Republic Act (RA) 9054 is the Organic Act for the Autonomous Region in Muslim Mindanao (ARMM).

 

The proposed Bangsamoro Basic Law (BBL), if approved by Congress, will supersede RA 9054 and pave the way for the creation of the Bangsamoro, the new political entity that will replace the ARMM.

 

This study was presented by Office of the Presidential Adviser on the Peace Process (OPAPP) Undersecretary Jose Lorena at the forum on the Bangsamoro Basic Law in Makati City on Sept. 24, 2014. The forum is part of the IAG project with UNICEF aimed at raising awareness of political institutions on the protection of children’s rights and improving the policymaking environment in the proposed Bangsamoro areas.

 

On power and functions

 

RA 9054

BBL

ARTICLE IV
POWERS OF GOVERNMENT

 

Section 1. Powers and Functions.

The Regional Government may enact its own regional administrative code and regional local government code consistent with the Constitution. The powers and functions already vested upon and the shares of the national taxes provided by Republic Act No. 7160, the Local Government Code of 1991, to provinces, cities, municipalities, and barangay in the autonomous region shall not be reduced.

 

 ARTICLE III
GUIDING PRINCIPLES AND POLICIES

 

Section 3. Devolution of Powers. - The regional government shall adopt a policy on local autonomy whereby regional powers shall be devolved to local government units particularly in areas of education, health, human resource, science and technology and people empowerment. Until a law implementing this provision is enacted by the Regional Assembly, Republic Act No. 7160, the Local Government Code of 1991, shall continue to apply to all the provinces, cities, municipalities, and barangay within the autonomous region.

 

The Regional Assembly may not pass any law to diminish, lessen, or reduce the powers, functions, and shares in the internal revenue taxes of the said local government units as provided by Republic Act No. 7160, the Local Government Code of 1991.

ARTICLE VI

INTERGOVERNMENTAL RELATIONS

 

Section 7. Bangsamoro Government and Its Constituent Local Government Units.–

The provinces, cities, municipalities, barangays, and geographic areas within its territory shall be the constituent units of the Bangsamoro. The authority to regulate on its own responsibility the affairs of the local government units is guaranteed within the limit of this Basic Law. The privileges already enjoyed by the local government units under existing laws shall not be diminished unless otherwise altered, modified or reformed for good governance in accordance with a law to be enacted by the Bangsamoro Parliament.

 

Section 6. Devolution and Subsidiarity.– The Central Government and the Bangsamoro Government accept the concept of devolution as inspired by the principles of subsidiarity. Decisions are to be made at the appropriate level to ensure public accountability and transparency, and in consideration of good governance and the general welfare.

 

 

OPAPP’s Jose Lorena: The issue being raised by the Local Government Units: Will the BBL diminish the powers of the LGUs?

 

Like the RA 9054, the BBL guarantees the local government units that there will be no diminutions on the powers and functions as well as the privileges that are extended to them by existing laws such as RA 7160, the Local Government Code of 1991.

 

RA 9054 though prohibits the Regional Assembly to pass any law to diminish, lessen, or reduce the powers, functions, and shares in the internal revenue taxes of the said local government units as provided by RA 7160, while the BBL provides for exception whereby the Bangsamoro Government deem it necessary to modify the powers and functions of LGUs through an enacted local government code by the Bangsamoro Parliament, for the purpose of establishing and reinforcing good governance reforms. If issues on this arise, the Intergovernmental Relations Mechanism shall be utilized.

 

The principle on devolution of powers from the central government to the local government units is present in RA 9054 and BBL, with an additional concept –subsidiarity – introduced in the latter which means “decisions are to be made at the appropriate level.”

 

 

On creation, division, merging, abolition of local governments and plebiscite

 

 

RA 9054

BBL

ARTICLE VI
THE LEGISLATIVE DEPARTMENT

 

Section 19. Creation, Division or Abolition of Provinces, Cities, Municipalities or Barangay. - The Regional Assembly may create, divide, merge, abolish, or substantially alter boundaries of provinces, cities, municipalities, or barangay in accordance with the criteria laid down by Republic Act No. 7160, the Local Government Code of 1991, subject to the approval by a majority of the votes cast in a plebiscite in the political units directly affected. The Regional Assembly may prescribe standards lower than those mandated by Republic Act No. 7160, the Local Government Code of 1991, in the creation, division, merger, abolition, or alteration of the boundaries of provinces, cities, municipalities, or barangay. Provinces, cities, municipalities, or barangay created, divided, merged, or whose boundaries are altered without observing the standards prescribed by Republic Act No. 7160, the Local Government Code of 1991, shall not be entitled to any share of the taxes that are allotted to the local government units under the provisions of the Code.

 

The financial requirements of the provinces, cities, municipalities, or barangay so created, divided, or merged shall be provided by the Regional Assembly out of the general funds of the Regional Government.

 

The holding of a plebiscite to determine the will of the majority of the voters of the areas affected by the creation, division, merger, or whose boundaries are being altered as required by Republic Act No. 7160, the Local Government Code of 1991, shall, however, be observed.

 

The Regional Assembly may also change the names of local government units, public places and institutions, and declare regional holidays.

 

ARTICLE XVIII

TRANSITORY PROVISIONS

 

Section 13. Plebiscite and Effectivity of this Organic Act. -This Organic Act shall take effect when approved by a majority of the votes cast in the four (4) provinces constituting the present Autonomous Region in Muslim Mindanao pursuant to Republic Act No. 6734, the Organic Act for the Autonomous Region in Muslim Mindanao.

 

A separate plebiscite shall be held simultaneously with the plebiscite mentioned in the preceding paragraph in the Provinces of Basilan, Cotabato, Davao del Sur, Lanao del Norte, Palawan, Sarangani, South Cotabato, Sultan Kudarat, Zamboanga del Norte, Zamboanga del Sur and the newly created Province of Zamboanga Sibugay, and the cities of Cotabato, Dapitan, Dipolog, General Santos, Iligan, Marawi, Pagadian, Puerto Princesa, Zamboanga, Digos, Koronadal, Tacurong, and Kidapawan to determine by majority vote cast in every province and city whether or not the voters approve the inclusion of their respective provinces or cities in the autonomous region. Only provinces and cities voting favorably in such plebiscite shall be included in the Autonomous Region in Muslim Mindanao.

 

If the majority of the votes cast in the said plebiscite in the four (4) provinces favor the amendments to Republic Act 6734, the amendments will be deemed ratified.

ARTICLE V

POWERS OF GOVERNMENT

 

Section 3. Exclusive Powers

57. Local administration, municipal corporations and other local authorities including the creation of local governments. – The Bangsamoro Government shall manage and build its own bureaucracy and administrative organization, in accordance with the ministerial form of government;

 

The Bangsamoro Parliament may create, divide, merge, abolish or substantially alter boundaries of provinces, cities, municipalities or barangays in accordance with a law enacted by the Bangsamoro Parliament, and subject to the approval by a majority of the votes cast in a plebiscite in the political units directly affected.

 

Subject to the criteria provided in said law, the Bangsamoro Parliament may likewise create appropriate local government units in the areas inhabited predominantly by indigenous peoples;

 

However, when such acts require the creation of a congressional district, the Bangsamoro Government shall cooperate and coordinate with Central Government through the Philippine Congress – Bangsamoro Parliament Forum to prioritize the deliberations on the creation of the congressional district;

 

Article XV

PLEBISCITE

 

Section 1. Establishment of the Bangsamoro. – The establishment of the Bangsamoro and the determination of the Bangsamoro territory shall take effect upon ratification of this Basic Law by majority of the votes cast in the following provinces, cities, and geographical areas in a plebiscite conducted for the purpose:

a. The present geographical area of the Autonomous Region in Muslim Mindanao (ARMM);

b. The Municipalities of Baloi, Munai, Nunungan, Pantar, Tagoloan and Tangkal in the province of Lanao del Norte;

c. The following thirty nine (39) Barangays in the Municipalities of Kabacan, Carmen, Aleosan, Pigkawayan, Pikit, and Midsayap in North Cotabato that voted for inclusion in the ARMM during the 2001 plebiscite under Republic Act No. 9054:

i. Dunguan, Lower Mingading, and Tapodoc in the municipality of Aleosan;

ii. Manarapan and Nasapian in the municipality of Carmen;

iii. Nanga-an, Simbuhay and Sanggadong in the municipality of Kabacan;

iv. Damatulan, Kadigasan, Kadingilan, Kapinpilan, Kudarangan, Central Labas,

Malingao, Mudseng, Nabalawag, Olandang, Sambulawan, and Tugal in the municipality of Midsayap;

v. Lower Baguer, Balacayon, Buricain, DatuBinasing, Kadingilan, Matilac, Patot, and Lower Pangangkalan in the municipality of Pigkawayan;

vi. Bagoinged, Balatican, S. Balong, S. Balongis, Batulawan, Buliok, Gokoton, Kabasalan, Lagunde, Macabial, Macasendeng, in the municipality of Pigkawayan;

d. The Cities of Cotabato and Isabela; and

e. Those qualified for inclusion in the plebiscite, by way of resolution or petition.

 

Section 2. Territorial Jurisdiction. – The plebiscite for purposes of determining the actual territorial jurisdiction of the Bangsamoro shall be conducted, as far as practicable, within one hundred twenty (120) days from the effectivity of this Basic Law.

 

For this purpose, the COMELEC shall undertake the necessary steps to enable the holding of the plebiscite within the said period.

 

Section 3. Results of the Plebiscite.– a. For the present geographic area of the ARMM: if the majority of the registered voters in each province and city vote in favor of the Bangsamoro Basic Law (BBL), the respective provinces and cities shall be included in the Bangsamoro.

 

b. For the municipalities of Baloi, Munai, Nunungan, Pantar, Tagaloan and Tangkal in the Province of Lanao del Norte: If the majority of the registered voters in each of these municipalities vote in favor of the Bangsamoro Basic Law (BBL), the respective municipalities shall be included in the Bangsamoro.

 

c. For other barangays in the municipalities of Kabacan, Carmen, Aleosan, Pigcawayan, Pikit, and Midsayap that voted for inclusion in the ARMM during the 2001 plebiscite: If the majority of the registered voters in each of these barangays vote in favor of the Bangsamoro Basic Law (BBL), the respective barangays shall be included in the Bangsamoro.

 

d. For the cities of Cotabato and Isabela: If the majority of the registered voters in each of these cities vote in favor of the Bangsamoro Basic Law (BBL), the respective cities shall be included in the Bangsamoro.

 

e. For all other contiguous areas where there is a resolution of the local government unit or a petition of at least ten percent (10%) of the registered voters in the geographic area asking for their inclusion at least two months prior to the conduct of the ratification of the Bangsamoro Basic Law BBL. If the majority of the registered voters in each of these local government units vote in favor of the Bangsamoro Basic Law BBL, the respective local government units shall be included in the Bangsamoro.

 

Section 4. Plebiscite for Joining the Bangsamoro. – Any local government unit or geographic area outside the territorial jurisdiction of the Bangsamoro, but which are contiguous to any of the component units of the Bangsamoro, upon a verified petition for the conduct of a plebiscite of at least ten percent 10% of the registered voters, submitted to the Bangsamoro Electoral Office.

 

Provided that, the inclusion of said local government unit or geographic area in the Bangsamoro shall be effective when approved by a majority of the registered voters within that local government unit in the plebiscite called for the purpose.

 

Provided further that the schedule of the plebiscite shall be determined by the COMELEC through the Bangsamoro Electoral Office.

 

 

 

 

Lorena: The BBL states that the Bangsamoro Parliament shall enact its own Local Government Code which will provide the basis of the creation, merging, abolishing and altering the boundaries of provinces, cities, municipalities or barangay to be undertaken by the Bangsamoro Parliament.

 

In RA 9054, the Regional Assembly shall carry out the same task in accordance with the criteria prescribed by Republic Act No. 7160, to wit:

 

LOCAL GOVERNMENT UNITS

 

TITLE ONE. - THE BARANGAY

 

CHAPTER 1 - ROLE AND CREATION OF THE BARANGAY

 

SEC. 386. Requisites for Creation. - (a) A barangay maybe created out of a contiguous territory which has a population of at least two thousand (2,000) inhabitants as certified by the National Statistics Office except in cities and municipalities within Metro Manila and other metropolitan political subdivisions or in highly urbanized cities where such territory shall have a certified population of at least five thousand (5,000) inhabitants: Provided, That the creation thereof shall not reduce the population of the original barangay or barangays to less than the minimum requirement prescribed herein.

 

To enhance the delivery of basic services in the indigenous cultural communities, barangays may be created in such communities by an Act of Congress, notwithstanding the above requirement.

 

(b) The territorial jurisdiction of the new barangay shall be properly identified by metes and bounds or by more or less permanent natural boundaries. The territory need not be contiguous if it comprises two (2) or more islands.

 

(c) The governor or city mayor may prepare a consolidation plan for barangays, based on the criteria prescribed in this Section, within his territorial jurisdiction. The plan shall be submitted to the sangguniang panlalawigan or sangguniang panlungsod concerned for appropriate action. In the case of municipalities within the Metropolitan Manila area and other metropolitan political subdivisions, the barangay consolidation plan shall be prepared and approved by the sangguniang bayan concerned. 

 

LOCAL GOVERNMENT UNITS

 

TITLE TWO. - THE MUNICIPALITY

 

CHAPTER 1 - ROLE AND CREATION OF THE MUNICIPALITY

 

SEC. 442. Requisites for Creation. - (a) A municipality may be created if it has an average annual income, as certified by the provincial treasurer, of at least Two million five hundred thousand pesos (P=2,500,000.00) for the last two (2) consecutive years based on the 1991 constant prices; a population of at least twenty-five thousand (25,000) inhabitants as certified by the National Statistics Office; and a contiguous territory of at least fifty (50) square kilometers as certified by the Lands Management Bureau: Provided, That the creation thereof shall not reduce the land area, population or income of the original municipality or municipalities at the time of said creation to less than the minimum requirements prescribed herein.

 

(b) The territorial jurisdiction of a newly-created municipality shall be properly identified by metes and bounds. The requirement on land area shall not apply where the municipality proposed to be created is composed of one (1) or more islands. The territory need not be contiguous if it comprises two (2) or more islands.

 

(c) The average annual income shall include the income accruing to the general fund of the municipality concerned, exclusive of special funds, transfers and non-recurring income.

 

LOCAL GOVERNMENT UNITS

 

TITLE THREE. - THE CITY

 

CHAPTER 1 - ROLE AND CREATION OF THE CITY

 

SEC. 450. Requisites for Creation. - (a) A municipality or a cluster of barangays may be converted into a component city if it has an average annual income, as certified by the Department of Finance, of at least Twenty million pesos (P20,000,000.00) for the last two (2) consecutive years based on 1991 constant prices, and if it has either of the following requisites:

 

i. a contiguous territory of at least one hundred (100) square kilometers, as certified by the Lands Management Bureau; or,

ii. a population of not less than one hundred fifty thousand (150,000) inhabitants, as certified by the National Statistics Office: Provided, That, the creation thereof shall not reduce the land area, population, and income of the original unit or units at the time of said creation to less than the minimum requirements prescribed herein.

 

(b) The territorial jurisdiction of a newly-created city shall be properly identified by metes and bounds. The requirement on land area shall not apply where the city proposed to be created is composed of one (1) or more islands. The territory need not be contiguous if it comprises two (2) or more islands.

 

(c) The average annual income shall include the income accruing to the general fund, exclusive of special funds, transfers, and non-recurring income.

 

TITLE FOUR. - THE PROVINCE

 

CHAPTER 1 - ROLE AND CREATION OF THE PROVINCE

 

SEC. 461. Requisites for Creation. - (a) A province may be created if it has an average annual income, as certified by the Department of Finance, of not less than Twenty million pesos (P=20,000,000.00) based on 1991 constant prices and either of the following requisites:

 

i. a contiguous territory of at least two thousand (2,000) square kilometers, as certified by the Lands Management Bureau; or,

ii. a population of not less than two hundred fifty thousand (250,000) inhabitants as certified by the National Statistics Office:

Provided, That, the creation thereof shall not reduce the land area, population, and income of the original unit or units at the time of said creation to less than the minimum requirements prescribed herein.

 

(b) The territory need not be contiguous if it comprises two (2) or more islands or is separated by a chartered city or cities which do not contribute to the income of the province.

 

(c) The average annual income shall include the income accruing to the general fund, exclusive of special funds, trust funds, transfers, and non-recurring income.

 

Plebiscite for the creation, merging, division and abolition of local governments:

 

In RA 9054, the holding of a plebiscite to determine the will of the majority of the voters of the areas affected by the creation, division, merger, or whose boundaries are being altered as required by Republic Act No. 7160, shall be observed.

 

In the same way, BBL requires for the approval by a majority of the votes cast in a plebiscite in the political units directly affected.

 

 

However, there are issues being raised:

 

(1) What will happen to the six (6) municipalities of Lanao Del Norte and 39 barangays in six (6) municipalities of North Cotabato that are part of the core territory subject to a plebiscite for voting for inclusion to the ARMM during the 2001 plebiscite for RA 9054, if they voted again for inclusion, this time, to the Bangsamoro? To which provinces will they be attached?

 

(2) If these geographic areas are to undergo plebiscite, then their mother provinces must also undergo plebiscite as they are directly and politically affected and there are repercussions to the provinces that will be brought about by this exercise.

 

(3) CHAPTER 2. - GENERAL POWERS AND ATTRIBUTES OF LOCAL GOVERNMENT UNITS of the 1991 Local Government Code outlines the general rules for creation, conversion, division, merger and abolition of local government (please see below) and also earlier mentioned are the requisites in creating municipalities, cities and province.

 

CHAPTER 2. - GENERAL POWERS AND ATTRIBUTES OF LOCAL GOVERNMENT UNITS

 

SEC. 7. Creation and Conversion. - As a general rule, the creation of a local government unit or its conversion from one level to another level shall be based on verifiable indicators of viability and projected capacity to provide services, to wit:

 

(a) Income. - It must be sufficient, based on acceptable standards, to provide for all essential government facilities and services and special functions commensurate with the size of its population, as expected of the local government unit concerned;

 

(b) Population. - It shall be determined as the total number of inhabitants within the territorial jurisdiction of the local government unit concerned; and 

 

(c) Land Area. - It must be contiguous, unless it comprises two or more islands or is separated by a local government unit independent of the others; properly identified by metes and bounds with technical descriptions; and sufficient to provide for such basic services and facilities to meet the requirements of its populace. Compliance with the foregoing indicators shall be attested to by the Department of Finance (DOF), the National Statistics Office (NSO), and the Lands Management Bureau (LMB) of the Department of Environment and Natural Resources (DENR).

 

SEC. 8. Division and Merger. - Division and merger of existing local government units shall comply with the same requirements herein prescribed for their creation: Provided, however, That such division shall not reduce the income, population, or land area of the local government unit or units concerned to less than the minimum requirements prescribed in this Code: Provided, further, That the income classification of the original local government unit or units shall not fall below its current income classification prior to such division. The income classification of local government units shall be updated within six (6) months from the effectivity of this Code to reflect the changes in their financial position resulting from the increased revenues as provided herein.

 

SEC. 9. Abolition of Local Government Units. - A local government unit may be abolished when its income, population, or land area has been irreversibly reduced to less than the minimum standards prescribed for its creation under Book III of this Code, as certified by the national agencies mentioned in Section 17 hereof to Congress or to the sanggunian concerned, as the case may be.

 

The law or ordinance abolishing a local government unit shall specify the province, city, municipality, or barangay with which the local government unit sought to be abolished will be incorporated or merged.

 

SEC. 10. Plebiscite Requirement. - No creation, division, merger, abolition, or substantial alteration of boundaries of local government units shall take effect unless approved by a majority of the votes cast in a plebiscite called for the purpose in the political unit or units directly affected. Said plebiscite shall be conducted by the Commission on Elections (Comelec) within one hundred twenty (120) days from the date of effectivity of the law or ordinance effecting such action, unless said law or ordinance fixes another date.

 

Question: How do you now reconcile the criteria in creating, dividing, merging and abolishing local governments prescribed by the 1991 Local Government Code which is a National Law, with the provisions on the joining of the components or core territories (6 municipalities in Lanao del Norte and the 39 barangays in 6 municipalities in North Cotabato) that will vote for inclusion and other contiguous areas that will petition for inclusion in the Bangsamoro as stipulated in the BBL which happens to be another national law?

 

The BBL, unfortunately, does not address these issues. Given the complexities of the said issues, the Congress is tasked to decide on the fate of these geographic areas should they cast an affirmative vote for their inclusion in the Bangsamoro.

 

 

On intergovernmental relations mechanism and local governments

 

RA 9054

BBL

ARTICLE V

INTER-GOVERNMENTAL RELATIONS

 

Section 1. General Supervision of the President over the Regional Governor. – Consistent with the Constitution and basic policy on local autonomy, the President of the Republic shall exercise general supervision over the Regional Governor to ensure that his or her acts are within the scope of his or her powers and functions.

 

The power of supervision of the President over the provincial governors and the mayors of the highly urbanized cities shall be exercised through the Regional Governor; over the mayors of the component cities and municipalities, through the provincial governor, and the punong barangay, through the city or municipal mayor.

 

ARTICLE VII

THE EXECUTIVE DEPARTMENT

 

Section 6. Executive Council; Deputy Regional Governors. -The Regional Governor shall appoint three (3) deputies each representing the Christians, indigenous cultural communities, and the Muslims in the region. The Regional Governor, the Regional Vice Governor, and the three (3) deputies shall comprise the executive council of the autonomous government. The executive council shall advise the Regional Governor on matters of governance of the autonomous region. The three deputies shall be ex officio members of the regional cabinet with or without portfolio. The Regional Governor may assign powers and functions to the executive council to promote the general welfare of the people of the autonomous region subject to the laws enacted by the Regional Assembly.

 

Unless sooner removed by the Regional Governor, the term of office of a deputy Regional Governor shall be co-terminus with the term of office of the Regional Governor who appointed him or her.

ARTICLE VI

INTERGOVERNMENTAL RELATIONS

 

Section 3. General Supervision. –Consistent with the principle of autonomy and the asymmetric relation of the Central Government and the Bangsamoro Government, the President shall exercise general supervision over the Bangsamoro Government to ensure that laws are faithfully executed.

 

Section 5. Council of Leaders. –The Bangsamoro Council of Leaders shall consist of the Chief Minister, provincial governors, mayors of chartered cities, and representatives from the non-Moro indigenous communities, women, settler communities, and other sectors. The Bangsamoro Council of Leaders shall be chaired by the Chief Minister. The Council shall advise the Chief Minister on matters of governance in the Bangsamoro. The representation of the non-Moro indigenous communities shall be pursuant to their customary laws and indigenous processes.

 

 

Lorena: The mechanism for discussion on the matters of governance in the autonomous region as provided for in RA 9054 is named the Executive Council which is comprised of the Regional Governor, three (3) appointed deputies representing Christians, indigenous cultural communities and Muslims in the region along with Regional Vice Governor.

 

The BBL, on the other hand, provides for a more inclusive and representative mechanism that includes provincial governors, mayors of chartered cities, and representatives from the non-Moro indigenous communities, women, settler communities, and other sectors who truly know the state of governance in their areas. The mechanism named Council of Leaders is chaired by the Chief Minister – the head of the Bangsamoro Government. It also underscores the recognition of the representation of non-Moro indigenous communities based on their customary laws and indigenous processes.

 

 

On local government share on natural resources

 

RA 9054

BBL

ARTICLE XII

ECONOMY AND PATRIMONY

 

Section 5. Use, Development of Mines, Minerals, and Other Natural Resources; Revenue Sharing; Exceptions.

 

(b) Sharing Between Central Government or National Government and Regional Government in Strategic Minerals Revenues, Taxes, or Fees. Fifty percent (50%) of the revenues, taxes, or fees derived from the use and development of the strategic minerals shall accrue and be remitted to the Regional Government within thirty (30) days from the end of every quarter of every year. The other fifty percent (50%) shall accrue to the central government or national government.

 

(c) Sharing Between Regional Government and Local Government Units in Strategic Minerals Revenues, Taxes, or Fees. The share of the Regional Government mentioned above is hereby apportioned as follows: thirty percent (30%) to the Regional Government; twenty percent (20%) to all the provinces; fifteen percent (15%) to all the cities; twenty percent (20%) to all the municipalities; and fifteen percent (15%) to all the barangays. If there are no cities in the autonomous region as of the date the sharing above mentioned is done, the share of the cities shall be divided equally by all the provinces, municipalities, and barangay in the autonomous region.

Article XII

FISCAL AUTONOMY

 

Sharing in the Exploration, Development and Utilization of Natural Resources

 

Section 32. Sharing in Exploration, Development and Utilization of Natural Resource.– Central Government income from taxes derived from the exploration, development and utilization of all natural resources within the Bangsamoro shall be allocated as follows:

a. For non-metallic minerals (sand, gravel, and quarry resources), such revenues shall pertain fully to the Bangsamoro and its local government units;

b. For metallic minerals, seventy-five percent (75%) shall pertain to the Bangsamoro;

c. For fossil fuels (petroleum, natural gas, and coal and uranium), the same shall be shared equally between the Central and Bangsamoro Governments.

Such sharing scheme shall be applicable to the natural resources found in the landmass that comprise the Bangsamoro territory as well as the waters that are within the territorial jurisdiction of the Bangsamoro.

 

Section 33. Share of the Constituent Local Government Units. – The share of the Bangsamoro Government in the revenues referred to in the immediately preceding section shall include those for its constituent local government units. The Bangsamoro Parliament shall enact a law detailing the shares of such local government units.

 

 

Lorena:

 

I. Sharing scheme on “strategic minerals” as a natural resource between Central Government and Regional/Bangsamoro Government:

 

RA 9054 (Section 5 (a) defined strategic minerals by enumeration, uranium, petroleum and other fossil fuels, mineral oils, all sources of energy as well as natural reserves and aquatic parks, forest and watershed reservations):

 

Central Government: 50%

 

Regional Government: 50%

 

BBL (classified natural resources into Non-metallic and metallic minerals as well as fossil fuels):

 

(a) Non-metallic minerals:

 

Central Government: 0%

 

Bangsamoro Government: 100%

 

(b) Metallic minerals:

 

Central Government: 25%

 

Bangsamoro Government: 75%

 

(c) Fossil fuels:

 

Central Government: 50%

 

Bangsamoro Government: 50%

 

II. Sharing scheme on “strategic minerals” as a natural resource among local government units and the Regional/Bangsamoro Government:

 

RA 9054:

 

Regional Government: 30%

 

Provinces: 20%

 

Cities: 15%

 

Municipalities: 20%

 

Barangays: 15%

 

BBL does not provide for this sharing scheme, rather it mandates the Bangsamoro Parliament to enact a law detailing the sharing scheme among the Bangsamoro Government, provinces, cities, municipalities and barangays of Bangsamoro on these natural resources.

 

Although the BBL classified natural resource into three (3) kinds, the sharing scheme on fossil fuels which is called strategic minerals in RA 9054, remains the same with both Central Government and Regional/Bangsamoro Government receiving equal share. With regard to metallic and non-metallic minerals, clearly the Bangsamoro Government receives bigger shares than the Central Government.

 

 

On local government share on internal revenue tax

 

RA 9054

BBL

ARTICLE IX

FISCAL AUTONOMY

 

Section 9. Sharing of Internal Revenue, Natural Resources Taxes, Fees and Charges. - The collections of a province or city from national internal revenue taxes, fees and charges, and taxes imposed on natural resources, shall be distributed as follows:

(a)Thirty-five percent (35%) to the province or city;

(b)Thirty-five percent (35%) to the regional government; and

(c)Thirty percent (30%) to the central government or national government.

The share of the province shall be apportioned as follows: forty-five percent (45%) to the province, thirty-five percent (35%) to the municipality and twenty percent (20%) to the barangay.

 

The share of the city shall be distributed as follows: fifty percent (50%) to the city and fifty percent (50%) to the barangay concerned.

 

The province or city concerned shall automatically retain its share and remit the shares of the Regional Government and the central government or national government to their respective treasurers who shall, after deducting the share of the Regional Government as mentioned in paragraphs (b) and (c) of this Section, remit the balance to the national government within the first five (5) days of every month after the collections were made.

 

The remittance of the shares of the provinces, cities, municipalities, and barangay in the internal revenue taxes, fees, and charges and the taxes, fees, and charges on the use, development, and operation of natural resources within the autonomous region shall be governed by law enacted by the Regional Assembly.

 

The remittances of the share of the central government or national government of the internal revenue taxes, fees, and charges and on the taxes, fees, and charges on the use, development, and operation of the natural resources within the autonomous region shall be governed by the rules and regulations promulgated by the Department of Finance of the central government or national government.

 

Officials who fail to remit the shares of the central government or national government, the Regional Government and the local government units concerned in the taxes, fees, and charges mentioned above may be suspended or removed from office by order of the Secretary of Finance in cases involving the share of the central government or national government or by the Regional Governor in cases involving the share of the Regional Government and by the proper local government executive in cases involving the share of local government.

ARTICLE XII

FISCAL AUTONOMY

 

Sources of Revenue

 

Section 10. Share in Taxes of the Central Government. – Central Government taxes, fees, and charges collected in the Bangsamoro, other than tariff and customs duties, shall be shared as follows:

a.Twenty-five percent (25%) to the Central Government; and

b.Seventy-five percent (75%) to the Bangsamoro, including the shares of the localgovernment units.

The aforementioned twenty-five percent (25%) share of the Central Government shall,for a period of ten (10) years, be retained by the Bangsamoro Government. The periodfor retention maybe extended upon mutual agreement of the Central Government andthe Bangsamoro Government.

 

Section 12. Share of the Constituent Local Government Units in Taxes within the Bangsamoro. – The Bangsamoro Parliament shall enact a law detailing the shares ofconstituent local government units in the 75% share of the Bangsamoro Government inthe taxes, fees and charges collected in their jurisdiction by the Central Government inthe Bangsamoro.

 

Section 13. Bangsamoro Taxes and Revenue Code. –The Bangsamoro Parliament shallenact a Bangsamoro Tax Code, which shall cover the taxing powers of the BangsamoroGovernment.

 

Section 14. Fees and Charges. – The Bangsamoro shall exercise the power to levy fees and charges pursuant to the powers and functions that it shall exercise in accordance with this Basic Law, including the powers already granted under Republic Act No. 6734, RA 9054 and other executive issuances, and memoranda of agreement.

 

ARTICLE XII

FISCAL AUTONOMY

 

Sources of Revenue

 

Section 10. Share in Taxes of the Central Government. – Central Government taxes, fees, and charges collected in the Bangsamoro, other than tariff and customs duties, shall be shared as follows:

a. Twenty-five percent (25%) to the Central Government; and

b. Seventy-five percent (75%) to the Bangsamoro, including the shares of the local government units.

The aforementioned twenty-five percent (25%) share of the Central Government shall, for a period of ten (10) years, be retained by the Bangsamoro Government. The period for retention maybe extended upon mutual agreement of the Central Government and the Bangsamoro Government.

 

Section 12. Share of the Constituent Local Government Units in Taxes within the Bangsamoro. – The Bangsamoro Parliament shall enact a law detailing the shares of constituent local government units in the 75% share of the Bangsamoro Government in the taxes, fees and charges collected in their jurisdiction by the Central Government in the Bangsamoro.

 

Section 13. Bangsamoro Taxes and Revenue Code. –The Bangsamoro Parliament shall enact a Bangsamoro Tax Code, which shall cover the taxing powers of the Bangsamoro Government.

 

Section 14. Fees and Charges. – The Bangsamoro shall exercise the power to levy fees and charges pursuant to the powers and functions that it shall exercise in accordance with this Basic Law, including the powers already granted under Republic Act.No.6734, RA 9054 and other executive issuances, and memoranda of agreement.

 

 

 

Lorena: The BBL decreased the share of the Central Government on the taxes collected in the Bangsamoro to 25%, from previous 30% share as provided for in RA 9054.

 

Therefore, there is an additional 5% internal revenue tax to be distributed among Bangsamoro Government and local government units, making it 75% from previously 70% share.

 

In RA 9054, the share of the regional government amounts to 35% and province or city receives an equal share of 35% which the province apportions into the following:

 

Province: 45%

 

Municipality: 35%

 

Barangay: 20%

 

The 35% share of the city shall be divided as follows:

 

City: 50%

 

Barangay: 50%

 

The BBL, however, did not specify the allocations among the Local Government Units in taxes within the Bangsamoro. It mandates the Bangsamoro Parliament to enact a Bangsamoro Tax Code which will provide details on the sharing scheme among constituent LGUs as well as the taxing powers of the Bangsamoro Government.

 

Aside from the powers already granted by previous organic acts, the Bangsamoro Government is given greater fiscal power with these provisions of the BBL.

 

 

ALSO ON #BBLWatch:

Highlights of BBL deliberations in Congress

8 key takeaways from the first IAG talkshop on the BBL

9 candid questions on the BBL answered

Perspective and context of the proposed BBL