lie PiJv
EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
SENATE 
S. B. No. 1761
E-FL
TiME
NGNEX
Introduced by SENATOR IMEE R. MARCOS
AN ACT
STRENGTHENING THE ROLE OF LOCAL GOVERNMENT UNITS DURING A 
STATE OF PUBLIC HEALTH EMERGENCY OR CALAMITY, AND FOR OTHER
PURPOSES
EXPLANATORY NOTE
Article II, Section 15 of the 1987 Constitution provides that "the State shall 
protect and promote the right to health of the people and instill health consciousness 
among them." Additionally, under Article XIII, Section 12 of the same Constitution, it 
is mandated that "the State shall adopt an integrated and comprehensive approach to 
health development which shall endeavor to make essential goods, health and 
other social services available to all the people at affordable cost"
Under the present government structure, we adhere to a system of 
decentralization whereby local government units (LGUs) are given more powers, 
authority, responsibilities and resources to be able to respond more effectively and 
efficiently to the needs of Its constituency. True enough, our LGUs are at the forefront 
of almost all the services being implemented by the national government.
The crucial role of the LGUs have been highlighted in the on-going battle of our 
country against the corona virus 2019 (COVID-19). In fact, the Government's Inter- 
Agency Task Force (lATF) in its Resolution 25 adopted a "national government- 
enabled, local government unit-led, and people-centered response" to COVID-19.


Even prior to this, many LGUs have already made initiatives in dealing with the 
onslaught of COVID-19 within their respective territorial jurisdictions. However, not all 
LGus are equipped with enough resources, man power, and funds to address the needs 
of its constituents, especially in times of a public health emergency or calamity. The 
task at hand becomes even more burdensome because they are limited by the 
provisions of various laws, such as the Imposition of caps on their spending, hiring, 
and borrowing capacity.
Thus, this bill seeks to further empower LGUs during a state of public health 
emergency or calamity by giving them wider latitude in the utilization of available yet 
earmarked funds, such as the development fund, special education fund, and gender 
and development fund; increasing their calamity fund, borrowing capacity as well the 
personal services cap; and the relaxation of the procurement process, among others.
In view of the foregoing, the passage of this measure is earnestly sought.
IMEE R. MARCOS


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EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
SENATE 
S. B. No. 1761
TIME
INDEX
Introduced by SENATOR IMEE R. MARCOS
AN ACT
STRENGTHENING THE ROLE OF LOCAL GOVERNMENT UNITS DURING A 
STATE OF PUBLIC HEALTH EMERGENCY OR CALAMITY, AND FOR OTHER
PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
Section 1. Short Title. - This Act shall be known as the "Bayanihan for LGUs
Act."
SEC. 2. Declaration of the Policy. - It is hereby declared the policy of the State 
to protect Its people and promote their health and well-being. Towards this end, it 
shall empower the local government units by giving them more access, additional 
powers and resources, and the flexibility to better provide services for the people 
especially during a state of public health emergency or calamity.
SEC. 3. Coverage. - This Act shall be applicable to the operations of Local 
Government Units (LGUs) during the entire period of a national or local public health 
emergency or calamity, as declared by the President or the local Sanggunian, as the 
case may be.
SEC. 4. Realignment of Funds. - LGUs shall be allowed to realign their 
respective local funds as a response to the public health emergency or calamity, upon 
the recommendation of their Local Chief Executives (LCE), and the subsequent 
approval of their local Sanggunians:


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(a) Development Fund. - not less than 20% of the annual internal revenue
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allotment of an LGU, as provided under Section 287 of Republic Act No. 7160,
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otherwise known as the "Local Government Code of 1991."
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(b) Gender and Development Fund. - at least five percent (5%) of the agency's
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or the local government unit's total budget appropriations, as provided under Section
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36 (a) of Republic Act No. 9710, otherwise known as the "Magna Carta of Women."
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(c) Sanggunlang Kabataan Fund. - ten percent (10%) of the general fund of the
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Barangay, as provided under Section 329 of Republic Act No. 7160, otherwise known
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as the "Local Government Code of 1991."
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(d) Special Education Fund. - proceeds of the additional one percent (1%) tax
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on real property accruing to the Special Education Fund (SEF), as provided under
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Section 272 of Republic Act No. 7160, otherwise known as the "Local Government
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Code of 1991."
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(e) Other local funds of the LGU, externally or Internally generated, including
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its national tax allotment (NTA), as well as its special shares from the national wealth
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and special funds, whenever applicable.
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SEC. 5. Increase of Calamity Fund. - LGUs shall be allowed to set aside not
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less than five percent (5%) of the estimated revenue from regular sources, as provided
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under Section 21 of Republic Act No. 10121, otherwise known as the "Philippine
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Disaster Risk Reduction and Management Act of 2010". Provided, That, should a
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particular LGU need additional funds to respond to an existing public health emergency
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or calamity, it may be allowed to increase its calamity fund, subject to its availability.
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SEC. 6. Increase of LGU Shares from the Philippine Chanty Sweepstakes Office
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(PCSO). - LGUs shall be assured of Its rightful and due share as mandatory
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contributions from the thirty percent (30%) charity fund of the PCSO which will be
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computed based on its gross receipts, after deducting the printing cost of tickets which
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in no case shall exceed two percent (2%) of its gross receipts to arrive at the net
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receipts, whether from sweepstakes, races, lotteries, or other similar activities,
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pursuant to Repubiic Act No. 1169, as amended, otherwise known as the "PCSO
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Charter", in such manner:


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(a) City/Municipality - Six and a half percent (6.5%);
(b) Congressional District - One and sixty five percent (1.65%); and
(c) Provincial Government - Six and a half percent (6.5%).
Provided, That, in no case shall the documentary stamp tax (DST) be deducted 
from peso's thirty percent (30%) charity fund but shall rather be computed based on 
the printing cost of the tickets, pursuant to the definition of a documentary stamp tax 
under Republic Act No. 10963, otherwise known as the nTax Reform for Acceleration 
and Inclusion." Provided, Further That, the PCSO shall ensure the timely release of 
such funds to LGUs which shall be within ten (10) days after the end of each month, 
as provided und Republic Act No. 5185, otherwise known as the "Decentralization Act 
of1967."
SEC. 7. Personal Services Cap. - LGUs shall be allowed to increase their 
respective personal services cap of up to ten percent (10%); Provided, 7775^these will 
be allotted for the hiring of individuals who shall serve as frontliners and who shall 
render services directly related to or dealing with the existing public health emergency 
or calamity.
SEC. 8. Relaxation of Borrowing Capacity. - LGUs shall be allowed from twenty 
percent (20%) up to forty percent (40%) of their regular income for debt servicing, 
pursuant to Section 324 (b) of Republic Act No. 7160, otherwise known as the "Local 
Government Code of 1991", and shall be exempt from the loan ceiling cap imposed by 
the Department of Finance (DOF) on LGUs.
SEC. 9. Loan Restructuring. - The Land Bank of the Philippines (LBP) and the 
Development Bank of the Philippines (DBP) shall provide a special loan facility for LGUs 
which shall include a lower interest rate than existing market rates, provide a longer 
grace period, payable for a longer period of time, and such other provisions less 
onerous for the borrowing LGU. The LBP and DBP shall likewise allow LGUs to 
restructure its existing loans without additional penalties and surcharges.


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SEC. 10. Release of Adjusted National Tax Allotment - The Bureau of T reasury
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(BTr) shall automatically release any adjusted or remaining NTA to the LGUs during a
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state of public health emergency or calamity on a quarterly basis pursuant to Section
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286 of Republic Act No. 7160, otherwise known as the "Local Government Code of
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1991."
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SEC. 11. Relaxation of Procurement Requirements. - The purchase of products
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and services directly related in addressing the existing public health emergency or
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calamity shall not be subject to the requirements of public bidding as provided under
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Republic Act No. 9184, otherwise known as the "Government Procurement Reform
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Act."
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SEC. 12. Release of PhllHealth Funds. - During a state of public health
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emergency or calamity, PhilHealth shall immediately release and/or reimburse the
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funds due to the district, provincial, and city hospitals, subject to minimum
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requirements to be Identified in the Implementing Rules and Regulations.
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SEC. 13. Implementing Rules and Regulations. - Within sixty (60) days from
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the effectivity of this Act, the DILG, in coordination with the Department of Budget and
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Management (DBM) and the Department of Finance (DOF), as well as other concerned
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government agencies, shall formulate the implementing rules and regulations of this
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Act.
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SEC. 14. Repealing Ciause. - All law, executive orders, rules, and regulations
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or any part thereof inconsistent herewith are deemed repealed or modified accordingly.
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SEC. 15. Separabiiity Ciause. - If any part or provision of this Act shall be
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declared unconstitutional and invalid, such declaration shall not invalidate other parts
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thereof, which shall remain in full force and effect.
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SEC. 16. Effectivity. - This Act shall take effect fifteen (15) days after its
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publication in the Official Gazette or In two (2) newspapers of general circulation.
Approved,