Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Fifteenth Congress
First Regular Session

HOUSE BILL NO. {$9

Introduced by: Honorable George P. Arnaiz

EXPLANATORY NOTE

This bill seeks to remove the internal revenue allotment from
the Metropolitan Manila Development Authority (MMDA), amending
Republic Act No. 7924, entitled “An act Creating the Metropolitan
Manila Development Authority (MMDA), Defining Its Powers and
Functions, Providing Funds Therefore And For Other Purposes”.

As provided for under Section 284 of Republic Act No. 7160,
otherwise known as the Local Government Code of 1991, local
government units shall have a share in the national internal revenue
taxes in the form of internal revenue allotment (IRA).

Under Section 10 (b) of Republic Act No. 7924, the MMDA which
is a public corporation that performs planning, monitoring and
coordinative functions, and in the process exercise regulatory and
supervisory authority over the delivery of metro-wide services within
Metro Manila without diminution of the autonomy of the local
government units concerning purely local matters, shall continue to
receive the internal revenue allotment.

It should be noted, however, that the MMDA is not a province
city, municipality and barangay in the contemplation of the Local
Government Code and, therefore, should not be entitled to IRA. Thus,
by removing the IRA from the MMDA, the local government units will
have additional or bigger financial resource with to use for

better and more efficient delivery of basic and yit61 serves for their
respective localities.

In view of the foregoing, appycal of

fs bill is highly
recommended.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

ifteenth Congress
First Regular Session

HOUSE BILL NO, +

Introduced by: Honorable George P. Arnaiz

AN ACT REMOVING THE INTERNAL REVENUE ALLOTMENT FROM
THE METROPOLITAN MANILA DEVELOPMENT AUTHORITY
(MMDA), AMENDING FOR THE PURPOSE REPUBLIC ACT NO.
7924, ENTITLED “AN ACT CREATIN THE METROPOLITAN MANILA
DEVELOPMENT AUTHORITY, DEFINING ITS POWERS AND
FUNCTIONS, PROVIDING FUNDS THEREFOR 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 by deleting paragraph (b) of said section to read as follows:

“Section 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 (P1,000,000,000) 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 MMDA.

() (B) The MMDA is likewise empowered to levy fines, and
impose fees and charges for various services rendered

(d) (C) Five percent (5%) of the total annual gross revenue of the
Preceding year, net of the internal revenue allotment, or
each local government unit mentioned in Section 2 hereof,
shall accrue and become payable monthly to the MMDA by
ach city or municipality, the DBM shall cause the
disbursement of the same to MMDA chargeable against the
IRA allotment of the city or municipality concerned the


provision of Section 286 of RA7160 to the contrary
notwithstanding.”

SECTION 2. This Act shall take effect fifteen (15) days after
publication in the Official Gazette or in two (2) national newspapers of
general circulation.

Approved,