SECTION 1. Section 1 of Republic Act No. 8436 is hereby amended to read as follows:

“SECTION 1. Declaration of Policy. – It is the policy of the State to ensure free, orderly, honest, peaceful, credible and informed elections, plebiscites, referenda, recall and other similar electoral exercises by improving on the election process and adopting systems, which shall involve the use of an automated election system that will ensure the secrecy and sanctity of the ballot and all election, consolidation and transmission documents in order that the process shall be transparent and credible and that the results shall be fast, accurate and reflective of the genuine will of the people.

“The State recognizes the mandate and authority of the Commission to prescribe the adoption and use of the most suitable technology of demonstrated capability taking into account the situation prevailing in the area and the funds available for the purpose.”

SEC. 2. Section 2 of Republic Act No. 8436 is hereby amended to read as follows:

“SEC. 2. Definition of Terms. – As used in this Act, the following terms shall mean:

“1. Automated election system, hereinafter referred to as AES – a system using appropriate technology which has been demonstrated in the voting, counting, consolidating, canvassing, and transmission of election results, and other electoral processes;

“2. Electronic transmission – conveying data in electronic form from one location to another;

“3. Official ballot – where AES is utilized, refers to the paper ballot, whether printed or generated by the technology applied, that faithfully captures or represents the votes cast by a voter recorded or to be recorded in electronic form;

“4. Election returns – a document in electronic and printed form directly produced by the counting or voting machine, showing the date of the election, the province, municipality and the precinct in which it is held and the votes in figures for each candidate in a precinct in areas where AES is utilized;

“5. Statement of votes – a document containing the votes obtained by candidates in each precinct in a city/municipality;

“6. City/municipal/district/provincial certificate of canvass – a document in electronic and printed form containing the total votes in figures obtained by each candidate in a city/municipality/district/province as the case may be. The electronic certificates of canvass shall be the official canvass results in the aforementioned jurisdictions;

“7. Paper-based election system – a type of automated election system that uses paper ballots, records and counts votes, tabulates, consolidates/canvasses and transmits electronically the results of the vote count;”

“8. Direct recording electronic election system – a type of automated election system that uses electronic ballots, records votes by means of a ballot display provided with mechanical or electro-optical components that can be activated by the voter, processes data by means of a computer program, records voting data and ballot images, and transmits voting results electronically;

“9. Counting center – a public place within the city/municipality or in such other places as may be designated by the Commission where the official ballots cast in various precincts of the city/municipality shall be counted. Polling places or voting centers may also be designated as counting centers;

“10. Continuity plan – a list of contingency measures, and the policies for activation of such, that are put in place to ensure continuous operation of the AES;

“11. Disabled voters – a person with impaired capacity to use the AES;

“12. Source code – human readable instructions that define what the computer equipment will do; and

“13. Station – refers to a polling place, counting center, municipal or provincial canvassing center.”

SEC. 3. Section 3 of Republic Act No. 8436 is hereby amended to read as follows:

“SEC 3. Board of Election Inspectors. – Where AES shall be adopted, at least one member of the Board of Election Inspectors shall be an information technology-capable person, who is trained or certified by the DOST to use the AES. Such certification shall be issued by the DOST, free of charge.”

SEC. 4. Section 4 of Republic Act No. 8436 is hereby deleted. The succeeding sections are hereby renumbered accordingly.

SEC. 5. Section 5 of Republic Act No. 8436 is hereby amended to read as follows:

“SEC. 4. Information Technology Support for the Board of Canvassers. – To implement the AES, each board of canvassers shall be assisted by an information technology-capable person authorized to operate the equipment adopted for the elections. The Commission shall deputize information technology personnel from among the agencies and instrumentalities of the government, including government-owned and controlled corporations. The per diem of the deputized personnel shall be the same as that of the members of the board of canvassers.”

SEC. 6. Section 6 of Republic Act No. 8436 is hereby amended to read as follows:

“SEC. 5. Authority to Use an Automated Election System. – To carry out the above-stated policy, the Commission on Elections, herein referred to as the Commission, is hereby authorized to use an automated election system or systems in the same election in different provinces, whether paper-based or a direct recording electronic election system as it may deem appropriate and practical for the process of voting, counting of votes and canvassing/consolidation and transmittal of results of electoral exercises: Provided, That for the regular national and local elections, which shall be held immediately after effectivity of this Act, the AES shall be used in at least two highly urbanized cities and two provinces each in Luzon, Visayas and Mindanao, to be chosen by the Commission: Provided, further, That local government units whose officials have been the subject of administrative charges within sixteen (16) months prior to the May 14, 2007 elections shall not be chosen: Provided finally, That no area shall be chosen without the consent of the Sanggunian of the local government unit concerned. The term local government unit as used in this provision shall refer to a highly urbanized city or province. In succeeding regular national or local elections, the AES shall be implemented nationwide.”

SEC. 7. Section 7 of Republic Act No. 8436 is hereby amended to read as follows:

“SEC. 6. Minimum System Capabilities. – “The automated election system must at least have the following functional capabilities:

(a) Adequate security against unauthorized access;

(b) Accuracy in recording and reading of votes as well as in the tabulation, consolidation/canvassing, electronic transmission, and storage of results;

(c) Error recovery in case of non-catastrophic failure of device;

(d) System integrity which ensures physical stability and functioning of the vote recording and counting process;

(e) Provision for voter verified paper audit trail;

(f) System auditability which provides supporting documentation for verifying the correctness of reported election results;

(g) An election management system for preparing ballots and programs for use in the casting and counting of votes and to consolidate, report and display election results in the shortest time possible;

(h) Accessibility to illiterates and disabled voters;

(i) Vote tabulating program for election, referendum or plebiscite;

(j) Accurate ballot counters;

(k) Data retention provision;

(l) Provide for the safekeeping, storing and archiving of physical or paper resource used in the election process;

(m) Utilize or generate official ballots as herein defined;

(n) Provide the voter a system of verification to find out whether or not the machine has registered his choice; and

(o) Configure access control for sensitive system data and functions.

“In the procurement of this system, the Commission shall develop and adopt an evaluation system to ascertain that the above minimum system capabilities are met. This evaluation system shall be developed with the assistance of an advisory council.”

SEC. 8. A new Section 7 is hereby provided to read as follows:

“SEC. 7. Communication Channels for Electronic Transmissions. – All electronic transmissions by and among the AES and its related components shall utilize secure communication channels as recommended by the Advisory Council, to ensure authentication and integrity of transmissions.”

SEC. 9. New Sections 8, 9, 10 and 11 are hereby provided to read as follows:

“SEC. 8. The Advisory Council. – The Commission shall create an Advisory Council, hereafter referred to as the Council, which shall be convened not later than eighteen (18) months prior to the next scheduled electoral exercise, and deactivated six months after completion of canvassing: Provided, for purposes of the 2007 elections, the Advisory Council shall be immediately convened within ten (10) days after the effectivity of this Act.

“The Council shall be composed of the following members, who must be registered Filipino voters, of known independence, competence and probity;

“(a) The Chairman of the Commission on Information and Communications Technology (CICT) who shall act as the chairman of the Council;

“(b) One member from the Department of Science and Technology;

“(c) One member from the Department of Education;

“(d) One member representing the academe, to be selected by the chair of the Advisory Council from among the list of nominees submitted by the country’s academic institutions;

“(e) Three members representing ICT professional organizations to be selected by the chair of the Advisory Council from among the list of nominees submitted by Philippine-based ICT professional organizations. Nominees shall be individuals, at least one of whom shall be experienced in managing or implementing large-scale IT projects.

“(f) Two members representing nongovernmental electoral reform organizations, to be selected by the chair of the Advisory Council from among the list of nominees submitted by the country’s nongovernmental electoral reform organizations.

“A person who is affiliated with any political party or candidate for any national position, or is related to a candidate for any national position by affinity or consanguinity within the fourth civil degree, shall not be eligible for appointment or designation to the Advisory Council. Should any such situation arise at any time during the incumbency of a member, the designation or appointment of that member shall ipso facto be terminated.

“Any member of the Advisory Council is prohibited from engaging, directly or indirectly, with any entity that advocates, markets, imports, produces or in any manner handles software, hardware or any equipment that may be used for election purposes for personal gain.

“Any violation of the two immediately preceding paragraphs shall disqualify said member from the Advisory Council and shall be punishable as provided in this Act and shall be penalized in accordance with the Anti-Graft and Corrupt Practices Act and other related laws.

“The council may avail itself of the expertise and services of resource persons who are of known independence, competence and probity, are nonpartisan, and do not possess any of the disqualifications applicable to a member of the Advisory Council as provided herein. The resource persons shall also be subject to the same prohibitions and penalties as the members of the Advisory Council.

“The Commission on Information and Communications Technology (CICT) shall include in its annual appropriation the funds necessary to enable the Council to effectively perform its functions.”

“SEC. 9. Functions of the Advisory Council. – The Council shall have the following functions:

1. Recommend the most appropriate, secure, applicable and cost-effective technology to be applied in the AES, in whole or in part, at that specific point in time.

2. Participate as nonvoting members of the Bids and Awards Committee in the conduct of the bidding process for the AES. Members of the Advisory Council representing the ICT professional organizations are hereby excluded from participating in any manner in the Bids and Awards Committee.

3. Participate as nonvoting members of the steering committee tasked with the implementation of the AES. Members of the Advisory Council representing the ICT professional organizations are hereby excluded from participating in any manner in the steering committee.

4. Provide advice and assistance in the review of the systems planning, inception, development, testing, operationalization, and evaluation stages.

5. Provide advice and/or assistance in the identification, assessment and resolution of systems problems or inadequacies as may surface or resurface in the course of the bidding, acquisition, testing, operationalization, re-use, storage or disposition of the AES equipment and/or resources as the case may be.

6. Provide advice and/or assistance in the risk management of the AES especially when a contingency or disaster situation arises.

7. Prepare and submit a written report, which shall be submitted within six months from the date of the election to the oversight committee, evaluating the use of the AES.

Nothing in the role of the Council or any outside intervention or influence shall be construed as an abdication or diminution of the Commission’s authority and responsibility for the effective development, management and implementation of the AES and this Act.”

The Advisory Council shall be entitled to a just and reasonable amount of per diem allowances and/or honoraria to cover the expenses of the services rendered chargeable against the budget of the Commission.”

“SEC. 10. The Technical Evaluation Committee. – The Commission, in collaboration with the chairman of the Advisory Council, shall establish an independent technical evaluation committee, herein known as the Committee, composed of a representative each from the Commission, the Commission on Information and Communications Technology and the Department of Science and Technology who shall act as Chairman of the Committee.

“The Committee shall be immediately convened within ten (10) days after the effectivity of this Act.”

“SEC. 11. Functions of the Technical Evaluation Committee. – The Committee shall certify, through an established international certification entity to be chosen by the Commission from the recommendations of the Advisory Council, not later than three months before the date of the electoral exercise, categorically stating that the AES, including its hardware and software components, is operating properly, securely, and accurately, in accordance with the provisions of this Act based, among others, on the following documented results:

1. The successful conduct of a field testing process followed by a mock election event in one or more cities/municipalities;

2. The successful completion of audit on the accuracy, functionality and security controls of the AES software;

3. The successful completion of a source code review;

4. A certification that the source code is kept in escrow with the Bangko Sentral ng Pilipinas;

5. A certification that the source code reviewed is one and the same as that used by the equipment; and

6. The development, provisioning, and operationalization of a continuity plan to cover risks to the AES at all points in the process such that a failure of elections, whether at voting, counting or consolidation, may be avoided.

For purposes of the 2007 elections, the certification shall be done not later than eight weeks prior to the date of the elections.

“If the Commission decides to proceed with the use of the AES without the Committee’s certification, it must submit its reason in writing, to the Oversight Committee, no less than thirty (30) days prior to the electoral exercise where the AES will be used.

“The Committee may avail itself of the expertise and services of resource persons who are of known independence, competence and probity, are non partisan, and who do not possess any of the disqualifications applicable to a member of the Advisory Council as provided herein. The resource persons shall also be subject to the same prohibitions and penalties as the members of the Advisory Council.

“The Committee shall closely coordinate with the steering committee of the Commission tasked with the implementation of the AES in the identification and agreement of the project deliverables and timelines, and in the formulation of the acceptance criteria for each deliverable.”

SEC. 10. Section 8 of Republic Act No. 8436 is hereby amended to read as follows:

“SEC. 12. Procurement of Equipment and Materials. – To achieve the purpose of this Act, the Commission is authorized to procure, in accordance with existing laws, by purchase, lease, rent or other forms of acquisition, supplies, equipment, materials, software, facilities and other services, from local or foreign sources free from taxes and import duties, subject to accounting and auditing rules and regulations. With respect to the May 10, 2010 elections and succeeding electoral exercises, the system procured must have demonstrated capability and been successfully used in a prior electoral exercise here or abroad. Participation in the 2007 pilot exercise shall not be conclusive of the system’s fitness.

“In determining the amount of any bid from a technology, software or equipment supplier, the cost to the government of its deployment and implementation shall be added to the bid price as integral thereto. The value of any alternative use to which such technology, software or equipment can be put for public use shall not be deducted from the original face value of the said bid.”

SEC. 11. Section 9 of Republic Act No. 8436 is hereby amended to read as follows:

“SEC. 13. Continuity Plan. – The AES shall be so designed to include a continuity plan in case of a systems breakdown or any such eventuality which shall result in the delay, obstruction or nonperformance of the electoral process. Activation of such continuity and contingency measures shall be undertaken in the presence of representatives of political parties and citizens’ arm of the Commission who shall be notified by the election officer of such activation.

“All political parties and party-lists shall be furnished copies of said continuity plan at their official addresses as submitted to the Commission. The list shall be published in at least two newspapers of national of circulation and shall be posted at the website of the Commission at least fifteen (15) days prior to the electoral activity concerned.”

SEC. 12. Section 10 of Republic Act No. 8436 is hereby amended to read as follows:

“SEC. 14. Examination and Testing of Equipment or Device of the AES and Opening of the Source Code for Review. – The Commission shall allow the political parties and candidates or their representatives, citizens’ arm or their representatives to examine and test.

“The equipment or device to be used in the voting and counting on the day of the electoral exercise, before voting starts. Test ballots and test forms shall be provided by the Commission.

“Immediately after the examination and testing of the equipment or device, the parties and candidates or their representatives, citizens’ arms or their representatives, may submit a written comment to the election officer who shall immediately transmit it to the Commission for appropriate action.

“The election officer shall keep minutes of the testing, a copy of which shall be submitted to the Commission together with the minutes of voting.”

“Once an AES technology is selected for implementation, the Commission shall promptly make the source code of that technology available and open to any interested political party or groups which may conduct their own review thereof.”

SEC. 13. Section 11 of Republic Act No. 8436 is hereby amended to read as follows:

“SEC. 15. Official Ballot. – The Commission shall prescribe the format of the electronic display and/or the size and form of the official ballot, which shall contain the titles of the position to be filled and/or the propositions to be voted upon in an initiative, referendum or plebiscite. Where practicable, electronic displays must be constructed to present the names of all candidates for the same position in the same page or screen, otherwise, the electronic displays must be constructed to present the entire ballot to the voter, in a series of sequential pages, and to ensure that the voter sees all of the ballot options on all pages before completing his or her vote and to allow the voter to review and change all ballot choices prior to completing and casting his or her ballot. Under each position to be filled, the names of candidates shall be arranged alphabetically by surname and uniformly indicated using the same type size. The maiden or married name shall be listed in the official ballot, as preferred by the female candidate. Under each proposition to be voted upon, the choices should be uniformly indicated using the same font and size.

“A fixed space where the chairman of the board of election inspectors shall affix his/her signature to authenticate the official ballot shall be provided.

“For this purpose, the Commission shall set the deadline for the filing of certificate of candidacy/petition of registration/manifestation to participate in the election. Any person who files his certificate of candidacy within this period shall only be considered as a candidate at the start of the campaign period for which he filed his certificate of candidacy: Provided, That, unlawful acts or omissions applicable to a candidate shall take effect only upon the start of the aforesaid campaign period: Provided, finally, That any person holding a public appointive office or position, including active members of the armed forces, and officers and employees in government-owned or -controlled corporations, shall be considered ipso facto resigned from his/her office and must vacate the same at the start of the day of the filing of his/her certificate of candidacy.

“Political parties may hold political conventions to nominate their official candidates within thirty (30) days before the start of the period for filing a certificate of candidacy.

“With respect to a paper-based election system, the official ballots shall be printed by the National Printing Office and/or the Bangko Sentral ng Pilipinas at the price comparable with that of private printers under proper security measures which the Commission shall adopt. The Commission may contract the services of private printers upon certification by the National Printing Office/Bangko Sentral ng Pilipinas that it cannot meet the printing requirements. Accredited political parties and deputized citizen’s arms of the Commission shall assign watchers in the printing, storage and distribution of official ballots.

“To prevent the use of fake ballots, the Commission through the Committee shall ensure that the necessary safeguards, such as, but not limited to, bar codes, holograms, color shifting ink, microprinting, are provided on the ballot.

“The official ballots shall be printed and distributed to each city/municipality at the rate of one ballot for every registered voter with a provision of additional three ballots per precinct.”

SEC. 14. Section 13 of Republic Act No. 8436 is hereby amended to read as follows:

“SEC. 17. Ballot box. – Where applicable, there shall be in each precinct on election day a ballot box with such safety features that the Commission may prescribe and of such size as to accommodate the official ballots.”

SEC. 15. Section 14 of Republic Act No. 8436 is hereby amended to read as follows:

“SEC. 18. Procedure in voting. – The Commission shall prescribe the manner and procedure of voting, which can be easily understood and followed by the voters, taking into consideration, among other things, the secrecy of the voting.”

SEC. 16. Section 15 of Republic Act No. 8436 is hereby amended to read as follows:

“SEC. 19. Closing of polls. – The Commission shall prescribe the time, manner and procedure of closing the polls and the steps for the correct reporting of votes cast and the proper conduct of counting for areas covered by the AES.”

SEC. 17. Section 16 of Republic Act No. 8436 is hereby amended to read as follows:

“SEC. 20. Notice of Designation of Counting Centers. – The election officer shall post prominently in his/her office, in the bulletin boards at the city/municipal hall and in three other conspicuous places in the city/municipality, the notice on the designated counting center(s) for at least three weeks prior to election day. The notice shall specify the precincts covered by each counting center and the number of registered voters in each of said precincts. The election officer shall also furnish a copy of the notice to the headquarters or official address of the political parties or independent candidates within the same period. The election officer shall post in the Commission website concerned the said notice and publish the notices in the local newspapers. Where the polling place or voting center is also the designated counting center, such information shall be contained in the notice.

“The Commission may not designate as counting center any building or facility located within the premises of a camp, reservation compound, headquarters, detachment, or field office of the military, police, prison or detention bureau, or any law enforcement or investigation agency.”

SEC. 18. Section 17 of Republic Act No. 8436 is hereby amended to read as follows:

“SEC. 21. Counting Procedure. – The Commission shall prescribe the manner and procedure of counting the votes under the automated system: Provided, That apart from the electronically stored result, thirty (30) copies of the election return are printed.”

SEC. 19. Section 18 of Republic Act No. 8436 is hereby amended to read as follows:

“SEC. 22. Electronic Returns. – Each copy of the printed election returns shall bear appropriate control marks to determine the time and place of printing. Each copy shall be signed and thumbmarked by all the members of the board of election inspectors and the watchers present. If any member of the board of election inspectors present refuses to sign, the chairman of the board shall note the same copy in each copy of the printed election returns. The member of the board of election inspectors concerned refusing to sign shall be compelled to explain his or her refusal to do so. Failure to explain an unjustifiable refusal to sign each copy of the printed election return by any member of the board of election inspectors shall be punishable as provided in this Act. The chairman of the board shall then publicly read and announce the total numbers of registered voters, the total number of voters who actually voted and the total numbers of votes obtained by each candidate based on the election returns.

“Thereafter, the copies of the election returns shall be sealed and placed in the proper envelopes for distribution as follows:

“A. In the election of president, vice-president, senators and party-list system;

1) The first copy shall be delivered to the city or municipal board of canvassers;

2) The second copy, to the Congress, directed to the President of the Senate;

3) The third copy, to the Commission;

4) The fourth copy, to the citizens’ arm authorized by the Commission to conduct an unofficial count.

5) The fifth copy, to the dominant majority party as determined by the Commission in accordance with law;

6) The sixth copy, to the dominant minority party as determined by the Commission in accordance with law; and

7) The seventh copy shall be deposited inside the compartment of the ballot box for valid ballots.

The eighth copy, to the Provincial Board of Canvassers;

9) The ninth to the eighteenth copies, to the ten (10) accredited major national parties, excluding the dominant majority and minority parties, in accordance with a voluntary agreement among them. If no such agreement is reached, the Commission shall decide which parties shall receive the copies on the basis of the criteria provided in Section 26 of Republic Act No. 7166;

10) The nineteenth and twentieth copies, to the two accredited major local parties in accordance with a voluntary agreement among them. If no such agreement is reached, the Commission shall decide which parties shall receive the copies on the basis of criteria analogous to that provided in Section 26 of Republic Act No. 7166;

11) The twenty-first to the twenty-fourth copies, to national broadcast or print media entities as may be equitably determined by the Commission in view of propagating the copies to the widest extent possible;

12) The twenty-fifth and twenty-sixth copies, to local broadcast or print media entities as may be equitably determined by the Commission in view of propagating the copies to the widest extent possible; and

13) The twenty-seventh to the thirtieth copies, to the major citizens’ arms, including the accredited citizens’ arm, and other non-partisan groups or organization enlisted by the Commission pursuant to Section 52(k) of Batas Pambansa Blg. 881. Such citizens’ arms, groups and organizations may use the four certified copies of election returns for the conduct of citizens’ quick counts at the local or national levels;

“B. In the election of local officials and members of the House of Representatives:

1) The first copy shall be delivered to the city or municipal board of canvassers;

2) The second copy, to the Commission;

3) The third copy, to the provincial board of canvassers;

4) The fourth copy, to the citizens’ arm authorized by the Commission to conduct an unofficial count.

5) The fifth copy, to the dominant majority party as determined by the Commission in accordance with law;

6) The sixth copy, to the dominant minority party as determined by the Commission in accordance with law; and

7) The seventh copy shall be deposited inside the compartment of the ballot box for valid ballots;

The eight copy to be posted conspicuously on a wall within the premises of the polling place or counting center;

9) The ninth to the eighteenth copies, shall be given to the ten (10) accredited major national parties, excluding the dominant majority and minority parties, in accordance with a voluntary agreement among them. If no such agreement is reached, the Commission shall decide which parties shall receive the copies on the basis of the criteria provided in Section 26 of Republic Act No. 7166;

10) The nineteenth and twentieth copies shall be given to the two accredited major local parties in accordance with a voluntary agreement among them. If no such agreement is reached, the Commission shall decide which parties shall receive the copies on the basis of criteria analogous to that provided in Section 26 of Republic Act No. 7166;

11) The twenty-first to the twenty-fifth copies, to national broadcast or print media entities as may be equitably determined by the Commission in view of propagating the copies to the widest extent possible;

12) The twenty-sixth and twenty-seventh copies, to local broadcast or print media entities as may be equitably determined by the Commission in view of propagating the copies to the widest extent possible; and

13) The twenty-eighth to the thirtieth copies to the major citizens’ arms, including the accredited citizens’ arm, and other non-partisan groups or organizations enlisted by the Commission pursuant to section 52(k) of Batas Pambansa Blg. 881. Such citizens’ arms, groups and organizations may use the five certified copies of election returns for the conduct of citizens’ quick counts at the local or national levels.

“Immediately after the eight copy is printed, the poll clerk shall announce the posting of said copy on a wall within the premises of the polling place or counting center, which must be sufficiently lighted and accessible to the public. Any person may view or capture an image of the election return by means of any data capturing device such as, but not limited to, cameras at any time of the day for forty-eight (48) hours following its posting. After such period, the chairman of the board of election inspectors shall detach the election return from the wall and keep the same in his custody to be produced as may be requested by any voter for image or data capturing or for any lawful purpose as may be ordered by competent authority.

“Within one hour after the printing of the election returns, the chairman of the board of election inspectors or any official authorized by the Commission shall, in the presence of watchers and representatives of the accredited citizen’s arm, political parties/candidates, if any, electronically transmit the precinct results to the respective levels of board of canvassers, to the dominant majority and minority party, to the accredited citizen’s arm, and to the Kapisanan ng mga Broadcasters ng Pilipinas (KBP).

“The election results at the city/municipality canvassing centers shall be transmitted in the same manner by the election officer or any official authorized by the Commission to the district or provincial canvassing centers.

“The election returns transmitted electronically and digitally signed shall be considered as official election results and shall be used as the basis for the canvassing of votes and the proclamation of a candidate.”

“After the electronic results have been transmitted, additional copies not to exceed thirty (30) may be printed and given to requesting parties at their own expense.”

SEC. 20. Section 21 of Republic Act No. 8436 is hereby amended to read as follows:

“SEC. 25. Canvassing by Provincial, City, District and Municipal Boards of Canvassers. – The city or municipal board of canvassers shall canvass the votes for the president, vice-president, senators, and parties, organizations or coalitions participating under the party-list system by consolidating the electronically transmitted results or the results contained in the data storage devices used in the printing of the election returns. Upon completion of the canvass, it shall print the certificate of canvass of votes for president, vice-president, senators and members of the House of Representatives and elective provincial officials and thereafter, proclaim the elected city or municipal officials, as the case may be.

“The city board of canvassers of cities comprising one or more legislative districts shall canvass the votes for president, vice-president, senators, members of the House Representatives and elective city officials by consolidating the certificates of canvass electronically transmitted or the results contained in the data storage devices used in the printing of the election returns. Upon completion of the canvass, the board shall produce the canvass of votes for president, vice-president, and senators and thereafter, proclaim the elected members of the House of Representatives and city officials.

“In the Metro Manila area, each municipality comprising a legislative district shall have a district board of canvassers which shall canvass the votes for president, vice-president, senators, members of the House of Representatives and elective municipal officials by consolidating the electronically transmitted results or the results contained in the data storage devices used in the printing of the election returns. Upon completion of the canvass, it shall produce the certificate of canvass of votes for president, vice-president, and senators and thereafter, proclaim the elected members of the House Representatives and municipal officials.

“Each component municipality in a legislative district in the Metro Manila area shall have a municipal board of canvassers which shall canvass the votes for president, vice-president, senators, members of the House of Representatives and elective municipal officials by consolidating the results electronically transmitted from the counting centers or the results contained in the data storage devices used in the printing of the election returns. Upon completion of the canvass, it shall prepare the certificate of canvass of votes for president, vice-president, senators, members of the House of Representatives and thereafter, proclaim the elected municipal officials.

“The district board of canvassers of each legislative district comprising two municipalities in the Metro Manila area shall canvass the votes for president, vice-president, senators and members of the House of Representatives by consolidating the certificates of canvass electronically transmitted from the city/municipal consolidating centers or the results contained in the data storage devices submitted by the municipal board of canvassers of the component municipalities. Upon completion of the canvass, it shall produce a certificate of canvass of votes for president, vice-president and senators and thereafter, proclaim the elected members of the House of Representatives in the legislative district.

“The district/provincial board of canvassers shall canvass the votes for president, vice-president, senators, members of the House of Representatives and elective provincial officials by consolidating the results electronically transmitted from the city/municipal consolidating centers or the results contained in the data storage devices submitted by the board of canvassers of the municipalities and component cities. Upon completion of the canvass, it shall produce the certificate of canvass votes for president, vice-president and senators and thereafter, proclaim the elected members of the House of Representatives and the provincial officials.

“The municipal, city, district and provincial certificates of canvass of votes shall each be supported by a statement of votes.

“Within one hour after the canvassing, the Chairman of the district or provincial Board of Canvassers or the city board of canvassers of those cities which comprise one or more legislative districts shall electronically transmit the certificates of canvass to the Commission sitting as the national board of canvassers for senators and party-list representatives and to the Congress as the National Board of Canvassers for the president and vice president, directed to the President of the Senate.

“The Commission shall adopt adequate and effective measures to preserve the integrity of the certificates of canvass transmitted electronically and the results in the storage devices at the various levels of the boards of canvassers.

“The certificates of canvass transmitted electronically and digitally signed shall be considered as official election results and shall be used as the basis for the proclamation of a winning candidate.”

SEC. 21. Section 22 of Republic Act No. 8436 is hereby amended to read as follows:

“SEC. 26. Number of Copies of Certificates of Canvass of Votes and Their Distribution. -

(a) The certificate of canvass of votes for president, vice-president, senators, members of the House of Representatives, parties, organizations or coalitions participating under the party-list system and elective provincial officials shall be produced by the city or municipal board of canvassers and distributed as follows:

“(1) The first copy shall be delivered to the provincial board of canvassers for use in the canvass of election results for president, vice-president, senators, members of the House of Representatives, parties, organizations or coalitions participating under the party-list system and elective provincial officials;

“(2) The second copy shall be sent to the Commission;

“(3) The third copy shall be kept by the chairman of the board; and

“(4) The fourth copy shall be given to the citizens’ arm designated by the Commission to conduct an unofficial count. It shall be the duty of the citizens’ arm to furnish independent candidates copies of the certificate of canvass at the expense of the requesting party.

“(5) The fifth copy to Congress, directed to the President of Senate;

“(6) The sixth copy to be posted on a wall within the premises of the canvassing center;

“(7) The seventh and eighth copies shall be given to the dominant majority and minority parties;

“(8) The ninth to eighteenth copies shall be given to the ten (10) accredited major national parties, excluding the dominant majority and minority parties, in accordance with a voluntary agreement among them. If no such agreement is reached, the Commission shall decide which parties shall receive the copies on the basis of the criteria provided in Section 26 of Republic Act No. 7166;

“(9) The nineteenth and twentieth copies shall be given to the two accredited major local parties in accordance with a voluntary agreement among them. If no such agreement is reached, the Commission shall decide which parties shall receive the copies on the basis of criteria analogous to that provided in Section 26 of Republic Act No. 7166;

“(10) The twenty-first to the twenty-fifth copies, to national broadcast or print media entities as may be equitably determined by the Commission in view of propagating the copies to the widest extent possible;

“(11) The twenty-sixth and twenty-seventh copies, to local broadcast or print media entities as may be equitably determined by the Commission in view of propagating the copies to the widest extent possible; and

“(12) The twenty-eighth to the thirtieth copies, to the major citizens’ arms, including the accredited citizens’ arm, and other non-partisan groups or organizations enlisted by the Commission pursuant to Section 52(k) of Batas Pambansa Blg. 881. Such citizens’ arms, groups and organization may use the three certified copies of election returns for the conduct of citizens’ quick counts at the local or national levels.”

“The board of canvassers shall furnish all other registered parties copies of the certificate of canvass at the expense of the requesting party.

“(b) The certificate of canvass of votes for president, vice-president and senators, parties, organizations or coalitions participating under the party-list system shall be produced by the city boards of canvassers of cities comprising one or more legislative districts, by provincial boards of canvassers and by district boards of canvassers in the Metro Manila area, and other highly urbanized areas and distributed as follows:

“(1) The first copy shall be sent to Congress, directed to the President of the Senate for use in the canvass of election results for president and vice-president;

“(2) The second copy shall be sent to the Commission for use in the canvass of the election results for senators;

“(3) The third copy shall be kept by the chairman of the board; and

“(4) The fourth copy shall be given to the citizens’ arm designated by the Commission to conduct an unofficial count. It shall be the duty of the citizens’ arm to furnish independent candidates copies of the certificate of canvass at the expense of the requesting party.

“(5) The fifth copy to Congress, directed to the President of the Senate;

“(6) The six copy to be posted on a wall within the premises of the canvassing center;

“(7) The seventh and eight copies to the dominant majority and minority parties;

“(8) The ninth and tenth copies to two accredited major national parties representing the majority and the minority, excluding the dominant majority and minority parties, to be determined by the Commission on the basis of the criteria provided in Section 26 of Republic Act No. 7166;

“(9) The eleventh to thirteenth copies to national broadcast media entities as may be equitably determined by the Commission in view of propagating the copies to the widest extent possible; and

“(10) The fourteenth copy to another citizens’ arm or in the absence thereof, to a non-partisan group or organization enlisted by the Commission pursuant to Section 52(k) of Batas Pambansa Blg. 881. Such citizens’ arm or non-partisan group or organization may use the copy of election return for the conduct of citizens’ quick counts at the local or national levels. “The board of canvassers shall furnish all other registered parties copies of the certificate of canvass at the expense of the requesting party.

“(c) The certificates of canvass printed by the provincial, district, city or municipal boards of canvassers shall be signed and thumb marked by the chairman and members of the board and the principal watchers, if available. Thereafter, it shall be sealed and placed inside an envelope which shall likewise be properly sealed.

“In all instances, where the Board of Canvassers has the duty to furnish registered political parties with copies of the certificate of canvass, the pertinent election returns shall be attached thereto, where appropriate.”

“Immediately after the sixth copy and its supporting statement of votes are printed, the chairman of the board of canvassers shall announce the posting of said prints on a wall within the premises of the canvassing center, which must be sufficiently lighted and accessible to the public. Any person may view or capture an image of the Certificate of Canvass or the supporting statement of votes by means of any data capturing device such as, but not limited to, cameras at any time of the day for forty-eight (48) hours following the posting. After such period, the chairman of the board of canvassers shall detach the election return from the wall and keep the same in his custody to be produced as may be requested by any voter for image or data capturing or for any lawful purpose as may be ordered by competent authority.”

SEC. 22. Section 23 of Republic Act No. 8436 is hereby amended to read as follows:

“SEC. 27. National Board of Canvassers for Senators and Party-List Representatives. – The chairman and members of the Commission on Elections sitting en banc, shall compose the national board of canvassers for senators and party-list representatives. It shall canvass the results by consolidating the certificates of canvass electronically transmitted. Thereafter, the national board shall proclaim the winning candidates for senators and party-list representatives.”

SEC. 23. Section 24 of Republic Act No. 8436 is hereby amended to read as follows:

“SEC. 28. Congress as the National Board of Canvassers for President and Vice-President. – The Senate and the House of Representatives in joint public session shall compose the national board of canvassers for president and vice-president. The certificate of canvass for president and vice-president duly certified by the board of canvassers of each province or city, shall be electronically transmitted to the Congress, directed to the president of the Senate. Upon receipt of the certificates of canvass, the President of the Senate shall, not later than thirty (30) days after the day of the election, open all the certificates in the presence of the Senate and the House of Representatives in joint public session and the Congress upon determination of the authenticity and the due execution thereof in the manner provided by law, canvass all the results for president and vice-president and thereafter, proclaim the winning candidates.”

SEC. 24. A new Section 29 is hereby provided to reads as follows:

“SEC 29. Random Manual Audit. – Where the AES is used, there shall be a random manual audit in one precinct per congressional district randomly chosen by the Commission in each province and city. Any difference between the automated and manual count will result in the determination of root cause and initiate a manual count for those precincts affected by the computer or procedural error.”

SEC. 25. A new Section 30 is hereby provided to read as follows:

“Sec. 30. Authentication of Electronically Transmitted Election Results. – The manner of determining the authenticity and due execution of the certificates shall conform with the provisions of Republic Act No. 7166 as may be supplemented or modified by the provisions of this Act, where applicable, by appropriate authentication and certification procedures for electronic data, electronic documents and electronic signatures as provided in Republic Act No. 8792 as well as the rules promulgated by the Supreme Court pursuant thereto.”

SEC. 26. Section 25 of Republic Act No. 8436 is hereby amended to read as follows:

“SEC. 31. Stakeholder education and training. – The Commission shall, not later than six months before the actual automated election exercise, undertake a widespread stakeholder education and training program, through newspapers of general circulation, radio, television and other media forms, as well as through seminars, symposia, fora and other nontraditional means, to educate the public and fully inform the electorate about the AES and inculcate values on honest, peaceful, orderly and informed elections.

“Such program shall ensure the acceptance and readiness of the following stakeholders to understand and appreciate the benefits of the AES:

1. General public/voters;
2. Commission’s staff;
3. Department of Education, Department of Finance (municipal, city and provincial treasurers) and all other government agencies who will play a role in the electoral exercise;
4. Local government officials (provincial, municipal, barangay levels);
5. Incumbent elected officials in the legislative and executive departments;
6. Political parties and candidates;
7. Members of the military and police.

“The general public or voters training will focus on building the capability to use the automated system to cast their vote, as well as general appreciation of the AES. All other stakeholders mentioned above will receive additional information in order to build a deeper understanding of the voting, counting, canvassing procedures, so that they may act as advocates of the AES.

“The Commission together with and in support of accredited citizens’ arms shall carry out a continuing and systematic campaign through newspapers of general circulation, radio and other media forms, as well as through seminars, symposia, fora and other nontraditional means to educate the public and fully inform the electorate about the AES and inculcate values on honest, peaceful and orderly elections.”

SEC. 27. Section 27 of Republic Act No. 8436 is hereby amended to read as follows:

“SEC. 33. Joint Congressional Oversight Committee. – An Oversight Committee is hereby created composed of seven members each from the Senate and the House of Representatives, four of whom shall come from the majority and three from the minority, to monitor and evaluate the implementation of this Act. A written report to the Senate and the House of Representatives shall be submitted by the Advisory Council within six months from the date of election. The oversight committee shall conduct a mandatory review of this Act every twelve (12) months from the date of the last regular national or local elections.”

“The oversight committee shall conduct a comprehensive assessment and evaluation of the performance of the different AES technologies implemented and shall make appropriate recommendations to Congress, in session assembled, specifically including the following:

“1. An assessment and comparison of each of the AES technologies utilized, including their strengths, weakness, applicability or inapplicability in specific areas and situations;

“2. An evaluation of their accuracy through a comparison of a random sample of the AES election results with a manual tabulation, and the conduct of similar tests;

“3. As to the scope of AES implementation in the subsequent elections, provide for recommendations as to whether any of the following should be adopted:

“a. Further test application of the AES or a particular AES technology used in the 2007 elections, whether in the same or others areas;

“b. An increase or enlargement of areas for implementation of the AES or an AES technology and not a full implementation; or

“c. A full implementation of the AES.

“4. As to the kind of AES technology, provide for proposals as to whether:

“a) A particular AES technology should no longer be utilized for being obsolete, inapplicable, inaccurate or with a defect which cannot be remedied;

“b) An enhancement or improvement is needed to an AES technology which was used in the 2007 elections to make it more functional, appropriate and accurate;

“c) A particular AES technology is already appropriate and should be utilized fully for subsequent elections; or

“d) The testing or adoption of new technologies which may have emerged after the 2007 elections is needed.”

SEC. 28. Section 29 of Republic Act No. 8436 is hereby amended to read as follows:

“SEC. 35. Prohibited Acts and Penalties. – The following shall be penalized as provided in this Act, whether or not said acts affect the electoral process or results:

“(a) Utilizing without authorization, tampering with, damaging, destroying or stealing:

“(1) Official ballots, election returns, and certificates of canvass of votes used in the system; and

“(2) Electronic devices or their components, peripherals or supplies used in the AES such as counting machine, memory pack/diskette, memory pack receiver and computer set;

“(b) Interfering with, impeding, absconding for purpose of gain, preventing the installation or use of computer counting devices and the processing, storage, generation and transmission of election results, data or information;

“(c) Gaining or causing access to using, altering, destroying or disclosing any computer data, program, system software, network, or any computer-related devices, facilities, hardware or equipment, whether classified or declassified;

“(d) Refusal of the citizens’ arm to present for perusal its copy of election return to the board of canvassers;

“(e) Presentation by the citizens’ arm of tampered or spurious election returns;

“(f) Refusal or failure to provide the dominant majority and dominant minority parties or the citizens’ arm their copy of election returns; and

“(g) The failure to post the voters’ list within the specified time, duration and in the designated location shall constitute an election offense on the part [of] the election officer concerned.”

“Any person convicted for violation of this Act, except those convicted of the crime of electoral sabotage, shall be penalized with imprisonment of eight years and one day to twelve (12) years without possibility of parole, and perpetual disqualification to hold public office and deprivation of the right of suffrage. Moreover, the offender shall be perpetually disqualified to hold any non-elective public office.”

SEC. 29. Section 30 of Republic Act No. 8436 is hereby amended to read as follows:

“SEC. 36. Applicability. – The provisions of Batas Pambansa Blg. 881, as amended, otherwise known as the ‘Omnibus Election Code of the Philippines’, and other election laws not inconsistent with this Act shall apply.”

SEC. 30. Section 31 of Republic Act No. 8436 is hereby amended to read as follows:

“SEC. 37. Rules and Regulations. – The Commission shall promulgate rules and regulations for the implementation and enforcement of this Act. “Notwithstanding the foregoing canvassing procedure, the Commission is authorized to prescribe other manner or procedure for the canvassing and consolidation of votes as technology evolves, subject to the provisions of Section 7 hereof on the minimum capabilities of the AES and other pertinent laws.”

SEC. 31. Section 25 of Republic Act No. 7166 is hereby amended to read as follows:

“Sec 25. Manner of Counting Votes. – In addition to the requirement in the fourth paragraph of Section 12 of the Republic Act No. 6646 and Section 210 of the Omnibus Election Code, in reading the official ballots during the counting, the chairman, the poll clerk and the third member shall assume such positions as to provide the watchers and the members of the public as may be conveniently accommodated in the polling place, an unimpeded view of the ballot being ready by the chairman, of the election return and the tally board being simultaneously accomplished by the poll clerk and the third member respectively, without touching any of these election documents. The table shall be cleared of all unnecessary writing paraphernalia. Any violation of this requirement shall constitute an election offense punishable under Sections 263 and 264 the Omnibus Election Code. “The chairman shall first read the votes for national positions. “Any violation of this Section, or its pertinent portion, shall constitute an election offense and shall be penalized in accordance with Batas Pambansa Blg. 881.

SEC. 32. Section 212 of Batas Pambansa Blg. 881 as amended, is hereby to read as follows:

“SEC. 212. Election Returns. – The board of election inspectors shall prepare the election returns simultaneously with the counting of votes in the polling places as prescribed in Section 210 hereof. The recording of vote shall be made as prescribed in said section. The entry of votes in words and figures for each candidate shall be closed with the signature and the clear imprint of the thumbmark of the right hand of all the members, likewise to be affixed in full view of the public, immediately after the last vote recorded or immediately after the name of the candidate who did not receive any vote.”

“The returns shall also show the date of the election, the polling place, the barangay and the city or municipality in which it was held, the total number of ballots found in the compartment for valid ballots, the total number of valid ballots withdrawn from the compartment for spoiled ballots because they were erroneously placed therein, the total number of excess ballots, the total number of marked or void ballots, and the total numbers of votes obtained by each candidate, writing out the said number in words and figures and, at the end thereof, the board of election inspectors shall certify that the contents are correct. The returns shall be accomplished in a single sheet of paper, but if this is not possible, additional sheets may be used which shall be prepared in the same manner as the first sheet and likewise certified by the board of election inspectors.”

“The Commission shall take steps so that the entries on the first copy of the election returns are clearly reproduced on the second, third, fourth, fifth, and sixth copies thereof, and for the purpose this Commission shall use a special kind of paper.”

“Immediately upon the accomplishment of the election return for national positions, the poll clerk shall announce the posting of the second copy of the election return on a wall with sufficient lighting within the premises of the polling place or counting center. He shall then proceed to do the same in the presence of the other members of the Board, the watchers and those present in the polling place or counting center. Without delay and, when feasible, he shall secure an image of the election return using a secured data capturing device and immediately thereafter, while in the premises of the polling place or counting center, directly print thirty (30) copies of the election return. Once the prints have been produced, the poll clerk shall call the other members of the board to authenticate each print copy by closely comparing the same with the election return posted on the wall in the presence of the watchers and within view of the public. If the Board finds each print a faithful reproduction of the election return, all members thereof shall annotate and sign a certification to that effect on the bottom front of the print.

“Each certified printed copy shall be placed in an envelope and distributed as herein provided. Designated recipients of the certified print copies may receive their copies at the polling place or counting center.

“Immediately upon the accomplishment of the election returns for local positions, the second copy of the same shall be posted on a wall with sufficient lighting within the premises of the polling place. “The other copies of election returns for both national and local position shall be sealed in the presence of the watchers and the public, and placed in the proper envelope, which shall likewise be sealed and distributed as herein provided.”

“Any election return with a separately printed serial number or which bears a different serial number from that assigned to the particular polling place concerned shall not be canvassed. This is to be determined by the board of canvassers prior to its canvassing on the basis of the certification of the provincial, city or municipal treasurer as to the serial number of the election return assigned to the said voting precinct, unless the Commission shall order in writing for its canvassing, stating the reason for the variance in serial numbers.”

“If the signatures and/or thumbmarks of the members of the board of election inspectors or some of them as required in this provision are missing in the election returns, the board of canvassers may summon the members of the board of election inspectors concerned to complete the returns.

“The citizen’s arm is mandated to present for perusal its copy of the election return to the board of election canvassers upon the request of any interested candidate.

“Any violation of this election or its pertinent portion, shall constitute an election offense and shall be penalized in accordance with Batas Pambansa Blg. 881 “In addition, the following shall likewise be guilty of an election offense:

“(a) Any Person who removes the election return posted on the wall, whether within or after the prescribed forty-eight (48) hours of posting, or defaces the same in any manner;

“(b) Any person who simulates an actual election return, or a print or digital copy thereof;

“(c) Any person who simulates the certification in a print of an election return;

“(d) The chairman or any member of the board of election inspectors who, during the prescribe period of posting, removes the election return from the wall on which it had been posted other than for the purpose of immediately transferring it to a more suitable place;

“(e) The chairman or any member of the board of election inspectors who signs or authenticates a print of the election return outside of the polling place; and

“(f) The chairman or any member of the board of election inspectors who signs or authenticates a print which bears an image different from the election return produced after counting and posted on the wall.”

SEC. 33. Section 27 of Republic Act No. 7166, as amended by Republic Act No. 8045 and Republic Act No. 8173, is hereby further amended to read as follows:

“SEC. 27. Number of Copies of Election Returns and Their Distribution. – The board of election inspectors shall prepare in handwriting the election returns in their respective polling places, in the number of copies herein provided and in the form to be prescribed and provided by the Commission.

“The copies of election returns shall be distributed by the chairman of the board of election inspectors as follows:

“(a) In the election of president, vice-president, senators and members of the House of Representatives including the party-list representatives:

“(1) The first copy shall be delivered to the city or municipal board of canvassers;

“(2) The second copy to be posted on a wall within the premises of the polling place;

“(3) The third copy, to the Congress, directed to the President of the Senate;

“(4) The fourth copy, to the Commission;

“(5) The fifth copy, to the dominant majority party as determined by the Commission in accordance with law;

“(6) The sixth copy, to the dominant minority party as determined by the Commission in accordance with law;

“(7) The seventh copy, to a citizens’ arm authorized by the Commission to conduct an unofficial count: Provided, however, That the accreditation of the citizens’ arm shall be subject to the provisions of Section 52(k) of Batas Pambansa Blg. 881; and

“(8) The eight copy shall be deposited inside the compartment of the ballot box for valid ballots; and

“(b) In the election of local officials:

“(1) The first copy shall be delivered to the city or municipal board of canvassers;

“(2) The second copy to be posted on a wall within the premises of the polling place;

“(3) The third copy, to the Commission;

“(4) The fourth copy, to the provincial board of canvassers;

“(5) The fifth copy, to the dominant majority party as determined by the Commission in accordance with law;

“(6) The sixth copy, to the dominant minority party as determined by the Commission in accordance with law;

“(7) The seventh copy, to a citizens’ arm authorized by the Commission to conduct an unofficial count: Provided, however, That the accreditation of the citizens’ arm shall be subject to the provisions of Section 52(k) of Batas Pambansa Blg. 881; and

“(8) The eighth copy shall be deposited inside the compartment of the ballot box for valid votes.

“The copy of the election return posted on the wall shall be open for public viewing at any time of the day for forty-eight (48) hours following its posting. Any person may view or capture an image of the election return by means of any data capturing device such as, but not limited to, cameras at any time of the day for forty-eight (48) hours following its posting. After the prescribed period for posting, the chairman of the board of election inspectors shall collect the posted election returns and keep the same in his custody to be produced for image or data capturing as may be requested by any voter or for any lawful purpose as may be ordered by competent authority.

“Except for those copies that are required to be delivered, copies of election returns may be claimed at the polling place. Any unclaimed copy shall be brought by the chairman of the board of election inspectors to the canvassing center where the recipients or their representatives may claim them. Copies still unclaimed at the canvassing center shall be deemed placed in the custody of the chairman of the board of election inspectors, who shall produce them when requested by the recipient or when ordered by a competent authority.

“The thirty (30) certified print copies of the election return for national positions shall be distributed as follows:

“(a) The first fourteen (14) copies shall be given to the fourteen (14) accredited major national parties in accordance with a voluntary agreement among them. If no such agreement is reached, the Commission shall decide which parties shall receive the copies on the basis of the criteria provided in Section 26 hereof;

“(b) The next three copies shall be given to the three accredited major local parties in accordance with a voluntary agreement among them. If no such agreement is reached, the Commission shall decide which parties shall receive the copies on the basis of criteria analogous to that provided in Section 26 hereof;

“(c) The next five copies shall be given to national broadcast or print media entities as may be equitably determined by the Commission in view of propagating the copies to the widest extent possible;

“(d) The next two copies shall be given to local broadcast or print media entities as may be equitably determined by the Commission in view of propagating the copies to the widest extent possible;

“(e) The next four copies to the major citizens’ arms, including the accredited citizens’ arm, and other non-partisan groups or organizations enlisted by the Commission pursuant to Section 52(k) of Batas Pambansa Blg. 881;

“(f) The next copy to be placed inside the compartment of the ballot box for valid ballots; and

“(g) The last copy to the provincial board of canvassers.”

“The certified print copies may be claimed at the polling place. Any unclaimed copy shall be brought by the chairman of the board of election inspectors to the canvassing center where the recipients or their representatives may claim them. Copies still unclaimed at the canvassing center shall be placed in the custody of the chairman of the board election inspectors, who shall produce them when requested by the recipient or when ordered by a competent authority.

“Any provision of law to the contrary notwithstanding, any of the recipients of the print or digital copies of the election return may conduct an unofficial consolidation of votes and may announce the result to the public. “The Commission shall post its digital files in its website for the public to view or download at any time of the day. The Commission shall maintain the files at least three years from the date of posting.

“Any violation of this section, or its pertinent portion, shall constitute an election offense and shall be penalized in accordance with Batas Pambansa Blg. 881.”

SEC. 34. Sec. 26 of Republic Act No. 7166 is hereby amended to read as follows:

“SEC. 26. Official Watchers. – Every registered political party or coalition of political parties, and every candidate shall each be entitled to one watcher in every polling place and canvassing center: Provided, That, candidates for the Sangguniang Panlalawigan, Sangguniang Panlunsod, or Sangguniang Bayan belonging to the same slate or ticket shall collectively be entitled to only one watcher.

“The dominant majority party and dominant minority party, which the Commission shall determine in accordance with law, shall each be entitled to one official watcher who shall be paid a fixed per diem of Four hundred pesos (P400.00).

“There shall also be recognized six principal watchers, representing the six accredited major political parties excluding the dominant majority and minority parties, who shall be designated by the Commission upon nomination of the said parties. These political parties shall be determined by the Commission upon notice and hearing on the basis of the following circumstances:

“(a) The established record of the said parties, coalition of groups that now composed them, taking into account, among other things, their showing in past elections;

“(b) The number of incumbent elective officials belonging to them ninety (90) days before the date of election;

“(c) Their identifiable political organizations and strengths as evidenced by their organized/chapters;

“(d) The ability to fill a complete slate of candidates from the municipal level to the position of President; and

“(e) Other analogous circumstances that may determine their relative organizations and strengths.”

SEC. 35. Section 206 of Batas Pambansa Blg. 881 is hereby amended to read as follows:

“SEC. 206. Counting to be Public and Without Interruption. – As soon as the voting is finished, the board of election inspectors shall publicly count in the polling place the votes cast and ascertain the results. The Board may rearrange the physical set up of the polling place for the counting or perform any other activity with respect to the transition from voting [to] counting. However, it may do so only in the presence of the watchers and within close view of the public. At all times, the ballot boxes and all election documents and paraphernalia shall be within close view of the watchers and the public.

“The board of election inspectors shall not adjourn or postpone or delay the count until it has been fully completed, unless otherwise ordered by the Commission.

“The Commission, in the interest of free, orderly, and honest election, may authorize the board of election inspectors to count the votes and to accomplish the election returns and other forms prescribed under this Code in any other place within a public building in the same municipality or city on account of imminent danger of widespread violence or similar causes of comparable magnitude: Provided, That the transfer shall been recommended in writing by the board of election inspectors by unanimous vote and endorsed in writing by the majority of watchers present: Provided, further, That the said public building shall not be located within the perimeter of or inside a military or police camp, reservation, headquarters, detachment or field office nor within the premises of a prison or detention bureau or any law enforcement or investigation agency.

“Any violation of this section, or its pertinent portion, shall constitute an election offense and shall be penalized in accordance with Batas Pambansa Blg. 881.”

SEC. 36. Section 18 of Republic Act No. 6646 is hereby repealed.

SEC. 37. Section 30 of Republic Act No. 7166 is hereby amended to read as follows:

“SEC. 30. Congress as the National Board of Canvassers for the Election of President and Vice President: The Commission en banc as the National Board of Canvassers for the election of senators: Determination of Authenticity and Due Execution of Certificates of Canvass. – Congress and the Commission en banc shall determine the authenticity and due execution of the certificate of canvass for president and vice-president and senators, respectively, as accomplished and transmitted to it by the local boards of canvassers, on a showing that:

(1) each certificate of canvass was executed, signed and thumbmarked by the chairman and members of the board of canvassers and transmitted or caused to be transmitted to Congress by them;

(2) each certificate of canvass contains the names of all of the candidates for president and vice-president or senator, as the case may be, and their corresponding votes in words and their corresponding votes in words and in figures;

(3) there [exists] no discrepancy in other authentic copies of the certificates of canvass or any of its supporting documents such as statement of votes by city/municipality/by precinct or discrepancy in the votes of any candidate in words and figures in the certificate; and

(4) there exists no discrepancy in the votes of any candidate in words and figures in the certificate of canvass against the aggregate number of votes appearing in the election returns of precincts covered by the certificate of canvass: Provided, That certified print copies of election returns or certificates of canvass may be used for the purpose of verifying the existence of the discrepancy.

“When the certificate of canvass, duly certified by the board of canvass of each province, city [or] district, appears to be incomplete, the Senate President or the Chairman of the Commission, as the case may be, shall require the board of canvassers concerned to transmit by personal delivery, the election returns from polling places that were not included in the certificate of canvass and supporting statements. Said election returns shall be submitted by personal delivery within two (2) days from receipt of notice.

“When it appears that any certificate of canvass or supporting statement of votes by city/municipality or by precinct bears erasures or alterations which may cast doubt as to the veracity of the number of votes stated herein and may affect the result of the election, upon request of the presidential, vice-presidential or senatorial candidate concerned or his party, Congress or the Commission en banc, as the case may be, shall, for the sole purpose of verifying the actual number of votes cast for President and Vice-President or senator, count the votes as they appear in the copies of the election returns submitted to it.

“In case of any discrepancy, incompleteness, erasure or alteration as mentioned above, the procedure on pre-proclamation controversies shall be adopted and applied as provided in Sections 17, 18, 19 and 20.

“Any person who presents in evidence a simulated copy of an election return, certificate of canvass or statement of votes, or a printed copy of an election return, certificate of canvass or statement of votes bearing a simulated certification or a simulated image, shall be guilty of an election offense and shall be penalized in accordance with Batas Pambansa Blg. 881.”

SEC. 38. Section 15 of Republic Act No. 7166 is hereby amended to read as follows:

“SEC. 15. Pre-proclamation Cases in Elections for President, Vice-President, Senator, and Member of the House of Representatives. – For purposes of the elections for president, vice-president, senator, and member of the House of Representatives, no pre-proclamation cases shall be allowed on matters relating to the preparation, transmission, receipt, custody and appreciation of election returns or the certificates of canvass, as the case may be, except as provided for in Section 30 hereof. However, this does not preclude the authority of the appropriate canvassing body motu propio or upon written complaint of an interested person to correct manifest errors in the certificate of canvass or election returns before it.

“Questions affecting the composition or proceedings of the board of canvassers may be initiated in the board or directly with the Commission in accordance with Section 19 hereof.

“Any objection on the election returns before the city or municipal board of canvassers, or on the municipal certificates of canvass before the provincial board of canvassers or district board of canvassers in Metro Manila Area, shall be specifically noticed in the minutes of their respective proceedings.”

SEC. 39. Section 28 of Republic Act No. 7166 is hereby amended as follows:

“SEC. 28. Canvassing by Provincial, City, District and Municipal Board of Canvassers. -

a) The city or municipal of board of canvassers shall canvass the election returns of President, Vice President, Senator and Members of the House of Representatives and for elective provincial and city or municipal officials: Provided, That the returns for national positions shall be canvassed first. Upon completion of the canvass, it shall prepare the certificate of canvass for president, vice-president, senators and members the House of Representatives and elective provincial officials, announce the results of the election for national positions in the city or municipality, and thereafter, proclaim the elected city or municipal officials, as the case may be.

“b) The city board of canvassers of cities comprising one or more legislative districts shall canvass the election returns for president, vice-president, senators, members of the House of Representatives and elective city officials: Provided, That the returns for national positions shall be canvassed first. Upon completion of the canvass, the board shall prepare the certificate of canvass of president, vice-president, and senators, announce the results of the election for national positions in the city, and thereafter, proclaim the elected members of the House of the Representatives and city officials.

“c)

(1) In the Metro Manila Area such municipality comprising a legislative district shall have district board of canvassers which shall canvass the election returns for President, Vice-President, Senators, Members for the House of Representatives and elective municipal officials: Provided, That the returns for national positions shall be canvassed first. Upon completion of the canvass, it shall prepare the certificate of canvass for president, vice-president and senators, announce the results of the election for national positions in the municipality, and thereafter, proclaim the elected member of the House of the Representatives and municipal officials.

“(2) Each component municipality in a legislative district in the Metro Manila Area shall have a municipal board of canvassers which shall canvass the election returns for president, vice-president, senators, member of the House of Representatives and elective municipal officials: Provided, That the returns for national positions shall be canvassed first. Upon completion of the canvass, each shall prepare the certificate of canvass for president, vice-president, senators, and members of the House of the Representatives, announce the results of the election for national positions in the municipality, and thereafter, proclaim the elected municipal officials.

“(3) The district board of canvassers of each legislative district comprising two municipalities in the Metro Manila Areas shall canvass the certificate of canvass for President, Vice-President, Senators and Members of the House of Representatives submitted by the municipal board of canvassers of the component municipalities. Upon completion of the canvass, it shall prepare a certificate of canvass for president, vice-president and senators, announce the results of the election for national positions in the district, and thereafter, proclaim the elected member of the House of the Representatives in the legislative district,

“(d) The provincial board of canvassers shall canvass the certificate of canvass for president, vice-president, senators, and members of the House of Representatives and elective provincial officials as well as plebiscite results, if any plebiscite is conducted simultaneously with the same election, as submitted by the board of canvassers of municipalities and component cities: Provided, That the returns for national positions shall be canvassed first. Upon completion of the canvass, it shall prepare the certificate of canvass for president, vice-president, and senators, announce the results of the election for national positions in the province, and thereafter, proclaim the elected member of the House of Representatives and provincial officials as well as the plebiscite results, if any.

“In conducting the canvass of election returns or certificates of canvass, as the case may be, the board of canvassers in a municipality, city, district or province shall project each election return or certificate of canvass on a wall from which its contents shall be read in order that those present in the canvassing center may follow the progress of the canvassing process from beginning to end. The Commission may utilize the appropriate projection equipment for this purpose.

“Immediately after the certificate of canvass for national positions is accomplished, the chairman of the Board of Canvassers shall announce the posting of the second copy thereof and its supporting statement of votes on a wall with sufficient lighting within the premises of the canvassing center. He shall then proceed to do the same in the presence of the other members of the board, the watchers and those present in the canvassing center. Without delay and when feasible, he shall capture images of the certificate of canvass and supporting statements of votes using a secured data capturing device and thereafter, while in the premises of the canvassing center, immediately print the data so captured in thirty (30) copies. The board of canvassers shall then authenticate each printed copy, in the presence of watchers and within public view, by closely comparing the same with the certificate of canvass or statement of votes, as the case may be, posted on of the wall. If the board finds each printed copy a faithful reproduction of the certificate of canvass or statement of votes, all members thereof shall annotate and sign a certification to that effect on the bottom front of the printed copy.

“Each certified printed copy shall be placed in an envelope and distributed as herein provided. Designated recipients of the certified printed copies may receive their copies at the canvassing center.

“The chairman of the board shall transmit the digital files of the certificate of canvass and its supporting statement of votes using a secured transmission device with authentication features to the secured tabulation system of the Commission and to the systems of the other designated recipients as herein provided.

“Any provision of law to the contrary notwithstanding, any of the recipients of the print or digital copies of the certificate of canvass and the supporting statements of votes may conduct an unofficial consolidation of votes and may announce the result thereof to the public.

“Any violation of this section, or its pertinent portion, shall constitute an election offense and shall be penalized in accordance with Batas Pambansa Blg. 881. “In addition, the following shall likewise be guilty of an election offense:

“(a) Any person who removes the certificate of canvass posted on the wall, whether within or after the prescribed forty-eight (48) hours of posting, or defaces the same in any manner;

“(b) Any person who simulates an actual certificates of canvass or statement of votes, or a print or digital copy thereof;

“(c) Any person who simulates the certification of a certificate of canvass or statement of votes;

“(d) The chairman or any member of the board of canvassers who, during the prescribed period of posting, removes the certificate of canvass or its supporting statement of votes from the wall on which they have been posted other than for the purpose of immediately transferring them to a more suitable place;

“(e) The chairman or any member of the board of canvassers who signs or authenticates a print of the certificate of canvass or its supporting statement of votes outside of the polling place: and

“(f) The chairman or any member of the board of canvassers who signs or authenticates a print which bears an image different from the certificate of canvass or statement of votes produced after counting and posted on the wall.”

SEC. 40. Section 29 of Republic Act No. 7166 is hereby amended to read as follows:

“SEC.29. Number of Copies of Certificates of Canvass and their Distribution. -

a) The certificate of canvass for president, vice-president, senators and members of the House of Representatives and elective provincial officials shall be prepared in seven copies by the city or municipal board of canvassers and distributed as follows:

“(1) The first copy shall be delivered to the provincial board of canvassers for use in the canvass election results for president, vice-president, senators and members of the House of Representatives and elective provincial officials:

“(2) The second copy shall be sent to the Commission;

“(3) The third copy shall be posted on a wall within the premises of the canvassing center;

“(4) The fourth copy shall be kept by the Chairman of the Board; and

“(5) The fifth copy shall be given the citizens’ arm designated by the Commission to conduct a media-based unofficial count, and the sixth and seventh copies shall be given to the representatives of two of the six major political parties in accordance with the voluntary agreement of the parties. If no such agreement is reached, the Commission shall decide which parties shall receive the copies of the certificate of the canvass on the basis of the criteria provided in Section 26 hereof. The parties receiving the certificates shall have the obligation to furnish the other parties with authentic copies thereof with the least possible delay.

“b) The certificate of canvass for president, vice-president, senators shall be prepared in seven (7) copies by the city boards of canvassers of cities comprising one or more legislative districts, by provincial boards of canvassers and by district boards of canvassers in the Metro Manila Area, and distributed as follows:

“(1) The first copy shall be sent to the Congress, directed to the President of the Senate for use in the canvass of election results for president and vice-president;

“(2) The second copy shall be sent to the Commission for use in the canvass of the election results for Senators;

“(3) The third copy shall be posted on a wall within the premises of the canvassing center;

“(4) The fourth copy shall be kept by the Chairman of the Board; and

“(5) The fifth copy shall be given to the citizens’ arm designated by the Commission to conduct a media-based unofficial count, and the sixth and seventh copies shall be given to the representatives of two of the six major political parties in accordance with the voluntary agreement of the parties. If no such agreement is reached, the Commission shall decide which parties shall receive the copies of the certificate of canvass on the basis of the criteria provided in Section 26 hereof. The parties receiving the certificates shall have the obligation to furnish the other parties with authentic copies thereof with the least possible delay.

“The copy of the certificate of canvass posted on the wall shall be open for public viewing at any time of the day for forty-eight (48) hours following its posting. Any person may view or capture an image of the certificate of canvass. After the prescribed period for posting, the chairman of the board of canvassers shall collect the posted certificate of canvass and keep the same in his custody to be produced for image or data capturing as may be requested by any voter or for any lawful purpose as may be ordered competent authority.

“Except for those copies that are required to be delivered, copies of certificates of canvass may be claimed at the canvassing center. Any unclaimed copy shall be deemed placed in the custody of the chairman of the board of canvassers, who shall produce them when requested by the recipient or when ordered by a competent authority. “The thirty (30) certified print copies of the certificate canvass for national positions shall be distributed as follows:

“(a) The first fourteen (14) copies shall be given to the fourteen (14) accredited major national parties in accordance with a voluntary agreement among them. If no such agreement is reached, the Commission shall decide which parties shall receive the copies on the basis of the criteria provided in Section 26 hereof;

“(b) The next three copies shall be given to the three accredited major local parties in accordance with a voluntary agreement among them. If no such agreement is reached, the Commission shall decide which parties shall receive the copies in the basis of criteria analogous to that provided in Section 26 hereof;

“(c) The next five copies shall be given to national broadcast or print media entities as may be equitably determined by the Commission in view of propagating the copies to the widest extent possible;

“(d) The next two copies shall be given to local broadcast or print media entitles as may be equitably determined by the Commission in view of propagating the copies to the widest extent possible;

“(e) The next four copies to the major citizens’ arms, including the accredited citizens’ arm, and other non-partisan groups or organizations enlisted by the Commission pursuant to Section 52(k) of Batas Pambansa Blg. 881; and

(f) The last two copies to be kept in file by the chairman of the board of canvassers to be subsequently distributed as the national board of canvassers may direct.

“The certified print copies may be claimed at the canvassing center. Any unclaimed copy shall be deemed place in the custody of the chairman of the board of canvassers, who shall produce them when requested by the recipient or when ordered by a competent authority.

“The Commission shall post its digital files in its website for the public to view or download at any time of the day. The Commission shall maintain the files for at least three years from the date of posting.

“Any violation of this section, or its pertinent portion, shall constitute an election offense and shall be penalized in accordance with Batas Pambansa Blg. 881.”

SEC. 41. The first paragraph of Sec. 52 of Batas Pambansa Blg. 881 is hereby amended to read as follows:

“Sec. 52. Powers and Functions of the Commission on Elections. – In addition to the powers and functions conferred upon it by the Constitution, the Commission shall have exclusive charge of the enforcement and administration of all laws relative to the conduct of elections for the purpose of ensuring free, orderly and honest elections, except as otherwise provided herein and shall:”

SEC. 42. Section 27 (b) of Republic Act No. 6646 is hereby amended to read as follows :

“Sec. 27. Election Offenses; Electoral Sabotage. – In additional to the prohibited acts and election offenses enumerated in Section 261 and 262 of Batas Pambansa Blg. 881, as amended, the following shall be guilty of an election offense or a special election offense to be known as electoral sabotage:

“(a) x x x

“(b) Any person or member of the board of election inspectors or board of canvassers who tampers, increases or decreases the votes received by a candidate in any election or any member of the board who refuses, after proper verification and hearing, to credit the correct votes or deduct such tampered votes: Provided, however, That when the tampering, increase or decrease of votes or the refusal to credit the correct votes and/or to deduct tampered votes to deduct tampered votes are perpetrated on a large scale or in substantial numbers, the same shall be considered, not as an ordinary election offense under Sections 261 and/or 262 of the Omnibus Election Code, but a special election offense to be known as electoral sabotage and the penalty to be imposed shall be life imprisonment.

“The act or offense committed shall fall under the category of electoral sabotage in any of the following instances;

“(1) When the tampering, increase and/or decrease of votes perpetrated or the refusal to credit the correct votes or to deduct tampered votes, is/are committed in the election of a national elective office which is voted upon nationwide and the tampering, increase and/or decrease votes, refusal to credit the correct votes or to deduct tampered votes, shall adversely affect the results of the election to the said national office to the extent that losing candidate/s is/are made to appear the winner/s;

“(2) Regardless of the elective office involved, when the tampering, increase and/or decrease of votes committed or the refusal to credit the correct votes or to deduct tampered votes perpetrated, is accomplished in a single election document or in the transposition of the figures/results from one election document to another and involved in the said tampering increase and/or decrease or refusal to credit correct votes or deduct tampered votes exceed five thousand (5,000) votes, and that the same adversely affects the true results of the election;

“(3) Any and all other forms or tampering increase/s and/or decrease/s of votes perpetuated or in cases of refusal to credit the correct votes or deduct the tampered votes, where the total votes involved exceed ten thousand (10,000) votes;

“Provided finally, That any and all either persons or individuals determined to be conspiracy or in connivance with the members of the BEIs or BOCs involved, shall be meted the same penalty of life imprisonment.”

SEC. 43. Section 265 of Batas Pambansa Blg. 881 is hereby amended to read as follow:

“SEC. 265. Prosecution. – The Commission shall, through its duly authorized legal officers, have the power, concurrent with the other prosecuting arms of the government, to conduct preliminary investigation of all election offenses punishable under this Code, and prosecute the same.”

SEC. 44. Appropriations. – To carry out the provisions of this Act, the amount necessary for the automated system shall be charged against the Two billion six hundred million pesos (P2,600,000,000.00) modernization fund in the current year’s appropriations of the Commission. Further, the amount necessary to carry out the manual system, at a maximum of Three billion pesos (P3,000,000,000) shall be charged against the current year’s appropriation of the Commission.

Thereafter, such sums as may be necessary for the continuous implementation of this Act shall be included in the annual General Appropriations Act.

If the said funds shall not be fully utilized, the same shall continue to be appropriated for the electoral modernization as set forth in this Act and shall not revert to the General Fund.

SEC. 45. Separability Clause. – If, for any reason, any section or provision of this Act or any part thereof, or the application of such section, provision or portion is declared invalid or unconstitutional, the remainder thereof shall not be affected by such declaration.

SEC. 46. Repealing Clause. – All laws, presidential decrees, executive orders, rules and regulations or part thereof inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SEC. 47. Effectivity. – This Act Shall take effect fifteen (15) days after its publication in a newspaper of general circulation.

Approved: 23 January 2007

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

Section 1. – Section 1 of Republic Act No. 9164 is hereby amended to read as follows:

“SECTION 1. Date of Election. There shall be synchronized barangay and sangguniang kabataan elections which shall be held on July 15, 2002. Subsequent synchronized barangay and sangguniang kabataan elections shall be held on the last Monday of October 2007 and every three (3) years thereafter.”

Sec. 2. Section 4 of Republic Act No. 9164 is hereby amended to read as follows:

“SEC. 4. Assumption of Office. – The term of office of the barangay and sangguniang kabataan officials elected under this Act shall commence on August 15, 2002, next following their elections. The term of office of the barangay and sangguniang kabataan officials elected in the October 2007 election and subsequent elections shall commence at noon of November 30 next following their election.”

Sec 3. Section 5 of Republic Act No. 9164 is hereby amended to read as follows:

“SEC. 5. Hold Over. – All incumbent barangay and all sangguniang kabataan officials shall remain in office unless sooner removed or suspended for cause until their successors shall have been elected and qualified Provided, however, That barangay and all sangguniang kabataan officials who are ex officio members of the sangguniang bayan, sangguniang panlungsod or sangguniang panlalawigan as the case may be shall continue to serve as such members in the sanggunian concerned until the next barangay election. The Liga ng mga Barangay at the municipal, city, and provincial levels shall, within thirty (30) days after the next barangay election, conduct elections for ex officio positions in the sanggunians under the supervision of the Department of the Interior and Local Government.”

Sec. 4. Section 8 of Republic Act No. 9164 is hereby amended to read as follows:

“SEC. 8. Appropriations. – The amount necessary for the implementation of this Act shall be taken from the appropriation of the Commission on Elections (COMELEC) under the General Appropriations Act and/or supplementary appropriations thereafter.

“In addition, the savings of the COMELEC not exceeding Three hundred million pesos (P300,000,000.00) shall be used to augment said appropriations as authorized under COMELEC Special Provision No. 2 of Republic Act No. 9162.

“The funds mentioned above may be augmented by an amount not exceeding ten percent (10%) of the sangguniang kabataan funds reserved pursuant to Section 532(c) of Republic Act No. 7160.”

Sec. 5. Implementing Rules and Regulations. – The COMELEC shall promulgate such rules and regulations necessary to implement this Act.

Sec. 6. Repealing Clause. – All laws, decrees, executive orders, and rules and regulations, or parts thereof, inconsistent with the provisions of this Act, are hereby repealed or modified accordingly.

Sec. 7. Separability Clause. – If, for any reason, any section or provision of this Act is held unconstitutional or invalid, the other sections or provisions hereof shall not be affected and thereby remain in full force and effect.

Sec. 8. Effectivity Clause. – his Act shall take effect fifteen (15) days after its complete publication in at least two (2) national newspapers of general circulation.

Approved: September 22, 2005

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

SECTION 1. Appropriations. – The sum of Eleven billion three hundred one million seven hundred ninety thousand pesos (P11, 301,790,000.00) is hereby appropriated to fund and support the holding and conduct of an Automated Election System, the procurement of services, supplies and machines on a lease purchase agreement including mandatory biometric registration of voters.

SEC. 2. Use of Funds. – The amounts herein appropriated shall be used for the purposes indicated and subject to: (i) the relevant special and general provisions of Republic Act No. 9498, or the FY 2008 General Appropriations Act, as reenacted, and subsequent General Appropriations Acts; and (ii) the applicable provisions of Republic Act No. 8436, entitled: “An Act Authorizing the Commission on Elections to Use an Automated Election System in the May 11, 1998 National or Local Elections and in Subsequent National and Local Electoral Exercises, Providing Funds Therefor and for Other Purposes”, as amended by Republic Act No. 9369: Provided, however, That disbursement of the amounts herein appropriated or any part thereof shall be authorized only in strict compliance with the Constitution, the provisions of Republic Act No. 9369 and other election laws incorporated in said Act so as to ensure the conduct of a free, orderly, clean, honest and credible election and shall adopt such measures that will guaranty transparency and accuracy in the selection of the relevant technology of the machines to be used on May 10, 2010 automated national and local election.

SEC. 3. Release of Funds. – The amounts herein appropriated shall be released to the Commission on Elections by the Department of Budget and Management in accordance with budgeting laws, rules and regulations.

SEC. 4. Effectivity. – This Act shall take effect upon its publication in at least two (2) newspapers of general circulation.

Approved,

(Sgd.) JUAN PONCE ENRILE
President of the Senate (Sgd.) PROSPERO C. NOGRALES
Speaker of the House
of Representatives

This Act which originated in the House of Representatives was finally passed by the House of Representatives and the Senate on March 5, 2009.

(Sgd.) EMMA LIRIO REYES
Secretary of the Senate (Sgd.) MARILYN B. BARUA-YAP
Secretary General
House of Representatives

Approved: March 23 2009
(Sgd.) GLORIA MACAPAGAL-ARROYO
President of the Philippines

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

Section 1. Date of Election – The regular election for regional Governor and Regional Vice Governor and Members of the Regional Legislative Assembly of the Autonomous Region in Muslim Mindanao (ARMM) shall be held on the second Monday of August 2005. Succeeding regular elections shall be held on the same date every three years thereafter.

Sec. 2. Term of Office. – The term of office of the Regional Governor, Regional Vice-Governor and Members of the Regional Legislative Assembly of the ARMM shall be for a period of three years, which shall commence at noon on the thirtieth (30th) day of September 2005 and shall end at noon of the same date three years thereafter.

Sec 3. Hold-over. – All incumbent elective officials of the ARMM elected in the first regular election under Republic Act. No. 9054 and Republic Act. No. 9140 shall hold office, in an hold-over capacity, until their successor shall have been elected and qualified.

Sec. 4. Rules and Regulations. – The Commission on Elections shall promulgate the necessary rules and regulations to carry out the purpose the purpose of this Act.

Sec. 5. Repealing Clause. – All laws, decrees, orders, rules and regulations, and other issuances or parts thereof which are inconsistent with this Act, are hereby repealed, amended and modified accordingly. Sec. 6. Effectivity Clause. – This Act shall take effect immediately upon the completion of its publication in at least one newspaper of general circulation.

Approved: September 21, 2004

Section Details

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 Overseas Absentee Voting Act of 2003.”

Sec. 2. Declaration of Policy. – It is the prime duty of the State to provide a system of honest and orderly overseas absentee voting that upholds the secrecy and sanctity of the ballot. Towards this end, the State ensures equal opportunity to all qualified citizens of the Philippines abroad in the exercise of this fundamental right.

Sec. 3. Definition of Terms. – For purposes of this Act:

1. “Absentee Voting” refers to the process by which qualified citizens of the Philippines abroad exercise their right to vote;

2. “Commission” refers to the Commission on Elections;

3. “Certified List of Overseas Absentee Voters” refers to the list of registered overseas absentee voters whose applications to vote in absentia have been approved by the Commission, said list to be prepared by the Committee on Absentee Voting of the Commission, on a country-by-country basis. This list shall be approved by the Commission in an en banc resolution;

4. “Day of Election” refers to the actual date of elections in the Philippines;

5. “National Registry of Absentee Voters” refers to the consolidated list prepared, approved and maintained by the Commission, of overseas absentee voters whose applications for registration as absentee voters, including those registered voters who have applied to be certified as absentee voters, have been approved by the Election Registered Board;

6. “Overseas Absentee Voter” refers to a citizen of the Philippines who is qualified to register and vote under this Act, not otherwise disqualified by law, who is abroad on the day of elections.

Sec. 4. Coverage. – All citizens of the Philippines abroad, who are not otherwise disqualified by law, at least eighteen (18) years of age on the day of elections, may vote for president, vice-president, senators and party-list representatives.

Sec. 5. Disqualifications. – The following shall be disqualified from voting under this Act:

1. Those who have lost their Filipino citizenship in accordance with Philippine laws;

2. Those who have expressly renounced their Philippine citizenship and who have pledged allegiance to a foreign country;

3. Those who have committed and are convicted in a final judgment by a court or tribunal of an offense punishable by imprisonment of not less than one (1) year, including those who have committed and been found guilty of Disloyalty as defined under Article 137 of the Revised Penal Code, such disability not having been removed by plenary pardon or amnesty; Provided, however, That any person disqualified to vote under this subsection shall automatically acquire the right to vote upon expiration of five (5) years after service of sentence; Provided, further, That the Commission may take cognizance of final judgments issued by foreign courts or tribunals only on the basis of reciprocity and subject to the formalities and processes prescribed by the Rules of Court on execution of judgments;

4. An immigrant or a permanent resident who is recognized as such in the host country, unless he/she executes, upon registration, an affidavit prepared for the purpose by the Commission declaring that he/she shall resume actual physical permanent residence in the Philippines not later than three (3) years from approval of his/her registration under this Act. Such affidavit shall also state that he/she has not applied for citizenship in another country. Failure to return shall be the cause for the removal of the name of the immigrant or permanent resident from the National Registry of Absentee Voters and his/her permanent disqualification to vote in absentia.

5. Any citizen of the Philippines abroad previously declared insane or incompetent by competent authority in the Philippines or abroad, as verified by the Philippine embassies, consulates or foreign service establishments concerned, unless such competent authority subsequently certifies that such person is no longer insane or incompetent.

Sec. 6. Personal Overseas Absentee Registration. – Registration as an overseas absentee voter shall be done in person.

Qualified citizens of the Philippines abroad who failed to register under Republic Act No. 8189, otherwise known as the “The Voters Registration Act of 1996″, may personally apply for registration with the Election Registration Board of the city or municipality where they were domiciled immediately prior to their departure from the Philippines, or with the representative of the Commission at the Philippine embassies, consulates and other foreign service establishments that have jurisdiction over the locality where they temporarily reside. Subject to the specific guidelines herein provided, the Commission is hereby authorized to prescribe additional procedures for overseas absentee registration pursuant to the provisions of Republic Act No. 8189, whenever applicable, taking into strict consideration the time zones and the various periods and processes herein provided for the proper implementation of this Act. The embassies, consulates and other foreign service establishments shall transmit within (5) days from receipt the accomplished registration forms to the Commission, after which the Commission shall coordinate with the Election Officer of the city or municipality of the applicant’s stated residence for verification, hearing and annotation in the permanent list of voters.

All applications for the May, 2004 elections shall be filed with the Commission not later than two hundred eighty (280) calendar days before the day of elections. For succeeding elections, the Commission shall provide for the period within which applications to register must be filed.

In the case of seafarers, the Commission shall provide a special mechanism for the time and manner of personal registration taking into consideration the nature of their work.

6.1. Upon receipt of the application for registration, the Election Officer shall immediately set the application for hearing, the notice of which shall be posted in a conspicuous place in the premises of the city or municipal building of the applicant’s stated residence for at least one (1) week before the date of the hearing. The Election Officer shall immediately furnish a copy of the application to the designated representatives of political parties and other accredited groups.

6.2. If no verified objection to the application is filed, the Election Officer shall immediately forward the application to the Election Registration Board, which shall decide on the application within one (1) week from the date of hearing without waiting for the quarterly meeting of the Board. The applicant shall be notified of the approval or disapproval of his/her application by registered mail.

6.3. In the event that an objection to the application is filed prior to or on the date of hearing, the Election Officer shall notify the applicant of said objection by registered mail, enclosing therein copies of affidavits or documents submitted in support of the objection filed with the said Election Officer, if any. The applicant shall have the right to file his counter-affidavit by registered mail, clearly stating therein facts and defenses sworn before any officer in the host country authorized to administer oaths.

6.4. The application shall be approved or disapproved based on the merits of the objection, counter-affidavit and documents submitted by the party objecting and those of the applicant.

6.5. A Certificate of Registration as an overseas absentee voter shall be issued by the Commission to all applicants whose applications have been approved, including those certified as registered voters. The Commission shall include the approved applications in the National Registry of Absentee Voters.

6.6. If the application has been approved, any interested party may file a petition for exclusion not later than two hundred ten (210) days before the day of elections with the proper municipal or metropolitan trial court. The petition shall be decided within fifteen (15) days after its filing on the basis of the documents submitted in connection therewith. Should the court fail to render a decision within the prescribed period, the ruling of the Election Registration Board shall be considered affirmed.

6.7. If the application has been disapproved, the applicant or his authorized representative shall, within a period of five (5) days from receipt of the notice of disapproval, have the right to file a petition for inclusion with the proper municipal or metropolitan trial court. The petition shall be decided within five (5) days after its filing on the basis of documents submitted in connection therewith.

Qualified citizens of the Philippines abroad, who have previously registered as voters pursuant to Republic Act No. 8189 shall apply for certification as absentee voters and for inclusion in the National Registry of Overseas Absentee Voters, with a corresponding annotation in the Certified Voters’ List.

Sec. 7. System of Continuing Registration. – The Commission shall ensure that the benefits of the system of continuing registration are extended to qualified overseas absentee voters. Towards this end, the Commission shall optimize the use of existing facilities, personnel and mechanisms of the various government agencies for purposes of data gathering, data validation, information dissemination and facilitation of the registration process.

Pre-departure programs, services and mechanisms offered and administered by the Department of Foreign Affairs, Department of Labor and Employment, Philippine Overseas Employment Administration, Overseas Workers’ Welfare Administration, Commission on Filipinos Overseas and other appropriate agencies of the government shall be utilized for purposes of supporting the overseas absentee registration and voting processes, subject to limitations imposed by law.

Sec. 8. Requirements for Registration. – Every Filipino registrant shall be required to furnish the following documents:

1. A valid Philippine passport. In the absence of a valid passport, a certification of the Department of Foreign Affairs that it has reviewed the appropriate documents submitted by the applicant and found them sufficient to warrant the issuance of a passport, or that the applicant is a holder of a valid passport but is unable to produce the same for a valid reason;

2. Accomplished registration form prescribed by the Commission containing the following mandatory information:

1. Last known residence of the applicant in the Philippines before leaving for abroad;

2. Address of applicant abroad, or forwarding address in the case of seafarers;

3. Where voting by mail is allowed, the applicant’s mailing address outside the Philippines where the ballot for absentee voters will be sent, in proper cases; and;

4. Name and address of applicant’s authorized representative in the Philippines for purposes of Section 6.7 and Section 12 hereof.

3. In the case of immigrants and permanent residents not otherwise disqualified to vote under this Act, an affidavit declaring the intention to resume actual physical permanent residence in the Philippines not later than three (3) years after approval of his/her registration as an overseas absentee voter under this Act. Such affidavit shall also state that he/she has not applied for citizenship in another country.

The Commission may also require additional data to facilitate registration and recording. No information other than those necessary to establish the identity and qualification of the applicant shall be required.

Sec. 9. National Registry of Overseas Absentee Voters. – The Commission shall maintain a National Registry of Overseas Absentee Voters. Approved applications of overseas absentee registrants shall also be included in the permanent list of voters of the city or municipality where the registrant is domiciled, with the corresponding annotation that such person has been registered or will be voting as an overseas absentee voter. The registry shall also include those registered under Republic Act No. 8189 and who have been issued certifications as overseas absentee voters. The entries in the National Registry of Overseas Absentee Voters and the annotations as overseas absentee voters in the Certified Voters’ List shall be permanent, and cannot be cancelled or amended except in any of the following cases:

9.1. When the overseas absentee voter files a letter under oath addressed to the Commission that he/she wishes to be removed from the Registry of Overseas Absentee Voters, or that his/her name be transferred to the regular registry of voters; or,

9.2. When an overseas absentee voter’s name was ordered removed by the Commission from the Registry of Overseas Absentee Voters for his/her failure to exercise his/her right to vote under this Act for two (2) consecutive national elections.

Sec. 10. Notice of Registration and Election. – The Commission shall, through the embassies, consulates and other foreign service establishments, cause the publication in a newspaper of general circulation of the place, date and time of the holding of a regular or special national election and the requirements for the participation of qualified citizens of the Philippines abroad, at least six (6) months before the date set for the filing of applications for registration.

The Commission shall determine the countries where publication shall be made, and the frequency thereof, taking into consideration the number of overseas Filipinos present in such countries. Likewise, the Commission and the Department of Foreign Affairs shall post the same in their respective websites.

Sec. 11. Procedure for Application to Vote in Absentia. -

11.1. Every qualified citizen of the Philippines abroad whose application for registration has been approved, including those previously registered under Republic Act No. 8189, shall, in every national election, file with the officer of the embassy, consulate or other foreign service establishment authorized by the Commission, a sworn written application to vote in a form prescribed by the Commission. The authorized officer of such embassy, consulate or other foreign service establishment shall transmit to the Commission the said application to vote within five (5) days from receipt thereof. The application form shall be accomplished in triplicate and submitted together with the photocopy of his/her overseas absentee voter certificate of registration.

11.2. Every application to vote in absentia may be done personally at, or by mail to, the embassy, consulate or foreign service establishment, which has jurisdiction over the country where he/she has indicated his/her address for purposes of the elections.

11.3. Consular and diplomatic services rendered in connection with the overseas absentee voting processes shall be made available at no cost to the overseas absentee voter.

Sec. 12. Verification and Approval of Application to Vote. – All applications shall be acted upon by the Commission upon receipt thereof, but in no case later than one hundred fifty (150) days before the day of elections. In the event of disapproval of the application, the voter or his authorized representative may file a Motion for Reconsideration with the Commission personally, or by registered mail, within ten (10) days from receipt of the notice of disapproval. The Commission shall act within five (5) days from receipt of such Motion for Reconsideration and shall immediately notify the voter of its decision. The decision of the Commission shall be final and executory.

The Commission shall issue an overseas absentee voter identification card to those whose applications to vote have been approved.

Sec. 13. Preparation and Posting of Certified List of Overseas Absentee Voters. – The Commission shall prepare the Certified List of Overseas Absentee Voters within one hundred twenty (120) days before every election, and furnish within the same period copies thereof to the appropriate embassies, consulates and other foreign service establishments, which shall post the same in their bulletin boards within ten (10) days from receipt thereof.

Subject to reasonable regulation and the payment of fees in such amounts as may be fixed by the Commission, the candidates, political parties, accredited citizens’ arms, interested persons and all embassies, consulates and other foreign service establishments shall be furnished copies thereof.

Sec. 14. Printing and Transmittal of Ballots, Voting Instructions, Election Forms and Paraphernalia. -

14.1. The Commission shall cause the printing of ballots for overseas absentee voters, voting instructions, and election forms in such number as may be necessary, but in no case shall it exceed the total number of approved applications. Security markings shall be used in the printing of ballots for overseas absentee voters.

14.2. The Commission shall present to the authorized representatives of the Department of Foreign Affairs and the accredited major political parties the ballots for overseas absentee voters, voting instructions, election forms and other election paraphernalia for scrutiny and inspection prior to their transmittal to the embassies, consulates and other foreign service establishments concerned.

14.3. The Commission shall, not later than seventy-five (75) days before the day of elections, transmit by special pouch to the embassies, consulates and other foreign service establishments, the exact number of ballots for overseas absentee voters corresponding to the number of approved applications, along with such materials and election paraphernalia necessary to ensure the secrecy and integrity of the election.

14.4. The authorized representatives of accredited major political parties shall have the right to be present in all phases of printing, transmittal, and casting of ballots abroad. Unclaimed ballots properly marked as such, shall be cancelled and shipped to the Commission by the least costly method.

Sec. 15. Regulation on Campaigning Abroad. – The use of campaign materials, as well as the limits on campaign spending shall be governed by the laws and regulations applicable in the Philippines.

Sec. 16. Casting and Submission of Ballots. -

16.1. Upon receipt by the designated officer of the embassy, consulate and other foreign service establishments of the ballots for overseas absentee voters, voting instructions, election forms and other paraphernalia, he/she shall make them available on the premises to the qualified overseas absentee voters in their respective jurisdictions during the thirty (30) days before the day of elections when overseas absentee voters may cast their vote. Immediately upon receiving it, the overseas absentee voter must fill-out his/her ballot personally, in secret, without leaving the premises of the embassies, consulates and other foreign service establishments concerned.

16.2. The overseas absentee voter shall personally accomplish his/her ballot at the embassy, consulate or other foreign service establishment that has jurisdiction over the country where he/she temporarily resides or at any polling place designated and accredited by the Commission.

16.3. The overseas absentee voter shall cast his ballot, upon presentation of the absentee voter identification card issued by the Commission, within thirty (30) days before the day of elections. In the case of seafarers, they shall cast their ballots anytime within sixty (60) days before the day of elections as prescribed in the Implementing Rules and Guidelines.

16.4. All accomplished ballots received shall be placed unopened inside sealed containers and kept in a secure place designated by the Commission.

16.5. The embassies, consulates and other foreign service establishments concerned shall keep a complete record of the ballots for overseas absentee voters, specifically indicating the number of ballots they actually received, and in cases where voting by mail is allowed under Section 17 hereof, the names and addresses of the voters to whom these ballots were sent, including proof of receipt thereof. In addition, the embassies, consulates and other foreign service establishments shall submit a formal report to the Commission and the Joint Congressional Oversight Committee created under this Act within thirty (30) days from the day of elections. Such report shall contain data on the number of ballots cast and received by the offices, the number of invalid and unclaimed ballots and other pertinent data.

16.6. The overseas absentee voter shall be instructed that his/her ballot shall not be counted if it is not inside the special envelope furnished him/her when it is cast.

16.7. Ballots not claimed by the overseas absentee voters at the embassies, consulates and other foreign service establishments, in case of personal voting, and ballots returned to the embassies, consulates and other foreign service establishments concerned, in the case of voting by mail, shall be cancelled and shipped to the Commission by the least costly method within six (6) months from the day of elections.

16.8. Only ballots cast, and mailed ballots received by the Philippine embassies, consulates and other foreign service establishments concerned in accordance with Section 17 hereof before the close of voting on the day of elections shall be counted in accordance with Section 18 hereof. All envelopes containing the ballots received by the embassies, consulates and other foreign service establishments after the prescribed period shall not be opened, and shall be cancelled and shipped to the Commission by the least costly method within six (6) months from the day of elections.

16.9. A Special Ballot Reception and Custody Group composed of three (3) members shall be constituted by the Commission from among the staff of the embassies, consulates and other foreign service establishments concerned, including their attached agencies, and citizens of the Philippines abroad, who will be deputized to receive ballots and take custody of the same preparatory to their transmittal to the Special Boards of Election Inspectors.

16.10. During this phase of the election process, the authorized representatives of the political parties, candidates, and accredited citizens’ arms of the Commission shall be notified in writing thereof and shall have the right to witness the proceedings.

16.11. The Commission shall study the use of electronic mail, Internet, or other secured networks in the casting of votes, and submit a report thereon to the Joint Congressional Oversight Committee.

Sec. 17. Voting by Mail. -

17.1. For the May, 2004 elections, the Commission shall authorize voting by mail in not more than three (3) countries, subject to the approval of the Congressional Oversight Committee. Voting by mail may be allowed in countries that satisfy the following conditions:

1. Where the mailing system is fairly well-developed and secure to prevent the occasion of fraud;

2. Where there exists a technically established identification system that would preclude multiple or proxy voting; and,

3. Where the system of reception and custody of mailed ballots in the embassies, consulates and other foreign service establishments concerned are adequate and well-secured.

Thereafter, voting by mail in any country shall be allowed only upon review and approval of the Joint Congressional Oversight Committee.

17.2. The overseas absentee voters shall send his/her accomplished ballot to the corresponding embassy, consular or other foreign service establishment that has jurisdiction over the country where he/she temporarily resides. He/She shall be entitled to cast his/her ballot at any time upon his/her receipt thereof, provided that the same Is received before the close of voting on the day of elections. The overseas absentee voter shall be instructed that his/her ballot shall not be counted if not transmitted in the special envelope furnished him/her.

17.3. Only mailed ballots received by the Philippine embassy, consulate and other foreign service establishments before the close of voting on the day of elections shall be counted in accordance with Section 18 hereof. All envelopes containing the ballots received by the embassies, consulates and other foreign service establishments after the prescribed period shall not be opened, and shall be cancelled and disposed of appropriately, with a corresponding report thereon submitted to the Commission not later than thirty (30) days from the day of elections.

Sec. 18. On-Site Counting and Canvassing. -

18.1. The counting and canvassing of votes shall be conducted on site in the country where the votes were actually cast. The opening of the specially-marked envelopes containing the ballots and the counting and canvassing of votes shall be conducted within the premises of the embassies, consulates and other foreign service establishments or in such other places as may be designated by the Commission pursuant to the Implementing Rules and Regulations. The Commission shall ensure that the start of counting in all polling places abroad shall be synchronized with the start of counting in the Philippines.

18.2. For these purposes, the Commission shall constitute as many Special Boards of Election Inspectors as may be necessary to conduct and supervise the counting of votes as provided in Section 18.2 hereof. The Special Boards of Election Inspectors to be constituted herein shall be composed of a Chairman and two (2) members, one (1) of whom shall be designated as poll clerk. The ambassador or consul-general, or any career public officer posted abroad designated by the Commission, as the case may be, shall act as the chairman; in the absence of other government officers, the two (2) other members shall be citizens of the Philippines who are qualified to vote under this act and deputized by the Commission not later than sixty (60) days before the day of elections. All resolutions of the Special Board of Election Inspectors on issues brought before it during the conduct of its proceedings shall be valid only when they carry the approval of the chairman.

Immediately upon the completion of the counting, the Special Boards of Election Inspectors shall transmit via facsimile and/or electronic mail the results to the Commission in Manila and the accredited major political parties.

18.3. Only ballots cast on, or received by the embassies, consulates and other foreign service establishments before the close of voting on the day of elections shall be included in the counting of votes. Those received afterwards shall not be counted.

18.4. A Special Board of Canvassers composed of a lawyer preferably of the Commission as chairman, a senior career officer from any of the government agencies maintaining a post abroad and, in the absence of another government officer, a citizen of the Philippines qualified to vote under this Act deputized by the Commission, as vice-chairman and member-secretary, respectively, shall be constituted to canvass the election returns submitted to it by the Special Boards of Election Inspectors. Immediately upon the completion of the canvass, the chairman of the Special Board of Canvassers shall transmit via facsimile, electronic mail, or any other means of transmission equally safe and reliable the Certificates of Canvass and the Statements of Votes to the Commission, and shall cause to preserve the same immediately after the conclusion of the canvass, and make it available upon instructions of the Commission. The Special Board of Canvassers shall also furnish the accredited major political parties and accredited citizens’ arms with copies thereof via facsimile, electronic mail and any other means of transmission equally safe, secure and reliable.

The Certificates of Canvass and the accompanying Statements of Votes as transmitted via facsimile, electronic mail and any other means of transmission equally safe, secure and reliable shall be the primary basis for the national canvass.

18.5. The canvass of votes shall not cause the delay of the proclamation of a winning candidate if the outcome of the election will not be affected by the results thereof. Notwithstanding the foregoing, the Commission is empowered to order the proclamation of winning candidates despite the fact that the scheduled election has not taken place in a particular country or countries, if the holding of elections therein has been rendered impossible by events, factors and circumstances peculiar to such country or countries, and which events, factors and circumstances are beyond the control or influence of the Commission.

18.6. In the preparation of the final tally of votes on the results of the national elections, the Commission shall ensure that the votes canvassed by each and every country shall be reflected as a separate item from the tally of national votes. For purposes of this Act, the returns of every election for president and vice-president prepared by the Special Board of Canvassers shall be deemed a certificate of canvass of a city or province.

18.7. Where feasible, the counting and canvassing of votes shall be automated. Towards this end, the Commission is hereby authorized to borrow, rent, lease or acquire automated voting machines for purposes of canvassing and counting of votes pursuant to the provisions of this Act, and in accordance with the Implementing Rules and Regulations promulgated by the Commission.

Sec. 19. Authority of the Commission to Promulgate Rules. – The Commission shall issue the necessary rules and regulations to effectively implement the provisions of this Act within sixty (60) days from the effectivity of this Act. The Implementing Rules and Regulations shall be submitted to the Joint Congressional Oversight Committee created by virtue of this Act for prior approval.

In the formulation of the rules and regulations, the Commission shall coordinate with the Department of Foreign Affairs, Department of Labor and Employment, Philippine Overseas and Employment Administration, Overseas Workers’ Welfare Administration and the Commission on Filipinos Overseas. Non-government organizations and accredited Filipino organizations or associations abroad shall be consulted.

Sec. 20. Information Campaign. – The Commission, in coordination with agencies concerned, shall undertake an information campaign to educate the public on the manner of absentee voting for qualified overseas absentee voters. It may require the support and assistance of the Department of Foreign Affairs, through the embassies, consulates and other foreign service establishments, Department of Labor and employment, Department of Transportation and Communications, Philippine Postal Corporation, Philippine Overseas Employment Administration, Overseas Workers’ Welfare Administration and the Commission on Filipinos Overseas. The Commission may deputize Filipino organizations/associations overseas for the same purpose: Provided, That any such deputized organization/association shall be prohibited from participating in the elections by campaigning for or fielding candidates; Provided, further, That if any such deputized organization/association is discovered to have a member who is not a qualified overseas absentee voter as herein defined, such deputized organization/association shall be banned from participating in any manner, and at any stage, in the Philippine political process abroad.

Such information campaign shall educate the Filipino public, within and outside the Philippines, on the rights of overseas absentee voters, absentee voting processes and other related concerns. Information materials shall be developed by the Commission for distribution, through the said government agencies and private organizations. No government agency or accredited private organizations shall prepare, print, distribute or post in websites any information material without the prior approval of the Commission.

Sec. 21. Access to Official Records and Documents. – Subject to the pertinent provisions of this Act, any person shall have the right to access and/or copy at his expense all registration records, voters lists and other official records and documents, subject to reasonable regulations as may be imposed by the Commission.

Sec. 22. Assistance from Government Agencies. – All government officers, particularly from the Department of Foreign Affairs, Department of Labor and Employment, Department of Transportation and Communications, Philippine Postal Corporation, Philippine Overseas Employment Administration, Overseas Workers’ Welfare Administration, Commission on Filipinos Overseas and other government offices concerned with the welfare of the Filipinos overseas shall, to the extent compatible with their primary responsibilities, assist the Commission in carrying out the provisions of this Act. All such agencies or officers thereof shall take reasonable measures to expedite all election activities, which the Commission shall require of them. When necessary, the Commission may send supervisory teams headed by career officers to assist the embassies, consulates and other foreign service establishment concerned.

Sec. 23. Security Measures to Safeguard the Secrecy and Sanctity of Ballots. – At all stages of the electoral process, the Commission shall ensure that the secrecy and integrity of the ballots are preserved. The Committee on Absentee Voting of the Commission shall be responsible for ensuring the secrecy and sanctity of the absentee voting process. In the interest of transparency, all necessary and practicable measures shall be adopted to allow representation of the candidates, accredited major political parties, accredited citizens’ arms and non-government organizations to assist, and intervene in appropriate cases, in all stages of the electoral exercise and to prevent any and all forms of fraud and coercion.

No officer or member of the foreign service corps, including those belonging to attached agencies shall be transferred, promoted, extended, recalled or otherwise moved from his current post or position one (1) year before and three (3) months after the day of elections, except upon the approval of the Commission.

Sec. 24. Prohibited Acts. – In addition to the prohibited acts provided by law, it shall be unlawful:

24.1. For any officer or employee of the Philippine government to influence or attempt to influence any person covered by this Act to vote, or not to vote, for a particular candidate. Nothing in this Act shall be deemed to prohibit free discussion regarding politics or candidates for public office.

24.2. For any person to deprive any person of any right secured in this Act, or to give false information as to his/her name, address, or period of residence for the purposes of establishing his/her eligibility or ineligibility to register or vote under this Act; or to conspire with another person for the purpose of encouraging the giving of false information in order to establish the eligibility or ineligibility of any individual to register or vote under this Act; or, to pay, or offer to pay, or to accept payment either for application to vote in absentia or for voting;

24.3. For any person to tamper with the ballot, the mail containing the ballots for overseas absentee voters, the election returns, including the destruction, mutilation and manipulation thereof;

24.4. For any person to steal, destroy, conceal, mutilate or alter any record, document or paper as required for purposes of this Act;

24.5. For any deputized agent to refuse without justifiable ground, to serve or continue serving, or to comply with his/her sworn duties after acceptance of his/her appointment;

24.6. For any public officer or employee who shall cause the preparation, printing, distribution of information material, or post the same in websites without the prior approval of the Commission;

24.7. For any public officer or employee to cause the transfer, promotion, extension, recall of any member of the foreign service corps, including members of the attached agencies, or otherwise cause the movement of any such member from his current post or position one (1) year before and three (3) months after the day of elections, without securing the prior approval of the Commission;

24.8. For any person who, after being deputized by the Commission to undertake activities in connection with the implementation of this Act, shall campaign for or assist, in whatever manner, candidates in the elections;

24.9. For any person who is not a citizen of the Philippines to participate, by word or deed, directly or indirectly through qualified organizations/associations, in any manner and at any stage of the Philippine political process abroad, including participation in the campaign and elections.

The provision of existing laws to the contrary notwithstanding, and with due regard to the Principle of Double Criminality, the prohibited acts described in this section are electoral offenses and punishable in the Philippines.

The penalties imposed under Section 264 of the Omnibus Election Code, as amended, shall be imposed on any person found guilty of committing any of the prohibited acts as defined in this section: Provided, That the penalty of prision mayor in its minimum period shall be imposed upon any person found guilty of Section 24.3 hereof without the benefit of the operation of the Indeterminate Sentence Law. If the offender is a public officer or a candidate, the penalty shall be prision mayor in its maximum period. In addition, the offender shall be sentenced to suffer perpetual disqualification to hold public office and deprivation of the right to vote.

Immigrants and permanent residents who do not resume residence in the Philippines as stipulated in their affidavit under Section 5(d) within three (3) years after approval of his/her registration under this Act and yet vote in the next elections contrary to the said section, shall be penalized by imprisonment of not less than one (1) year, and shall be deemed disqualified as provided in Section 5(c) of this Act. His/her passport shall be stamped “not allowed to vote”.

Sec. 25. Joint Congressional Oversight Committee. – A Joint Congressional Oversight Committee is hereby created, composed of the Chairman of the Senate Committee on Constitutional Amendments, Revision of Codes and Laws, and seven (7) other Senators designated by the Senate President, and the Chairman of the House Committee on Suffrage and Electoral Reforms, and seven (7) other Members of the House of Representatives designated by the Speaker of the House of Representatives: Provided, That, of the seven (7) members to be designated by each House of Congress, four (4) should come from the majority and the remaining three (3) from the minority.

The Joint Congressional Oversight Committee shall have the power to monitor and evaluate the implementation of this Act. It shall review, revise, amend and approve the Implementing Rules and Regulations promulgated by the Commission.

Sec. 26. Applicability of Other Election Laws. – The pertinent provisions of the Omnibus Election Code, as amended, and other election laws, which are not in conflict with the provisions of this Act shall remain in full force and shall have suppletory application to this Act.

Sec. 27. Enforcement and Administration by the Commission. – The Commission shall, for the purpose of ensuring honest, orderly, peaceful and free elections abroad, have exclusive charge of the enforcement, administration and implementation of this Act.

Sec. 28. Mandatory Review. – Congress shall complete a mandatory review of this Act within two (2) years following the May, 2004 elections for the purpose of amending it to expand or restrict its coverage, scope and application, as well as improve its procedures and institute measures and safeguards, taking into account the experience of the previous election, technological advances and structural political changes.

Sec. 29. Appropriations. – The amount necessary to carry out the provisions of this Act shall be provided in a supplemental budget or included in the General Appropriations Act of the year of its enactment into law. Thereafter, the expenses for its continued implementation shall be included in the subsequent General Appropriations Act.

Sec. 30. Separability Clause. – If any part or provision of this Act shall be declared unconstitutional or invalid, other provisions hereof which are not affected thereby shall continue to be in full force and effect.

Sec. 31. Repealing Clause. – All laws, presidential decrees, executive orders, rules and regulations, other issuances, and parts thereof, which are inconsistent with the provisions of this Act, are hereby repealed or modified accordingly.

Sec. 32. Effectivity. – This Act shall take effect fifteen (15) days following its publication in three (3) newspapers of general circulation.

Approved: February 13, 2003

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

ARTICLE 1
GENERAL PROVISIONS

Section 1. Short Title.- This act shall be known as the ” Government Procurement reform Act.”

Section 2. Declaration of Policy.- It is the declared policy of the State to promote the ideals of good governance in all its branches, departments, agencies, subdivisions, and instrumentalities, including government-owned and/or -controlled corporations and local government units.

Section 3. Governing Principles on Government Procurement.

All procurement of the national government, its departments, bureaus, offices and agencies, including state universities and colleges, government -owned and/or-controlled corporations, government financial institutions and local government units, shall, in all cases, be governed by these principles:

(a) Transparency in the procurement process and in the implementation of procurement contracts.

(b) Competitiveness by extending equal opportunity to enable private contracting parties who are eligible and qualified to participate in public bidding.

(c) Streamlined procurement process that will uniformly apply to all government procurement. The procurement process shall simple and made adaptable to advances in modern technology in order to ensure an effective and efficient method.

(d) System of accountability where both the public officials directly or indirectly involved in the procurement process as well as in the implementation of procurement contracts and the private parties that deal with government are, when warranted by circumstances, investigated and held liable for their actions relative thereto.

(e) Public monitoring of the procurement process and the implementation of awarded contracts with the end in view of guaranteeing that these contracts are awarded pursuant to the provisions of this Act and its implementing rules and regulations, and that all these contracts are performed strictly according to specifications.

Section 4. Scope and Application.- This act shall apply to the Procurement of Infrastructure Projects, Goods and Consulting Services, regardless of source of funds, whether local of foreign, by all branches and instrumentalities of government, its departments, offices and agencies, including government-owned and/or-controlled corporations and local government units, subject to the provisions of Commonwealth Act No. 138. Any treaty or international or executive agreement affecting the subject matter of this Act to which the Philippine government is signatory shall be observed.

Section 5. Definition of Terms.- For purposes of this Act, the following terms or words and phrases shall mean or be understood as follows:

(a) Approved Budget for the Contract (ABC) – refers to the budget for the contract duly approved by the Head of the Procuring Entity, as provided for in the General Appropriations Act and/or continuing appropriations, in the National Government Agencies; the Corporate Budget for the contract approved by the governing Boards, pursuant to E.O.No.518, series of 1979, in the case of Government Financial Institutions and State Universities and Colleges; and the Budget for the contract approved by the respective Sanggunian, in the case of Local Government Units.

(b) BAC – refers to the Bids and Awards Committee established in accordance with Article V of this Act.

(c) Bidding Documents – refer to documents issued by the Procuring Entity as the basis for Bids, furnishing all information necessary for a prospective bidder to prepare a bid for the Goods, Infrastructure Projects, and Consulting Services to be provided.

(d) Bid – refers to signed offer or proposal submitted by a supplier, manufacturer, distributor, contractor or consultant in response to the Bidding Documents.

(e) Competitive Bidding – refers to a method of procurement which is open to participation by any interested party and which consist of the following processes: advertisement, pre-bid conference, eligibility screening of bids, evaluations of bids, post – qualification, and award of contract, the specific requirements and mechanics of which shall be defined in the IRR to be promulgated under this Act.

(f) Consulting Services – refer to services for Infrastructure Projects and other types of projects or activities of the Government requiring adequate external technical and professional experts that are beyond the capability and/or capacity of the government to undertake such as, but not limited to: (I) advisory and review services; (ii) pre investment or feasibility studies; (iii) design; (iv) construction supervision; (v) management and related services; and (vi) other technical services or special studies.

(g) G – EPS – refers to the Government Electronic Procurement System as provided in Section 8 of this Act.

(h) Goods – refer to all items, supplies, materials and general support services, except consulting services and infrastructure projects, which may be needed in the transaction of the public businesses or in the pursuit of any government undertaking, project or activity, whether in the nature of equipment, furniture, stationery, materials for construction, or personal property of any kind, including non – personal or contractual services such as the repair and maintenance of equipment and furniture, as well as trucking, hauling, janitorial, security, and related or analogous services, as well as procurement of materials and supplies provided by the procuring entity or such services.

(i) GPPB – refers to the Government Procurement Policy Board established in accordance with Article X of this Act.

(j) Head of the Procuring Entity- refers to: (I) the head of the agency or his duly authorized official, for national government agencies; (ii) the governing board or its duly authorized official, for government-owned and/or-controlled corporations; or (iii) the local chief executive, for local government units. Provided, That in a department, office or agency where the procurement is decentralized, the Head of each decentralized unit shall be considered as the Head of the Procuring Entity subject to the limitations and authority delegated by the head of the department, office or agency.

(k) Infrastructure Projects – include the construction, improvement, rehabilitation, demolition, repair, restoration or maintenance of roads and bridges, railways, airports, seaports, communication faci9lities, civil works components of information technology projects, irrigation, flood control and drainage, water supply, sanitation, sewerage and solid waste management systems, shore protection, energy/power and electrification facilities, national buildings, school buildings and other related construction projects of the government.

(l) IRR – refer to the implementing rules and regulations to be promulgated in accordance with Section 75 of this Act.

(m) Portal – refers to a website that aggregates a wide variety of content for the purpose of attracting a large number of users.

(n) Procurement – refers to the acquisition of Goods, Consulting Services, and the contracting for Infrastructure Projects by the Procuring Entity. Procurement shall also include the lease of goods and real estate. With respect to real property, its procurement shall be governed by the provisions of Republic Act No.8974, entitled “An Act to Facilitate the Acquisition of Right-of -Way Site or Location of National Government Infrastructure Projects and for Other Purposes” and other applicable laws, rules and regulations.

(o) Procuring Entity – refers to any branch, department, office, agency, or instrumentality of the government, including state universities and colleges, government-owned and/or – controlled corporations, government financial institutions, and local government units procuring Goods, Consulting Services and Infrastructure Projects.

Section 6. Standardization of Procurement Process and Forms.- To systematize the procurement process, avoid confusion and ensure transparency, the procurement process, including the forms to be used, shall be standardized insofar as practicable.

For this purpose, the GPPB shall pursue the development of generic procurement manuals and standard bidding forms, the use of which once issued shall be mandatory upon all Procuring Entities.

ARTICLE II
PROCUREMENT PLANNING

Section 7. Procurement Planning and Budgeting Linkage- All procurement should be within the approved budget of the Procuring Entity and should be meticulously and judiciously planned by the Procuring Entity concerned. Consistent with government fiscal discipline measures, only those considered crucial to the efficient discharge of governmental functions shall be included in the Annual Procurement Plan t o be specified in the IRR.

No government Procurement shall be undertaken unless it is in accordance with the approved Annual Procurement Plan of the Procuring Entity. The Annual Procurement Plan shall be approved by the Head of the Procuring Entity and must be consistent with its duly approved yearly budget. The Annual Procurement Plan shall be formulated and revised only in accordance with the guidelines set forth in the IRR. In the case of Infrastructure Projects, the Plan shall include engineering design and acquisition of right-of-way.

ARTICLE III
PROCUREMENT BY ELECTRONIC MEANS

Section 8. Procurement By Electronic Means.- To promote transparency and efficiency, information and communications technology shall be utilized in the conduct of procurement procedures. Accordingly, there shall be single portal that shall serve as the primary source of information on all government procurement. The G-EPS shall serve as the primary and definitive source of information on government procurement. Further, the GPPB is authorized to approve changes in the procurement process to adapt to improvements in modern technology, provided that such modifications are consistent with provisions of Section 3 of this Act.

To take advantage of the significant built-in-efficiencies of the G-EPS and the volume discounts inherent in bulk purchasing, all Procuring Entities shall utilize the G-EPS for the procurement of common supplies in accordance with the rules and procedures to be established by the GPPB. With regard to the procurement of non-common use items, infrastructure projects and consulting services, agencies may hire service providers to undertake their electronic procurement provided these service providers meet the minimum requirements set by the GPPB.

Section 9. Security, Integrity and Confidentiality.- The G-EPS shall ensure the security, integrity and confidentiality of documents submitted through the system. It shall include feature that provides for an audit trail for on-line transactions and allow the Commission on Audit to verify the security and integrity of the systems at any time.

ARTICLE IV
COMPETITIVE BIDDING

Section 10. Competitive Bidding.- All Procurement shall be done through Competitive Bidding, except as provided for in Article XVI of this Act.

ARTICLE V
BIDS AND AWARDS COMMITTEE

Section 11. The BAC and its Composition.- Each procuring entity shall establish a single BAC for its procurement. The BAC shall have at least five (5) members, but not more than seven (7) members. It shall be chaired by at least a third ranking permanent official of the procuring entity other than its head, and its composition shall be specified in the IRR. Alternatively, as may be deemed fit by the head of the procuring entity, there may be separate BACs where the number and complexity of the items to be procured shall so warrant. Similar BACs for decentralized and lower level offices may be formed when deemed necessary by the head of the procuring entity. The numbers of the BAC shall be designated by the Head of Procuring Entity. However, in no case shall the approving authority be a member of the BAC.

Unless sooner removed for cause, the members of the BAC shall have a fixed term of one (1) year reckoned from the date of appointment, renewable at the discretion of the Head of the Procuring Entity. In case of resignation, retirement, separation, transfer, re-assignment, removal, the replacement shall serve only for the unexpired term: Provided, That in case of leave or suspension, the replacement shall serve only for the duration of the leave or suspension. For justifiable causes, a member shall be suspended or removed by the Head of the Procuring Entity.

Section 12. Functions of the BAC.- shall have the following functions: advertise and/or post the invitation to bid, conduct pre-procurement and pre-bid conferences, determine the eligibility of prospective bidders, receive bids, conduct the evaluation of bids, undertake post-qualification proceedings, recommend award of contracts to the Head of the Procuring Entity of his duly authorized representative: Provided, That in the event the Head of the Procuring shall disapprove such recommendation, such disapproval shall be based only on valid, reasonable and justifiable grounds to be expressed in writing, copy furnished the BAC; recommend the imposition of sanctions in accordance with Article XXIII, and perform such other related functions as may necessary, including the creation of a Technical Working Group from a pool of technical, financial and/or legal experts to assist in the procurement process.

In proper cases, the BAC shall also recommend to the Head of the Procuring Entity the use of Alternative Methods of Procurement as provided for in Article XVI hereof.

The BAC shall be responsible for ensuring that the Procuring Entity abides by the standards set forth by this Act and the IRR, and it shall prepare a procurement monitoring report that shall be approved and submitted by the Head of the Procuring Entity to the GPPB on a semestral basis. The contents and coverage of this report shall be provided in the IRR.

Section 13. Observers.- To enhance the transparency of the process, the BAC shall, in all stages of the procurement process, invite, in addition to the representative of the Commission on Audit, at least two(2) observers to sit in its proceedings, one(1) from a duly recognized private group in a sector or discipline relevant to the procurement at hand, and the other from a non-government organization: Provided, however, That they do not have any direct or indirect interest in the contract to be bid out. The observers should be duly registered with the Securities and Exchange Commission and should meet the criteria for observers as set forth in the IRR.

Section 14. BAC Secretariat.- To assist the BAC in the conduct of its functions, the Head of the Procuring Entity shall create a Secretariat that will serve as the main support unit of the BAC. The Head of the Procuring Entity may also designate an existing organic office within the agency to serve as the Secretariat.

Section 15. Honoraria of BAC Members.- The Procuring Entity may grant payment of honoraria to the BAC members in an amount not to exceed twenty five percent (25%) of their respective basic monthly salary subject to availability of funds. For this purpose, the Department of Budget and Management (DBM) shall promulgate the necessary guidelines.

Section 16. Professionalization of BAC, BAC Secretariat and Technical Working Group Members.- The GPPB shall establish a sustained training program for developing the capacity of the BAC’s, BAC Secretariats and technical Working Groups of Procuring Entities, and proffessionalize the same.

ARTICLE VI
PREPARATION OF BIDDING DOCUMENTS

Section 17. Form and Contents of Bidding Documents.- The Bidding Documents shall be prepared by the Procuring Entity following the standard forms and manuals prescribed by the GPPB. The Bidding Documents shall include the following:

(a) Approved Budget for the Contract;

(b) Instructions to Bidders, including criteria for eligibility, bid evaluation and post-qualification, as well as the date, time and place of the pre-bid Conference (where applicable), submission of bids and opening of bids;

(c) Terms of Reference;

(d) Eligibility Requirements;

(e) Plans and Technical Specifications;

(f) Form of Bid, Price Form, and List of Goods or Bill of Quantities;

(g) Delivery Time or Completion Schedule;

(h) Form and Amount of Bid Security;

(i) Form and Amount of Performance Security and Warranty; and,

(j) Form of Contract, and General and special Conditions of Contract.

The Procuring Entity may require additional document requirements or specifications necessary to complete the information required for the bidders to prepare and submit their respective bids.

Section 18. Reference to Brand Names.- Specifications for the Procurement of Goods shall be based on relevant characteristics and/or performance requirements. Reference to brand names shall not be allowed.

Section 19. Access to Information.- In all stages of the preparation of the Bidding Documents, the Procuring entity shall ensure equal access to information. Prior to their official release, no aspect of the Bidding Documents shall be divulged or released on any prospective bidder or having direct or indirect interest in the project to be procured.

ARTICLE VII
INVITATION TO BID

Section 20. Pre-Procurement Conference. – Prior to the issuance of the Invitation to Bid, the BAC is mandated to hold a pre-procurement conference on each and every procurement, except those contracts below a certain level or amount specified in the IRR, in which case, the holding of the same is optional.

The pre- procurement conference shall assess the readiness of the procurement in terms of confirming the certification of availability of funds, as well as reviewing all relevant documents and the draft Invitation to Bid, as well as consultants hired by the agency concerned and the representative of the end -user.

Section 21. Advertising and Contents of the Invitation to Bid. – In line with the principle of transparency and competitiveness, all Invitations to Bid contracts under competitive bidding shall be advertised by the Procuring Entity in such manner and for such length of time as may be necessary under the circumstances, in order to ensure the widest possible dissemination thereof, such as, but not limited to, posting in the Procuring Entity’s premises, in newspapers of general circulation, the G-EPS and the website of the Procuring Entity, if available. The details and mechanics of implementation shall be provided in the IRR to be promulgated under this Act.

The Invitation to Bid shall contain, among others:

(a) A brief description of the subject matter of the Procurement;

(b) A general statement on the criteria to be used by the Procuring entity for the eligibility check, the short listing of prospective bidders, in the case of the Procurement of Consulting Services the examination and evaluation of Bids, and post-qualification;

(c) The date, time and place of the deadlines for the submission and receipt of the eligibility requirements, the pre-bid conference if any, the submission and receipt of bids, and the opening of bids;

(d) The Approved Budget for the Contract to be bid;

(e) The source of funds;

(f) The period of availability of the Bidding Documents, and the place where these may be secured and;

(g) The contract duration; and

(h) Such other necessary information deemed relevant by the Procuring Entity.

Section 22. Pre-bid Conference. – At least one pre-bid conference shall be conducted for each procurement, unless otherwise provided in the IRR. Subject to the approval of the BAC, a pre-bid conference may also be conducted upon the written request of any prospective bidder.

The Pre-bid conference(s) shall be held within a reasonable period before the deadline for receipt of the bids to allow prospective bidders to adequately prepare their bids, which shall be specified in the IRR.

ARTICLE VIII
RECEIPT AND OPENING OF BIDS

Section 23. Eligibility Requirements for the Procurement of Goods and Infrastructure Projects.- The BAC or, under special circumstances specified in IRR, its duly designated organic office shall determine the eligibility of prospective bidders for the procurement of Goods and Infrastructure Projects, based on the bidders’ compliance with the eligibility requirements within the period set forth in the Invitation to Bid. The eligibility requirements shall provide for fair and equal access to all prospective bidders. The documents submitted in satisfaction of the eligibility requirements shall be made under oath by the prospective bidder or by his duly authorized representative certifying to the correctness of the statements made and the completeness and authenticity of the documents submitted.

A prospective bidder may be allowed to summit his eligibility requirement s electronically. However, said bidder shall later on certify under oath as to correctness of the statements made and the completeness and authenticity of the documents submitted.

Section 24. Eligibility requirements and Short Listing for Consulting Services.- The Eligibility of prospective bidders for the Procurement of Consulting Services shall be determine by their compliance with the eligibility requirements prescribed for the competitive Bidding concerned, within the period stated in the Invitation to bid. The eligibility requirements shall provide for fair and equal access to all prospective bidders. The prospective bidder shall certify under oath as to the correctness of the statements made, and the completeness and authenticity of the documents submitted.

A prospective bidder may be allowed to submit his eligibility requirements electronically. However, said bidder shall later on certify under oath as to correctness of the statements made and the completeness and authenticity of the documents submitted.

The eligible prospective bidders shall then be evaluated using numerical ratings on the basis of the short listing requirements prescribed for the Competitive Bidding concerned, within the period stated in the Invitation to Bid to determine the short list of bidders who shall be allowed to submit their respective bids.

Section 25. Submission and Receipt of Bids.- A bid shall have two(2) components, namely the technical and financial components which should be in separate sealed envelopes, and which shall be submitted simultaneously. The bids shall be received by the BAC on such date, time and place specified in the invitation to bid. The deadline for the receipt of bids shall be fixed by the BAC, giving the prospective bidders sufficient time to study and prepare their bids. The deadline shall also consider the urgency of the procurement involved.

Bids submitted after the deadline shall not be accepted.

Notwithstanding the provisions of this Section and Section 26 of this Act, the GPPB may prescribe innovative procedure for the submission, receipt and opening of bids through the G-EPS.

Section 26. Modification and Withdrawal of Bids. – A bidder may modify his bid, provided that this is done before the deadline for the receipt of bids. The modification shall be submitted in a sealed envelope duly identified as a modification of the original bid and stamped received by the BAC.

A bidder may, through a letter, withdraw his bid or express his intention not to participate in the bidding before the deadline for the receipt of bids. In such case, he shall no longer be allowed to submit another Bid or the same contract either directly or indirectly.

Section 27. Bid Security. – All Bids shall be accompanied by a Bid security, which shall serve as guarantee that, after receipt of the Notice of Award, the winning bidders shall enter into contract with the Procuring Entity within the stipulated time and furnish the required performance security. The specific amounts and allowable forms of the Bid security shall be prescribed in the IRR.

Section 28. Bid Validity. – Bids and Bid securities shall be valid for such reasonable period of time indicated in the Bidding Documents. The duration for each undertaking shall take into account the time involved in the process of Bid evaluation and award of contract.

Section 29. Bid Opening. – the BAC shall publicly open all bids at the time, date, and place specified in the bidding documents. The minutes of the bid opening shall be made available to the public upon written request and payment of a specified fee.

ARTICLE IX
BID EVALUATION

Section 30. Preliminary Examination of Bids. – Prior to Bid evaluation, the BAC shall examine first the technical components of the bids using “pass/fail” criteria to determine whether all required documents are present. Only bids that are determined to contain all the bid requirements of the technical component shall be considered for opening and evaluation of their financial component.

Section 31. Ceiling for Bid Prices. – The ABC shall be the upper limit or ceiling for the Bid prices. Bid prices that exceed this ceiling shall be disqualified outright from further participating in the bidding. There shall be no lower limit to the amount of the award.

Section 32. Bid for the Procurement of Goods and Infrastructure Projects. – For the procurement of Goods and Infrastructure Projects, the BAC shall evaluate the financial component of the bids. The bids that passed the preliminary examination shall be ranked from lowest to highest in terms of their corresponding calculated price shall be referred to as the “Lowest Calculated Bid”.

Section 33. Bid Evaluation of Short Listed Bidders for Consulting Services. – For the Procurement of Consulting Services, the Bids of the short listed bidders shall be evaluated and ranked using numerical ratings in accordance with the evaluation criteria stated in the Bidding Documents, which shall include factors such as, but not limited to, experience, performance, quality or personnel, price and methodology. The Bids shall be ranked from highest to lowest in terms of their corresponding calculated ratings. The Bid with the highest calculated rating shall be the “Highest Rated Bid.” After approved by the Head of the Procuring Entity of the Highest Rated Bid, the BAC shall invite the bidder concerned for negotiation and/or clarification on the following item: financial proposal submitted by the bidder, terms of reference, scope of services, methodology and work program, personnel to be assigned to job, services/facilities/data to be provided by the Procuring Entity concerned, and provisions of the contract. When negotiations with first-in-rank bidder fails, the financial proposal of the second rank bidder shall opened for negotiations: Provided, that the amount indicated in the financial envelope shall be made as the basis for negotiations and the total contract amount shall not exceed the amount indicated in the envelope and the ABC. Whenever necessary, the same process shall be repeated until the bid awarded to the winning bidder.

ARTICLE X
POST-QUALIFICATION

Section 34. Objective and Process of Post-qualification. – Post-qualification is the stage where the bidder with the Lowest Calculated Bid, in the case of Goods and Infrastructure Projects, or the Highest Rated Bid, in the case of Consulting Services, undergoes verification and validation whether he has passed all the requirements and conditions as specified in the Bidding Documents.

If the bidder with the Lowest Calculated Bid or Highest Rated Bid passes all the criteria for post-qualification, his Bid shall be considered the “Lowest Calculated Responsive Bid,” in the case of Goods and Infrastructure or the “Highest Rated Responsive Bid,” in the case of Consulting Services. However, if a bidder fails to meet any of the requirements or conditions, he shall be “post-disqualified” and the BAC shall conduct the post-qualification on the bidder with the second Lowest Calculate Bid or Highest Rated Bid. If the bidder with the second Lowest Calculated Bid or Highest Rated Bid is post-disqualified, the same procedure shall be repeated until the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid is finally determined.

In all cases, the contract shall be awarded only to the bidder with the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid.

Section 35. Failure of Bidding. – there shall be a failure of bidding if:

a. No bids are received;

b. No bid qualifies as the Lowest Calculated Responsive Bid; or,

c. Whenever the bidder with the highest rated/lowest calculated responsive bid refuses, without justifiable cause to accept the award of contract, as the case may be.

Under any of the above instances, the contract shall be re-advertised and re-bid. The BAC shall observe the same process and set the new periods according to the same rules followed during the first bidding. After the second failed bidding, however, the BAC may resort to negotiated procurement as provided for in Section 53 of this Act.

Section 36. Single Calculate/Rated and Responsive Bid Submission. – A single calculated/rated and responsive bid shall be considered for award if it falls under of the following circumstances:

a. If after advertisement, only one prospective bidder submits a Letter of Intent and/or applies for eligibility check, and meets the eligibility requirements or criteria, after which it submits a bide, which is found to be responsive to the bidding requirements;

b. If after the advertisement, more than one prospective bidder applies for eligibility check, but only one bidder meets the eligibility requirements or criteria, after which in submits a bid which is found to be responsive to the bidding requirements; or

c. If after the eligibility check, more than one bidder meets the eligibility requirements, but only one bidder submits a bid, and its bid is found to be responsive to the bidding requirements.

In all instances, the Procuring Entity shall ensure that the ABC reflects the most advantageous prevailing price for the government.

ARTICLE XI
AWARD, IMPLEMENTATION AND TERMINATION OF THE CONTRACT

Section 37. Notice and Executive of Award. – Within a period not exceeding fifteen (15) calendar days from the determination and declaration by the BAC of the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid, and the recommendation of the award, the Head of the Procuring Entity or his duly authorized representative shall approve or disapprove the said recommendation. In case of approval, the Head of the Procuring Entity or his duly authorized representative shall immediately issue the Notice of Award to the bidder with the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid.

Within ten (10) calendar days from receipt of the Notice of Award, the Winning bidder shall formally enter into contract with the Procuring Entity. When further approval of higher authority is required, the approving authority for the contracts shall be given a maximum of twenty (20) calendar days to approve or disapprove it.

In the case of government-owned and/or -controlled corporations, the concerned board shall take action on the said recommendation within thirty (30) calendar days from receipt thereof.

The Procuring Entity shall issue the Notice to Proceed to the winning bidder not later than seven (7) calendar days from the date of approval of the contract by the appropriate authority. All notices called for by the terms of the contract shall be effective only at the time of receipt thereof by the contractor.

Section 38. Period of Action on Procurement Activities. – The procurement process from the opening of bids up to the award of contract shall not exceed three (3) months, or a sho0rter period to be determined by the procuring entity concerned. Without prejudice to the provisions of the preceding section, the different procurement activities shall be completed within reasonable periods to be specified in the IRR.

If no action on the contract is taken by the head of the procuring entity or by his duly authorized representative, or by the concerned board, in the case of government-owned and/or -controlled corporations, within the periods specified in the preceding paragraph, the contract concerned shall be deemed approved.

Section 39. Performing Security. – Prior to the signing of the contract, the winning bidder shall, as a measure of guarantee for the faithful performance of an compliance with his obligations under the contract prepared in accordance with the Bidding Documents, be required to post a performance security in such form and amount as specified in the Bidding Documents.

Section 40. Failure to Enter into Contract and Post Performance Security. – If, for justifiable causes, the bidder with the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid fails, refuses or is otherwise unable to enter into contract with the Procuring Entity, or if the bidder fails to post the required performance security within the period stipulated in the Bidding Documents, the BAC shall disqualify the said bidder and shall undertake post-qualification for the next-ranked Lowest Calculated Bid or Highest Rated Bid. This procedure shall be repeated until an award is made. However, if no award is possible, the contract shall be subjected to a new bidding.

In the case of a failure to post the required performance security, the bid security shall be forfeited without prejudice to the imposition of sanctions prescribed under Article XXIII.

Section 41. Reservation Clause. – The Head of the Agency reserves the right to reject any and all Bids, declare a failure of bidding, or not award the contract in the following situations:

a. If there is prima facie evidence of collusion between appropriate public officers or employees of the Procuring Entity, or between the BAC and any of the bidders, or if the collusion is between or among the bidders themselves, or between a bidder and a third party, including any act which restricts, suppresses or nullifies or tends to restrict, suppress or nullify competition;

b. If the BAC is found to have failed in following the prescribed bidding procedures; or

c. For any justifiable and reasonable ground where the award of the contract will not redound to the benefit of the government as defined in the IRR.

Section 42. Contract Implementation and Termination. – The rules and guidelines for the implementation and termination of contracts awarded pursuant to the provisions of this Act shall be prescribed in the IRR. The rules and guidelines shall include standard general and special conditions for contracts.

ARTICLE XII
DOMESTIC AND FOREIGN PROCUREMENT

Section 43. Procurement of Domestic and Foreign Goods. – Consistent with the country’s obligations under international treaties or agreements, Goods may be obtained for domestic or foreign sources and the procurement thereof shall be open to all eligible suppliers, manufacturers and distributors. However, in the interest of availability, efficiency and timely delivery of Goods, the Procuring Entity may give preference to the purchase of domestically-produced and manufacturer goods, supplies and materials that meet the specified or desired quality.

ARTICLE XIII
BIDDING OF PROVINCIAL PROJECTS

Section 44. Bidding of Provincial Projects. – Priority programs and infrastructure projects funded out of the annual General Appropriations Act which are intended for implementation within the province shall be subject to the same public bidding and to the procurement processes prescribed under this Act. For purposes of this Article, Engineering District civil works projects, subject to consultation with the concerned Members of Congress, are included and subsumed in the term “provincial projects” and shall be governed by this Section and Section 45 hereof.

Section 45. Provincial Bidders. – Within five (5) years from the effectivity of this Act, contractor who participates in the bidding of provincial priority programs and infrastructure projects, whose principal office is within the same province, and who submits the lowest bid among the provincial bidders which is higher than the lowest bid made by a contractor with principal office outside the said province shall be granted the privilege to match the bid made by the latter: Provided, however, That the release of funds for said projects shall be published in a local newspaper with the widest circulation and the website of the DBM, the mechanisms of which shall be spelled-out in the IRR.

ARTICLE XIV
LEASE OF COMPUTERS, COMMUNICATIONS, INFORMATION AND OTHER EQUIPMENT

Section 46. Lease Contracts. – Lease of construction and office equipment, including computers, communication and information technology equipment are subject to the same public bidding and to the processes prescribed under this Act.

ARTICLE XV
DISCLOSURE OF RELATIONS

Section 47. Disclosure of Relations. – In addition to the proposed contents of the Invitation to Bid as mentioned under Section 21 of this Act, all bidding documents shall be accompanied by a sworn affidavit of the bidder that he or she or any officer of their corporation in not related to the Head of the Procuring Entity by consanguinity or affinity up to the third civil degree. Failure to comply with the aforementioned provision shall be a ground for the automatic disqualification of the bid in consonance with Section30 of this Act.

ARTICLE XVI
ALTERNATIVE METHODS OF PROCUREMENT

Section 48. Alternative Methods. – Subject to the prior approval of the Head of the Procuring Entity or his duly authorized representative, and whenever justified by the conditions provided in this Act, the Procuring Entity may, in order to promote economy and efficiency, resort to any of the following alternative methods of Procurement:

a. Limited Source Bidding, otherwise known as Selective Bidding – a method of Procurement that involves direct invitation to bid by the Procuring Entity from a set of pre-selected suppliers or consultants with known experience and proven capability relative to the requirements of a particular contract;

b. Direct Contracting, otherwise known as Single Source Procurement – a method of Procurement that does not require elaborate Bidding Documents because the supplier is simply asked to submit a price quotation or a pro-forma voice together with the conditions of sale, which offer may be accepted immediately or after some negotiations;

c. Repeat Order. – a method of Procurement that involves a direct Procurement of Goods from the previous winning bidder, whenever there is a need to replenish Goods procured under a contract previously awarded through Competitive Bidding;

d. Shopping – a method of Procurement whereby the Procuring Entity simply requests for the submission of price quotations for readily available off-the-shelf Goods or ordinary/regular equipment to be procured directly from suppliers of known qualification; or

e. Negotiated Procurement – a method of Procurement that may be resorted under the extraordinary circumstances provided for in Section 53 of this Act and other instances that shall be specified in the IRR, whereby the Procuring Entity directly negotiates a contract with a technically, legally and financially capable supplier, contractor or consultant.

In all instances, the Procuring Entity shall ensure that the most advantageous price for the government is obtained.

Section 49. Limited Source Bidding. – Limited Source Bidding may be resorted to only in any of the following conditions:

a. Procurement of highly specialized types of Goods and Consulting Services which are known to be obtainable only from a limited number of sources; or

b. Procurement of major plant components where it is deemed advantageous to limit the bidding to known eligible bidders in order to maintain an optimum and uniform level of quality and performance of the plant as a whole.

Section 50. Direct Contracting. – Direct Contracting may be resorted to only in any of the following conditions:

a. Procurement of Goods of propriety nature, which can be obtained only from the propriety source, i.e. when patents, trade secrets and copyrights prohibit others from manufacturing the same items;

b. When the Procurement of critical components from a specific manufacturer, supplier, or distributor is a condition precedent to hold a contractor to guarantee its project performance, in accordance with the provisions his contract; or,

c. Those sold by an exclusive dealer or manufacturer, which does not have sub-dealers selling at lower prices and for which no suitable substitute can be obtained at more advantageous terms to the government.

Section 51. Repeat Order. – When provided for in the Annual Procurement Plan, Repeat Order may be allowed wherein the Procuring Entity directly procures Goods from the previous winning bidder whenever there arises a need to replenish goods procured under a contract previously awarded through Competitive Bidding, subject to post-qualification process prescribed in the Bidding Documents and provided all the following conditions are present:

a. The unit price must be equal to or lower than that provided in the original contract;

b. The repeat order does not result in splitting of requisitions or purchase orders;

c. Except in special circumstances defined in the IRR the repeat order shall be availed of only within six (6) months from the date of the Notice to Proceed arising from the original contract; and,

d. The repeat order shall not exceed twenty-five percent (25%) of the quantity of each item of the original contract.

Section 52. Shopping. – shopping may be resorted to under any of the following instances:

a. When there is an unforeseen contingency requiring immediate purchase: Provided, however, That the amount shall not exceed Fifty thousand pesos (P50,000); or

b. Procurement of ordinary or regular office supplies and equipment not available in the Procurement Service involving an amount not exceeding Two hundred fifty thousand pesos (P250,000): Provided, however, That the Procurement does not result in Splitting of Contracts: Provided, further, That at least three (3) price quotations from bona fide suppliers shall be obtained.

The above amounts shall be subject to a period review by the GPPB. For this purpose, the GPPB shall be authorized to increase or decrease the said amount in order to reflect changes in economic conditions and for other justifiable reasons.

Section 53. Negotiated Procurement. – Negotiated Procurement shall be allowed only in the following instances:

a. In case of two (2) failed bidding as provided in Section 35 hereof;

b. In case of imminent danger to life or property during a state of calamity, or when time is of the essence arising from natural or man-made calamities or other causes where immediate action is necessary to prevent damage to or loss of life or property, or to restore vital public services, infrastructure facilities and other public utilities;

c. Take-over of contracts, which have been rescinded or terminated for causes provided for in the contract and existing laws, where immediate action is necessary to prevent damage to or loss of life or property, or to restore vital public services, infrastructure facilities and other public utilities;

d. Where the subject contract is adjacent or contiguous to an on-going infrastructure project, as defined in the IRR: Provided, however, That the original contract is the result of a Competitive Bidding; the subject contract to be negotiated has similar or related scopes of work; it is within the contracting capacity of the contractor; the contractor uses the same prices or lower unit prices as in the original contract less mobilization cost; the amount involved does not exceed the amount of the ongoing project; and, the contractor has no negative slippage: Provided, further, That negotiations for the procurement are commenced before the expiry of the original contract. Wherever applicable, the principle shall also govern consultancy contract, where the consultants have unique experience and expertise to deliver the required service; or,

e. Subject to the guidelines specified in the IRR, purchases of Goods from another agency of the government, such as the Procurement Service of the DBM, which is tasked with a centralized procurement of commonly used Goods for the government in accordance with Letters of Instruction No. 755 and Executive Order No. 359, series of 1989.

Section 54. Terms and Conditions for the use of Alternative Methods. – The specific terms and conditions, including the limitations and restrictions, for the application of each of the alternative methods mentioned in this Article shall be specified in the IRR.

ARTICLE XVII
PROTEST MECHANISM

Section 55. Protests on Decisions of the BAC.- Decisions of the BAC in all stages of procurement may be protested to the head of the procuring entity and shall be in writing. Decisions of the BAC may be protested by filing a verified position paper and paying a non-refundable protest fee. The amount of the protest fee and the periods during which the protests may be filed and resolved shall be specified in the IRR.

Section 56. Resolution of Protests. – The protest shall be resolved strictly on the basis of records of the BAC. Up to a certain amount to be specified in the IRR, the decisions of the Head of the Procuring Entity shall be final.

Section 57. Non-interruption of the Bidding Process.- In no case shall any protest taken from any decision treated in this Article stay or delay the bidding process. Protests must first be resolved before any award is made.

Section 58. Report to Regular Courts; Certiorari.- Court action may be resorted to only after the protests contemplated in this Article shall have been completed. Cases that are filed in violation of the process specified in this Article shall be dismissed for lack of jurisdiction. The regional trial court shall have jurisdiction over final decision of the head of the procuring entity. Court actions shall be governed by Rule 65 of the 1997 Rules of Civil Procedure.

This provision is without prejudice to any law conferring on the Supreme court the sole jurisdiction to issue temporary restraining orders and injunctions relating to Infrastructure Projects of Government.

ARTICLE XVIII
SETTLEMENT OF DISPUTES

Section 59. Arbitration. – Any and all disputes arising from the implementation of a contract covered by this Act shall be submitted to arbitration in the Philippines according to the provisions of Republic Act No. 876, otherwise known as the “Arbitration Law”: Provided, however, That, disputes that are within the competence of the Construction Industry Arbitration Commission to resolve shall be referred thereto. The process of arbitration shall be incorporated as a provision in the contract that will be executed pursuant to the provisions of this Act: Provided, That by mutual agreement, the parties may agree in writing to resort to alternative modes of dispute resolution.

Section 60. Appeals. – The arbitral award and any decision rendered in accordance with the foregoing Section shall be appealable by way of a petition for review to the Court of Appeals. The petition shall raise pure questions of law and shall be governed by the Rule of Court.

ARTICLE XIX
CONTRACT PRICES AND WARRANTIES

Section 61. Contract Prices. – For the given scope of work in the contract as awarded, all bid prices shall be considered as fixed prices, and therefore not subject to price escalation during contract implementation, except under extraordinary circumstances and upon prior approval of the GPPB.

For purposes of this Section, “extraordinary circumstances” shall refer to events that may be determined by the National Economic and Development Authority in accordance with the Civil Code of the Philippines, and upon the recommendation of the procuring entity concerned.

Section 62. Warranty. – (a) For the procurement of Goods, in order to assure that manufacturing defects shall be corrected by the supplier, manufacturer, or distributor, as the case maybe, for a specific time after performance of the contract, a warranty shall be required from the contract awardee for such period of time as may be provided in the IRR, the obligation for which shall be covered by either retention money in the amount equivalent to a percentage of every progress payment, or a special bank guarantee equivalent to a percentage of the total contract price, to be provided in the IRR. The said amounts shall only be released after the lapse of the warranty period, provided that the Goods supplied are free from defects and all the conditions imposed under the contract have been fully met.

b. For the procurement of infrastructure projects, the contractor shall assume full responsibility for the contract work from the time project construction commenced up to a reasonable period as defined in the IRR taking into consideration the scale and coverage of the project from its final acceptance by the government and shall be held responsible for any damage or construction or works except those occasioned by force majeure. The contractor shall be fully responsible for the safety, protection, security, and convenience of his personnel, third parties, and the public large, as well as the works, equipment, installation and the like to be affected by his construction work and shall be required to put up a warranty security in the form of cash, bank guarantee, letter of credit, Government Service Insurance System bond, or callable surety bond.

The contractor shall undertake the repair works, at his own expense, of any defect or damage to the infrastructure projects on account of the use of materials of inferior quality within ninety (90) days from the time the Head of the Procuring Entity has issued an order to undertake repair. In case of failure or refusal to comply with this mandate, the governments shall undertake such repair works and shall be entitle to full reimbursement of expenses incurred therein upon demand.

Any contractor who fails to comply with the preceding paragraphs shall suffer perpetual disqualification from participating in any public bidding and his property or properties shall be subject to attachment or garnishment proceedings to recover the costs. All payables of government in his favor shall be offset to recover the costs.

ARTICLE XX
THE GOVERNMENT PROCUREMENT POLICY BOARD

Section 63. Organization and Functions. – A Government Procurement Policy Board (GPPB) is hereby established to: (a.) protect national interest in all matters affecting public Procurement, having due regard to the country’s regional and international obligations; (b.) formulate and amend, whenever necessary, the IRR and the corresponding standard forms for Procurement; (c) ensure that Procuring Entities regularly conduct Procurement training programs and prepare a Procurement operations manual for all offices and agencies of government; and (d) conduct an annual review of the effectiveness of this Act and recommend any amendments thereto, as may be necessary.

The GPPB shall convene within fifteen (15) days from the effectivity of this Act formulate the IRR and for other related purposes. The GPPB shall be supported by a technical support office.

In addition to the powers granted under this Act, the GPPB shall absorb all the powers, function and responsibilities of the Procurement Policy Board created under Executive Order No. 359, series of 1989. All affected functions of the Infrastructure Committee of the National Economic and Development Authority Board are hereby transferred to the GPPB.

Section 64. Membership. – The GPPB shall be composed of the Secretary of the Department of Budget and Management, as Chairman, the Director-General of the National Economic and Development Authority, as Alternate Chairman, with the following as Members; the Secretaries of the Departments of Public Works and Highways, Finance, Trade and Industry, Health, National Defense, Education, Interior and Local Government, Science and Technology, Transportation and Communications, and Energy, or their duly authorized representatives and a representative from the private sector to be appointed by the President upon the recommendation of the GPPB. The GPPB may invite a representative from the Commission on Audit to serve as a resource person.

ARTICLE XXI
PENAL CLAUSE

Section 65. Offenses and Penalties. – (a) Without prejudice to the provisions of Republic Act No. 3019, otherwise known as the “Anti-Graft and Corrupt Practice Act” and other penal laws, public officers who commit any of the following acts shall suffer the penalty of imprisonment of not less than six (6) years and one (1) day, but not more than fifteen (15) years:

1. Open any sealed Bid including but not limited to Bids that may have been submitted through the electronic system and any and all documents required to be sealed or divulging their contents, prior to the appointed time for the public opening of Bids or other documents.

2. Delaying, without justifiable cause, the screening for eligibility, opening of bids, evaluation and post evaluation of bids, and awarding of contracts beyond the prescribed periods of Bids or other documents.

3. Unduly influencing or exerting undue pressure on any member of the BAC or any officer or employee of the procuring entity to take a particular bidder.

4. Splitting of contracts which exceed procedural purchase limits and competitive bidding.

5. When the head of the agency abuses the exercise of his power to reject any and all bids as mentioned under Section 41 of this Act with manifest preference to any bidder who is closely related to him in accordance with Section 47 of this Act.

When any of the foregoing acts is done in collusion with private individuals, the private individuals shall likewise be liable for the offense.

In addition, the public officer involved shall also suffer the penalty of temporary disqualification from public office, while the private individual shall be permanently disqualified from transacting business with the government.

(b) Private individuals who commit any of the following acts, including any public officer, who conspires with them, shall suffer the penalty of imprisonment of not less than six (6) years and one (1) day but not more than fifteen (15) years:

1. When two or more bidders agree and submit different Bids as if they were bona fide, when they knew that one or more of them was so much higher than the other that it could not be honestly accepted and that the contract will surely be awarded to the pre-arranged lowest Bid.

2. When a bidder maliciously submits different Bids through two or more persons, corporations, partnerships or any other business entity in which he has interest of create the appearance of competition that does not in fact exist so as to be adjudged as the winning bidder.

3. When two or more bidders enter into an agreement which call upon one to refrain from bidding for Procurement contracts, or which call for withdrawal of bids already submitted, or which are otherwise intended to secure as undue advantage to any one of them.

4. When a bidder, by himself or in connivance with others, employ schemes which tend to restrain the natural rivalry of the parties or operates to stifle or suppress competition and thus produce a result disadvantageous to the public.

In addition, the persons involved shall also suffer the penalty of temporary or perpetual disqualification from public office and be permanently disqualified from transacting business with the government.

(c) Private individuals who commit any of the following acts, and any public officer conspiring with them, shall suffer the penalty of imprisonment of not less than six (6) years and one (1) day but more than fifteen (15) years:

1. Submit eligibility requirements of whatever kind and nature that contain false information or falsified documents calculated to influence the outcome of the eligibility screening process or conceal such information in the eligibility requirements when the information will lead to a declaration of ineligibility from participating in public bidding.

2. Submit Bidding Documents of whatever kind and nature than contain false information or falsified documents or conceal such information in the Bidding Documents, in order to influence the outcome of the public bidding.

3. Participate in a public bidding using the name of another or allow another to use one’s name for the purpose of participating in a public bidding.

4. Withdraw a Bid, after it shall have qualified as the Lowest Calculated Bid/Highest Rated Bid, or to accept and award, without just cause or for the purpose of forcing the Procuring Entity to award the contract to another bidder. This shall include the non-submission of requirements such as, but not limited to, performance security, preparatory to the final award of the contract.

(d) When the bidder is a juridical entity, criminal liability and the accessory penalties shall be imposed on its directors, officers or employees who actually commit any of the foregoing acts.

Section 66. Jurisdiction. – Jurisdiction over the offenses defined under this Article shall belong to the appropriate courts, according to laws existing at the time of the commission of the offenses.

ARTICLE XXII
CIVIL LIABILITY

Section 67. Civil Liability in Case of Conviction. – Without prejudice to administrative sanctions that may be imposed in proper cases, a conviction under this Act or Republic Act No. 3019 shall carry with it civil liability, which may either consist of restitution for the damage done or the forfeiture in favor of the government of any unwarranted benefit derived from the act or acts in question or both, at the discretion of the courts.

Section 68. Liquidated Damages. – All contracts executed in accordance with this Act shall contain a provision on liquidated damages which shall be payable in case of breach thereof. The amount thereof shall be specified in the IRR.

ARTICLE XXIII
ADMINISTRATIVE SANCTIONS

Section 69. Imposition of Administrative Penalties. – (a) In addition to the provisions of Articles XXI and XXII of this Act, the Head of the Procuring Entity, subject to the authority delegated to the BAC, if any, shall impose on bidders or prospective bidders, the administrative penalty of suspension for one (1) years for the first offense, and suspensions of two (2) years for the second offense from participating in the public bidding process, for the following violations:

1. Submission of eligibility requirements containing false information or falsified documents.

2. Submission of bids that contain false information or falsified documents, or the concealment of such information in the Bids in order to influence the outcome of eligibility screening or any other stage of the public bidding.

3. Allowing the use of one’s name, or using the name of another for purposes of public bidding.

4. Withdrawal of a Bid, or refusal to accept an award, or enter into contract with the government without justifiable cause, after he had been adjudged as having submitted the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid.

5. Refusal or failure to post the require performance security within the prescribed time.

6. Termination of the contract due to the default of the bidder.

Refusal to clarify or validate in writing its Bid during post-qualification within a period of seven (7) calendar days from receipt of the request for clarification.

Any documented unsolicited attempt by a bidder to unduly influence the outcome of the bidding in his favor.

All other acts that tend to defeat the purpose of the Competitive bidding.

(b) In addition to the penalty of suspension, the Bid security of the performance security posted by the concerned bidder or prospective bidder shall also be forfeited.

(c) the Head of the Procuring Entity may delegate to the BAC the authority to impose the aforementioned administrative penalties.

Section 70. Preventive Suspension. – The head of the procuring entity may preventively suspend any member of the Technical Working Group of the Secretariat, or the BAC if there are strong reasons or prima facie evidence showing that the officials or employees concerned are guilty or the charges filed against them under Articles XXI and XXII of this Act or for dishonesty as defined by the Civil Service Laws. In all cases, procedural and substantive due process as mandated by the Constitution and Civil Service Laws, rules and regulations, shall be strictly observed.

Section 71. Lifting of Suspension and Removal of Administrative Disabilities. – Lifting of preventive suspension pending administrative investigation, as well as removal of administrative investigation, as well as removal of administrative penalties and disabilities shall be in accordance with the provisions of Sections 52 and 53, Chapter 6 (Civil Service Commission), Book V of Executive Order No. 292, the Administrative Code of 1987.

ARTICLE XXIV
LEGAL ASSISTANCE AND INDEMNIFICATION OF BAC MEMBERS

Section 72. Private Legal Assistance. – All the members of the BAC are hereby authorized to engage the service of private lawyers or extend counsel immediately upon receipt of Court Notice that a civil or criminal action, suit or proceeding is filed against them. The lawyer’s fee shall be part of the indemnification package for the BAC members, subject to the provisions of Section 73 hereof.

Section 73. Indemnification of BAC Members. – The GPPB shall establish an equitable indemnification package for public officials providing services in the BAC, which may be in the form of free legal assistance, liability insurance, and other forms of protection and indemnification for all cost and expenses reasonably incurred by such persons in connection with any civil or criminal actions, suit or proceeding to which they may be, or have been made, a party by reason of the performance of their functions or duties, unless they are finally adjudged in such action or proceeding to be liable for gross negligence or misconduct or grave abuse of discretion.

In the event of settlement or compromise, indemnification shall be confined only on matters covered by the settlement, as to which the Procuring Entity had been advised by countset that the public officials to be indemnified have not committed gross negligence or misconduct in the performance of their functions and duties.

The members of the BAC and the BAC Secretariat shall also be entitled to medical assistance for injuries incurred in the performance of their functions.

ARTICLE XXV
FINAL PROVISIONS

Section 74. Oversight Committee. – There is hereby created a Joint Congressional Oversight Committee to oversee the implementation of this Act for a period not exceeding five (5) years from the effectivity of this Act. The Committee shall be composed of the Chairman of the Senate Committee on Constitutional Amendments and Revision of Laws and two (2) members thereof appointed by the Senate President, and the Chairman of the House Committee on Appropriations, and two(2) thereof to be appointed by the Speaker of the House of Representatives.

Section 75. Implementing Rules and Regulations and Standard Forms. – Within sixty (60) days from the promulgation of this Act, the necessary rules and regulations for the proper implementation of its provisions shall be formulated by the GPPB, jointly with the members of the Oversight Committee created under Section 74 hereof. The said rules and regulations shall be approved by the President of the Philippines. For a period not later than thirty (30) days upon the approval of the implementing rules and regulations the standard forms for Procurement shall be formulated and approved.

Section 76. Repealing Clause. – This law repeals Executive Order No. 40, series of 2001, entitled “Consolidating Procurement Rules and Procedures for all National Government Agencies, Government-Owned-or-Controlled Corporations and/or Government Financial Institutions, and requiring the Use of the Government Electronic Procurement System”; Executive Order No.262, series of 2000, entitled “Amending Executive Order No.302, series of 1996, entitled “Providing Policies, Guidelines, Rules and Regulations for the Procurement of Goods/Supplies by the National Government’ and Section 3 of Executive Order No.201, series of 2000, entitled “Providing Additional Policies and Guidelines and the Procurement of Goods/Supplies by the National Government”; Executive Order No. 302, series of 1996, entitled “Providing Policies, Guidelines, Rules and Regulations for the Procurement of Goods/Supplies by the National Government” and Presidential Decree No. 1594 dated June 11,1978, entitled “Prescribing Policies, Guidelines, Rule and regulations for Government Infrastructure Contracts.” This law amends Title Six, Book Two of Republic Act No. 7160, otherwise known as the “Local Government Code of 1991″; the relevant provisions of Executive Order No.164, series of 1987, entitled ” An Act Providing Additional Guidelines in the processing and Approval of Contracts of the Government”; and the relevant provisions of Republic Act No. 7898 dated February 23, 1995, entitled “An Act Providing for the Modernization of the Armed Forces of the Philippines and other Purposes.” Any other law, presidential decree or issuance, executive order, letter of instruction, administrative order, proclamation, charter, rule or regulation and/or parts thereof contrary to or inconsistent with the provisions of this Act, hereby repealed, modified or amended accordingly.

Section 77. Separability Clause. – If any provision of this Act is declared invalid or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting.

Section 78. Effectivity Clause. – This Act shall take effect fifteen (150) days following its publication in the Officials Gazette or in two (2) newspapers of general circulation.

Approved,

FRANKLIN DRILON
President of the Senate

JOSE DE VENECIA JR.
Speaker of the House of Representatives

This Act, which is a consolidation of House Bill No.4809 and Senate Bill No. 2248 was finally passed by the House of Representatives and the Senate on December 18, 2002.

OSCAR G. YABES
Secretary of Senate

ROBERTO P. NAZARENO
Secretary General
House of Represenatives

Approved: January 10, 2003

GLORIA MACAPAGAL-ARROYO
President of the Philippines

IMPLEMENTING RULES AND REGULATION OF REPUBLIC ACT 9184 OTHERWISE KNOWN AS
THE GOVERNMENT PROCUREMENT REFORM ACT

Section Details

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

Section 1. Date of Election. – There shall be synchronized barangay and sangguniang kabataan elections which shall be held on July 15, 2002. Subsequent synchronized barangay and sangguniang kabataan elections shall be held on the last Monday of October and every three (3) years thereafter.

Sec. 2. Term of Office. – The term of office of all barangay and sangguniang kabataan officials after the effectivity of this Act shall be three (3) years.

No barangay elective official shall serve for more than three (3) consecutive terms in the same position: Provided, however, That the term of office shall be reckoned from the 1994 barangay elections. Voluntary renunciation of office for any length of time shall not be considered as an interruption in the continuity of service for the full term for which the elective official was elected.

Sec. 3. Registration. – For purposes of the July 15, 2002 synchronized barangay and sangguniang kabataan elections provided under this Act, a special registration of voters for the sangguniang kabataan shall be fixed by the Commission on Elections (COMELEC). Subsequent registration of barangay and sangguniang kabataan voters shall be governed by Republic Act No. 8189.

Sec. 4. Assumption of Office. – The term of office of the barangay and sangguniang kabataan officials elected under this Act shall commence on August 15, 2002. The term of office of the barangay and sangguniang kabataan officials elected in subsequent elections shall commence at noon of November 30 next following their election.

Sec. 5. Hold Over. – All incumbent barangay officials and sangguniang kabataan officials shall remain in office unless sooner removed or suspended for cause until their successors shall have been elected and qualified. The provisions of the Omnibus Election Code relative to the failure of elections and special elections are hereby reiterated in this Act.

Sec. 6. Section 424 of Republic Act No. 7160, otherwise known as the Local Government Code of 1991, is hereby amended to read as follows:

“Sec. 424. Katipunan ng Kabataan. – The katipunan ng kabataan shall be composed of Filipino citizens actually residing in the barangay for at least six (6) months, who are fifteen (15) but less than eighteen (18) years of age on the day of the election, and who are duly registered in the list of the sangguniang kabataan or in the official barangay list in the custody of the barangay secretary.

Sec. 7. Section 428 of Republic Act No. 7160, otherwise known as the Local Government Code of 1991, is hereby amended to read as follows:

“Sec. 428. Qualifications. – An elective official of the sangguniang kabataan must be a Filipino citizen, a qualified voter of the katipunan ng kabataan, a resident of the barangay for at least one (1) year immediately prior to election, at least fifteen (15) years but less than eighteen (18) years of age on the day of the election, able to read and write Filipino, English, or the local dialect, and must not have been convicted of any crime involving moral turpitude.”

Sec. 8. Appropriation. – The amount of one billion one hundred million pesos (P1,100,000,000.00) needed for the purpose shall be charged from the appropriation of the COMELEC authorized under Republic Act No. 9162, otherwise known as the FY 2002 General Appropriations Act.

In addition, the savings of the COMELEC not exceeding three hundred million pesos (P300,000,000.00) shall be used to augment said appropriations as authorized under COMELEC Special Provision No. 2 of the Republic Act No. 9162.

The funds mentioned above may be augmented by an amount not exceeding ten percent (10%) of the sangguniang kabataan funds reserved pursuant to Section 532 (c) of Republic Act No. 7160.

Sec. 9. Applicability of Other Election Laws. – The Omnibus Election Code and other existing election laws, as far as practicable, shall apply to barangay and sangguniang kabataan elections.

Sec. 10. Implementing Rules and Regulations. The COMELEC shall promulgate such rules and regulations necessary to implement this Act.

Sec. 11. Separability Clause. – If any provision of this Act is declared unconstitutional or invalid, such sections or parts not affected thereby shall remain in full force and effect.

Sec. 12. Repealing Clause. – All decrees, executive orders, rules and regulations, or parts thereof, inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

Sec. 13. Effectivity Clause. – This Act shall take effect seven (7) days after its complete publication in two (2) newspapers of general circulation.

Approved: March 19, 2002

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

PREAMBLE

The people of the Autonomous Region in Muslim Mindanao, imploring the aid of Almighty God, in order to develop a just and humane society and establish a Regional Autonomous Government that is truly reflective of their ideals and aspirations within the framework of the Constitution and national sovereignty, as well as the territorial integrity of the Philippines, and to secure to themselves and their posterity the blessings of autonomy, democracy, peace, justice and equality, do ordain and promulgate this Organic Act through the Congress of the Philippines.

ARTICLE I
NAME AND PURPOSE

Section 1. The name of the Autonomous Region shall be the Autonomous Region in Muslim Mindanao unless provided otherwise by the Regional Assembly. The Autonomous Region in Muslim Mindanao shall be governed by the Regional Government.
ARTICLE II
THE AUTONOMOUS REGIONAREA AND SEAT OF GOVERNMENT

Section 1. Expanded Autonomous Region

(1) The Autonomous Region in Muslim Mindanao which, under the provisions of Republic Act No. 6734, the Organic Act for the Autonomous Region in Muslim Mindanao, is composed of the four provinces of Lanao del Sur, Maguindanao, Sulu and Tawi-Tawi, is hereby expanded to include the provinces and cities, enumerated hereunder, which vote favorably to be included and in the expanded area of the autonomous region and for other purposes, in a plebiscite called for that purpose in accordance with Section 18, Article X of the Constitution.

The new area of autonomy shall then be determined by the provinces and cities that will vote/choose to join the said autonomy. It is understood that Congress may by law which shall be consistent with the Constitution and in accordance with the provisions of Republic Act No. 7160, the Local Government Code of 1991, provide that clusters of contiguous-Muslim-dominated municipalities voting in favor of autonomy be merged and constituted into a new province(s) which shall became part of the new Autonomous Region.

(2) Plebiscite Coverage.

(a) The plebiscite shall be conducted in the provinces of Basilan, Cotabato, Davao del Sur, Lanao del Norte, Lanao del Sur, Maguindanao, Palawan, Sarangani, South Cotabato, Sultan Kudarat, Sulu, Tawi-Tawi, Zamboanga del Norte, Zamboanga del Sur and the newly created Province of Zamboanga Sibugay, and

(b) in the cities of Cotabato, Dapitan, Dipolog, General Santos, Iligan, Kidapawan, Marawi, Pagadian, Puerto Princesa, Digos, Koronadal, Tacurong, and Zamboanga.

Section 2. Result of the Plebiscite

(a) In the four provinces,if the majority of the voters of the four provinces of Lanao del Sur, Maguindanao, Sulu, and Tawi-Tawi vote in favor of the above-mentioned proposed amendments, the amendments are deemed ratified. Otherwise, the amendments are deemed rejected except as regards the inclusion of the provinces and cities that vote for their inclusion in the Autonomous Region as provided in this Organic Act, in which case, the said provinces and cities shall become members of the autonomous region.

(b) In the provinces or cities proposed for inclusion in the expanded area of the autonomous region. A majority of the votes cast in the plebiscite in every province or city in favor of the inclusion of the province or city as members of the expanded area of the autonomous region as provided in this Organic Act shall effect their membership in the autonomous region.

Section 3. Seat of Autonomous Government. The regional legislative assembly, hereinafter referred to as the Regional Assembly, shall by law, fix the permanent seat of government of the regional government in any province or city that is a member of the autonomous region, taking into consideration accessibility and efficiency in which its mandate may be carried out under this Organic Act.

Until the seat of the Regional Government is transferred as provided above, its provisional seat shall be in Cotabato City. The Regional Assembly elected after the plebiscite mentioned in this Organic Act, shall, within its term, identify the site of the permanent seat of the Regional Government. The central government, which shall also mean the national government, shall appropriate funds for the transfer of the provisional seat to its permanent site as determined by the Regional Assembly.
ARTICLE III
GUIDING PRINCIPLES AND POLICIES

Section 1. Integral Part of the Republic. The Autonomous Region in Muslim Mindanao shall remain an integral and inseparable part of the national territory of the Republic as defined by the Constitution and existing laws.

The Autonomous Region shall be governed and administered in accordance with the laws enacted by the Regional Assembly and by this Organic Act.

Section 2. Peaceful Settlement of Conflicts. The Regional Autonomous Government shall adopt the policy of settlement of conflicts by peaceful means, and renounce any form of lawless violence as an instrument of redress.

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 provinces, cities, municipalities, and barangays 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.

Section 4. Charter Governed Cities. All chartered cities within the autonomous region shall continue to be governed by their charters. Nothing in this Organic Act shall be construed as to diminish the powers and functions already enjoyed by these cities.

Section 5. Customs, Traditions, Religious Freedom Guaranteed. The beliefs, customs, and traditions of the people in the autonomous region and the free exercise of their religions as Muslims, Christians, Jews, Buddhists, or any other religious denomination in the said region are hereby recognized, protected and guaranteed.

The Regional Assembly shall adopt measures to ensure mutual respect for and protection of the distinct beliefs, customs, and traditions and the respective religions of the inhabitants thereof, be they Muslims, Christians, Jews, Buddhists, or any other religious denomination. The Regional Assembly, in consultation with the Supreme Court and consistent with the Constitution, may formulate a Shari’ah legal system including the criminal cases, which shall be applicable in the region, only to Muslims or those who profess the Islamic faith. The representation of the regional government in the various central government or national government bodies as provided for by Article V, Section 5 shall be effected upon approval of the measures herein provided.

The Shari’ah courts shall have jurisdiction over cases involving personal, family and property relations, and commercial transactions, in addition to their jurisdiction over criminal cases involving Muslims.

The Regional Assembly shall, in consultation with the Supreme Court, determine the number and specify the details of the jurisdiction of these courts. No person in the autonomous region shall be subjected to any form of discrimination on account of creed, religion, ethnic origin, parentage or sex. The Regional Government shall ensure the development, protection, and well-being of all indigenous tribal communities. Priority legislation in this regard shall be enacted for the benefit of those tribes that are in danger of extinction as determined by the Southern Philippine Cultural Commission.

Section 6. Filipino and Islamic Values In Educational Policies. The Regional Government shall adopt educational policies that shall perpetuate Filipino and Islamic values and ideals and the just aspirations of the Bangsa Moro with due respect to the beliefs, customs, traditions, and religions of the other non-Muslim inhabitants of the region be they Christians, Jews, Buddhists, or of any other religious denomination.

Section 7. Improving Status of the Marginalized. The regional government shall devote its resources to the improvement of the well-being of all its constituents, particularly the marginalized, deprived, disadvantaged, underprivileged, disabled, and the elderly.

Section 8. Regional Government Authority Over Natural Resources. Subject to the provisions of the Constitution and this Organic Act, the Regional Government shall have authority, power, and right to explore, develop and utilize the natural resources, including surface and sub-surface rights, in-land and coastal waters, and renewable and non-renewable resources in the autonomous region. Muslims, and the other indigenous cultural communities shall, however, have priority rights to explore, develop and utilize the said resources in the areas designated as parts of their respective ancestral domains.

Section 9. Preferential Rights of Inhabitants and Their Safeguards. The autonomous region shall provide manpower training programs, create livelihood and job opportunities, allocate equitable preferential rights to its inhabitants, and adopt laws that will safeguard the rights of workers.

Section 10. Protection of Women and Children. The Regional Government shall uphold and protect the fundamental rights of women and children including the right of women to engage in lawful employment. Women and children, especially orphans of tender age, shall be protected from exploitation, abuse or discrimination.

Section 11. Enhancement of Quality Life. The Regional Government shall provide, maintain, and ensure the delivery of, among other things, basic and responsive health programs, quality education, appropriate services, livelihood opportunities, affordable and progressive housing projects, and water resource development.

It shall maintain appropriate disaster-preparedness units for immediate and effective relief services to victims of natural and man-made calamities. It shall so ensure the rehabilitation of calamity areas and victims of calamities.

Section 12. Progressive Tax System. The Regional Assembly shall adopt an efficient and progressive system of taxation which, among other things, shall provide incentives for the prompt payment of taxes and penalize tax evasion and delinquency.

Section 13. Equitable Share In National Budget and Development Assistance. The central government or national government shall provide the autonomous region a proportionate and equitable share in the annual national budget and foreign-assisted projects in addition to other financial assistance, support, and subsidies to accelerate its development. Whenever the Commission on Audit finds that the internal controls set up in the region are inadequate, it may require pre-audit and shall likewise conduct seminars in the communities concerned explaining the benefits and proper use of internal revenue allotments.

Section 14. Rights to Initiatives, Consultations, Referenda and Plebiscite. Without prejudice to other rights guaranteed by the Constitution, the rights of the people of the autonomous region to initiate measures for the passage, amendment or repeal of regional or local legislation; to be consulted on matters that affect their environment; to call for a referendum on important issues affecting their lives; and to recall regional or local officials as provided by Republic Act No. 7160, the Local Government Code of 1991, are hereby recognized. The Regional Assembly shall enact priority legislation to define such rights. Until such priority legislation is enacted, existing laws shall govern the exercise of the rights mentioned above.

Section 15. Fundamental Rights and Duties of People. The fundamental rights and duties of the people in the autonomous region are those defined in the Constitution and this Organic Act, the Geneva Convention, the United Nations Charter, the United Nations Declaration on the Rights of Indigenous Communities, the International Declaration of Human Rights, as well as those prescribed in all the laws, practices, and principles binding upon members of the community of nations.

Section 16. Human Rights Commission. There is hereby created a Regional Human Rights Commission. The chair and two commissioners of the commission shall be appointed by the President upon recommendation of the Regional Governor. The composition of the commission shall reflect the ethnic distribution of the population of the autonomous region. The chair shall be a lawyer and shall be a resident of the autonomous region. The two commissioners shall, preferably, be lawyers or, at least, holders of bachelor degrees from colleges or universities recognized by the Department of Education, Culture and Sports of the central government or national government. The Regional Human Rights Commission shall perform within the autonomous region, the functions of the commission on human rights of the central government or national government. Decisions of the commission may be appealed to the Court of Appeals on questions of law.

Initially, the Regional Assembly shall fix the salaries, perquisites, and privileges of the chair and the commissioners of the Commission at a level not lower than those fixed for the chair and members of the National Labor Commission. The Commission may provide additional functions to enhance and protect the human rights of all the people in the autonomous region. Thereafter, subject to availability of funds, the Regional Assembly may raise the salaries, perquisites, and privileges of the chair and the commissioners.
ARTICLE IV
POWERS OF GOVERNMENT

Section 1. Powers and Functions. Subject to the provisions of the Constitution, the Regional Government shall exercise those powers and functions expressly granted to it in this Organic Act, or necessary for or incidental to the proper governance and development of all the constituent units within the autonomous region consistent with the policy on regional and local autonomy and decentralization.

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.

Section 2. Corporate Entity. The autonomous region is a corporate entity with jurisdiction over all matters devolved to it by the Constitution and this Organic Act.

Section 3. Scope of Regional Assembly Legislative Power; Exceptions The Regional Assembly may exercise legislative power in the autonomous region for the benefit of the people and for the development of the region except on the following matters:

(a) Foreign affairs;

(b) National defense and security;

(c) Postal service;

(d) Coinage and fiscal and monetary policies;

(e) Administration of justice; It may, however, legislate on matters covered by the Shari’ah. The Shari’ah shall apply only to Muslims. Its application shall be limited by pertinent constitutional provisions, particularly by the prohibition against cruel and unusual punishment and by pertinent national legislation that promoted human rights and the universality accepted legal principles and precepts;

(f) Quarantine;

(g) Customs and tariff;

(h) Citizenship;

(i) Naturalization, immigration and deportation;

(j) General auditing;

(k) National elections;

(l) Maritime, land an air transportation, and communications. The autonomous government shall, however, have the power to grant franchises, licenses and permits to land, sea and air transportation plying routes in the province or cities within the region, and communications facilities whose frequencies are confined to and whose main offices are located within the autonomous region;

(m) Patents, trademarks, trade names, and copyrights; and (n) Foreign trade.

Section 4. General Welfare Powers. Notwithstanding the limitations on the powers of the Regional Assembly as stated above, it may enact laws that promote the general welfare of the people of the autonomous region.

Section 5. Representation In Central Government or National Government Departments, Offices As far as practicable, the autonomous region shall be represented in the departments, offices, commissions, agencies, and bureaus of the central government or national government that implement and enforce policies, programs and projects of the central government or national government in the region.

Section 6. Eminent Domain. The Regional Government may exercise the power of eminent domain.
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 over the punong barangay, through the city or municipal mayor.

In addition to other acts which he or she may impose under the Constitution and this Organic Act, the President may suspend, reduce, or cancel the financial blocks or grants-in-aid, funds for infrastructure, and other forms of assistance intended for the autonomous region (1) if the regional government fails to account for the funds and financial assistance released to it by the central government or national government, within one month from the end of every quarter in which the funds and financial assistance had been released or (2) when measures for the protection and enhancement of the civil, human, political or religious rights of the lumads, Christians and other minorities in the autonomous region ordained by the Constitution and this Organic Act, are not respected or are violated or are not implemented within one (1) year from its enactment.

The President may suspend the Regional Governor for a period not exceeding six (6) months for willful violation of the Constitution, this Organic Act or any existing law that applies to the autonomous region.

Section 2. Cabinet Membership As far as practicable, it shall be the policy of the national government that there shall be at least one (1) member of the cabinet with a rank of a department secretary who is an inhabitant of the autonomous region to be recommended by the Regional Governor in consultation with elected officials and concerned sectors of the autonomous region.

Section 3. Shari’ah and Tribal Courts; Coordination With Central Government or National Government The Regional Government shall maintain close coordination with the central government or national government for an effective administration of justice in the autonomous region.

Section 4. Representation of Autonomous Region in General in the Central Government or National Government Representation of the inhabitants of the autonomous region in the central government or national government may be done by appointment or election.

Appointment of inhabitants of the autonomous region to positions in the central government or national government shall be subject to central government or national government standards and guidelines. Such appointment shall be made only upon recommendation by the Regional Governor after consultation with the Regional Assembly and the concerned sectors of the autonomous region.

Rights of representation shall not be construed in such a way that applicants from the autonomous region, especially Muslims and cultural communities, for lower positions in the above organs of the government cannot be appointed anymore thereto. Election of legislators to represent the autonomous region in the Congress of the Republic shall be done pursuant to the rules of the Commission on Elections.

Section 5. Representatives in Executive Department and Constitutional Bodies. At least, one (1) qualified inhabitant of the autonomous region recommended by the Regional Governor in consultation with the Regional Assembly and concerned sectors of the autonomous region shall be appointed, as far as practicable, in each of the departments, offices or bureaus and constitutional bodies of the central government or national government that deal with the autonomous region, in primarily confidential, highly technical, or policy-determining positions.

Section 6. Ex Officio Member of the National Security Council. The Regional Governor shall be an ex officio member of the National Security Council on matters concerning the autonomous region and such other matters as may be determined by the President.

Section 7. Representatives in Government-Owned or -Controlled Corporations The Regional Government shall be represented in the board of directors or in the policy-making bodies of the government-owned and controlled corporations that operate businesses directly or through their subsidiaries in the autonomous region.
ARTICLE VI
THE LEGISLATIVE DEPARTMENT

Section 1. Regional Assembly The legislative power of the autonomous government shall be vested in the Regional Assembly except to the extent that it is reserved to the people by provisions on initiative and referendum as provided by law.

Section 2. Election of Regional Assembly The Regional Assembly shall be composed of members elected by popular vote, with three (3) members elected from each of the legislative districts.

Section 3. Sectoral Representatives There shall be sectoral representatives in the Regional Assembly whose number shall not exceed fifteen percent (15%) of the total number of elected members of the Regional Assembly coming from the agricultural, labor, urban poor, disabled, indigenous cultural communities, youth, and women sectors. The Regional Assembly may enact legislation to provide for the representation of other sectors. The youth representative shall not be less than eighteen (18) years of age nor more than twenty-one (21) years of age at the time of his or her assumption to office.

The sectoral representatives shall be entitled to the same salary and allowances and rights and privileges enjoyed by the regularly elected members of the Regional Assembly. They shall be elected on the same date as that fixed for the election of the members of the Regional Assembly.

Section 4. Term of Office. The members of the Regional Assembly, including the sectoral representatives, shall have a term of three (3) years which shall begin, at noon on the 30th day of September next following the day of the election and shall end at noon of the same date three (3) years thereafter.

No member of the Regional Assembly shall serve for more than three (3) consecutive terms. Voluntary renunciation of or removal from office for any length of time shall not be considered as an interruption in the continuity of his service for the full term for which he was elected.

Section 5. Filling of Vacancy In case of vacancy in the Regional Assembly occurring at least one (1) year before the expiration of the term of office, a special election shall be called to fill the vacancy in the manner prescribed by regional law. The member elected shall serve only for the unexpired term.

Section 6. Qualifications of Members of Regional Assembly. No person shall be a member of the Regional Assembly unless he or she is:

(1) A natural-born citizen of the Philippines;

(2) At least twenty-one (21) years of age on the day of the election;

(3) Able to read and write;

(4) A registered voter of the district in which he or she shall be elected on the day he or she files his or her certificate of candidacy; and

(5) A resident thereof for a period of not less than five (5) years immediately preceding the day of the election.

Section 7. Oath of Office. Every member of the Regional Assembly shall take an oath or affirmation of allegiance to the Republic, renounce the use of violence, and commit himself or herself to democratic means in the pursuit of the ideals and aspirations of the people of the autonomous region before taking his or her seat.

Section 8. Salaries. Unless otherwise provided by the Regional Assembly a member of the Regional Assembly shall receive an annual salary of One hundred eighty thousand pesos (P180, 000.00) except the Speaker of the Regional Assembly who shall receive an annual salary of Two hundred thousand pesos (P200, 000.00), subject to the Salary Standardization Law.

The annual compensation of the Speakers and Members of the Regional Assembly may be increased by the Regional Assembly in accordance with the existing laws on position classification and compensation of the central government or national government. The increase shall, however, not take effect until after the expiration of the terms of office of the members of the assembly who had approved the increase. The increase shall be funded solely from revenue raised by the Regional Government. No funds or parts thereof provided by the central government or national government for the Regional Government shall be used for salaries, honororia, per diems or to increase the salaries, honororia or per diems of the officials or employees of the Regional Government.

They shall not receive during their tenure other emoluments from the Regional Government or from the central government or national government.

Section 9. Forfeiture of Seat. Any member of the Regional Assembly who accepts an appointment and qualifies for any position in the Government, including government-owned or controlled corporations or institutions and their subsidiaries, shall automatically forfeit his or her seat in the Regional Assembly.

Section 10. Disclosure of Financial or Business Interests. All members of the Regional Assembly shall, upon their assumption of office, make a full disclosure of their financial and business interests, including those of their spouses and unmarried children under eighteen (18) years of age living in their households. They shall notify the assembly of any potential conflict of interest that may arise from the filing of measures of which they are authors upon the filing thereof. Any member found guilty of non-disclosure as required under this Section may be expelled by a two-thirds (2/3) vote of all the members of the Regional Assembly, without prejudice to his or her liabilities under pertinent legislation.

Section 11. Prohibited Acts for Members of the Regional Assembly No member of the Regional Assembly may personally appear as counsel before courts of justice or quasi-judicial and other administrative bodies. Neither shall the member directly or indirectly, be interested financially in any contract with, or in any franchise or special privilege granted by the central government or national government or by the regional government, or any subdivision, agency or instrumentality thereof, including any government-owned or controlled corporation or its subsidiary, during his or her term of office. The member shall not intervene in any manner before any office of the government for his or her pecuniary benefit or where he or she may be called upon to act on account of his or her office.

Section 12. Parliamentary Immunity Any member of the Regional Assembly who commits offenses within the jurisdiction of the autonomous region punishable by not more than six (6) years imprisonment, shall be privileged from arrest while the Regional Assembly is in session.

No member of the Regional Assembly shall be questioned or be held liable in any other place for any speech or debate in the assembly or in any of its committees.

Section 13. Rules of Procedure; Discipline of Members and Civil Service Rules The Regional Assembly shall adopt its own rules of procedure by a majority vote of all its members including the selection of members of its standing committees and for the suspension or expulsion of its members.

The Regional Assembly shall elect from among its members a speaker and such other officers as the rules may provide. The Speaker shall appoint the personnel of the Regional Assembly. All qualified applicants shall have equal opportunity for employment with the Regional Government. Inhabitants of the autonomous region shall, however, have preference for appointment to any position in the Regional Government without regard to ethnic origin, culture, sex, creed, and religion.

For a period not exceeding six (6) years from the date of the approval of this Organic Act, appointments to the various positions in the Regional Government shall be subject to the Civil Service law, rules, and regulations of the central government or national government. Thereafter, the Civil Service law, rules, and regulations adopted by the Regional Government shall apply to all such appointments. If no Civil Service law, rules, or regulations are adopted by the Regional Government, appointments to positions in the Regional Government shall continue to be governed by the Civil Service law, rules, and regulations of the central government or national government.

A majority of all the members of the Regional Assembly shall constitute a quorum to do business, but a smaller number may adjourn from day to day and may compel the attendance of absent members in such a manner and under such penalties as the assembly may provide.

Section 14. Questioning Cabinet Members and Other Officials The Regional Assembly may, in aid of legislation and with the express consent of the Regional Governor, require the presence of the regional cabinet members or their deputies as its rules shall provide, for questioning on matters falling within the scope of their powers and functions. The Regional Assembly may require any regional commission, office, or agency of the central government or national government with offices in the autonomous region to explain matters relating to the exercise of its powers and functions.

Section 15. Regular and Specials Sessions Except as provided by its rules, the Regional Assembly shall meet in open session. Regular sessions shall commence on the 4th Monday of October and shall continue to be in session for such number of days as may be determined by the assembly until thirty (30) days before the opening of its next regular session exclusive of Saturdays, Sundays, and legal holidays. The Regional Assembly may meet in special sessions at the request of one-third (1/3) of all its Members or by call of the Regional Governor. The special session shall have a specific agenda.

Section 16. Passage of Bills. No bill shall become a law of regional application unless it has passed three (3) readings on separate days and printed copies thereof in its final form have been distributed to its members three (3) days before its passage, except when the Regional Governor certifies to the necessity of its immediate enactment to meet a public calamity or emergency.

Section 17. Approval of Bills and Override of Veto. Every bill passed by the Regional Assembly, shall before it becomes a law, be presented to the Regional Governor. If the Regional Governor approves the bill, he or she shall sign it; otherwise, he or she shall veto it on the ground that it is ultra vires or it is against public policy and return it with his or her objections to the Regional Assembly. The Regional Assembly shall, thereafter, enter the objections at large in its journal and may proceed to reconsider it. If, after such reconsideration, two-thirds (2/3) of all the Members of the Regional Assembly shall agree to pass the bill, it shall become a law. In such cases, the vote shall be determined by yeas and nays, and the names of the members voting for or against shall be entered in the journal. The Regional Governor shall communicate his veto of any bill to the Regional Assembly within thirty (30) days after the date of its receipt; otherwise, it shall become a law as if he had signed it.

Section 18. Submittal of Bills to the President and Congress The Speaker of the Regional Assembly shall within ten (10) working days from their approval thereof, submit to the President and to both Houses of Congress a certified true copy of all laws and resolutions approved by the Regional Assembly.

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 the Republic Act No. 7160, the Local Government Code of 1991, subject to the approval by the majority of the votes cast in the 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 governments units under the provisions of the code.

The financial requirements of the provinces, cities and municipalities, or barangay so created, divided, 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. Section 20. Annual Budget and Infrastructure Funds The annual budget of the Regional Government shall be enacted by the Regional Assembly. Funds for infrastructure in the autonomous region allocated by the central government or national government shall be appropriated through Regional Assembly Public Works Act.

Unless approved by the Regional Assembly, no public works funds allocated by the central government or national government for the Regional Government or allocated by the Regional Government from its own revenues may be disbursed, distributed, realigned, or used in any manner.
ARTICLE VII
THE EXECUTIVE DEPARTMENT

Section 1. Executive Power The executive power shall be vested in a Regional Governor. He shall be elected by the qualified voters of the autonomous region.

Section 2. Regional Governor and Cabinet Members The Regional Governor shall be the chief executive of the Regional Government. He shall be assisted by a cabinet not exceeding ten (10) members, at least six (6) of whom shall come from indigenous cultural communities. The representatives of the indigenous cultural communities in the cabinet shall come from various provinces and cities within the autonomous region.

The members of the cabinet must be registered voters and residents of the region for at least five (5) years immediately preceding their appointments.

The Regional Governor shall appoint the members of the cabinet subject to confirmation by the Regional Assembly.

Section 3. Qualifications of Regional Governor and Regional Vice Governor. No person may be elected Regional Governor or Regional Vice Governor of the autonomous region unless he or she is a natural born citizen of the Philippines, a registered voter of the autonomous region, able to read and write, at least, thirty-five (35) years of age on the day of the election, and a resident of the autonomous region for, at least, one (1) year immediately preceding the election.

Section 4. Election of Regional Governor and Regional Vice Governor The Regional Governor and the Regional Vice Governor shall be elected as a team, by the qualified voters of the autonomous region. A vote for a candidate for Regional Governor shall be counted as a vote for his teammate for Regional Vice Governor. A vote for a Regional Vice Governor shall be counted as a vote for his teammate for Regional Governor. For purposes of their election, the candidates for Regional Governor and Regional Vice Governor shall belong to the same political party or coalition of parties. The Commission on Elections shall promulgate necessary rule or rules to give effect to this provision of law.

Section 5. Regional Vice Governor Appointment to or Removal from the Cabinet The Regional Vice Governor may be appointed by the Regional Governor as a member of the regional cabinet without need of confirmation by the Regional Assembly. He may be removed from office in the same manner as the Regional Governor.

Section 6. Executive Council; Deputy Regional Governor 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 region. The executive council shall advice 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.

Section 7. Terms of Office of Elective Regional Officials (1) Terms of Office. The terms of office of the Regional Governor, Regional Vice Governor and members of the Regional Assembly shall be for a period of three (3) years; which shall begin at noon on the 30th day of September next following the day of the election and shall end at the noon of the same date three (3) years thereafter. The incumbent elective officials of the autonomous region shall continue in effect until their successors are elected and qualified. (2) Terms limits. No Regional Governor, Regional Vice Governor, or member of the Regional Assembly shall serve for more than three (3) consecutive terms. Voluntary renunciation of or removal from office for any length of time shall not be considered an interruption in the continuity of the service for the full term for which he or she was elected. The term limits in Republic Act no. 7160, the Local Government Code of 1991, shall apply to the governors of provinces and the mayors of cities, municipalities, and punong barangay in the autonomous region.

Section 8. Oaths or Affirmations of Office of the Regional Governor and Regional Vice Governor Before they enter on the execution of their office, the Regional Governor and the Regional Vice Governor shall take the following oath or affirmation: ” I do solemnly swear (or affirm) that I will faithfully and conscientiously fulfill my duties as the Regional Governor (or Regional Vice Governor) of the Regional Government of the Autonomous Region in Muslim Mindanao, preserve and defend the Constitution of the Republic, this Organic Act, the national and regional laws, do justice to every man, consecrate myself to the service of the autonomous region and the nation, renounce the use of violence and commit myself to democratic means in the pursuit of the ideals and aspirations of the people of the autonomous region. So help me God.”(In case of affirmation, last sentence may be omitted.)

Section 9. Compensation of Regional Governor and Vice Governor Unless otherwise provided by the Regional Assembly, the annual compensation of the Regional Governor and Regional Vice Governor shall be Two hundred fifty thousand (P250, 000.00) pesos and Two hundred thirty thousand (P230, 000.00) pesos, respectively subject to the Salary Standardization Law. The compensations may be increased or decreased by the Regional Assembly subject to the existing laws on position classification and compensation. The increase or decrease of their salaries shall, however, not take effect until after their term of office during which the increase or was enacted by the Regional Assembly shall have ended. They shall not receive during their tenure any other emoluments from the central government or national government or Regional Government or from any central or regional government-owned-or-controlled corporations or firms. No funds or parts thereof provided by the central government or national government for the Regional Government shall be used for salaries, honoraria, per diems, or to increase the salaries, honoraria, or per diems of the Regional Governor, Regional Vice Governor, members of the Regional Assembly, or employees of the Regional Government.

Section 10. Regional Governor Housing and Travel Allowances The Regional Governor shall be provided with a reasonable housing allowance by the Regional Assembly. When the Regional Governor travels outside the autonomous region, he shall be provided with reasonable travel and accommodation allowances at rates not less than what is granted to the members of the cabinet of the central government or national government.

Section 11. Succession to Regional Governorship in Cases of Permanent Vacancy In case of death, permanent disability, removal from office, or resignation of the Regional Governor, the Regional Vice Governor shall become the Regional Governor who shall serve for the unexpired term of the former. In case of death, permanent disability, removal from office, or the resignation of both the Regional Governor and the Regional Vice Governor, the Speaker of the Regional Assembly shall act as the Regional Governor until the Regional Governor and the Regional Vice Governor are elected and qualified in a special election called for the purpose. Upon his assumption as acting Regional Governor, the Speaker of the Regional Assembly shall temporarily vacate his position as such and an interim speaker shall be elected. Upon the election and assumption of office of a new Regional Governor, the Speaker shall reassume his office. No special election shall be called to fill a vacancy occurring within one (1) year immediately preceding the next regular election.

Section 12. Succession to Regional Governorship in Cases of Temporary Incapacity In case of temporary incapacity of the Regional Governor to perform his duties on account of physical or legal causes, or when he is on official leave of absence or on travel outside the territorial jurisdiction of the Republic of the Philippines, the Regional Vice Governor, or if there be none or in case of his permanent or temporary incapacity or refusal to assume office, the Speaker of the Regional Assembly shall exercise the powers, duties and functions of the Regional Governor as prescribed by law enacted by the Regional Assembly or in the absence, thereof, by the pertinent provisions of the Republic Act No. 7160, the Local Government Code of 1991.

Section 13. Removal of Regional Governor or Regional Vice Governor The Regional Governor or the Regional Vice Governor may be removed from office for culpable violation of the Constitution or this Organic Act, treason, bribery, graft and corruption, other high crimes, or betrayal of public trust by a three-fourths (3/4) vote of all the Members of the Regional Assembly. The proceedings of the Regional Assembly for the removal of the Regional Governor or Regional Vice Governor shall be presided over by the Presiding Justice of the Court of Appeals. The Regional Assembly may initiate moves for removal of the Regional Governor or the Regional Vice Governor under this Section by a majority vote of all its members. The Regional Assembly shall promulgate the necessary rules to carry out the purposes of this Section. The Regional Governor may also be suspended or removed by the President for culpable violation of the Constitution, treason, bribery, graft and corruption, and other high crimes. Notwithstanding the provisions of the immediately preceding paragraphs, the Regional Governor or the Regional Voice Governor may be charged criminally for any offense before the proper regional trial court. The said court may order his or her preventive suspension from office for not more than two (2) months pending termination of the criminal case or cases. The court may also order the removal of the Regional Governor or Regional Vice Governor from office as a part of its decision of conviction.

Section 14. Recall of Regional Governor, Regional Vice Governor or Members of Regional Assembly The Regional Governor, the Regional Vice Governor or members of the Regional Assembly may be recalled only once during their respective terms of office for loss of confidence. The Regional Assembly shall provide the procedure and system whereby such recall can be made. No recall shall take place within one (1) year from the date of the assumption of office of the official concerned or one (1) year immediately preceding a regional election. In the absence of the procedure and system of recall enacted by the Regional Assembly, the procedure and the system of such recalls shall be governed by the provisions of Republic Act No. 7160, the Local Government Code of 1991.

Section 15. Punishment for Disorderly Behavior Upon the recommendation of the proper committee, the Regional Assembly may punish its members for disorderly behavior. With the concurrence of the majority of its members, the Regional Assembly may admonish, reprimand, or censure an erring member. With the concurrence of two thirds (2/3) of all its members, it may suspend or expel such erring member. The penalty of suspension shall not exceed sixty (60) days.

Section 16. Prohibition Against Holding of Other Offices or Conflict of Interests The Regional Governor, the Regional Vice Governor, the members of the cabinet or their deputies shall not hold any other office or employment during their tenure. They shall not, during said tenure, directly or indirectly, practice any other profession, participate in ay business, or be financially interested in any contract with, or in any franchise or special privilege granted by the government or any subdivision, agency, or instrumentality thereof, including government-owned-or-controlled corporations or subsidiaries. They shall strictly avoid conflicts of interest in the conduct of their office. The spouses and relatives by consanguinity or affinity within the fourth civil degree respectively of the Regional Governor, the Regional Vice Governor, the members of the cabinet, or their deputies shall not, during their tenure, be appointed members of the regional cabinet or chairmen of regional commissions or heads of bureaus or offices, including government-owned-or-controlled corporations and their subsidiaries located in the autonomous region.

Section 17. Appointments by Acting Regional Governor Appointments extended by the acting Regional Governor before the assumption of office by the elected Regional Governor shall remain effective, unless revoked by the elected Regional Governor within ninety (90) days from his or her assumption of office.

Section 18. The Regional Governor shall not issue appointments, remove personnel, or, unless authorized by the Commission on Elections, undertake public works projects, within the prohibited period before and after a regional election as provided by law.

Section 19. Appointments by Regional Governor The Regional Governor shall appoint, in addition to the members of the cabinet and their deputies, the chairmen and members of the commissions and the heads of bureaus of the Regional Government, and those whom he may be authorized by this Organic Act, or by regional law to appoint. The Regional Assembly may, by law, vest the appointment of other officers or officials lower in rank on the heads of department, agencies, commissions, or boards. The powers, functions, responsibilities, and structure of the departments, agencies, bureaus, offices, and instrumentalities of the Regional Government including the corporations owned-or-controlled by the Regional Government shall be prescribed and defined by the Regional Assembly.

Section 20. Power of Regional Governor over Commissions, Agencies, Boards, Bureaus and Offices Subject to the exceptions provided for in this Organic Act, the Regional Governor shall have control of all the regional executive commissions, agencies, boards, bureaus, and offices. He shall ensure that laws are faithfully executed.

Section 21. Fiscal Year; Submission of Budget The fiscal year of the autonomous region shall cover the period January 1 to December 31 of every year. (a) Regional Budget. The Regional Government shall submit to the Regional Assembly not later than two (2) months before the beginning of every regular session, as the basis of the regional appropriations bill, a budget of expenditures, sources of financing, including receipts from existing and proposed revenue measures. (b) Regional Assembly Power Over Budget. The Regional Assembly may not increase the appropriations recommended by the Regional Governor for the operation of the autonomous region as specified in the budget. The form, content, and manner of preparation of the budget shall be prescribed by law enacted by the Regional Assembly. Pending the enactment of such law, the budgeting process shall be governed by existing laws and rules and regulations prescribed by the Department of Budget and Management. (c) Prohibition Against Riders. No provision or enactment shall be embraced in the regional appropriations bill unless it relates specifically to some particular appropriation therein. Any such provision or enactment shall be limited in its operation to the appropriation to which it relates. (d) Procedure for Approval. In approving appropriations for its own operation, the Regional Assembly shall strictly follow the procedure for approving the appropriations for the other departments and agencies of the Regional Government. (e) Specific Purpose and Availability of Funds. A special appropriations bill shall specify the purpose for which it is intended and shall be supported by funds actually available or to be raised by a corresponding revenue proposal as certified to by the treasurer of the Regional Government. (f) Transfer of Funds. No regional law shall be passed authorizing any transfer of appropriations. The Regional Governor, the Speaker of the assembly and the Presiding Justice of the Highest Shari’ah court may, however, be authorized by law enacted by the Regional Assembly, to augment any item in the Regional General Appropriations Law for their respective offices from savings in other items of their respective appropriations. (g) Discretionary Funds. Discretionary funds appropriated for particular officials shall be disbursed only for public purposes as evidenced by appropriate vouchers and subject to such guidelines as prescribed by law enacted by Regional Assembly.

Section 22. Budget Approval; Automatic Reenactment The Regional Governor shall approve the budget of the autonomous region within one (1) month from its passage by the Regional Assembly. If, by the end of a fiscal year, the Regional Assembly shall have failed to pass the regional appropriations bill for the ensuing fiscal year, the Regional Appropriations Act for the preceding fiscal year shall be deemed automatically reenacted and shall remain in force and effect until the regional appropriations bill is passed by the Regional Assembly.

Section 23. Veto Power of the Regional Governor; Votes to Override The Regional Governor shall have the power to veto any particular item or items in an appropriation or revenue bill, but the veto shall not affect the item or items to which he does not object. The Regional Assembly may override the veto by two-thirds (2/3) vote of all its members.

Section 24. (a) Law Authorize Use of Money. No money shall be paid out of the regional treasury except in pursuance of an appropriation made by regional law. (b) Prohibitions Against Sectarian Purposes; Exceptions. No public money or property shall be appropriated, applied, paid, or employed, directly or indirectly, for the use, benefit, or support of any sect, church, denomination, sectarian institution, or system of religion or of any priest, imam, preacher, minister, or other religious teacher or dignitary as such, except when such priest, imam, preacher, minister, or dignitary is assigned to the regional police force or to any penal institution, or government orphanage, or leprosarium within the region. (c) Special Fund. All money collected on any regional tax levied for a special purpose shall be treated as a special fund and paid out for such special purpose only. If the purpose for which special fund was created has been fulfilled or abandoned, the balance, if any, shall accrue to the general funds of the Regional Government. (d) Trust Funds. Trust funds shall only be paid out in the regional treasury for the specific purpose for which said funds were created or received. (e) Authorization by Regional Governor or Representative. No funds or resources shall be disbursed unless duly approved by the Regional Governor or by his duly authorized representative.
ARTICLE VIII
Administration of Justice

Section 1. Exercise of Judicial Power The judicial powers shall be vested in the Supreme Court and in such lower courts as may be established by law including the Shari’ah Courts in accordance with Section 5 hereof.

Section 2. Justices from Autonomous Region It shall be the policy of the central government or national government that, whenever feasible, at least one (1) justice in the Supreme Court and two (2) justices in the Court of Appeals shall come from qualified jurists of the autonomous region. For this purpose, the Regional Governor may, after consultations with the Regional Assembly and concerned sectors in the autonomous region, submit the names of the qualified persons to the Judicial and Bar Council for its consideration. The appointments of those recommended by the Regional Governor to the judicial positions mentioned above are without prejudice to appointments that may be extended to other qualified inhabitants of the autonomous region to other positions in the Judiciary.

Section 3. Consultant to the Judicial and Bar Council The President shall appoint a qualified person as a consultant to the Judicial and Bar Council recommended by the Regional Governor in consultation with the concerned sectors of the autonomous region. The person recommended by the Regional Governor shall first be confirmed by the Regional Assembly. Once appointed by the President, the consultant shall sit with the Judicial and Bar Council only to advise and be consulted by the council on matters of appointments to judicial positions in the autonomous region.

Section 4. Deputy Court Administrator The Office of the Deputy Court Administrator for the autonomous region is hereby created. The Deputy Court Administrator for the autonomous region shall be appointed by the Chief Justice of the Supreme Court from among the three recommendees submitted by the Regional Governor upon previous confirmation by the Regional Assembly and after consultation with the concerned sectors of the autonomous region.

Section 5. Shari’ah Courts The Regional Assembly of the autonomous region shall provide for the establishment of Shari’ah courts. Shari’ah courts existing as of the date of the approval of this Organic Act shall continue to discharge their duties. The judges thereof, may, however, be reshuffled upon recommendation of the Deputy Court Administrator of the autonomous region.

Section 6. Shari’ah Public Assistance Office There is hereby created a Shari’ah Public Assistance Office. The Office shall be staffed by a director and two (2) lawyers who are members of the Philippine Shari’ah bar. There may be assisted by such personnel as may be determined by the Regional Assembly. Unless otherwise provided by the regional law, the compensation of the director and the Shari’ah lawyer shall be equivalent to the salary grade of a Director III and a trial lawyer of the Public Assistance Office, respectively. The Shari’ah Public Assistance Office is hereby established in each of the Shari’ah judicial districts to provide free legal assistance to poor or indigent litigants.

Section 7. Shari’ah Appellate Court There is hereby created Shari’ah Apellate Court which shall have jurisdiction over cases enumerated in Section 9 of this Article.

Section 8. Shari’ah Appellate Court Composition The Shari’ah Appellate Court shall be composed of one (1) presiding justice and two (2) associate justices. Any vacancy shall be filled within ninety (90) days from the occurrence thereof.

Section 9. Jurisdiction of the Shari’ah Appellate Court The Shari’ah Appellate Court shall: (a) Exercise original jurisdiction over petition for certiorari, prohibition, mandamus, habeas corpus, and other auxiliary writs and processes only in aid of its appellate jurisdiction; and (b) Exercise exclusive appellate jurisdiction over all cases in the Shari’ah district courts as established by law.

Section 10. Shari’ah Appellate Court Decisions The decisions of Shari’ah Appellate Court shall be final and executory. Nothing herein contained shall, however, affect the original and appellate jurisdiction of the Supreme Court, as provided in the Constitution.

Section 11. Shari’ah Appellate Court Justices Qualifications and Appointments The Justices of the Shari’ah Appellate Court shall posses the same qualifications as those of the Justices of the Court of Appeals and, in addition, shall also be learned in Islamic law and jurisprudence. The members of the Shari’ah Appellate Court shall be appointed by the President from a list of at least three (3) nominees prepared by the Judicial and Bar Council. The nominees shall be chosen from a list of recommendees submitted by the Regional Assembly. Such appointments need no confirmation.

Section 12. Shari’ah Appellate Court Justices Tenure of Office The Presiding Associate Justice and Associate Justices of the Shari’ah Appellate Court shall serve until they reach the age of seventy (70) years, unless sooner removed for cause in the same manner as justices of the Court of Appeals or become incapacitated to discharge the duties of their office.

Section 13. Shari’ah Appellate Court Justices Compensation The Presiding Justice and Associate Justices of the Shari’ah Appellate Court shall receive the same compensation and enjoy the same privilege as the Presiding Justice and Associate Justices of the Court of Appeals, respectively.

Section 14. Shari’ah Appellate Court Administrator and Clerk of Court The Supreme Court shall, upon recommendation of the Presiding Justice of the Shari’ah Appellate Court, appoint the court administrator and clerk of court of the Appellate Court. Such other personnel as may be necessary for the Shari’ah Appellate Court shall be appointed by the Presiding Justice of the said court. The pertinent provisions of existing law regarding the qualifications, appointments, compensations, functions, duties, and other matters relative to the personnel of the Court of Appeals shall apply to those of the Shari’ah Appellate Court.

Section 15. Prohibition Against Holding of Other Office The Justices of the Shari’ah Appellate Court and the judges of other Shari’ah courts shall not be appointed or designated to any office or agency performing quasi-judicial or administrative functions.

Section 16. Shari’ah Appellate Court Official Seat The official set of the Shari’ah Appellate Court shall unless the Supreme Court decides otherwise, be in the provision or city where the seat of the Regional Government is located.

Section 17. Shari’ah Appellate Court Proceedings Proceedings in the Shari’ah Appellate Court and in the Shari’ah lower courts in the autonomous region shall be governed by such special rules as the Supreme Court may promulgate.

Section 18. Shari’ah Courts The Shari’ah district courts and the Shari’ah circuit courts created under existing laws, shall continue to function as provided therein. The judges of the Shari’ah courts shall have the same qualifications as the judges of the regional trial courts, the metropolitan trial courts, or the municipal trial courts, as the may be. In addition, they must be learned in Islamic law and jurisprudence.

Section 19. Tribal Courts There is hereby created a system of tribal courts, which may include a Tribal Appellate Court, for the indigenous cultural communities in the autonomous region. These courts shall determine, settle, and decide controversies and enforce decisions involving personal and family and property rights of members of the indigenous cultural community concerned in accordance with tribal codes of these communities. These courts may also exercise exclusive jurisdiction over crimes committed by members of indigenous cultural communities where the imposable penalty as prescribed by the Revised Penal Code or other pertinent law does not exceed imprisonment of six (6) years of a fine not exceeding Fifty thousand pesos (P50, 000.00) or both such imprisonment and fine and where the offended party or parties are also members of the indigenous cultural community concerned. The Regional Assembly shall define the composition and jurisdiction of the said courts in accordance with the Constitution, existing laws, and this Organic Act.

Section 20. Jurisconsult in Islamic Law The Regional Assembly shall give priority consideration to the organization of the office of jurisconsult in Islamic law as established under existing law and provisions for its facilities to enable the proper functioning of the office.

Section 21. Customary Law The Regional Assembly shall provide for the codification of indigenous laws and compilation of customary laws of the Muslims and the indigenous cultural communities in the autonomous region.

Section 22. Application and Interpretation of Laws The provisions of the Muslim code and the tribal code shall be applicable only to Muslims and other members of indigenous cultural communities respectively and nothing herein shall be construed to operate to the prejudice of the non-Muslims and non- members of indigenous cultural communities. In case of conflict between Muslim code and tribal code, the national law shall apply. In case of conflict between Muslim code and tribal code on the one hand, the national law on the other, the latter shall prevail. Except in cases of successional rights to property, the regular courts shall acquire jurisdiction over controversies involving real property located outside the area of autonomy. Muslims who sue other Muslims or members of indigenous cultural communities who sue other members of indigenous cultural communities over matters covered respectively by Shari’ah or by tribal laws may agree to litigate their grievances before the proper Shari’ah or tribal court in the autonomous region. The procedure for this recourse to the Shari’ah or tribal court shall be prescribed by the Supreme Court.

Section 23. Bases for Interpretation of Islamic Law Subject to the provisions of the Constitution, the Shari’ah courts shall interpret Islamic law based on sources such as: (a) Al-Qur’an (The Koran); (b) Al-Sunnah (Prophetic traditions); (c) Al-Qiyas (Analogy); and (d) Al-Ijima (Consensus).

Section 24. Shari’ah Powers and Functions The powers and functions of the Shari’ah courts and the Shari’ah Public Assistance Office shall be defined by the Regional Assembly subject to the provisions of the Constitution.
ARTICLE IX
FISCAL AUTONOMY

Section 1. Revenue Source The Regional Government shall have power to create its own sources of revenues and to levy taxes, fees and charges, subject to the provisions of the Constitution and this Organic Act.

Section 2. Fiscal Autonomy The Regional Government shall enjoy fiscal autonomy in generating and budgeting its own sources of revenue, its share of the internal revenue taxes and block grants and subsidies remitted to it by the central government or national government or any donor. The utilization of its share of the internal revenue taxes and block grants or subsidies from the central government or national government shall be subject to semi-annual and annual audits by the Commission on Audit and to the rules and regulations of the Department of Budget and Management. All accountable officials of the Regional Government shall, upon demand, furnish the Commission on Audit all documents, papers, and effects necessary for the completion of the audit. Failure to do so shall empower the President or the Secretary of Finance to reduce, suspend, or cancel the release of funds intended for the autonomous region to the extent of the amounts that cannot be audited for reasons attributable to the officials of the autonomous region or are unaccounted for after audit. If more than half of the funds released to the autonomous region by the central government or national government remain unaccounted for six (6) months after the audit mentioned above, the Secretary of Finance may also suspend or cancel the release of any or all funds allocated by the central government or national government for the autonomous region. Officials of the Regional Government who fail to submit the documents, papers and effects demanded by the Commission on Audit within the period specified herein may be suspended or removed from office by the President upon recommendation of the Secretary of Finance. The utilization of the revenue generated by the Regional Government and block grants or subsidies remitted to it by foreign or domestic donors shall be subject to the rules and regulations of the Regional Government Department of the Budget and Management, if any, and to audit by regional government auditors. In the absence of such rules and regulations, the audit of the said funds, block grants or subsidies shall be done by the Commission on Audit and the use thereof shall be in accordance with the rules and regulations of the Department of the Budget and Management of the central government or national government. The result of the audit mentioned in this Section shall be published in national newspapers of general circulation and in newspapers of regional circulation. The results shall also be announced over government-owned radio and television stations.

Section 3. Regional Tax Code The Regional Assembly may enact a regional government tax code. Until the regional government tax code is enacted, the pertinent provisions of Republic Act No. 7160, the Local Government Code of 1991 shall apply to tax ordinances of the provinces, cities, municipalities, and barangay within the autonomous region.

Section 4. Regional Economic and Financial Programs The Regional Government may formulate its own economic and financial programs subject to the provisions of the Constitution.

Section 5. Uniform Equitable Taxation; Prohibition Against Confiscatory Taxes, Fees In enacting revenue- raising measures the Regional Assembly shall observe the principles of uniformity and equity in taxation and shall not impose confiscatory taxes or fees of any kind. Until a regional tax code shall have been enacted by it, the Regional Assembly may not revoke or amend, directly or indirectly, any city or municipal ordinances imposing taxes or fees on purely local businesses. Prior to the revocation or amendment of such city or municipal ordinances, the Regional Assembly shall consult with the city or municipal government concerned.

Section 6. Payment of Taxes Corporations, partnerships, or firms directly engaged in the autonomous region shall pay their corresponding taxes, fees and charges in the province or city, where the corporation, partnership, or firm is doing business. Corporations, partnerships, or firms whose central, main, or head offices are located outside the autonomous region but which are doing business within its territorial jurisdiction, by farming, developing or utilizing the land, aquatic, or natural resources therein, shall pay the income taxes corresponding to the income realized from their business operations in the autonomous region to the city, or municipality where their branch office or business operations or activities are located.

Section 7. Extent of Tax Powers; Exceptions Unless otherwise provided herein, the taxing power of the regional government and of the provinces, cities, municipalities, and barangays located therein shall not extend to the following: (a) Income tax, except when levied on banks and other financial institutions; (b) Documentary stamps tax; (c) Taxes on estate, inheritance, gifts, legacies, and other acquisitions mortis causa, except as otherwise provided by law; (d) Customs duties, registration fees of vessel and wharfage on wharves, tonnage dues, and all other kinds of custom fees, charges, and dues except vessels which registered their owners with the Regional Government and wharfage on wharves constructed and maintained by the Regional Government or the local government unit concerned; (e) Taxes, fees, or charges and other impositions upon goods carried into or out or passing through the territorial jurisdictions of the provinces, cities, municipalities, or barangay of the autonomous region in the guise of charges for wharfage, toils for bridges, or otherwise, or other taxes, fees, or charges in any form whatsoever upon such goods or merchandise except toil bridges or roads constructed and maintained by the provinces, cities, municipalities or barangay concerned or by the Regional Government. (f) Taxes, fees, or charges on agricultural and aquatic products when sold by marginal farmers or fisherfolk; (g) Tax on business enterprises certified by the Board of Investment or by the Regional Assembly as pioneer or non-pioneer for a period of six (6) and four (4) years, respectively from the date of registration; (h) Excise taxes on articles enumerated under the national internal revenue code, and taxes, fees, or charges on petroleum products; (i) Percentage or value-added tax (VAT) on sales, barters, or exchanges or similar transaction on goods or services except as otherwise provided by law; (j) Taxes on the gross receipts of transportation contractors and persons engaged in the transportation of passengers or freight by hire and common carriers by air, land, or water except as provided in the Organic Act; (k) Taxes on premiums paid by way of reinsurance or retrocession; (l) Taxes, fees, or other charges on Philippine products actually exported, except as otherwise provided by law enacted by congress; (m) Taxes, fees, or charges on countryside, barangay business enterprise and cooperatives duly registered under Republic Act No. 6810, the “Magna Carta for Countryside and Barangay Business Enterprise” and Republic Act No. 6938, the “Cooperatives Code of the Philippines”, respectively, and (n) Taxes, fees, or charges of any kind on the central government or national government, its agencies and instrumentalities and local government units except on government-owned or-controlled corporations or entities that are primarily organized to do business.

Section 8. Sources Of Regional Government Revenue The sources of revenues of the Regional Government shall include, but are not limited to the following: (a) Taxes, except income taxes, imposed by the Regional Government; (b) Fees and charges imposed by the Regional Government; (c) Taxes, fees, or charges for the registration of motor vehicles and for issuances of all kinds of licenses or permits for the driving thereof, except tricycles which shall be registered with the city or municipality within whose territorial boundaries they are operated; (d) Shares and revenue generated from the operations of public utilities within the autonomous region; (e) Appropriations, shares in the internal revenue taxes, block grants, and other budgetary allocations coming from the central government or national government; and (f) Block grants derived from economic agreement or conventions entered into or authorized by the Regional Assembly, donations, endowments, foreign assistance, and other forms of aid, subject to the pertinent provisions of the Constitution.

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 (45%) percent to the province, thirty-five (35%) percent to the municipality and twenty percent 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 (50%) percent 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 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 in the share of local government.

Section 10. Treasury Bills Notes and Other Debt Papers The Regional Government may issue treasury bills, bonds, promissory notes, and other debt papers or documents pursuant to law enacted by the Regional Assembly.

Section 11. Economic Agreements Subject to the provisions of the Constitution, the Regional Government shall evolve a system of economic agreements and trade compacts to generate block grant for regional investments and improvements of the regional economic structures which shall be authorized by law enacted by the Regional Assembly. Pursuant to specific recommendations of the Regional Economic and Development Planning Board, the Regional Government may assist local government units in their requirements for counterpart funds for foreign-assisted projects.

Section 12. Donations or Grants; Tax Deductible The Regional Government may accept donations or grants for the development and welfare of the people in the autonomous region. Such donations or grants that are used exclusively to finance projects for education, health, youth and culture, and economic development may be deducted in full from the taxable income of the donor or grantor.

Section 13. Regional Tax Exemptions The Regional Assembly, by a vote of absolute majority all its members, may grant exemptions from regional taxes.

Section 14. Foreign or Domestic Loans The Regional Governor may be authorized by the Regional Assembly to contract foreign or domestic loans in accordance with the provisions of the Constitution. The loans so contracted may take effect upon approval by a majority of all the members of the Regional Assembly.

Section 15. Collection and Sharing of Internal Revenue Taxes The share of the central government or national government of all current year collections of internal revenue taxes within the area of autonomy shall, for a period of five (5) years be allotted for the Regional Government in the Annual Appropriations Act. The Bureau of internal Revenue (BIR) or the duly authorized treasurer of the city or municipality concerned, as the case may be, shall continue to collect such taxes and remit the share to the Regional Autonomous Government and the central government or national government through duly accredited depository bank within thirty (30) days from the end of each quarter of the current year; Fifty percent (50%) of the share of the central government or national government of the yearly incremental revenue from tax collections under Sections 106 (value-added tax on sales of goods or properties), 108 (value-added tax on sale of services and use or lease of properties) and 116 (tax on persons exempt from value-added tax) of the National Internal Revenue Code (NIRC) shall be shared by the Regional Government and the local government units within the area of the autonomy as follows: (a) twenty percent (20%) shall accrue to the city or municipality where such taxes are collected; and (b) eighty percent (80%) shall accrue to the Regional Government. In all cases, the Regional Government shall remit to the local government units their respective shares within sixty (60) days from the end of each quarter of the current taxable year. The provinces, cities, municipalities, and barangays within the area of autonomy shall continue receive their respective shares in the Internal Revenue Allotment (IRA), as provided for in Section 284 of Republic to Act No. 7160 the Local Government Code of 1991. The five-year period herein mentioned may be extended upon mutual agreement of the central government or national government and the Regional Government.
ARTICLE X
ANCESTRAL DOMAIN, ANCESTRAL LANDS AND AGRARIAN REFORM

Section 1. Ancestral Domain; Lands of Indigenous Cultural Communities Subject to the Constitution and existing laws, the Regional Government shall undertake measures to protect the ancestral domain and ancestral lands of indigenous cultural communities. All lands and natural resources in the autonomous region that have been possessed or occupied by the indigenous cultural communities since time immemorial, except when prevented by war, force majeure, or other forms of forcible usurpation, shall form part of the ancestral domain. Such ancestral domain shall include pasture lands, worship areas, burial grounds, forests and fields, mineral resources, except strategic minerals such as uranium, coal, petroleum, and other fossil fuels, mineral oils, and all sources of potential energy; lakes, rivers, and lagoons; and national reserves and marine parks, as well as forest and watershed reservations. Until laws are enacted that provide otherwise, fifty (50%) percent of the revenues derived from the utilization and development of such strategic materials shall accrue to the Regional Government and the provinces, cities, municipalities, and barangays in the autonomous region. The sharing between the Regional Government and the Local government units in the revenues derived from the strategic materials mentioned above shall be apportioned according to the formula set out in Section 5, Article XII of the Organic Act. Lands in actual, open, public, and uninterrupted possession and occupation by the indigenous cultural community for at least thirty (30) years are ancestral lands.

Section 2. The constructive or traditional possession of lands and resources by an indigenous cultural community may also be recognized subject to judicial affirmation the petition for which shall be instituted within a period of ten (10) years from the effectivity of this Organic Act. The procedure of judicial affirmation of imperfect titles under existing laws shall, as far as practicable, apply to the judicial affirmation of titles to ancestral lands. The foregoing provisions notwithstanding, titles secured under Torrens System, and rights vested under the provisions of existing laws shall be respected.

Section 3. As used in this Organic Act, the phrase “indigenous cultural community” refers to Filipino citizens residing in the autonomous region who are: (a) Tribal peoples. These are citizens whose social, cultural and economic conditions distinguish them from other sector of the national community; and (b) Bangsa Moro people. These citizens who are believers in Islam and who have retained some or all of their own social, economic, cultural and political institutions.

Section 4. Cultural Communities The customary law, traditions, and practices of indigenous cultural communities on land claims and ownership and settlement of land dispute shall be implemented and enforced among the members of such communities.

Section 5. Ecological Balance The proclamations issued by the central government or national government declaring old growth or natural forests and all watersheds with the autonomous region as forest reserves are hereby reiterated. The forest reserves shall not be subjected to logging operations of any nature and kind. Forest concessions, timber licenses, contracts, or agreements of any kind or nature whatsoever granted by the central government or national government or by the Regional Government as of the date of the approval of this Organic Act, are hereby cancelled, nullified and voided, and shall not be renewed until thirty (30) years after the approval of this Organic Act. If said forest reserves are logged over or are mined by authority or neglect of the Regional Government, the funds provided by the central government or national government including the internal revenue shares of the Regional Government may be withheld, reduced, cancelled, or forfeited by order of the President. Ten (10%) percent of the shares of the internal revenue taxes of the Regional Government and of the provinces, cities, municipalities, and barangay of the autonomous region and all allocations for the development of the autonomous region by the central government or national government shall be devoted to reforestation projects and other environmental activities to enhance the protection and development of the environment in the autonomous region. The Regional Government shall require corporations, companies, and other entities within the ancestral domain of the indigenous cultural communities whose operations adversely affect the ecological balance to take the necessary preventive measures and safeguards to restore, enhance, and maintain such a balance.

Section 6. Unless authorized by the Regional Assembly, lands of ancestral domain titled to or owned by an indigenous cultural community shall not be disposed of to non-members.

Section 7. No portion of the ancestral domain shall be open to resettlement by non-members of the indigenous cultural communities.

Section 8. Regional Land Reform Subject to the provisions of the Constitution, the Regional Assembly may enact an agrarian reform law suitable to special circumstances prevailing in the autonomous region.
ARTICLE XI
URBAN AND RURAL PLANNING AND DEVELOPMENT

Section 1. Urban and Rural Development The Regional Government shall promote and formulate comprehensive and integrated regional urban and rural development policies, plans, programs, and projects responsive to the needs, aspirations, and values of the people in the autonomous region.

Section 2. Indigenous Development Plans The Regional Government shall initiate, formulate, and implement special development programs and projects, responsive to the particular aspirations, needs, and values of the indigenous cultural communities.

Section 3. Equitable Development The Regional Government shall provide equitable opportunities for the development of every province, city, municipality, and barangays within its jurisdiction and shall strengthen their existing planning bodies to ensure wider public participation.

Section 4. Urban Land, Land and Water Use Consistent with the Constitution, this Organic Act, and subject to ecological considerations, the Regional Government shall within one (1) year from the approval of this Organic Act, adopt and implement a comprehensive urban land reform and land and water use program, to ensure the just utilization of lands and waters within its jurisdiction.
ARTICLE XII
ECONOMY AND PATRIMONY

Section 1. Regional Economy and Conservation of Patrimony Consistent with the Constitution and existing laws, the Regional Assembly may enact laws pertaining to the regional economy and patrimony that are responsive to the needs of the region. The Regional Government may not lower the standards required by the central government or national government for the protection, conservation, and enhancement of the natural resources.

Section 2. Economic Zones, Center and Ports The Regional Government shall encourage, promote, and support the establishment of economic zones, industrial centers, ports in strategic areas, and growth centers to attract local and foreign investments and business enterprises.

Section 3. Incentives for Investors The Regional Assembly may by law grant incentives to investors in the autonomous region. The central government or national government may likewise grant incentives to investors in the autonomous region in addition to those provided by the Regional Government.

Section 4. Regional Economic Zone Authority; Freeports The Regional Government may establish a regional economic zone authority in the autonomous region. The Regional Economic Zone Authority shall have similar powers as the Philippine Economic Zone Authority and consistent with the Special Economic Zone Act of 1995. The Regional Assembly may provide such additional powers and functions to the Regional Economic Zone Authority as may be necessary to meet the special circumstances of the autonomous region. Once the Regional Economic Zone Authority is created by a Regional Assembly legislation, the Philippine Export Zone Authority shall no longer authorize any other economic zone within the autonomous region. Any corporation, firm or entity established within the autonomous region, by authority of the Philippine Export Zone Authority, shall placed under the jurisdiction of the Regional Economic Zone Authority and shall continue to enjoy the benefits granted to it by the Philippine Export Zone Authority.

Section 5. Use, Development of Mines, Minerals and Other Natural Resources, Revenue Sharing: Exceptions (a) Regional Supervision and Control The control and supervision over the exploration, utilization, development, and protection of the mines and minerals and other natural resources within the autonomous region are hereby vested in the Regional Government in accordance with the Constitution and the pertinent provisions of this Organic Act except for the strategic minerals such as uranium, petroleum and other fossil fuels, mineral oils, all sources of potential energy, as well as national reserves and aquatic parks, forest and watershed reservations already delimited by authority of the central government or national government and those may be defined by an Act of Congress within one (1) year from the effectivity of this Organic Act. (b) Sharing Between Central Government or National Government and Regional Government in Strategic Minerals, Revenues, Taxes or Fees Fifty (50%) percent of the revenues, taxes, or fees derived from the use and development of the strategic minerals shall accrue and remitted to the Regional Government within thirty (30) days from the end of every quarter of every year. The other fifty (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 municipalities; and fifteen percent (15%) to all the barangays. If there are no cities in the autonomous region as of the date of sharing above mentioned is done, the share of the cities shall be derived equally by all provinces, municipalities, and barangay in the autonomous region. (d) Regional Assembly Authority to Grant Franchises and Concessions and Empower Regional Governor to Grant Leases, Permits, and Licenses The Regional Assembly shall by law have the authority to grant franchises and concessions and may by law empower the Regional Governor to grant leases, permits, and licenses over agricultural, forest, or mineral lands. The said leases, permits, franchises, or concessions shall, however, cover areas not exceeding the limits allowed by the Constitution and shall subsist for a period not exceeding twenty-five (25) years. Except as provided in this Organic Act, existing leases, permits, licenses, franchises, and concessions shall be respected until their expiration unless legally terminated earlier as provided by law enacted either by Congress or by the Regional Assembly. (e) Consultations with Cultural Communities Needed. The permits, licenses. franchises, or concessions over the natural resources located within the boundaries of an ancestral domain shall be issued by the Regional Assembly only after consultations are conducted with the cultural community concerned.

Section 6. Use and Development of Natural Resources Open to Citizens The exploration, development and utilization of natural resources, except those referred to in the first paragraph of section 5 of this Article, shall be allowed to all citizens and to private enterprises, including corporations, associations, cooperatives, and such other similar collective organizations with at least sixty percent (60%) of their capital investment or capital stocks directly controlled or owned by citizens.

Section 7. Preferential Rights of Citizen Inhabitants of Autonomous Region Subject to exceptions provided in the Organic Act, citizens who are inhabitants of the autonomous region shall have preferential rights over the exploration, utilization, and development of natural resources of the autonomous region. Existing right over the exploration, utilization, and development of natural resources shall be respected subject to the exceptions specified in this Organic Act.

Section 8. Rules, Regulations and Fees The Regional Assembly shall by law regulate the exploration, utilization, development, and protection of the natural resources, including the mines and minerals, except the strategic minerals as provided in this Organic Act. The Regional Government shall, pursuant to the said law, shall prescribe the rules and regulations and impose regulatory fees in connection therewith. Upon the enactment of the said law and the effectivity of such rules and regulations, the fees imposed by the Regional Government shall replace those that had been imposed by the central government or national government.

Section 9. Regulation of Small – Scale Mining Small-scale mining shall be regulated by the Regional Government to the end that the ecological balance, safety and health and the interests of the indigenous cultural communities, the miners, and the people of the place where such operations are conducted are duly protected and safeguarded.

Section 10. Regional Economic and Development Planning Board; Composition and Functions There is hereby created Regional Economic Development Planning Board. The Board shall be chaired by Regional Governor. The members of the Board shall be composed of all the provincial governors and the city mayors of the provinces and cities within the autonomous region; the Speaker, and two (2) members of the Regional Assembly appointed by the Speaker, one (1) of whom shall be nominated by the opposition; and five (5) representatives elected by the private sector as prescribed by the Regional Assembly. The Board shall serve as the planning, monitoring, and coordinating agency for all development plans, projects, and programs intended for the autonomous region. It shall evaluate and recommend for approval of the Regional Assembly, the annual work programs and comprehensive development plans of the autonomous region. Once approved, it shall be the duty of the Regional Governor to ensure the proper implementation of the said annual work programs and comprehensive development plans. The Board shall formulate a master plan for a systematic, progressive, and total development of the region. The master plan shall take into account the development plans of the province, city, municipality, and barangay concerned as mandated by Republic Act No. 7160, the Local Government Code of 1991. After due notice in writing, the attendance at meetings of the Board by one-third (1/3) of its members with the Regional Governor or the Regional Vice Governor and the three (3) of the representatives of the private sector being present, shall be a sufficient quorum for the board to transact business.1 The Board shall adopt its own rules of procedure for the conduct of its meetings.

Section 11. Pioneering Public Utilities and Cooperatives The Regional Assembly may, in the interest of regional welfare and security, establish and operate pioneering public utilities. Upon payment of just compensation, it may cause the transfer of the ownership of such utilities to cooperatives or other collective organizations.

Section 12. Proclamation of State of Calamity (a) Temporary take-over of operations The Regional Government may, in times of regional calamity declared by the Regional Governor, when the public interest so requires and under such reasonable terms and safeguards as may be prescribed by the Regional Assembly, temporarily take over or direct operation of any privately-owned public utility or business affected with public interest. The public utility or business concerned may contest the take over of its operations by the Regional Government by filling a proper case or petition with the Court of Appeals. (b) Proclamation of state of calamity The Regional Governor may proclaim a state of calamity over the region or parts thereof whenever typhoons, flash floods, earthquakes, tsunamis, or other natural calamities cause widespread damage or destruction to life or property in the region. The state of calamity proclaimed by the Regional Governor shall only be for the purpose of maximizing the efforts to rescue imperiled persons and property and the expeditious rehabilitation of the damaged area. The state of calamity proclaimed shall in no way suspend any provision of the Constitution or this Organic Act, as well as, the pertinent laws promulgated by the central government or national government or the Regional Government.

Section 13. Legislating Benefits, Compensation for Victims of Mining and Operations: Rehabilitation of Affected Areas. The Regional Assembly shall enact laws for the benefit and welfare of the inhabitants injured harmed or adversely affected by the harnessing of natural and mineral resources in the autonomous region. Such laws may include payment of just compensation to and relocation of the people and rehabilitation of the areas affected by the harnessing of natural and mineral resources mentioned above. The Regional Assembly may by law require the persons, natural or juridical, responsible for causing the harm or injury mentioned above to bear the costs or compensation, relocation and rehabilitation above wholly or partially.

Section 14. Reforestation Support for Lumads or Tribal Peoples The Regional government shall actively and immediately pursue reforestation measures to ensure that at least fifty percent (50%) of the land surface of the autonomous region shall be covered with trees, giving priority to watershed areas, strips of land along the edges of rivers and streams and shorelines of lakes and the seas within or abutting the autonomous region. The Regional Government shall adopt measures for the development of lands eighteen percent (18%) in slope or over by providing infrastructure, financial and technical support to upland communities specially the lumads or tribal peoples. The Regional Government shall also adopt measures to employ the people who may be displaced by the cancellation or revocation of timber concessions, licenses, contracts, or agreements mentioned in paragraph above.

Section 15. Prohibition Against Toxic or Hazardous Substance The Regional Government shall prohibit the use, importation, deposit, disposal, and dumping or toxic or hazardous substances within the autonomous region.

Section 16. Business Ownership The Regional Government shall adopt policies to promote profit sharing and broaden the base of ownership of business enterprises.

Section 17. Incentives, Tax Rebate and Holidays The Regional Assembly may by law, with the approval of the absolute majority of all its members, grant incentives, including tax rebates and holidays, for investors in businesses that contribute to the development of the autonomous region. It may provide similar incentives to companies doing business in the autonomous region which reinvest at least fifty percent (50%) of their net profits therein, and to cooperatives which reinvest at least ten percent (10%) of their surplus into socially-oriented projects in the autonomous region.

Section 18. Transport and Communication Facilities, Priority Projects The Regional Government shall give priority to the establishment of transportation and communication facilities to expedite the economic development of the autonomous region.

Section 19. Power Services Priority In the delivery of power services, priority shall be given to provinces and cities in the autonomous region which needs but do not have direct access to such services.

Section 20. Pioneering Firms The Regional Assembly may create pioneering firms and other business entities to boost economic development in the autonomous region. Agriculture, Fisheries and Aquatic Resources

Section 21. Farming and Fishing Cooperatives The Regional Government shall recognize, promote and protect the rights and welfare of farmers, farm-workers, fisherfolk, and fish-workers, as well as cooperatives and associations of farmers and fish-workers.

Section 22. Agricultural Productivity: Organic Farming. The Regional Government shall encourage agricultural productivity and promote diversified and organic farming.

Section 23. Soil and Water Conservation. The Regional Government shall give top priority to the conservation, protection, utilization, and development of soil and water resources for agricultural purposes.

Section 24. Aquatic and Fisheries Code. The Regional Assembly may enact an aquatic and fisheries code which shall enhance, develop, conserve and protect marine and aquatic resources, and shall protect the rights and subsistence fisherfolks to the preferential use of communal marine and fishing resources, including seaweeds. This protection shall extend to offshore fishing grounds, up to and including all waters fifteen (15) kilometers from the coastline of the autonomous region but within the territorial waters of the Republic, regardless of depth and the seabed and the subsoil that are included between (2) lines drawn perpendicular to the general coastline from points where the boundary lines of the autonomous region touch the sea at low tide and a third line parallel to the general coastline. The provinces and cities within the autonomous region shall have priority rights to the utilization, development, conservation, and protection of the aforementioned fishing grounds. The provinces and cities concerned shall provide support to subsistence fisherfolk through appropriate technology and research, adequate financial, production, marketing assistance and other services. The Regional assembly shall enact priority legislation to ensure that fish-workers shall receive a just share from their labor in the utilization, production, and development of marine and fishing resources. The Regional Assembly shall enact priority legislation to develop science, and technology, and other disciplines for the protection and maintenance of aquatic and marine ecology.

Section 25. Agriculture and Fisheries Bureau The Regional Assembly shall by law, create a Bureau on Agriculture and Fisheries and define its composition, powers and function. Trade and Industry

Section 26. Private Sector The Regional Government recognizes the private sector as the prime mover of trade, commerce and industry. It shall encourage and support the building up of entrepreneurial capability in the autonomous region and shall recognize, promote, and protect cooperatives.

Section 27. Cottage Industries The Regional Government shall promote cottage industries by providing assistance such as marketing opportunities, financial support, tax incentives, appropriate and alternative technology and technical training produce semi-finished and finished products. Deserving small and medium-scale cottage industries may be provided priority assistance.

Section 28. Banks and Financial Institutions. The Regional Government shall, subject to the supervision of the Bangko Sentral ng Pilipinas, encourage the establishment in the autonomous region of: (a) Banks and financial institutions and their branches; and (b) Off-shore banking units of foreign banks.

Section 29. Islamic Banks The Bangko Sentral ng Pilipinas shall establish an Islamic Bank and authorize the establishment of its branches in the autonomous region. The members of the board of directors or trustees of the Islamic Bank shall be appointed by the President upon recommendation of the Regional Governor. The persons recommended by the Regional Governor shall possess educational qualifications and sufficient experience in the management and operation of Islamic banking and shall be subject to confirmation by the Regional Assembly before they are recommended to the President. The board of directors or trustees of the banks shall elect from among their members the chair, the vice chair and the president of the bank. Other bank officials and employees shall be appointed by the president of the bank

Section 30. Bangko Sentral Regional Bank The Bangko Sentral ng Pilipinas shall establish a Bangko Sentral Regional Bank with full banking services in the capital city or any suitable municipality in the autonomous region within one (1) year from the approval of this Organic Act. The regional Governor shall submit list of qualified persons to the appropriate Bangko Sentral authority from which the staff of the regional office may be chosen. The rights of the Bangko Sentral personnel who are occupying positions in the Bangko Sentral Regional Office as of the date of the approval of this Organic Act to continue as such shall be respected.

Section 31. Barter and Counter – Trade Subject to existing laws, the Regional Government shall regulate traditional barter trade and counter-trade with Indonesia, Malaysia, or Brunei. The goods or items that are bartered or counter- traded with said countries shall not be sold elsewhere in the country without payments of appropriate customs or import duties. The Department of Finance shall, in consultation with the Regional Government, promulgate the rules to govern barter and counter-trade within six (6) months from the approval of this Organic Act.

Section 32. Consumer Education and Welfare. The Regional Government shall promote consumer education and protect the rights, interests, and general welfare of the consumers.

Section 33. Local Labor and Goods The Regional Government shall promote the preferential use of local labor and locally produced goods and materials by adopting measures to increase their competitiveness.

Section 34. Foreign Investments Subject to the provisions of the Constitution, the Regional Government shall regulate and exercise authority over foreign investments within its jurisdiction. The central government or national government may intervene in such matters only if national security is involved. Tourism Development

Section 35. Regional Tourism The Regional Government shall have primary jurisdiction in the promotion of tourism within the autonomous region. In promoting tourism, the diverse cultural heritage, and the moral and spiritual values of the people in the autonomous region shall be upheld, respected, and maintained.

Section 36. Tourism Office The Regional Assembly may, by law, create regional tourism office, and define its composition, powers and functions. The Department of Tourism of the central government or national government shall, whenever feasible, extend financial and technical support to the tourism program of the Regional Government.
ARTICLE XIII
PUBLIC ORDER AND SECURITY

Section 1. Law and Order The Regional Government shall give priority to the maintenance and preservation of law and order for the establishment of peace and the protection of life, liberty, and property of the people in the autonomous region, in consonance with the provisions of the Constitution and this Organic Act.

Section 2. Regional Security Force There is hereby created a Philippine National Police Regional Command for the autonomous region, hereafter called the Special Regional Security Force (SRSF) or Regional Police Force, in short.

Section 3. Law Governing Regional Police Force The Regional Assembly shall enact laws to govern the Regional Police Force consistent with the pertinent provisions of the Constitution and this Organic Act. The members of the Moro National Liberation Front who are integrated into the Regional Police Force may be deployed in the autonomous region or elsewhere in the Republic as may be determined by the proper police authorities.

Section 4. Regional Police Force Composition The PNP Regional Command for the autonomous region/ SRSF shall be composed of the existing PNP units therein, the MNLF elements, and other residents of the area who may later on be recruited into the SRSF.

Section 5. Powers and Functions of Regional Police Force The Regional Police Force shall exercise within the autonomous region the following powers and functions: (a) Enforce laws enacted by the Congress and by the Regional Assembly relative to the protection of lives and property of the people; (b) Maintain law and order and ensure public safety; (c) Investigate and prevent crimes, arrest criminal offenders, bring criminal suspects to justice, and assist in their prosecution; (d) Effect other arrest, searches, and seizures in accordance with the Constitution and pertinent laws; (e) Detain persons for a period not exceeding what is prescribed by law, inform the person so detained of all his or her rights under the Constitution, and observe the human rights of all people in the autonomous region; (f) Process applications for the licensing of firearms for approval by the proper official of the Philippine National Police; (g) Initiate drives for the licensing or surrender of unlicensed firearms; confiscate unlicensed firearms after such drives are over; prosecute or recommend to the President the grant of amnesty or pardon to possessors of unlicensed firearms who surrender them; and (h) Perform such other duties and exercise all other functions as may be provided by law enacted by Congress or by the Regional Assembly.

Section 6. Observance of Constitution and Laws The Regional Police Force shall be charged with the preservation of peace, the maintenance of law and order, and the protection of life, liberty, and property in the autonomous region in consonance with the Constitution and pertinent legislation. The Regional Police Force shall be run professionally and free from partisan political control. The discharge of its functions shall be done impartially and with professional integrity. It shall be constrained by and accountable to the law.

Section 7. Regional Police Framework and Organization The philosophical framework and structural organization of the Regional Police Force shall be as follows: (a) It shall be civilian in nature and character; (b) The scope of its operations shall be regional. The Regional Police Force, its units or personnel may be deployed elsewhere in the Republic as directed by the National Police Commission or when needed to suppress lawless violence, pursue, and arrest criminal offenders or maintain law and order. In such circumstances, the order to deploy must be signed by the chairman of the National Police Commission and approved by the President. The President may also order the said deployment on his own authority. (c) It shall be headed by a regional director who shall be assisted by two deputies, one for administration and one for operations. The regional director and the two deputies shall come from the ranks of the professional police force, preferably from any province, city, or municipality of the autonomous region; (d) It shall have regional, provincial, and city or municipal offices; (e) At the provincial level, there shall be a provincial office, headed by a provincial director who shall be a professional police officer with a rank of police superintendent, at least; and (f) At the city or municipal level, there shall be an office or station, which shall be headed a Chief of Police who shall be a professional police officer with the rank of police superintendent for the city and police inspector for the municipality.

Section 8. Power of Regional Governor Over Regional Police Force The Regional Governor shall have the following powers over the Regional Police Force: (a) To act as the deputy of the National Police Commission in the region and as the ex-officio chair of the Regional Police Commission; (b) To exercise operational control and general supervision and disciplinary powers over the Regional Police Force; (c) To employ or deploy the elements of and assign or reassign the Regional Police Force through the regional director. The Regional Director may not countermand the order of the Regional Governor unless it is in violation of the Constitution and the law; (d) To recommend to the President the appointment of the regional director and his two deputies; (e) To oversee the preparation and implementation of the integrated Regional Public Safety Plan; (f) To impose, after due notice and summary hearings of the citizen’s complaints, administrative penalties on personnel of the Regional Police Force except those who are appointed by the President; and (g) Do everything necessary to promote widespread support by the various communities making up the autonomous region for the Regional Police Force.

Section 9. Regional Police Directors The selection, assignment, and appointment of the Provincial and City Directors of the Regional Police Force and the assignment of Moro National Liberation Front integrees shall be done pursuant to Republic Act No. 6975, the Philippine National Police Law and Republic Act No. 8551, the Philippine National Police Reform and Reorganization Act of 1998.

Section 10. Regional Police Commission There is hereby created a regional police commission, which shall perform the function of the National Police Commission in the autonomous region. The Regional Police Commission shall be under administration and control of the National Police Commission. The chairman and members, thereof, shall be appointed by the Regional Governor subject to the confirmation by the Regional Assembly. The chairman shall be an ex-officio commissioner of the National Police Commission on matters dealing with the Regional Police Force. The Regional Police Commission shall have power to investigate complaints against the Regional Police Force. Appeals from its decision may be lodged with the National Police Commission. Pending resolution of the appeal, its decisions may be executed. The rules and regulations governing the investigation of the members of the Philippine National Police shall be followed by the Regional Police Commission in the absence of rules and regulations enacted by the Regional Assembly.

Section 11. Regional Defense and Security The defense and security of the autonomous region shall be the responsibility of the central government or national government. Towards this end, there is hereby created a Regional Command of the Armed Forces of the Philippines for the autonomous region,which shall be organized, maintained and utilized in accordance with national laws. The central government or national government shall have the authority to station and deploy in the autonomous region such elements of the Armed Forces as may be necessary to carry out that responsibility. Qualified inhabitants of the autonomous region shall be given preference for assignments in the said regional command.

Section 12. Calling Upon the Armed Forces The provisions of the preceding sections notwithstanding, the Regional Governor may request the President to call upon the Armed Forces of the Philippines: (1) To prevent or suppress lawless violence, invasion, or rebellion, when the public safety so requires, in the autonomous region in accordance with the provision of the Constitution; (2) To suppress the danger to or breach of peace in the autonomous region, when the Regional Police Force is not able to do so; or, (3) To avert any imminent danger to public order and security in the area of autonomy. The President may on his own accord send the Armed Forces of the Philippines into the autonomous region to attain the above objectives if the Regional Governor does not act within fifteen (15) days after the occurrence of the events mentioned above that need to be suppressed, prevented or suppressed.

Section 13. Indigenous Structures The Regional Government shall recognize the indigenous structures or systems which promote peace, law, and order.
ARTICLE XIII
PUBLIC ORDER AND SECURITY

Section 1. Law and Order The Regional Government shall give priority to the maintenance and preservation of law and order for the establishment of peace and the protection of life, liberty, and property of the people in the autonomous region, in consonance with the provisions of the Constitution and this Organic Act.

Section 2. Regional Security Force There is hereby created a Philippine National Police Regional Command for the autonomous region, hereafter called the Special Regional Security Force (SRSF) or Regional Police Force, in short.

Section 3. Law Governing Regional Police Force The Regional Assembly shall enact laws to govern the Regional Police Force consistent with the pertinent provisions of the Constitution and this Organic Act. The members of the Moro National Liberation Front who are integrated into the Regional Police Force may be deployed in the autonomous region or elsewhere in the Republic as may be determined by the proper police authorities.

Section 4. Regional Police Force Composition The PNP Regional Command for the autonomous region/ SRSF shall be composed of the existing PNP units therein, the MNLF elements, and other residents of the area who may later on be recruited into the SRSF.

Section 5. Powers and Functions of Regional Police Force The Regional Police Force shall exercise within the autonomous region the following powers and functions: (a) Enforce laws enacted by the Congress and by the Regional Assembly relative to the protection of lives and property of the people; (b) Maintain law and order and ensure public safety; (c) Investigate and prevent crimes, arrest criminal offenders, bring criminal suspects to justice, and assist in their prosecution; (d) Effect other arrest, searches, and seizures in accordance with the Constitution and pertinent laws; (e) Detain persons for a period not exceeding what is prescribed by law, inform the person so detained of all his or her rights under the Constitution, and observe the human rights of all people in the autonomous region; (f) Process applications for the licensing of firearms for approval by the proper official of the Philippine National Police; (g) Initiate drives for the licensing or surrender of unlicensed firearms; confiscate unlicensed firearms after such drives are over; prosecute or recommend to the President the grant of amnesty or pardon to possessors of unlicensed firearms who surrender them; and (h) Perform such other duties and exercise all other functions as may be provided by law enacted by Congress or by the Regional Assembly.

Section 6. Observance of Constitution and Laws The Regional Police Force shall be charged with the preservation of peace, the maintenance of law and order, and the protection of life, liberty, and property in the autonomous region in consonance with the Constitution and pertinent legislation. The Regional Police Force shall be run professionally and free from partisan political control. The discharge of its functions shall be done impartially and with professional integrity. It shall be constrained by and accountable to the law.

Section 7. Regional Police Framework and Organization The philosophical framework and structural organization of the Regional Police Force shall be as follows: (a) It shall be civilian in nature and character; (b) The scope of its operations shall be regional. The Regional Police Force, its units or personnel may be deployed elsewhere in the Republic as directed by the National Police Commission or when needed to suppress lawless violence, pursue, and arrest criminal offenders or maintain law and order. In such circumstances, the order to deploy must be signed by the chairman of the National Police Commission and approved by the President. The President may also order the said deployment on his own authority. (c) It shall be headed by a regional director who shall be assisted by two deputies, one for administration and one for operations. The regional director and the two deputies shall come from the ranks of the professional police force, preferably from any province, city, or municipality of the autonomous region; (d) It shall have regional, provincial, and city or municipal offices; (e) At the provincial level, there shall be a provincial office, headed by a provincial director who shall be a professional police officer with a rank of police superintendent, at least; and (f) At the city or municipal level, there shall be an office or station, which shall be headed a Chief of Police who shall be a professional police officer with the rank of police superintendent for the city and police inspector for the municipality.

Section 8. Power of Regional Governor Over Regional Police Force The Regional Governor shall have the following powers over the Regional Police Force: (a) To act as the deputy of the National Police Commission in the region and as the ex-officio chair of the Regional Police Commission; (b) To exercise operational control and general supervision and disciplinary powers over the Regional Police Force; (c) To employ or deploy the elements of and assign or reassign the Regional Police Force through the regional director. The Regional Director may not countermand the order of the Regional Governor unless it is in violation of the Constitution and the law; (d) To recommend to the President the appointment of the regional director and his two deputies; (e) To oversee the preparation and implementation of the integrated Regional Public Safety Plan; (f) To impose, after due notice and summary hearings of the citizen’s complaints, administrative penalties on personnel of the Regional Police Force except those who are appointed by the President; and (g) Do everything necessary to promote widespread support by the various communities making up the autonomous region for the Regional Police Force.

Section 9. Regional Police Directors The selection, assignment, and appointment of the Provincial and City Directors of the Regional Police Force and the assignment of Moro National Liberation Front integrees shall be done pursuant to Republic Act No. 6975, the Philippine National Police Law and Republic Act No. 8551, the Philippine National Police Reform and Reorganization Act of 1998.

Section 10. Regional Police Commission There is hereby created a regional police commission, which shall perform the function of the National Police Commission in the autonomous region. The Regional Police Commission shall be under administration and control of the National Police Commission. The chairman and members, thereof, shall be appointed by the Regional Governor subject to the confirmation by the Regional Assembly. The chairman shall be an ex-officio commissioner of the National Police Commission on matters dealing with the Regional Police Force. The Regional Police Commission shall have power to investigate complaints against the Regional Police Force. Appeals from its decision may be lodged with the National Police Commission. Pending resolution of the appeal, its decisions may be executed. The rules and regulations governing the investigation of the members of the Philippine National Police shall be followed by the Regional Police Commission in the absence of rules and regulations enacted by the Regional Assembly.

Section 11. Regional Defense and Security The defense and security of the autonomous region shall be the responsibility of the central government or national government. Towards this end, there is hereby created a Regional Command of the Armed Forces of the Philippines for the autonomous region,which shall be organized, maintained and utilized in accordance with national laws. The central government or national government shall have the authority to station and deploy in the autonomous region such elements of the Armed Forces as may be necessary to carry out that responsibility. Qualified inhabitants of the autonomous region shall be given preference for assignments in the said regional command.

Section 12. Calling Upon the Armed Forces The provisions of the preceding sections notwithstanding, the Regional Governor may request the President to call upon the Armed Forces of the Philippines: (1) To prevent or suppress lawless violence, invasion, or rebellion, when the public safety so requires, in the autonomous region in accordance with the provision of the Constitution; (2) To suppress the danger to or breach of peace in the autonomous region, when the Regional Police Force is not able to do so; or, (3) To avert any imminent danger to public order and security in the area of autonomy. The President may on his own accord send the Armed Forces of the Philippines into the autonomous region to attain the above objectives if the Regional Governor does not act within fifteen (15) days after the occurrence of the events mentioned above that need to be suppressed, prevented or suppressed.

Section 13. Indigenous Structures The Regional Government shall recognize the indigenous structures or systems which promote peace, law, and order.
ARTICLE XIV
EDUCATION, SCIENCE AND TECHNOLOGY, ARTS AND SPORTS

Section 1. Quality Education, A Top Priority The Regional Government shall establish, maintain, and support as a top priority a complete and integrated system of quality education and adopt an educational framework that is meaningful, relevant, and responsive to the needs, ideals and aspirations of the people in the region. The schools, colleges, and universities existing in the autonomous region as of the date of approval of this Organic Act and such other schools and institutions that may be established in the region shall be deemed integral components of the educational system of the Regional Government. The educational system of the Regional Government shall be deemed a subsystem of the national educational system. The regional educational subsystem shall enjoy fiscal autonomy and academic freedom. Educational Policies

Section 2. Policies and Principles Consistent with the basic state policy on education, the Regional Government shall adopt the following education policies and principles: (a) Perpetuation of Filipino and Islamic values. The regional educational subsystem shall perpetuate Filipino and Islamic values and ideals, aspirations, and orientations. It shall develop the total spiritual, intellectual, social, cultural, scientific, and physical aspects of the people of the autonomous region to make them God-fearing, productive, patriotic citizen, and conscious of their Filipino and Islamic values and cultural heritage; (b) Inculcation of values of peaceful settlement of disputes. The regional education subsystem shall prioritize the inculcation among the citizenry and students of their commitment to the peaceful settlement of disputes and grievances and the avoidance of the use of lawless violence. To this end, emphasis shall be placed on the desirability and practicality of relying upon democratic and legal processes rather than on the use of guns or resort to violence to settle a personal, familial, tribal problems. The Regional Assembly may, by law, establish a program for the surrender of firearms with payment of compensation provided by the Regional Government. The program may also be supported from the funds of the Philippine National Police. (c) Optional religious instruction. Religious instruction in public schools shall be optional, with the written consent of the parent or guardian, and taught by the authorities of the religion to which the student belongs. The teaching of religion shall not involve additional costs to the government in accordance with national policies; (d) Inculcation of patriotism and nationalism. To develop, promote,and enhance unity in diversity, all schools in the autonomous region shall inculcate into the minds of their students the values of patriotism and nationalism, appreciation of the role of national and regional heroes in the historical development of the country and region, foster love of humanity, respect for human rights, and teach the rights and duties of citizenship, and the cultures of the Muslims, Christians, and tribal peoples in the region; (e) Vocational and special education. The thrusts, programs, and administration of vocational, non-formal, and special education shall be supported and made relevant to the manpower needs of the region; (f) Scholarships, student loans and scholarships. A system of scholarship programs, grants, student loans, subsidies, and other incentives shall be made available to all poor but deserving students; (g) Funding for local education programs. Funding for local educational programs shall be the responsibility of the Regional Government; (h) Community participation in education. The active participation of the home, community, religious organizations, and other sectors in the total educative process of the child shall be encouraged and supported; (i) Development of regional language. A regional language may be evolved and developed from the different dialects in the region; (j) Media if instruction in schools. Filipino and English shall be the media of instruction in all schools in the autonomous region. Arabic shall be an auxiliary medium of instruction; (k) Teaching of Arabic as subject. Arabic shall be taught as a subject in all grade levels as required for Muslims under existing laws and optional, for non-Muslims; (l) Auxiliary official language. Regional languages may be used as auxiliary official languages in the region as well as auxiliary media of instruction and communication; (m)Develop ethnic identity. Education in the autonomous region shall develop consciousness and appreciation of one’s ethnic identity and shall provide a better understanding of another person’s cultural heritage for the attainment of national unity and harmony; (n) The Regional Government shall recognize the participation of private institution of learning, including the Madaris (Arabic Schools), in providing quality education to the people of the region; and (o) (1) Basic education structure. The elementary level shall follow the basic national structure and shall provide basic education, the secondary level will correspond to four (4) years of high school, and the tertiary level shall be one year to three (3) years for non-degree courses and four (4) to eight (8) years for degree courses, as the case may be, in accordance with the existing laws. (2) Social studies subjects contents. Filipino and Islamic values shall be incorporated in the social studies subjects or their equivalent in the appropriate grade levels and subject to agreed norms, academic freedom, and legal limitations. These values shall be taught also as part of appropriate subjects in the secondary and tertiary levels of education. (3) Textbook preparation, writing, revision, and printing. The preparation, writing, revision, and printing of textbooks for the use of the schools in the autonomous region shall be the joint responsibility of the Regional Government and the central government or national government. Subject to agreed norms, academic freedom, and relevant legal limits, the preparation, writing, revision, and printing of the textbooks shall emphasize Filipino and Islamic values. The said values shall include those of Muslim, Christians, and indigenous peoples, human rights, modern sciences and technology, as well as, the latest advances in education that are relevant to the ideals of the autonomous region and to the Republic. (4) Accreditation for transfer to other schools. After they shall have passed the core curriculum prescribed by the central government or national government, the students and graduates of the education system of the autonomous region shall be fully accredited to transfer to the corresponding grade levels in the schools outside the autonomous region. (5) Period for integration of Islamic values. The integration of Islamic values in the curriculum of the regional educational subsystem shall be done over a period of six (6) years from the approval of this Organic Act after appropriate researches and studies shall have been conducted, evaluated, and approved by the regional education authorities. (6) Primary responsibility for learning aid and instructional materials. The Regional Government shall have primary responsibility to provide learning aids and instructional materials to the schools in the autonomous region in addition to those already prescribed by the central government or national government. (7) Responsibility for selection, recruitment, appointment, promotion and civil service protection of teachers and non-teaching personnel. (a) The selection, recruitment, appointment and promotion of teaching and non-teaching personnel of the regional educational subsystem shall be the responsibility of the Regional Government. The teaching and non-teaching personnel of the regional educational subsystem who have appropriate civil service eligibility may not be replaced, removed, or dismissed without just cause. (b) The Regional Government may impose its regionally-defined standards for the employment of non-teaching personnel in its school system which, however, shall not be lower than the standard of the Department of Education, Culture and Sports. (c) In the selection, recruitment, appointment, and promotion of elementary, secondary, and tertiary education teaching and non-teaching personnel, the minimum requirements and standards prescribed by the Department of Education, Culture and Sports, the Commission on Higher education, and the Technical Education and Skills Development Authority shall be observed by the regional educational system. (8) Preservation of culture, mores and traditions. The culture, mores, customs, and traditions of the Muslim people of those of the Christians and indigenous people, shall be preserved, respected, enhanced and developed. (9) Schools to preserve, enhance, and develop cultures, mores, customs, and traditions. The regular public and Madaris schools in the autonomous region shall be the primary vehicles for the preservation, enhancement, and development of the said cultures, mores, customs, and traditions.

Section 3. Regional Educational Curricula The Regional Department of Education, Culture and Sports shall develop curricula that are relevant to the economic, social, political, cultural, moral, and spiritual needs of the people in the autonomous region.

Section 4. Education, Management, and Control of Education The management, control, and supervision of the regional educational subsystem shall be the primary concern of the Regional Government. The Department of Education, Culture and Sports, the Commission on Higher Education, and the Technical Education and Skills Development Authority, and other appropriate educational bodies of the central government or national government shall monitor compliance by the regional educational subsystem with the national educational policies, standards and regulations. The Department of Education, Culture and Sports, the Commission on Higher Education and the Technical Skills Development Authority of the Regional Government shall participate in the policy and decision-making activities in matters that affect the regional educational subsystem. Educational Structure

Section 5. The Regional Assembly may, by law, create, support, and maintain a Regional Department of Education, Culture and Sports, and shall define its powers, functions and composition.

Section 6. Private Schools Supervision (a) The Regional Department of Education, Culture and Sports shall be responsible for the supervision and regulation of private schools. (b) Private schools, including sectarian and non-sectarian institutions of learning of whatever level, may organize themselves and shall have the right to participate and be represented by three (3) representatives in the deliberations of the Regional Department of Education, Culture and Sports on matters dealing with private schools. (c) The representatives of the private schools to the Regional Department of Education, Culture and Sports shall act for the sectarian schools, non-sectarian schools, and the schools of the lumads, if any, (d) The right of sectarian educational institutions to propagate their religious beliefs shall not be curtailed. The regional educational subsystem shall not discriminate against any sectarian educational institutions in any manner or form.

Section 7. Educational Subsystem Structure The organizational structure of the regional educational subsystem shall follow the basic structure of the educational subsystem of the central government or national government. The Regional Assembly may, however, create its own structures. It shall prescribe the same curricular years as those prescribed nationally.

Section 8. Academic Freedom and Fiscal Autonomy State colleges and universities shall be part of the regional educational subsystems within the autonomous region and shall enjoy academic freedom and fiscal autonomy and shall continue to be governed their respective charters. The provisions of existing laws to the contrary notwithstanding, the Regional Government shall be represented in the board of state universities and colleges in the region by the Chair of the Committee in Education, Culture and Sports of the Regional Assembly either as co-chair or co-vice chair.

Section 9. Education Centers All state colleges and universities in the autonomous region shall serve as regional centers for tertiary and post graduate education in their respective areas of competence.

Section 10. Tribal University System The Regional Assembly may create a tribal university within the autonomous region to address the higher educational needs of the indigenous cultural communities in the region. Madrasah Education

Section 11. Supervision of Madaris Schools Accredited madaris in the autonomous region shall be supervised by the Department of Education, Culture and Sports in accordance with the principles of the Constitution and this Organic Act. The educational policies should also take into consideration the teaching of the Koran that an educational system should inculcate respect by individuals for duly constituted authority. A periodic review and supervision of the ‘Madaris’ educational system shall be conducted by the Department of Education, Culture and Sports and a monthly report shall be submitted by the Department to Congress through the Senate President, the Speaker and the Chairs of respective education committees of both Houses of Congress or the corresponding committees of the Regional Assembly of the autonomous region in Muslim Mindanao, if there are such committees in the said assembly.

Section 12. Madrasah Educational System; Arabic as Medium of Instruction The Regional Assembly shall enact legislation for the strengthening and development of Madrasah Educational System in the autonomous region. Arabic is hereby recognized as medium of instruction in madaris (schools) and other Islamic institutions.

Section 13. Madaris Existing madaris and madaris ulya are deemed parts of the regional educational subsystem.

Section 14. Madaris Teachers Qualifying Examinations; compensation The Regional Department of Education, Culture and Sports shall, in coordination with the Regional Commission on Higher Education, conduct periodic competitive qualifying examinations of madaris teachers for permanent appointments to the regional educational subsystem. The compensation of madaris teachers employed in the public schools of the autonomous region shall be taken from the funds of the Regional Government. Science and Technology

Section 15. Science and Technology Science and Technology are recognized as essential to national and regional progress and development.

Section 16. Priority Legislation The Regional Assembly shall enact laws that shall; (a) Give priority to science, research, inventions, technology, education, and their development and utilization; (b) Provide incentives, including tax deduction and funding assistance, and encourage the participation of the private sector in basic and applied scientific researches; (c) Regulate the transfer and promote the adoption of technology from all sources for regional benefit; (d) Secure and protect the exclusive rights of scientists, inventors, scholars, writers, artists, and other gifted citizens to their intellectual properties; and (e) Ensure the full and effective participation of all sectors in the planning, programming, coordination, and implementation of scientific and technological researches and the acquisition, adoption, innovation, and application of science and technology for development.

Section 17. Environmental Changes The regional educational subsystem shall endeavor to respond positively and effectively to the climatic changes affecting the environment. It shall monitor and evaluate ecological developments affecting the region and develop appropriate plans to meet ecological situations. To this end, it may establish linkages with appropriate domestic and international institutions.

Section 18. Non-Formal Education The Regional Department of Education, Culture and Sports shall institutionalize non-formal education in the scope and methodology, to include literacy, numeracy, and intensive skills training of the youth and adults. Scholarship Grants and Assistance

Section 19. Donations to Universities, Colleges and Schools Public or private universities, colleges, and schools in the autonomous region may seek and receive local or foreign donations for educational purposes. Donors to public or private universities, colleges, and schools may deduct the amount of the donation from their taxable income due to the Regional Government.

Section 20. Scholarships Programs The Regional Government shall provide scholarships to qualified poor but deserving students in all levels of education. To this end, the Regional Government shall devote, at least, fifteen percent (15%) of its regular budget for education to support scholarships and shall endeavor to augment the fund for scholarships from other sources of revenue, public or private. The Regional Government shall administer the scholarship programs of the Commission on Higher Education and the Technical Education and Skills Development Authority scholarship programs, both local and foreign within the region. The Administrative and other details of this transfer of authority to administer the scholarship programs shall be done within six (6) months from the approval of this Organic Act.

Section 21. Financial Assistance for Disadvantaged, Deserving Students The Regional Government shall provide financial assistance to disadvantaged but deserving students from any funds including those provided by the central government or national government for that purpose. Fund for Education

Section 22. Release of Education Funds Educational funds for the Regional Government allocated by the central government or national government in the General Appropriations Act shall be released directly to the treasurer of the Regional Government. Physical Education and Sports Development

Section 23. Physical Education and Sports Development The regional educational subsystem shall develop and maintain an integrated and comprehensive physical education program. It shall develop healthy, disciplined, creative, innovate, and productive individuals, and promote the spirit of sportsmanship, cooperation, teamwork, goodwill, and understanding.

Section 24. Sports Program The regional educational subsystem shall encourage and support sports programs, league competition, indigenous games, martial arts, and amateur sports, including training for regional, national, and international competitions. Cultural Heritage

Section 25. Cultural Heritage The cultural heritage of the people of the autonomous region shall be integral component of the regional development.

Section 26. Protection and Promotion of Culture The Regional Government shall recognize, respect, protect, preserve, revive, develop, promote and enhance the culture, customs, traditions, beliefs and practices of the people of the autonomous region. It shall encourage and undertake the recovery, collection, collation, and restoration of historical and cultural properties for posterity.

Section 27. Bureau of Cultural Heritage The Regional Assembly may, by law, create a bureau on cultural heritage. The Bureau shall plan, initiative, implement, and monitor cultural programs, projects, and activities that preserve and enhance the positive elements of the indigenous culture of the inhabitants of the autonomous region. It shall coordinate with other concerned agencies engaged in similar and related activities.
ARTICLE XV
SOCIAL JUSTICE, SERVICES, INSTITUTIONS, AND OTHER CONCERNS

Section 1. Promotion of Social Justice The promotion of social justice include the commitment to create social political, and economic opportunities based on freedom of initiative resourcefulness, and self-reliance.

Section 2. (a) Social Services. The Regional Assembly shall consistent with the provision of the Constitution and existing national laws, enact measures to provide and promote social services. (b) Food and Drug Regulation. – The Regional Assembly shall, by law, establish and maintain, an effective food and drug regulatory system. The rational use of drugs through an essential drugs list and the use of generic medicines or drugs, as well as the use of herbal medicines and indigenous health resources, whenever appropriate, shall encouraged and promoted. (c) Other Legislation. The Regional Assembly shall also enact legislation on the following: (1) Child health and development, including the support of the physical challenged and other disadvantaged persons in need of welfare services; (2) Protection and development of the rights of women and of indigenous population; (3) Registration of births, marriages and deaths; and (4) Fixing of regional public holidays.

Section 3. Housing Program The Regional Government, in cooperation with the private sector, shall evolve its own housing program that will provide adequate, low cost, and descent housing facilities, and other basic services to the residents of the region, especially the underprivileged.

Section 4. The Regional Assembly shall, within one year from its organization, enact measures embodying re-integration programs responsive to the needs of former rebels who return to the fold of the law. A rehabilitation program shall be provided for displace persons or communities that are victims of man-made or natural calamities.

Section 5. Family as Nation’s Foundation The Regional Government recognizes the Filipino family as the foundation of the nation. It shall strengthen its solidarity and actively promote its total development.

Section 6. Women’s Right The Regional Government recognizes the role of women in nation building and regional development. It shall promote their well-being and ensure their fundamental rights and equality with men. The Regional Government shall take appropriate measures against all forms of exploitation of and discrimination against women. It shall ensure the representation of women in appropriate decisions and policy-making bodies.

Section 7. Youth The Regional Government recognizes the vital role of the youth in nation building. The Regional Assembly may, by law, create the Office of Youth Affairs and define its powers, functions, and composition.

Section 8. People’s Organization The Regional Government shall protect and promote the rights of the people’s organizations.

Section 9. Protection Of Labor The Regional Government recognizes labor as a primary social economic force for development. It shall afford full protection to labor, promote full employment, ensure equal work opportunities regardless of sex, race, or creed, and regulate the relations between workers and employers. The Regional Government shall ensure the right of labor to its just share in the fruits of production, and the right of enterprise to reasonable returns on investments and to expansion and growth.
ARTICLE XVI
GENERAL PROVISIONS

Section 1. The Regional Assembly is hereby empowered to pass a law adopting an official regional emblem, seal and hymn. The regional emblem and seal shall be displayed along with the national emblem and seal. The regional hymn shall be sung in after the national anthem in official proceedings at the discretion of the government officials in the autonomous region.

Section 2. Disciplinary Authority Over Officials and Employees The Regional Government shall have primary disciplinary authority over officials and employees of the Regional Government. In the exercise of that authority, the Regional Government shall apply the Civil Service Law, rules and regulations of the central government or national government until the Regional Assembly shall have enacted a Regional Civil Service Law. The Regional Civil Service Law shall govern the conduct of the civil servants, the qualifications for non-elective positions, and the protection of civil service eligibles in various government positions in the autonomous region. The Regional Civil Service Law shall be consistent with the provisions of Article IX (B) of the Constitution.

Section 3. Oath of Office All public officers and employees, as well as members of the Regional Police Force and the military establishment, shall be required to take an oath of allegiance to the republic of the Philippines to support and defend the Constitution and this Organic Act, renounce the use of violence, and commit themselves to democratic means in the pursuit of their ideals and aspirations.

Section 4. Civil Service Eligibility Until the Regional Assembly shall have enacted a civil service law, the civil service eligibilities required by the central government or national government for appointments to public positions shall likewise be required for appointments to government positions in the Regional Government. As may be necessary, the Civil Service Commission shall hold special civil service examinations in the autonomous region. For a period not longer than six (6) years from the approval of this organic Act, the central government or national government shall endeavor to provide appropriate civil service eligibility to applicants coming from the autonomous region for government positions therein. The minimum qualifications prescribed by law shall, however, be met.

Section 5. Prohibition Against Employment of Military Personnel in Civil Service No members of the Armed Forces of the Philippines in the active service shall, at any time, be appointed or designated in any capacity to a civilian position in the Regional Government, including government owned or-controlled corporations, or in any of their subsidiaries or instrumentalities within 7the autonomous region.

Section 6. Promulgation and Translation of this Organic Act This Organic Act shall be officially promulgated in Filipino, English and Arabic and translated into the dialects widely spoken in the autonomous region. In case of conflict, the English text shall prevail.
ARTICLE XVII
AMENDMENTS OR REVISIONS

Section 1. Consistent with the provision of the Constitution, this Organic Act may be reamended or revised by the Congress of the Philippines upon a vote of two thirds (2/3) of the Members of the House of Representatives and of the Senate voting separately.

Section 2. The Regional Assembly shall have the power to initiate proposals for amendment to or revisions of this Organic Act by a vote of three-fourths (3/4) of all its Members or it may call for a Regional Consultative Commission to propose the amendment or revision. In any case, the amendment or revision shall require the approval of the Congress of the Philippines by a vote of two-thirds (2/3) of the Members of the House of Representatives and of the Senate voting separately.

Section 3. Any amendment to or revision of this Organic Act shall become effective only when approved by majority of the votes cast in the plebiscite called for the purpose, which shall be held not earlier than sixty (60) days or later than ninety (90) days after the approval of such amendment or revision.
ARTICLE XVIII
TRANSITORY PROVISIONS

Section 1. Disposition of Certain Real Properties of the Autonomous Region The land and permanent buildings or structures owned, controlled, administered, or in the possession of the Regional Government of the Autonomous Region in Muslim Mindanao, including those formerly owned, held, administered, or controlled by defunct autonomous government in Region IX and XII located in provinces and cities which do not vote favorably for the inclusion of their respective areas in the Autonomous Region in Muslim Mindanao as provided in this Organic Act shall be purchased by the central government or national government at a price to be determined by the Oversight Committee as provided for in this Section 3 of this Article, within three (3) months from the holding of the said plebiscite. Any dispute on the price as determined by the Oversight committee may be appealed to the President of the Philippines, who shall decide on said price with finality within three (3) months from the receipt of the appeal. The proceeds of the purchase shall be remitted to the Regional Government of the Autonomous Region in Muslim Mindanao. The national government or central government shall within three (3) months from its acquisition of said land and permanent buildings or structures sell, transfer, and convey the said properties in favor of the local government unit having territorial jurisdiction thereover and willing to purchase the said land and buildings or structures, or portions thereof, at the price agreed upon by the central government or national government with the local government concerned.

Section 2. Personnel Absorbed by the Regional Government All personnel of the central government or national government and of government-owned or-controlled corporations who are absorbed by the Regional Government shall retain their seniority rights, compensation levels, and other benefits.

Section 3. Oversight Committee Within one (1) month from the approval of this Organic Act, an oversight committee composed of: (a) Executive Secretary as Chairman, (b) the Secretary of Budget and Management, (c) the Regional Governor of the autonomous region, (d) the Speaker of the Regional Assembly, (e) the Chair of the Senate Committee on local Government, (f) one (1) other Senator designated by the Senate President, (g) the Chair of House of Committee on Local Government and (h) one (1) other representative representing a congressional district in the Autonomous Region in Muslim Mindanao designated by the Speaker of the House of Representative, as members, shall be organized for the purpose of supervising the transfer to the autonomous region of such powers and functions vested in it by this Organic Act, and the appropriations of the offices or agencies, including the transfer of properties, assets, and liabilities, and such personnel as may be necessary; and, of identifying the other line agencies and government owned or-controlled corporations that may be absorbed by the Regional Government and, with respect to the latter, also the terms and conditions of their turnover. Within six (6) months after its organization as ordained by the Organic Act, he oversight committee shall submit its report and recommendations to the President of the Philippines who shall act on the report and recommendations within ninety (90) days after receiving it. If the President fails to act within said period, the recommendations of the oversight committee shall be deemed approved.

Section 4. Agencies and Offices Transferred to the Autonomous Region Upon the election of the officials of the Regional Government, as mandated by this Organic Act, the line agencies and offices of the central government or national government dealing with local government, social services, science and technology, labor, natural resources, and tourism, including their personnel, equipment, properties, and budgets, shall be immediately placed under the control and supervision of the Regional Government. Other central government of national government offices and agencies in the autonomous region which are not excluded under Section 3, Article IV of this Organic Act together with their personnel, equipment,properties, and budgets, shall be placed under the control and supervision of the Regional Government pursuant to a schedule prescribed by the oversight committee mentioned in Section 3 of this Article. The transfer of these offices and agencies and their personnel, equipment, properties and budgets shall be accomplished within six (6) years from the re-organization of the Regional Government. The central government or national government shall continue to provide such levels of expenditures as may be necessary to enable the Regional Government to carry out the functions devolved under this Organic Act. The annual budgetary support shall, as soon as practicable, terminate for the line agencies or offices to the Regional Government.

Section 5. Notwithstanding the provisions of the preceding section, the Government Service Insurance System (GSIS), the Social Security Service (SSS), the Pagtutulungan-Ikaw, Bangko, Industriya’t Gobyerno (PAG-IBIG), and other funds of similar trust or fiduciary nature shall be exempt from the coverage of this Organic Act.

Section 6. Budgetary law, Rules and Regulations Pending the enactment of a regional budgetary law, the budgeting process of the Regional Government shall be governed by pertinent rules and regulations prescribed by the Department of Budget and Management.

Section 7. First Regular Elections The first regular elections of the Regional Governor, Regional Vice Governor and members of the regional legislative assembly under this Organic Act shall be held on the second Monday of September 2001. The Commission on Elections as may be necessary for the conduct of said election. The election of the Regional Governor, Regional Vice Governor, and members of the Regional Legislative Assembly of the Autonomous Region in Muslim Mindanao (ARMM) set forth in Republic Act No. 8953 is hereby reset accordingly. The funds for the holding of the ARMM elections shall be taken from the savings of the national government or shall be provided in the General Appropriations Act (GAA).

Section 8. The incumbent Regional Governor, the Regional Vice Governor, and members of the Regional Legislative Assembly of the Autonomous Region In Muslim Mindanao shall continue in office pursuant to existing laws and until their successors shall have been duly elected and qualified.

Section 9. Within one (1) year from its organization, the Regional Assembly shall, by law, create a code commission on Muslim and a code commission on tribal laws. Each code commission shall have three (3) members. The code commissions shall codify tribal laws and Islamic laws and jurisprudence within (3) years from their creation and submit the same to the Regional Assembly for enactment into law. The Chairs and Commissioners of the code commission shall be entitled to reasonable per diems for the work.

Section 10. Initial Funds for the Regional Government The sum of Fifteen Million pesos (P 15, 000,000.00), which shall be charged against the contingent Fund of the President, is hereby appropriated for the initial organizational requirements of the Regional Government. Any deficiency shall be taken from savings of the central government or national government. An amount not exceeding Ten million pesos (P 10, 000, 000. 00) thereof shall be allotted to the Commission on Elections shall determine the manner of campaigning and deputization of government agencies for the purpose. The Commission on Elections shall adopt measure to ensure the dissemination of the said impartial information campaign.

Section 11. Annual Assistance In addition to the regular annual allotment to fund the regular operations of the Regional Government, such amounts as may be needed to fund the infrastructure projects duly identified, endorsed, and approved by the Regional Economic and Development Planning Board as created herein shall be provided by the central government or national government as annual assistance for six (6) years after the approval of this Organic Act, and shall be included in the annual General Appropriations Act (GAA).The annual assistance herein mentioned shall be appropriated and disbursed through a Public Works Act duly enacted by the Regional Assembly. The national programs and projects in the autonomous region shall continue to be financed by central government or national government.

Section 12. Sectoral Representatives The sectoral representatives mentioned in Section 3, Article VI of this Organic Act, shall be chosen by the sectoral groups concerned at sectoral conventions called for the purpose by the Commission on Elections. The sectoral conventions shall be held within three (3) months after the date of the holding of the simultaneous plebiscites mandated by this Organic Act. The Commission on Elections (COMELEC) shall formulate the rules and regulations to ensure equitable sectoral representations in the Regional Assembly. It shall identify and accredit to sectoral representation in the Regional Assembly. The Regional Assembly shall enact a law for the election of marginalized and under-represented sectors, following the principle of proportional representation, within its first term following the approval of this Organic Act.

Section 13. Plebiscite and Effectivity of this Organic Act The 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, Saranggani, 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, Iligan, Marawi, Pagadian, Puerto Princessa, 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 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.

Section 14. Plebiscite Information Campaign The Commission on Elections shall conduct an information campaign on the plebiscite in every municipality, city, and province where the plebiscite is held. Public conferences, assemblies, or meetings on dates before the plebiscite day, itself, shall be held to inform the residents thereof regarding the significance and meaning of the plebiscite and to help them to cast their votes intelligently. Free, full, and constructive discussion and exchange of views on the issues shall be encouraged. For this purpose, the assistance of persons of known probity and knowledge may be enlisted by the Commission on Elections, the Regional Government, the local government units or interested parties to act as speakers or resource persons.

Section 15. Promulgation of Rules; Appropriations for Simultaneous plebiscites The Commission on Elections shall within fifteen (15) days from the approval of this Organic Act, promulgate such rules and regulations as may be necessary for the conduct of the plebiscites. The amount necessary for the conduct of the plebiscites shall be charged against any savings of the appropriations of the Commission on Elections and any deficiency thereof, shall be augmented from the contingent fund.

Section 16. Zone of Peace and Development The Special Zone of Peace and Development in the Southern Philippines, the Southern Philippines Council for Peace and Development, and the Consultative Assembly created under Executive Order No. 371 dated October 2, 1996, are deemed abolished and shall cease to exist of the date of the approval of this Organic Act in the said plebiscites. If this Organic Act is rejected in the said plebiscites, the aforementioned bodies shall continue to exist only in the four (4) provinces constituting the present ARMM and in the provinces and cities that opt to join the expanded autonomous region until abolished by law.

Section 17. Separability Clause The provisions of this Organic Act are hereby declared to be separate and in the event one or more of such provisions are held unconstitutional, the validity of other provisions shall not be affected thereby.

Section 18. Repealing Clause All laws, decrees, orders, rules and regulations, and other issuances or parts thereof, which are inconsistent with this Organic Act, are hereby repealed or modified accordingly.

Section 19. Effectivity Clause This Organic Act shall take effect after fifteen (15) days following its complete publication in at least two national newspapers of general circulation and one local newspaper of general circulation in the autonomous region.

Approved: March 31, 2001.

Section 1. Section 2 of Republic Act No. 8953 is hereby amended to read as follows:

“Sec. 2. The regular elections for the regional governor, vice governor and members of the regional legislative assembly of the Autonomous Region in Muslim Mindanao (ARMM) set forth under Republic Act No. 8953 is hereby reset to the second Monday of September 2001.”

Sec. 2. Section 3 of Republic Act No. 8953 is hereby further amended to read as follows:

“Sec. 3. The term of office of the regional governor, regional vice governor and the members of the regional legislative assembly shall commence at noon of the 30th day of September 2001 next following their election and shall expire at noon of the 30th day of September three (3) years thereafter.”

Sec. 3. The funds for the holding of the ARMM elections shall be taken from the savings of the national government or shall be provided in the General Appropriations Act (GAA) of 2001.

Sec. 4. If any of the provisions of this Act is held unconstitutional, provisions not affected shall remain valid and binding.

Sec. 5. All laws, decrees and all other issuances or parts thereof, which are inconsistent with this Act, are hereby repealed, amended or modified accordingly.

Sec. 6. This Act shall take effect upon its approval by the President.

Approved: 28 February 2001.

Section 1. Short Title. – This Act shall be known as the “Fair Elections Act”.

Sec. 2. Declaration of Principles. – The State shall, during the election period, supervise or regulate the enjoyment or utilization of all franchises or permits for the operation of media of communication or information to guarantee or ensure equal opportunity for public service, including access to media time and space, and the equitable right to reply, for public information campaigns and fora among candidates and assure free, orderly, honest. peaceful and credible elections.

The State shall ensure that bona fide candidates for any public office shall be free from any form of harassment and discrimination.

Sec. 3. Lawful Election Propaganda. – Election propaganda whether on television, cable television, radio, newspapers or any other medium is hereby allowed for all registered political parties, national, regional, sectoral parties or organizations participating under the party-list elections and for all bona fide candidates seeking national and local elective positions subject to the limitation on authorized expenses of candidates and political parties, observance of truth in advertising and to the supervision and regulation by the Commission on Elections (COMELEC).

For the purpose of this Act, lawful election propaganda shall include:

3.1 Pamphlets, leaflets, cards, decals, stickers or other written or printed materials the size of which does not exceed eight and one-half inches in width and fourteen inches in length;

3.2 Handwritten or printed letters urging voters to vote for or against any particular political party or candidate for public office;

3.3 Cloth, paper or cardboard posters whether framed, or posted, with an area not exceeding two (2) feet by three (3) feet, except that, at the site and on the occasion of a public meeting or rally, or in announcing the holding of said meeting or rally, streamers not exceeding three (3) feet by eight (8) feet in size, shall be allowed: Provided, That said streamers may be displayed five (5) days before the date of the meeting or rally and shall be removed within twenty-four (24) hours after said meeting or rally;

3.4 Paid advertisements in print or broadcast media: Provided, That the advertisements shall follow the requirements set forth in Section 4 of this Act; and

3.5 All other forms of election propaganda not prohibited by the Omnibus Election Code or this Act.

Sec. 4. Requirements for Published or Printed and Broadcast Election Propaganda. -

4.1 Any newspaper, newsletter, newsweekly, gazette or magazine advertising, posters, pamphlets, comic books, circulars, handbills, bumper stickers, streamers, simple list of candidates or any published or printed political matter and any broadcast of election propaganda by television or radio for or against a candidate or group of candidates to any public office shall bear and be identified by the reasonably legible or audible words “political advertisement paid for,” followed by the true and correct name and address of the candidate or party for whose benefit the election propaganda was printed or aired.

4.2 If the broadcast is given free of charge by the radio or television station, it shall be identified by the words “airtime for this broadcast was provided free of charge by” followed by the true and correct name and address of the broadcast entity.

4.3 Print, broadcast or outdoor advertisements donated to the candidate or political party shall not be printed, published, broadcast or exhibited without the written acceptance by the said candidate or political party. Such written acceptance shall be attached to the advertising contract and shall be submitted to the COMELEC as provided in Subsection 6.3 hereof.

Sec. 5. Election Surveys. -

5.1 Election surveys refer to the measurement of opinions and perceptions of the voters as regards a candidate’s popularity, qualifications, platforms or a matter of public discussion in relation to the election, including voters’ preference for candidates or publicly discussed issues during the campaign period (hereafter referred to as “Survey”).

5.2 During the election period, any person, natural as well as juridical, candidate or organization who publishes a survey must likewise publish the following information:

1. The name of the person, candidate, party or organization who commissioned or paid for the survey;

2. The name of the person, polling firm or survey organization who conducted the survey;

3. The period during which the survey was conducted, the methodology used, including the number of individual respondents and the areas from which they were selected, and the specific questions asked;

4. The margin of error of the survey;

5. For each question for which the margin of error is greater than that reported under paragraph (d), the margin of error for that question; and

6. A mailing address and telephone number, indicating it as an address or telephone number at which the sponsor can be contacted to obtain a written report regarding the survey in accordance with Subsection 5.3.

5.3 The survey together with raw data gathered to support its conclusions shall be available for inspection, copying and verification by the COMELEC or by a registered political party or a bona fide candidate, or by any COMELEC-accredited citizen’s arm. A reasonable fee sufficient to cover the costs of inspection, copying and verification may be charged.

5.4 Surveys affecting national candidates shall not be published fifteen (15) days before an election and surveys affecting local candidates shall not be published seven (7) days before an election. (This provision has been ruled unconstitutional by the Supreme Court in SOCIAL WEATHER STATIONS, INCORPORATED and KAMAHALAN PUBLISHING CORPORATION vs. COMMISSION ON ELECTIONS, GR No. 147571, 5 May 2001)

5.5 Exit polls may only be taken subject to the following requirements:

1. Pollsters shall not conduct their surveys within fifty (50) meters from the poling place, whether said survey is taken in a home, dwelling place and other places;

2. Pollsters shall wear distinctive clothing;

3. Pollsters shall inform the voters that they may refuse to answer; and

4. The result of the exit polls may be announced after the closing of the polls on election day, and must dearly identify the total number of respondents, and the places where they were taken. Said announcement shall state that the same is unofficial and does not represent a trend.

Sec. 6. Equal Access to Media Time and Space. – All registered parties and bona fide candidates shall have equal access to media time and space. The following guidelines may be amplified on by the COMELEC:

6.1 Print advertisements shall not exceed one-fourth (1/4) page in broadsheet and one-half (1/2) page in tabloids thrice a week per newspaper, magazine or other publications, during the campaign period.

6.2

1. Each bona fide candidate or registered political party for a nationally elective office shall be entitled to not more than one hundred twenty (120) minutes of television advertisement and one hundred eighty (180) minutes of radio advertisement whether by purchase or donation.

2. Each bona fide candidate or registered political party for a locally elective office shall be entitled to not more than sixty (60) minutes of television advertisement and ninety (90) minutes of radio advertisement whether by purchase or donation.

For this purpose, the COMELEC shall require any broadcast station or entity to submit to the COMELEC a copy of its broadcast logs and certificates of performance for the review and verification of the frequency, date, time and duration of advertisements broadcast for any candidate or political party.

6.3 All mass media entities shall furnish the COMELEC with a copy of all contracts for advertising, promoting or opposing any political party or the candidacy of any person for public office within five (5) days after its signing. In every case, it shall be signed by the donor, the candidate concerned or by the duly authorized representative of the political party.

6.4 No franchise or permit to operate a radio or television station shall be granted or issued, suspended or cancelled during the election period. In all instances, the COMELEC shall supervise the use and employment of press, radio and television facilities insofar as the placement of political advertisements is concerned to ensure that candidates are given equal opportunities under equal circumstances to make known their qualifications and their stand on public issues within the limits set forth in the Omnibus Election Code and Republic Act No. 7l66 on election spending.

The COMELEC shall ensure that radio or television or cable television broadcasting entities shall not allow the scheduling of any program or permit any sponsor to manifestly favor or oppose any candidate or political party by unduly or repeatedly referring to or including said candidate and/or political party in such program respecting, however, in all instances the right of said broadcast entities to air accounts of significant news or news worthy events and views on matters of public interest.

6.5 All members of media, television, radio or print, shall scrupulously report and interpret the news, taking care not to suppress essential facts nor to distort the truth by omission or improper emphasis. They shall recognize the duty to air the other side and the duty to correct substantive errors promptly.

6.6 Any mass media columnist, commentator, announcer, reporter, on-air correspondent or personality who is a candidate for any elective public office or is a campaign volunteer for or employed or retained in any capacity by any candidate or political party shall be deemed resigned, if so required by their employer, or shall take a leave of absence from his/her work as such during the campaign period: Provided, That any media practitioner who is an official of a political party or a member of the campaign staff of a candidate or political party shall not use his/her time or space to favor any candidate or political party.

6.7 No movie, cinematograph or documentary portraying the life or biography of a candidate shall be publicly exhibited in a theater, television station or any public forum during the campaign period.

6.8 No movie, cinematograph or documentary portrayed by an actor or media personality who is himself a candidate shall likewise be publicly exhibited in a theater or any public forum during the campaign period.

Sec. 7. Affirmative Action by the COMELEC. -

7.1 Pursuant to Sections 90 and 92 of the Omnibus Election Code (Batas Pambansa Blg. 881), the COMELEC shall procure the print space upon payment of just compensation from at least three (3) national newspapers of general circulation wherein candidates for national office can announce their candidacies. Such space shall be allocated free of charge equally and impartially among all the candidates for national office on three (3) different calendar days: the first day within the first week of the campaign period; the second day within the fifth week of the campaign period; and the third day within the tenth week of the campaign period.

7.2 The COMELEC shall also procure free airtime from at least three (3) national television networks and three (3) national radio networks, which shall also be allocated free of charge equally and impartially among all candidates for national office. Such free time shall be allocated on three (3) different calendar days: the first day within the first week of the campaign period; the second day within the fifth week of the campaign period; and the third day within the tenth week of the campaign period.

7.3 The COMELEC may require national television and radio networks to sponsor at least three (3) national debates among presidential candidates and at least one (1) national debate among vice presidential candidates. The debates among presidential candidates shall be scheduled on three (3) different calendar days: the first debate shall be scheduled within the first and second week of the campaign period; the second debate within the fifth and six week of the campaign period; and the third debate shall be scheduled within the tenth and eleventh week of the campaign period.

The sponsoring television or radio network may sell airtime for commercials and advertisements to interested advertisers and sponsors. The COMELEC shall promulgate rules and regulations for the holding of such debates.

Sec. 8. COMELEC Space and Time. – The COMELEC shall procure space in at least one (1) newspaper of general circulation and air time in at least one (1) major broadcasting station or entity in every province or city: Provided, however, That in the absence of said newspaper, publication shall be done in any other magazine or periodical in said province or city, which shall be known as “COMELEC Space”: Provided, further, That in the absence of said broadcasting station or entity, broadcasting shall be done in any radio or television station in said province or city, which shall be known as “COMELEC Time”. Said time shall be allocated to the COMELEC free of charge, while said space shall be allocated to the COMELEC upon payment of just compensation. The COMELEC time and space shall be utilized exclusively by the COMELEC for public information dissemination on election-related concerns.

Sec. 9. Posting of Campaign Materials. – The COMELEC may authorize political parties and party-list groups to erect common poster areas for their candidates in not more than ten (10) public places such as plazas, markets, barangay centers and the like, wherein candidates can post. display or exhibit election propaganda: Provided, That the size of the poster areas shall not exceed twelve (12) by sixteen (16) feet or its equivalent.

Independent candidates with no political parties may likewise be authorized to erect common poster areas in not more than ten (10) public places, the size of which shall not exceed four (4) by six (6) feet or its equivalent.

Candidates may post any lawful propaganda material in private places with the consent of the owner thereof, and in public places or property which shall be allocated equitably and impartially among the candidates.

Sec. 10. Right to Reply. – All registered parties and bona fide candidates shall have the right to reply to charges published against them. The reply shall be given publicity by the newspaper, television and/or radio station which first printed or aired the charges with the same prominence or in the same page or section or in the same time slot as the first statement.

Sec. 11. Rates for Political Propaganda. – During the election period, media outlets shall charge registered political parties and bona fide candidates a discounted rate of thirty percent (30%) for television, twenty percent (20%) for radio and ten percent (10%) for print over the average rates charged during the first three quarters of the calendar year preceding the elections.

Section 12. Substitution of Candidates. – In case of valid substitutions after the official ballots have been printed, the votes cast for the substituted candidates shall be considered as stray votes but shall not invalidate the whole ballot. For this purpose, the official ballots shall provide spaces where the voters may write the name of the substitute candidates if they are voting for the latter: Provided, however, That if the substitute candidate of the same family name, this provision shall not apply.

Section 13. Authority of the COMELEC to Promulgate Rules; Election Offenses. – The COMELEC shall promulgate and furnish all political parties and candidates and the mass media entities the rules and regulations for the implementation of this Act, consistent with the criteria established in Article IX-C, Section 4 of the Constitution and Section 86 of the Omnibus Election Code (Batas Pambansa Bldg. 881).

Rules and regulations promulgated by the COMELEC under and by authority of this Section shall take effect on the seventh day after their publication in at least two (2) daily newspapers of general circulation. Prior to effectivity of said rules and regulations, no political advertisement or propaganda for or against any candidate or political party shall be published or broadcast through mass media.

Violation of this Act and the rules and regulations of the COMELEC issued to implement this Act shall be an election offense punishable under the first and second paragraphs of Section 264 of the Omnibus Election Code (Batas Pambansa Bldg. 881).

Section 14. Repealing Clause. – Section 67 and 85 of the Omnibus Election Code (Batas Pambansa Bldg. 881) and Sections 10 and 11 of Republic Act No. 6646 are hereby repealed. As a consequence, the first proviso in the third paragraph of Section 11 of Republic Act No. 8436 is rendered ineffective. All laws, presidential decrees, executive orders, rules and regulations, or any part thereof inconsistent with the provisions of this Act are hereby repealed or modified or amended accordingly.

Section 15. Separability Clause. – If any provision or part hereof is held invalid or unconstitutional, the remainder of this Act not otherwise affected shall remain in full force and effect.

Section 16. Effectivity. – This Act shall take effect immediately upon its approval.

Approved, 12 February 2001.