This Act shall be known and cited as "The Barangay 
Economic Einpowennent Act of 2004." 
Sec. 2. Declaration of Policy. - It is the policy of the State to transform the 
barangay into a self-reliant economic unit generating employment for its members and 
actively participating in publicly funded programs intended for the barangay. 
Sec. 3. Coverage. - All basic services being contracted out by the national 
government and local government units with private or public contractors and which 
affect the barangays are covered by this Act: Provided, however. That the amount of the 
basic services to be contracted out by the barangay shall not be more than Five Hundred 
Thousand Pesos (P500,OOO.OO). 
Sec. 4. Right of First Refusal. - The provisions of the Local Government Code to 
the contrary notwithstanding, local government units and national government agencies 
shall give priority to the affected barangay in contracting out the delivery of basic 
services intended for or affecting said barangay. Such barangay shall have the right of 
first refusal before the project is bidded out. 
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Sec. 5 .  Basic Services. - For purposes of this Act, basic services programs in 
whicli the affected barangay shall have priority right to undertake, shall include: 


Sec 
Implenientation of community-based forestry programs and similar 
projects; management and control of communal forest with an area not 
exceeding fifty (50) square kilometers; establishment and maintenance of 
tree parks, green belts, and similar forest development project; 
Maintenance of community-based rehabilitation programs for vagrants, 
beggars, street children, scavengers, delinquents, and victims of violence 
and drug abuse; livelihood projects; 
Solid waste disposal system or services related to general hygiene and 
sanitation; 
Maintenance of public buildings, public parks, playgrounds and 
government sports facilities; 
Maintenance of roads, drainage systems, communal irrigation, small water 
impounding and other similar projects; seawalls, dikes, flood control; and 
street signage; 
Maintenance of public markets and slaughterhouses; 
Maintenance of public cemetery; and 
Maintenance of tourism facilities and securing such facilities. 
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6. Preference of Barangay Labor and Materials. - In the event that the 
barangay concerned is unable for any reason to participate in any project within its 
jurisdiction and/or affecting its residents, the local government unit or national 
government agency concerned shall exert every effort to source its labor and materials. 
Sec. 7. Mode of Payment. - A certification duly executed and signed by the 
chairman of the affected barangay and concurred in by the authorized signatory for the 
local government unit or national agency concerned shall form the basis of all claims for 
payment by the barangay. 
Sec. 8. Unlawful Act. - Any public official who bids and/or contracts out the 
delivery of basic services, as provided in Section 5 hereof, intended for or affecting a 
barangay without giving the affected barangay the opportunity to exercise its right of first 
refLisa1 shall, upon conviction, be punished with imprisonment for not less than one (1) 
year and one (1) day to six (6) years and shall be immediately dismissed from the service. 
11.1 addition, the public officer shall be liable to reimburse to the affected bayangay 
an amount equal to what would have been realized by the barangay were it accorded its 
right under this Act. 


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See. 9. Implementing Rules and Regulations. - The Department of Interior and 
Local Government shall, within ninety (90) days from the effectivity of this Act, 
promulgate the appropriate rules and regulations for its effective implementation. 
Sec. 10. Repealing Clause. - All laws, executive orders, administrative rules and 
regulations iiiconsistent with the provisions of this Act are hereby repealed or modified 
accordingly. 
Sec. 1 1. Effectivity Clause. - This Act shall take effect fifteen (1 5 )  days after the 
completion of its publication in at least two (2) newspapers of general publication. 
Approved, 
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