July 25, 1987

EXECUTIVE ORDER NO. 292

INSTITUTING THE "ADMINISTRATIVE CODE OF 1987"

WHEREAS, the Administrative Code currently in force was first forged in

1917 when the relationship between the people and the government was defined by
the colonial order then prevailing;

WHEREAS, efforts to achieve an integrative and overall recodification of its

provisions resulted in the Administrative Code of 1978 which, however, was never
published and later expressly repealed;

WHEREAS, the effectiveness of the Government will be enhanced by a new

Administrative Code which incorporates in a unified document the major structural,
functional and procedural principles and rules of governance; and

WHEREAS, a new Administrative Code will be of optimum benefit to the

people and Government officers and employees as it embodies changes in
administrative structures and procedures designed to serve the people;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the

Philippines, by virtue of the powers vested in me by the Constitution, do hereby
promulgate the Administrative Code of 1987, as follows:

Introductory Provisions

SECTION 1. Title. — This Act shall be known as the "Administrative

Code of 1987."

SECTION 2. General Terms Defined. — Unless the specific words of the

text, or the context as a whole, or a particular statute, shall require a different
meaning:

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 (1) Government of the Republic of the Philippines refers to the
corporate governmental entity through which the functions of
government are exercised throughout the Philippines, including,
save as the contrary appears from the context, the various arms
through which political authority is made effective in the
Philippines, whether pertaining to the autonomous regions, the
provincial, city, municipal or barangay subdivisions or other forms
of local government.

(2) National Government refers to the entire machinery of the central

government, as distinguished from the different forms of local
governments.

(3) Local Government refers to the political subdivisions established

by or in accordance with the Constitution.

(4) Agency of the Government refers to any of the various units of the
Government, including a department, bureau, office,
instrumentality, or government-owned or controlled corporation,
or a local government or a distinct unit therein.

(5) National Agency refers to a unit of the National Government.

(6) Local Agency refers to a local government or a distinct unit

therein.

(7) Department refers to an executive department created by law. For

purposes of Book IV, this shall include any instrumentality, as
herein defined, having or assigned the rank of a department,
regardless of its name or designation.

(8) Bureau refers to any principal subdivision or unit of any

department. For purposes of Book IV, this shall include any
principal subdivision or unit of any instrumentality given or
assigned the rank of a bureau, regardless of actual name or
designation, as in the case of department-wide regional offices.

(9) Office refers, within the framework of governmental organization,

to any major functional unit of a department or bureau including
regional offices. It may also refer to any position held or occupied

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 by individual persons, whose functions are defined by law or
regulation.

(10) Instrumentality refers to any agency of the National Government,

not integrated within the department framework vested with
special functions or jurisdiction by law, endowed with some if not
all corporate powers, administering special funds, and enjoying
operational autonomy, usually through a charter. This term
includes regulatory agencies, chartered institutions and
government-owned or controlled corporations.

(11) Regulatory agency refers to any agency expressly vested with

jurisdiction to regulate, administer or adjudicate matters affecting
substantial rights and interest of private persons, the principal
powers of which are exercised by a collective body, such as a
commission, board or council.

(12) Chartered institution refers to any agency organized or operating

under a special charter, and vested by law with functions relating
to specific constitutional policies or objectives. This term includes
the state universities and colleges and the monetary authority of
the State. prem05cd

(13) Government-owned or controlled corporation refers to any agency

organized as a stock or non-stock corporation, vested with
functions relating to public needs whether governmental or
proprietary in nature, and owned by the Government directly or
through its instrumentalities either wholly, or, where applicable as
in the case of stock corporations, to the extent of at least fifty-one
(51) per cent of its capital stock: Provided, That
government-owned or controlled corporations may be further
categorized by the Department of the Budget, the Civil Service
Commission, and the Commission on Audit for purposes of the
exercise and discharge of their respective powers, functions and
responsibilities with respect to such corporations.

(14) "Officer" as distinguished from "clerk" or "employee", refers to a

person whose duties, not being of a clerical or manual nature,
involves the exercise of discretion in the performance of the
functions of the government. When used with reference to a person
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 having authority to do a particular act or perform a particular
function in the exercise of governmental power, "officer" includes
any government employee, agent or body having authority to do
the act or exercise that function.

(15) "Employee" when used with reference to a person in the public

service, includes any person in the service of the government or
any of its agencies, divisions, subdivisions or instrumentalities.

BOOK I

Sovereignty and General Administration

CHAPTER 1

The National Territory

SECTION 3. What Comprises National Territory. — The national

territory comprises the Philippine archipelago, with all the islands and waters
embraced therein, and all other territories over which the Philippines has sovereignty
or jurisdiction, consisting of its terrestrial, fluvial, and aerial domains, including its
territorial sea, the seabed, the subsoil, the insular shelves, and other submarine areas.
The waters around, between, and connecting the islands of the archipelago, regardless
of their breadth and dimensions, form part of the internal waters of the Philippines.

SECTION 4. Territorial Subdivision of the Philippines. — The territorial

and political subdivisions of the Philippines are the autonomous regions, provinces,
subprovinces, cities, municipalities and barangays.

CHAPTER 2

The People

SECTION 5. Who are Citizens. — The following are the citizens of the
Philippines:

(1) Those who are citizens of the Philippines at the time of the
adoption of the Constitution;

(2) Those whose fathers or mothers are citizens of the Philippines;

(3) Those born before January 17, 1973, of Filipino mothers, who
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 elect Philippine citizenship upon reaching the age of majority;

(4) Those who are naturalized in accordance with law.

SECTION 6. Effect of Marriage. — Citizens of the Philippines who

marry aliens shall retain their citizenship, unless by their act or omission they are
deemed, under the law, to have renounced it.

SECTION 7. Natural-born Citizen. — Natural-born citizens are those

who are citizens of the Philippines from birth without having to perform any act to
acquire or perfect their Philippine citizenship. Those who elect Philippine citizenship
in accordance with the Constitution shall be deemed natural-born citizens.

SECTION 8. Loss or Reacquisition of Citizenship. — Philippine

citizenship may be lost or reacquired in the manner provided by law.

SECTION 9. Dual Allegiance. — Dual allegiance is inimical to the

national interest and shall be dealt with by law.

CHAPTER 3

State Immunity from Suit

SECTION 10. Non-suability of the State. — No suit shall lie against the
State except with its consent as provided by law.

SECTION 11. The State's Responsibility for Acts of Agents. — (1) The
State shall be legally bound and responsible only through the acts performed in
accordance with the Constitution and the laws by its duly authorized representatives.

(2) The State shall not be bound by the mistakes or errors of its officers or
agents in the exercise of their functions.

CHAPTER 4

National Symbols and Official Languages

SECTION 12. National Flag. — (1) The flag of the Philippines shall be
red, white and blue, with a sun and three stars, as consecrated and honored by the
people and recognized by law.

(2) The custody, ceremonial use, occasion and manner of display, and the

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 proper care and disposition of the flag shall be governed by appropriate rules and
regulations.

SECTION 13. National Anthem. — Until otherwise provided by law, the

musical arrangement and composition of Julian Felipe is adopted as the national
anthem. It shall be sung or played upon the opening or start of all state celebrations or
gatherings and on such other occasions as may be prescribed by appropriate rules and
regulations.

SECTION 14. Arms and Great Seal of the Republic of the Philippines. —
(1) The Arms shall have paleways of two (2) pieces, azure and gules; a chief argent
studded with three mullets equidistant from each other; and, in point of honor, ovoid
argent over all the sun rayonnant with eight minor and lesser rays. Beneath shall be a
scroll with the words "Republic of the Philippines," or its equivalent in the national
language, inscribed thereon.

(2) The Great Seal shall be circular in form, with the arms as described in the
preceding paragraph, but without the scroll and the inscription thereon, and
surrounding the whole, a double marginal circle within which shall appear the words
"Republic of the Philippines," or its equivalent in the national language. For the
purpose of placing the Great Seal, the color of the arms shall not be deemed essential.

SECTION 15. Use and Custody of Great Seal. — The Great Seal shall be
affixed to or placed upon all commissions signed by the President and upon such
other official documents and papers of the Republic of the Philippines as may be
provided by law, or as may be required by custom and usage. The President shall
have custody of the Great Seal.

SECTION 16. Arms, Seals and Banners of Government Offices. — The

various offices of government may adopt appropriate coat-of-arms, seals and banners.

SECTION 17. Official Languages. — Until otherwise provided by law,

Pilipino and English shall be the official languages.

CHAPTER 5

Operation and Effect of Laws

SECTION 18. When Laws Take Effect. — Laws shall take effect after
fifteen (15) days following the completion of their publication in the Official Gazette
or in a newspaper of general circulation, unless it is otherwise provided.
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 SECTION 19. Prospectivity. — Laws shall have prospective effect unless
the contrary is expressly provided.

SECTION 20. Interpretation of Laws and Administrative Issuances. — In

the interpretation of a law or administrative issuance promulgated in all the official
languages, the English text shall control, unless otherwise specifically provided. In
case of ambiguity, omission or mistake, the other texts may be consulted.

SECTION 21. No Implied Revival of Repealed Law.— When a law which

expressly repeals a prior law is itself repealed, the law first repealed shall not be
thereby revived unless expressly so provided.

SECTION 22. Revival of Law Impliedly Repealed. — When a law which

impliedly repeals a prior law is itself repealed, the prior law shall thereby be revived,
unless the repealing law provides otherwise.

SECTION 23. Ignorance of the Law. — Ignorance of the law excuses no

one from compliance therewith.

CHAPTER 6

Official Gazette

SECTION 24. Contents. — There shall be published in the Official

Gazette all legislative acts and resolutions of a public nature; all executive and
administrative issuances of general application; decisions or abstracts of decisions of
the Supreme Court and the Court of Appeals, or other courts of similar rank, as may
be deemed by the said courts of sufficient importance to be so published; such
documents or classes of documents as may be required so to be published by law; and
such documents or classes of documents as the President shall determine from time to
time to have general application or which he may authorize so to be published.

The publication of any law, resolution or other official documents in the

Official Gazette shall be prima facie evidence of its authority.

SECTION 25. Editing and Publications. — The Official Gazette shall be

edited in the Office of the President and published weekly in Pilipino or in the
English language. It shall be sold and distributed by the National Printing Office
which shall promptly mail copies thereof to subscribers free of postage. prem05cd

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 CHAPTER 7

Regular Holidays and Nationwide Special Days

SECTION 26. Regular Holidays and Nationwide Special Days. — (1)

Unless otherwise modified by law, order, or proclamation, the following regular
holidays and special days shall be observed in the country:

(a) Regular Holidays

New Year's Day — January 1

Maundy Thursday — Movable Date

Good Friday — Movable Date

Eidul Fitr — Movable Date

Eidul Adha — Movable Date

Araw ng Kagitingan (Bataan and Corregidor Day) — Monday

nearest April 9

Labor Day — Monday nearest May 1

Independence Day — Monday nearest June 12

National Heroes Day — Last Monday of August

Bonifacio Day — Monday nearest November 30

Christmas Day — December 25

Rizal Day — Monday nearest December 30

(b) Nationwide Special Holidays

Ninoy Aquino Day — Monday nearest August 21

All Saints Day — November 1

Last Day of the Year — December 31

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 (c) In the event the holiday falls on a Wednesday, the holiday will be
observed on the Monday of that week. If the holiday falls on a
Sunday, the holiday will be observed on the Monday that follows.
IcAaEH

Provided, That for movable holidays, the President shall issue a proclamation,
at least six (6) months prior to the holiday concerned, the specific date shall be
declared as a nonworking day.

SECTION 27. Local Special Days. — The President may proclaim any
local special day for a particular date, group or place.

SECTION 28. Pretermission of Holiday. — Where the day, or the last day,
for doing any act required or permitted by law falls on a regular holiday or special
day, the act may be done on the next succeeding business day.

CHAPTER 8

Legal Weights, Measures and Period

SECTION 29. Official Use of Metric System. — The metric system of

weights and measures shall be used in the Philippines for all products, articles, goods,
commodities, materials, merchandise, utilities, services, as well as for commercial
transactions like contracts, agreements, deeds and other legal instruments publicly and
officially attested, and for all official documents. Only weights and measures of the
metric system shall be officially sealed and licensed.

SECTION 30. Mandatory Nation-wide Use. — The metric system shall be

fully adopted in all agricultural, commercial, industrial, scientific and other sectors.
Persons or entities allowed under existing laws to use the English system or other
standards and weights are given until the date to be fixed by the Metric System Board
to adopt the metric system.

SECTION 31. Legal Periods. — "Year" shall be understood to be twelve

calendar months; "month" of thirty days, unless it refers to a specific calendar month
in which case it shall be computed according to the number of days the specific
month contains; "day," to a day of twenty-four hours; and "night," from sunset to
sunrise.

CHAPTER 9

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 General Principles Governing Public Officers

SECTION 32. Nature of Public Office. — Public office is a public trust.

Public officers and employees must at all times be accountable to the people, serve
them with the utmost responsibility, integrity, loyalty and efficiency, act with
patriotism and justice, and lead modest lives.

SECTION 33. Policy on Change of Citizenship. — Public officers and

employees owe the State and the Constitution allegiance at all times, and any public
officer or employee who seeks to change his citizenship or acquire the status of an
immigrant of another country during his tenure shall be dealt with by law.

SECTION 34. Declaration of Assets, Liabilities and Net Worth. — A

public officer or employee shall, upon assumption of office and as often thereafter as
may be required by law, submit a declaration under oath of his assets, liabilities, and
net worth.

SECTION 35. Ethics in Government. — All public officers and employees

shall be bound by a Code of Ethics to be promulgated by the Civil Service
Commission.

SECTION 36. Inhibition Against Purchase of Property at Tax Sale. — No

officer or employee of the government shall purchase directly or indirectly any
property sold by the government for the non-payment of any tax, fee or other public
charge. Any such purchase by an officer or employee shall be void.

SECTION 37. Powers Incidental to Taking of Testimony. — When

authority to take testimony or receive evidence is conferred upon any administrative
officer or any non-judicial person, committee, or other body, such authority shall
include the power to administer oaths, summon witnesses, and require the
production of documents by a subpoena duces tecum.

SECTION 38. Liability of Superior Officers. — (1) A public officer shall

not be civilly liable for acts done in the performance of his official duties, unless there
is a clear showing of bad faith, malice or gross negligence. prem05cd

(2) Any public officer who, without just cause, neglects to perform a duty
within a period fixed by law or regulation, or within a reasonable period if none is
fixed, shall be liable for damages to the private party concerned without prejudice to
such other liability as may be prescribed by law.

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 (3) A head of a department or a superior officer shall not be civilly liable for
the wrongful acts, omissions of duty, negligence, or misfeasance of his subordinates,
unless he has actually authorized by written order the specific act or misconduct
complained of.

SECTION 39. Liability of Subordinate Officers. —No subordinate officer

or employee shall be civilly liable for acts done by him in good faith in the
performance of his duties. However, he shall be liable for willful or negligent acts
done by him which are contrary to law, morals, public policy and good customs even
if he acted under orders or instructions of his superiors.

CHAPTER 10

Official Oaths

SECTION 40. Oaths of Office for Public Officers and Employees. — All
public officers and employees of the government including every member of the
armed forces shall, before entering upon the discharge of his duties, take an oath or
affirmation to uphold and defend the Constitution; that he will bear true faith and
allegiance to it; obey the laws, legal orders and decrees promulgated by the duly
constituted authorities; will well and faithfully discharge to the best of his ability the
duties of the office or position upon which he is about to enter; and that he voluntarily
assumes the obligation imposed by his oath of office, without mental reservation or
purpose of evasion. Copies of the oath shall be deposited with the Civil Service
Commission and the National Archives.

SECTION 41. Officers Authorized to Administer Oath. — The following

officers have general authority to administer oaths: President; Vice President,
Members and Secretaries of both Houses of Congress; Members of the Judiciary;
Secretaries of Departments; provincial governors and lieutenant-governors; city
mayors; municipal mayors; bureau directors; regional directors; clerks of court;
registrars of deeds; other civilian officers in the public service of the government of
the Philippines whose appointments are vested in the President and are subject to
confirmation by the Commission on Appointments; all other constitutional officers;
PAO lawyers in connection with the performance of duty; and notaries public.

SECTION 42. Duty to Administer Oath. — Officers authorized to

administer oaths, with the exception of notaries public, municipal judges and clerks of
court, are not obliged to administer oaths or execute certificates save in matters of
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 official business or in relation to their functions as such; and with the exception of
notaries public, the officer performing the service in those matters shall charge no fee,
unless specifically authorized by law.

CHAPTER 11

Official Reports

SECTION 43. Annual Reports. — The heads of the several branches,

subdivisions, departments and agencies or instrumentalities of the Government shall
prepare and submit annual reports to the President on or before the first day of July of
each year.

SECTION 44. Contents of Reports. — The contents of the annual report

shall be prescribed by law or, in the absence thereof, by executive order.

SECTION 45. Special Reports. — Each chief of Bureau or other officer of

the government shall make such special reports concerning the work of his Bureau or
Office as may from time to time be required of him by the President of the Philippines
or Head of Department.

SECTION 46. Deposit with Archives. — Official copies of annual reports

shall be deposited with the National Archives and shall be open to public inspection.

CHAPTER 12

Public Contracts and Conveyances

SECTION 47. Contracts and Conveyances. — Contracts or conveyances

may be executed for and in behalf of the Government or of any of its branches,
subdivisions, agencies, or instrumentalities, including government-owned or
controlled corporations, whenever demanded by the exigency or exigencies of the
service and as long as the same are not prohibited by law.

SECTION 48. Official Authorized to Convey Real Property. — Whenever

real property of the Government is authorized by law to be conveyed, the deed of
conveyance shall be executed in behalf of the government by the following:

(1) For property belonging to and titled in the name of the Republic of
the Philippines, by the President, unless the authority therefor is
expressly vested by law in another officer.

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 (2) For property belonging to the Republic of the Philippines but titled
in the name of any political subdivision or of any corporate agency
or instrumentality, by the executive head of the agency or
instrumentality.

SECTION 49. Authority to Convey Other Property. — Whenever property

other than real is authorized to be conveyed, the contract or deed shall be executed by
the head of the agency with the approval of the department head. Where the
operations of the agency regularly involve the sale or other disposition of personal
property, the deed shall be executed by any officer or employee expressly authorized
for that purpose.

SECTION 50. Conveyance of National Government Property to Local

Governments. — When the real property belonging to the National Government is
needed for school purposes, or other official use by any local government, the
President shall authorize its transfer, and the department head or other authority
concerned shall execute in favor of the local government the necessary deed of
conveyance by way of gift, sale, exchange, or otherwise, and upon such terms as shall
be for the interest of the parties concerned. Nothing herein provided shall be deemed
to authorize the conveyance of unreserved public land, friar land or any real property
held by the Government in trust or for a special purpose defined by law.

SECTION 51. Execution of Contracts. — (1) Contracts in behalf of the

Republic of the Philippines shall be executed by the President unless authority
therefor is expressly vested by law or by him in any other public officer.

(2) Contracts in behalf of the political subdivisions and corporate agencies or

instrumentalities shall be approved by their respective governing boards or councils
and executed by their respective executive heads.

BOOK II

Distribution of Powers of Government

CHAPTER 1

Basic Principles and Policies

SECTION 1. Guiding Principles and Policies in Government. —

Government power shall be exercised in accordance with the following basic

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 principles and policies:

(1) The Philippines is a democratic and republican State. Sovereignty

resides in the people and all government authority emanates from
them.

(2) The State values the dignity of every human person and guarantees
full respect for human rights.

(3) Civilian authority is, at all times, supreme over the military.

(4) The State shall ensure the autonomy of local governments.

(5) The territorial and political subdivisions of the Republic of the

Philippines are the provinces, cities, municipalities, and barangays.
There shall be autonomous regions, in accordance with the
Constitution, in Muslim Mindanao and the Cordilleras as may be
provided by law.

(6) The separation of Church and State shall be inviolable.

(7) The right of the people and their organizations to effective and
reasonable participation at all levels of social, political, and
economic decision-making shall not be abridged. The State shall,
by law, facilitate the establishment of adequate consultation
mechanisms.

(8) The powers expressly vested in any branch of the Government

shall not be exercised by, nor delegated to, any other branch of the
Government, except to the extent authorized by the Constitution.

CHAPTER 2

Legislative Power

SECTION 2. Seat of Legislative Power. — The legislative power shall be

vested in the Congress of the Philippines which shall consist of a Senate and a House
of Representatives, except to the extent reserved to the people by the Constitutional
provision on initiative and referendum.

SECTION 3. Inhibitions Against Members of Congress. — (1) No

Senator or Member of the House of Representatives may hold any other office or
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 employment in the Government, or any subdivision, agency, or instrumentality
thereof, including government-owned or controlled corporations or their subsidiaries,
during his term without forfeiting his seat. Neither shall he be appointed to any office
which may have been created or the emoluments thereof increased during the term for
which he was elected.

(2) No Senator or Member of the House of Representatives may personally

appear as counsel before any court of justice or before the Electoral Tribunals, or
quasi-judicial and other administrative bodies. Neither shall he, directly or indirectly,
be interested financially in any contract with, or in any franchise or special privilege
granted by the Government, or any subdivision, agency or instrumentality thereof
including any government-owned or controlled corporation, or its subsidiary, during
his term of office. He shall not intervene in any matter before any office of the
Government for his pecuniary benefit or where he may be called upon to act on
account of his office.

SECTION 4. Electoral Tribunal. — The Senate and the House of

Representatives shall each have an Electoral Tribunal which shall be the sole judge of
all contests relating to the election, returns, and qualifications of their respective
Members. Each Electoral Tribunal shall be composed of nine (9) Members, three (3)
of whom shall be Justices of the Supreme Court to be designated by the Chief Justice,
and the remaining six (6) shall be Members of the Senate or the House of
Representatives, as the case may be, who shall be chosen on the basis of proportional
representation from the political parties and the parties or organizations registered
under the party-list system represented therein. The senior Justice in the Electoral
Tribunal shall be its Chairman.

SECTION 5. Commission on Appointments. — There shall be a

Commission on Appointments consisting of the President of the Senate, as ex officio
Chairman, and twelve (12) Senators and twelve (12) Members of the House of
Representatives, elected by each House on the basis of proportional representation
from the political parties and parties or organizations registered under the party-list
system represented therein. The Chairman of the Commission shall not vote, except in
case of a tie. The Commission shall act on all appointments submitted to it within
thirty (30) session days of the Congress from their submission. The Commission shall
rule by a majority vote of all its members.

SECTION 6. Legislative Investigation. — The Senate or the House of

Representatives or any of its respective committees may conduct inquiries in aid of
legislation in accordance with its duly published rules of procedure. The rights of
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 persons appearing in or affected by such inquiries shall be respected.

SECTION 7. Appearance of Heads of Departments. — The heads of

departments may upon their own initiative, with the consent of the President, or upon
the request of either House, as the rules of each House shall provide, appear before
and be heard by such House on any matter pertaining to their departments. Written
questions shall be submitted to the President of the Senate or the Speaker of the
House of Representatives at least three (3) days before their scheduled appearance.
Interpellations shall not be limited to written questions, but may cover matters related
thereto. When the security of the State or the public interest so requires and the
President so states in writing, the appearance shall be conducted in executive session.

SECTION 8. Initiative and Referendum. — The Congress shall, as early

as possible, provide for a system of initiative and referendum and the exceptions
therefrom, whereby the people can directly propose and enact laws or approve or
reject any act or law or part thereof passed by the Congress or local legislative body
after the registration of a petition therefor signed by at least ten (10) per centum of the
total number of registered voters, of which every legislative district must be
represented by at least three (3) per centum of the registered voters thereof.

SECTION 9. Power to Propose Constitutional Amendments. — (1) Any

amendment to, or revision of the Constitution may be proposed by: (a) the Congress,
upon a vote of three-fourths (3/4) of all its Members; or (b) a constitutional
convention. The Congress may, by a vote of two-thirds (2/3) of all its Members, call a
constitutional convention, or by a majority vote of all its Members, submit to the
electorate the question of calling such a convention.

(2) Amendments to the Constitution may likewise be directly proposed by

the people through initiative upon a petition of at least twelve (12) per centum of the
total number of registered voters, of which every legislative district must be
represented by at least three (3) per centum of the registered voters therein. No
amendments under this paragraph shall be authorized within five years following the
ratification of the 1987 Constitution nor oftener than once every five years thereafter.
The Congress shall provide for the implementation of the exercise of this right.

SECTION 10. Validity of Constitutional Amendments. — (1) Any

amendment to or revision of the Constitution proposed by Congress or a
constitutional convention shall be valid when ratified by a majority of the votes cast
in a plebiscite which shall be held not earlier than sixty days (60) nor later than ninety
days (90) after the approval of such amendment or revision.
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 (2) Any amendment to or revision of the Constitution directly proposed by
the people through initiative shall be valid when ratified by a majority of the votes
cast in a plebiscite which shall be held not earlier than sixty days (60) nor later than
ninety days (90) after the certification by the Commission on Elections of the
sufficiency of the petition.

CHAPTER 3

Executive Power

SECTION 11. Exercise of Executive Power. — The Executive power shall

be vested in the President.

SECTION 12. The Vice-President. — There shall be a

Vice-President who shall have the same qualifications and term of office and be
elected with and in the same manner as the President. He may be removed from office
in the same manner as the President.

The Vice-President may be appointed as a Member of the Cabinet. Such

appointment requires no confirmation.

SECTION 13. Vacancy in Office of the President. — In case of death,

permanent disability, removal from office, or resignation of the President, the
Vice-President shall become the President to serve the unexpired term. In case of
death, permanent disability, removal from office, or resignation of both the President
and Vice-President, the President of the Senate or, in case of his inability, the Speaker
of the House of Representatives, shall then act as President until the President or
Vice-President shall have been elected and qualified.

The Congress shall, by law, provide who shall serve as President in case of
death, permanent disability, or resignation of the Acting President. He shall serve
until the President or Vice-President shall have been elected and qualified, and be
subject to the same restrictions of powers and disqualifications as the Acting
President.

SECTION 14. Vacancy in Office of the Vice-President. — Whenever there

is a vacancy in the Office of the Vice-President during the term for which he was
elected, the President shall nominate a Vice-President from among the Members of
the Senate and the House of Representatives who shall assume office upon
confirmation by a majority vote of all the Members of both Houses of Congress,

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 voting separately.

SECTION 15. Inhibitions Against Executive Officials. — The President,

Vice-President, the Members of the Cabinet, and their deputies or assistants shall not,
unless otherwise provided in this Constitution, hold any other office or employment
during their tenure. They shall not, during said tenure, directly or indirectly practice
any other profession, participate in any 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 their subsidiaries. They shall strictly avoid conflicts of
interest in the conduct of their office.

The spouse and relatives by consanguinity or affinity within the fourth civil
degree of the President shall not during his tenure be appointed as Members of the
Constitutional Commissions, or the Office of the Ombudsman, or as Secretaries,
Undersecretaries, chairmen or heads of bureaus or offices, including
government-owned or controlled corporations and their subsidiaries.

CHAPTER 4

Judicial Power

SECTION 16. Judicial Power. — The judicial power shall be vested in

one (1) Supreme Court, and in such lower courts as may be established by law. Such
lower courts include the Court of Appeals, Sandiganbayan, Court of Tax Appeals,
Regional Trial Courts, Shari'a District Courts, Metropolitan Trial Courts,
Municipal Trial Courts and Municipal Circuit Trial Courts, and Shari'a Circuit Courts
and they shall continue to exercise their respective jurisdictions until otherwise
provided by law.

Judicial power includes the duty of the courts of justice to settle actual
controversies involving rights which are legally demandable and enforceable, and, in
cases prescribed by law, to determine whether or not there has been a grave abuse of
discretion amounting to lack or excess of jurisdiction on the part of any branch or
instrumentality of the Government.

SECTION 17. Composition of the Supreme Court. — The Supreme Court

shall be composed of a Chief Justice and fourteen Associate Justices. It may sit en
banc or in its discretion, in divisions of three, five or seven Members.

SECTION 18. Jurisdiction and Powers of Supreme Court. — The

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 Supreme Court shall have the following powers:

(1) Exercise original jurisdiction over cases affecting ambassadors,

other public ministers and consuls, and over petitions for
certiorari, prohibition, mandamus, quo warranto, and habeas
corpus.

(2) Review, revise, reverse, modify, or affirm on appeal or certiorari

as the law or the Rules of Court may provide, final judgments and
orders of lower courts in:

(a) All cases in which the constitutionality or validity of any

treaty, international or executive agreement, law,
presidential decree, proclamation, order, instruction,
ordinance, or regulation is in question.

(b) All cases involving the legality of any tax, impost,

assessment, or toll, or any penalty imposed in relation
thereto.

(c) All cases in which the jurisdiction of any lower court is in

issue.

(d) All criminal cases in which the penalty imposed is reclusion

perpetua or higher.

(e) All cases in which only an error or question of law is

involved.

(3) Assign temporarily judges of lower courts to other stations as

public interest may require. Such temporary assignment shall not
exceed six (6) months without the consent of the judge concerned.

(4) Order a change of venue or place of trial to avoid a miscarriage of

justice.

(5) Promulgate rules concerning the protection and enforcement of

constitutional rights, pleading, practice, and procedure in all
courts, the admission to the practice of law, the Integrated Bar, and
legal assistance to the underprivileged. Such rules shall provide a
simplified and inexpensive procedure for the speedy disposition of

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 cases, shall be uniform for all courts of the same grade; and shall
not diminish, increase, or modify substantive rights. Rules of
procedure of special courts and quasi-judicial bodies shall remain
effective unless disapproved by the Supreme Court.

(6) Appoint all officials and employees of the Judiciary in accordance

with the Civil Service Law.

SECTION 19. Apportionment of Jurisdiction. — Congress shall define,

prescribe and apportion the jurisdiction of the various courts but may not deprive the
Supreme Court of its jurisdiction enumerated in the immediately preceding section.
Neither shall a law be passed increasing its appellate jurisdiction as therein specified
without its advice and concurrence.

No law shall be passed reorganizing the Judiciary when it undermines the

security of tenure of its Members.

SECTION 20. Administrative Supervision.— The Supreme Court shall

have administrative supervision over all courts and the personnel thereof.

SECTION 21. Judicial and Bar Council. — (1) A Judicial and Bar
Council is hereby created under the supervision of the Supreme Court composed of
the Chief Justice as ex officio Chairman, the Secretary of Justice, and a representative
of the Congress as ex officio Member, a representative of the Integrated Bar, a
professor of law, a retired Member of the Supreme Court, and a representative of the
private sector.

(2) The regular members of the Council shall be appointed by the President
for a term of four (4) years with the consent of the Commission on Appointments. Of
the Members first appointed, the representative of the Integrated Bar shall serve for
four (4) years, the professor of law for three (3) years, the retired Justice for two (2)
years, and the representative of the private sector for one (1) year.

(3) The Clerk of the Supreme Court shall be the Secretary ex officio of the
Council and shall keep a record of its proceedings.

(4) The regular Members of the Council shall receive such emoluments as
may be determined by the Supreme Court. The Supreme Court shall provide in its
annual budget the appropriations for the Council.

(5) The Council shall have the principal function of recommending

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 appointees to the Judiciary. It may exercise such other functions and duties as the
Supreme Court may assign to it.

SECTION 22. Appointment of Members of Judiciary. — The Members of

the Supreme Court and judges of lower courts shall be appointed by the President
from a list of at least three (3) nominees prepared by the Judicial and Bar Council for
every vacancy. Such appointments need no confirmation.

For the lower courts, the President shall issue the appointments within ninety
(90) days from the submission of the list.

SECTION 23. Prohibition Against Performing Quasi-Judicial or

Administrative Functions. — The Members of the Supreme Court and of other courts
established by law shall not be designated to any agency performing quasi-judicial or
administrative functions.

CHAPTER 5

Constitutional Commissions

SECTION 24. Constitutional Commissions. — The Constitutional

Commissions, which shall be independent, are the Civil Service Commission, the
Commission on Elections, and the Commission on Audit.

SECTION 25. Inhibitions Against Constitutional Commissioners. — No

member of a Constitutional Commission shall, during his tenure, hold any other office
or employment. Neither shall he engage in the practice of any profession or in the
active management or control of any business which in anyway may be affected by
the functions of his office, nor shall he be financially interested, directly or indirectly,
in any contract with, or in any franchise or privilege granted by the Government, any
of its subdivisions, agencies, or instrumentalities, including government-owned or
controlled corporations or their subsidiaries.

SECTION 26. Fiscal Autonomy. — The Constitutional Commissions shall

enjoy fiscal autonomy. The approved annual appropriations shall be automatically
and regularly released.

SECTION 27. Promulgation of Rules. — Each Commission en banc may

promulgate its own rules concerning pleadings and practice before it or before any of
its offices. Such rules however shall not diminish, increase, or modify substantive
rights.
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 SECTION 28. Decisions by the Constitutional Commissions.— Each
Commission shall decide, by a majority vote of all its Members, any case or matter
brought before it within sixty (60) days from the date of its submission for decision or
resolution. A case or matter is deemed submitted for decision or resolution upon the
filing of the last pleading, brief, or memorandum required by the rules of the
Commission or by the Commission itself. Unless otherwise provided by the
Constitution or by law, any decision, order, or ruling of each Commission may be
brought to the Supreme Court on certiorari by the aggrieved party within thirty (30)
days from receipt of a copy thereof.

CHAPTER 6

Other Bodies

SECTION 29. Other Bodies. — There shall be in accordance with the

Constitution, an Office of the Ombudsman, a Commission on Human Rights, an
independent central monetary authority, and a national police commission. Likewise,
as provided in the Constitution, Congress may establish an independent economic and
planning agency.

BOOK III

Office of the President

TITLE I

Powers of the President

CHAPTER 1

Power of Control

SECTION 1. Power of Control. — The President shall have control of all

the executive departments, bureaus, and offices. He shall ensure that the laws be
faithfully executed.

CHAPTER 2

Ordinance Power

SECTION 2. Executive Orders. — Acts of the President providing for

rules of a general or permanent character in implementation or execution of
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 constitutional or statutory powers shall be promulgated in executive orders.

SECTION 3. Administrative Orders. — Acts of the President which

relate to particular aspects of governmental operations in pursuance of his duties as
administrative head shall be promulgated in administrative orders.

SECTION 4. Proclamations. — Acts of the President fixing a date or

declaring a status or condition of public moment or interest, upon the existence of
which the operation of a specific law or regulation is made to depend, shall be
promulgated in proclamations which shall have the force of an executive order.

SECTION 5. Memorandum Orders. — Acts of the President on matters

of administrative detail or of subordinate or temporary interest which only concern a
particular officer or office of the Government shall be embodied in memorandum
orders.

SECTION 6. Memorandum Circulars. — Acts of the President on

matters relating to internal administration, which the President desires to bring to the
attention of all or some of the departments, agencies, bureaus or offices of the
Government, for information or compliance, shall be embodied in memorandum
circulars.

SECTION 7. General or Special Orders. — Acts and commands of the

President in his capacity as Commander-in-Chief of the Armed Forces of the
Philippines shall be issued as general or special orders.

CHAPTER 3

Power Over Aliens

SECTION 8. Power to Deport. — The President shall have the power to

deport aliens subject to the requirements of due process.

SECTION 9. Power to Change Non-Immigrant Status of Aliens. — The

President, subject to the provisions of law, shall have the power to change the status
of non-immigrants by allowing them to acquire permanent residence status without
necessity of visa.

SECTION 10. Power to Countermand Decisions of the Board of

Commissioners of the Bureau of Immigration. — The decision of the Board of
Commissioners which has jurisdiction over all deportation cases shall become final

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 and executory after thirty (30) days from promulgation, unless within such period the
President shall order the contrary.

SECTION 11. Power over Aliens under the General Principles of

International Law. — The President shall exercise with respect to aliens in the
Philippines such powers as are recognized by the generally accepted principles of
international law.

CHAPTER 4

Powers of Eminent Domain, Escheat, Land Reservation and Recovery of Ill-gotten

Wealth

SECTION 12. Power of Eminent Domain. — The President shall

determine when it is necessary or advantageous to exercise the power of eminent
domain in behalf of the National Government, and direct the Solicitor General,
whenever he deems the action advisable, to institute expropriation proceedings in the
proper court.

SECTION 13. Power to Direct Escheat or Reversion Proceedings. — The

President shall direct the Solicitor General to institute escheat or reversion
proceedings over all lands transferred or assigned to persons disqualified under the
Constitution to acquire land.

SECTION 14. Power to Reserve Lands of the Public and Private Domain
of the Government. — (1) The President shall have the power to reserve for settlement
or public use, and for specific public purposes, any of the lands of the public domain,
the use of which is not otherwise directed by law. The reserved land shall thereafter
remain subject to the specific public purpose indicated until otherwise provided by
law or proclamation.

(2) He shall also have the power to reserve from sale or other disposition and
for specific public uses or purposes, any land belonging to the private domain of the
Government, or any of the Friar lands, the use of which is not otherwise directed by
law, and thereafter such land shall be used for the purposes specified by such
proclamation until otherwise provided by law.

SECTION 15. Power over Ill-gotten Wealth. — The President shall direct
the Solicitor General to institute proceedings to recover properties unlawfully
acquired by public officials or employees, from them or from their nominees or

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 transferees.

Within the period fixed in, or any extension thereof authorized by, the
Constitution, the President shall have the authority to recover ill-gotten properties
amassed by the leaders and supporters of the previous regime and protect the interest
of the people through orders of sequestration or freezing of assets or accounts.

CHAPTER 5

Power of Appointment

SECTION 16. Power of Appointment. — The President shall exercise the

power to appoint such officials as provided for in the Constitution and laws.

SECTION 17. Power to Issue Temporary Designation. — (1) The

President may temporarily designate an officer already in the government service or
any other competent person to perform the functions of an office in the executive
branch, appointment to which is vested in him by law, when: (a) the officer regularly
appointed to the office is unable to perform his duties by reason of illness, absence or
any other cause; or (b) there exists a vacancy;

(2) The person designated shall receive the compensation attached to the
position, unless he is already in the government service in which case he shall receive
only such additional compensation as, with his existing salary, shall not exceed the
salary authorized by law for the position filled. The compensation hereby authorized
shall be paid out of the funds appropriated for the office or agency concerned.

(3) In no case shall a temporary designation exceed one (1) year.

CHAPTER 6

General Supervision Over Local Governments

SECTION 18. General Supervision Over Local Governments. — The

President shall exercise general supervision over local governments.

CHAPTER 7

Other Powers

SECTION 19. Powers Under the Constitution. — The President shall

exercise such other powers as are provided for in the Constitution.
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 SECTION 20. Residual Powers. — Unless Congress provides
otherwise, the President shall exercise such other powers and functions vested in the
President which are provided for under the laws and which are not specifically
enumerated above, or which are not delegated by the President in accordance with
law.

TITLE II

Organization

CHAPTER 8

Organization of the Office of the President

SECTION 21. Organization. — The Office of the President shall consist

of the Office of the President Proper and the agencies under it.

SECTION 22. Office of the President Proper. — (1) The Office of the
President Proper shall consist of the Private Office, the Executive Office, the
Common Staff Support System, and the Presidential Special Assistants/Advisers
System;

(2) The Executive Office refers to the Offices of the Executive Secretary,
Deputy Executive Secretaries and Assistant Executive Secretaries;

(3) The Common Staff Support System embraces the offices or units under
the general categories of development and management, general government
administration and internal administration; and

(4) The Presidential Special Assistants/Advisers System includes such

special assistants or advisers as may be needed by the President.

SECTION 23. The Agencies under the Office of the President. — The
agencies under the Office of the President refer to those offices placed under the
chairmanship of the President, those under the supervision and control of the
President, those under the administrative supervision of the Office of the President,
those attached to it for policy and program coordination, and those that are not placed
by law or order creating them under any special department.

TITLE III

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 Functions

CHAPTER 9

Functions of the Different Offices in the Office of the President Proper

A. Private Office

SECTION 24. Functions of the Private Office. — The Private Office shall
provide direct services to the President and shall for this purpose attend to functions
and matters that are personal or which pertain to the First Family.

B. The Executive Office

SECTION 25. Declaration of Policy. — The Executive Office shall be

fully responsive to the specific needs and requirements of the President to achieve the
purposes and objectives of the Office.

SECTION 26. The Executive Secretary, the Deputy Executive Secretaries,

and the Assistant Executive Secretaries. — The Executive Office shall be headed by
the Executive Secretary who shall be assisted by one (1) or more Deputy Executive
Secretaries and one (1) or more Assistant Executive Secretaries.

SECTION 27. Functions of the Executive Secretary. — The Executive

Secretary shall, subject to the control and supervision of the President, carry out the
functions assigned by law to the Executive Office and shall perform such other duties
as may be delegated to him. He shall:

(1) Directly assist the President in the management of the affairs

pertaining to the Government of the Republic of the Philippines;

(2) Implement presidential directives, orders and decisions;

(3) Decide, for and in behalf of the President, matters not requiring
personal presidential attention;

(4) Exercise supervision and control over the various units in the
Office of the President Proper including their internal
administrative requirements;

(5) Exercise supervision, in behalf of the President, over the various

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 agencies under the Office of the President;

(6) Appoint officials and employees of the Office of the President

whose appointments are not vested in the President;

(7) Provide overall coordination in the operation of the Executive

Office;

(8) Determine and assign matters to the appropriate units in the Office
of the President;

(9) Have administrative responsibility for matters in the Office of the

President coming from the various departments and agencies of
government;

(10) Exercise primary authority to sign papers "By authority of the

President", attest executive orders and other presidential issuances
unless attestation is specifically delegated to other officials by him
or by the President;

(11) Determine, with the President's approval, the appropriate

assignment of offices and agencies not placed by law under any
specific executive department;

(12) Provide consultative, research, fact-finding and advisory service to

the President;

(13) Assist the President in the performance of functions pertaining to

legislation;

(14) Assist the President in the administration of special projects;

(15) Take charge of matters pertaining to protocol in State and

ceremonial functions;

(16) Provide secretarial and clerical services for the President, the
Cabinet, the Council of State, and other advisory bodies to
the President;

(17) Promulgate such rules and regulations necessary to carry out the
objectives, policies and functions of the Office of the President

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 Proper;

(18) Perform such other functions as the President may direct.

C. Common Staff Support System

SECTION 28. Functions of the Common Staff Support System. — The

various staff units in the Office of the President Proper shall form a common staff
support system and shall be organized along the various tasks of the Office namely:

(1) The Cabinet Secretariat which shall assist the President in the
establishment of agenda topics for the Cabinet deliberations, or
facilitate the discussion of cabinet meetings. It shall have such
organization, powers and functions as are prescribed by law;

(2) The Presidential Management Staff (PMS) which shall be the

primary governmental agency directly responsible to the Office of
the President for providing staff assistance in the Presidential
exercise of overall management of the development process. It
shall have such organization, powers and functions as are
prescribed by law;

(3) General Government Administration Staff which shall provide the

President with staff support on matters concerning general
government administration relative to the operations of the
national government including the provision of legal services,
administrative services, staff work on political and legislative
matters, information and assistance to the general public, measures
toward resolution of complaints against public officials and
employees brought to the attention of the Office of the President
and such other matters as the President may assign;

(4) Internal Administrative Staff which shall render auxiliary and

support services for the internal administration of the Office of the
President.

D. Presidential Assistant/Advisers System

SECTION 29. Functions of Presidential Assistants/Advisers System. —

The Special Assistants/Advisers System shall provide advisory or consultative
services to the President in such fields and under such conditions as the President may
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 determine.

CHAPTER 10

Functions of the Agencies Under the Office of the President

SECTION 30. Functions of Agencies Under the Office of the President. —

Agencies under the Office of the President shall continue to operate and function in
accordance with their respective charters or laws creating them, except as otherwise
provided in this Code or by law.

SECTION 31. Continuing Authority of the President to Reorganize His

Office. — The President, subject to the policy in the Executive Office and in
order to achieve simplicity, economy and efficiency, shall have continuing authority
to reorganize the administrative structure of the Office of the President. For this
purpose, he may take any of the following actions:

(1) Restructure the internal organization of the Office of the President

Proper, including the immediate Offices, the Presidential Special
Assistants/Advisers System and the Common Staff Support
System, by abolishing, consolidating or merging units thereof or
transferring functions from one unit to another;

(2) Transfer any function under the Office of the President to any
other Department or Agency as well as transfer functions to the
Office of the President from other Departments and Agencies; and

(3) Transfer any agency under the Office of the President to any other
department or agency as well as transfer agencies to the Office of
the President from other departments or agencies.

BOOK IV

The Executive Branch

CHAPTER 1

The Departments

SECTION 1. Purpose and Number of Departments. — The Executive

Branch shall have such Departments as are necessary for the functional distribution of

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 the work of the President and for the performance of their functions.

SECTION 2. Declaration of Policy. — (1) The Departments shall be

organized and maintained to insure their capacity to plan and implement programs in
accordance with established national policies;

(2) Bureaus and offices shall be grouped primarily on the basis of major
functions to achieve simplicity, economy and efficiency in government operations
and minimize duplication and overlapping of activities; and

(3) The functions of the different Departments shall be decentralized in order

to reduce red tape, free central officials from administrative details concerning
field operations, and relieve them from unnecessary involvement in routine and local
matters. Adequate authority shall be delegated to subordinate officials. Administrative
decisions and actions shall, as much as feasible, be at the level closest to the public.

SECTION 3. Department Proper. — (1) Unless otherwise provided in

this Code or by law, the Department proper shall include the Office of the Secretary
and the staff units directly under it. The Office of the Secretary shall consist of the
Secretary and the Undersecretary or Undersecretaries, together with the personnel in
their immediate offices;

(2) Every Secretary shall be assisted by such number of Undersecretaries as

may be provided for by this Code or by law;

The Undersecretary shall perform the functions as provided in Chapter 2 of

this Book;

(3) Whenever necessary, Assistant Secretary position or positions may be

created to form part of the Department proper; and

(4) In the absence of special provisions, the major staff units of each
department shall be the services which shall include: the Planning Service, the
Financial and Management Service, the Administrative Service, and when necessary,
the Technical and Legal Services.

SECTION 4. Jurisdiction over Bureaus, Offices, Regulatory Agencies

and Government Corporations. — Each Department shall have jurisdiction over
bureaus, offices, regulatory agencies, and government-owned or controlled
corporations assigned to it by law, in accordance with the applicable relationship as
defined in Chapters 7, 8, and 9 of this Book.
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 SECTION 5. Assignment of Offices and Agencies. — The President shall,
by executive order, assign offices and agencies not otherwise assigned by law to any
department, or indicate to which department a government corporation or board may
be attached.

CHAPTER 2

Secretaries, Undersecretaries, and Assistant Secretaries

SECTION 6. Authority and Responsibility of the Secretary. — The

authority and responsibility for the exercise of the mandate of the Department and for
the discharge of its powers and functions shall be vested in the Secretary, who shall
have supervision and control of the Department.

SECTION 7. Powers and Functions of the Secretary. — The Secretary

shall:

(1) Advise the President in issuing executive orders, regulations,

proclamations and other issuances, the promulgation of which is
expressly vested by law in the President relative to matters under
the jurisdiction of the Department;

(2) Establish the policies and standards for the operation of the
Department pursuant to the approved programs of government;

(3) Promulgate rules and regulations necessary to carry out department

objectives, policies, functions, plans, programs and projects;

(4) Promulgate administrative issuances necessary for the efficient

administration of the offices under the Secretary and for proper
execution of the laws relative thereto. These issuances shall not
prescribe penalties for their violation, except when expressly
authorized by law;

(5) Exercise disciplinary powers over officers and employees under

the Secretary in accordance with law, including their investigation
and the designation of a committee or officer to conduct such
investigation;

(6) Appoint all officers and employees of the Department except those
whose appointments are vested in the President or in some other
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 appointing authority; Provided, However, that where the
Department is regionalized on a department-wide basis, the
Secretary shall appoint employees to positions in the second level
in the regional offices as defined in this Code;

(7) Exercise jurisdiction over all bureaus, offices, agencies and

corporations under the Department as are provided by law, and in
accordance with the applicable relationships as specified in
Chapters 7, 8, and 9 of this Book;

(8) Delegate authority to officers and employees under the Secretary's

direction in accordance with this Code; and

(9) Perform such other functions as may be provided by law.

SECTION 8. Submission of Performance Evaluation Reports. — The

Secretary shall formulate and enforce a system of measuring and evaluating
periodically and objectively the performance of the Department and submit the same
annually to the President.

SECTION 9. Submission of Budget Estimates. — The Secretary shall

prepare and submit to the President through the Department of Budget and
Management an estimate of the necessary expenditures of the department during the
next fiscal year, on the basis of the reports and estimates submitted by bureaus and
officers under him.

SECTION 10. Powers and Duties of the Undersecretary. — The

Undersecretary shall:

(1) Advise and assist the Secretary in the formulation and

implementation of department objectives and policies;

(2) Oversee all the operational activities of the department for which
he shall be responsible to the Secretary;

(3) Coordinate the programs and projects of the department and be

responsible for its economical, efficient and effective
administration;

(4) Serve as deputy to the Secretary in all matters relating to the

operations of the department;

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 (5) Temporarily discharge the duties of the Secretary in the latter's
absence or inability to discharge his duties for any cause or in case
of vacancy of the said office, unless otherwise provided by law.
Where there are more than one Undersecretary, the Secretary shall
allocate the foregoing powers and duties among them. The
President shall likewise make the temporary designation of Acting
Secretary from among them; and

(6) Perform such other functions and duties as may be provided by

law.

SECTION 11. Duties and Functions of the Assistant Secretary. — The

Assistant Secretary shall perform such duties and functions as may be provided by
law or assigned to him by the Secretary.

CHAPTER 3

Department Services

SECTION 12. Department Services. — Except as otherwise provided by

law, each Department shall have Department Services which shall include the
Planning Service, the Financial and Management Service, the Administrative Service,
and whenever necessary the Technical and Legal Services.

SECTION 13. Planning Service. — The Planning Service shall provide the
department with economical, efficient and effective services relating to planning,
programming, and project development, and discharge such other functions as may be
provided by law. Where the work of the department does not call for substantial
planning and programming, the Planning Service shall be constituted as a single unit
without subdivisions. Where substantial primary data-gathering is essential to the
operations of the department, a statistical unit may be constituted as part of a technical
service.

SECTION 14. Financial and Management Services. — The Financial and

Management Services shall advise and assist the Secretary on budgetary, financial
and management matters and shall perform such other functions as may be provided
by law.

SECTION 15. Administrative Service. — The Administrative Service shall

provide the Department with economical, efficient and effective services relating to

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 personnel, legal assistance, information, records, delivery and receipt of
correspondence, supplies, equipment, collections, disbursement, security and
custodial work. It shall also perform such other functions as may be provided by law.

SECTION 16. Technical Service. — Whenever necessary, one or more

technical services shall be established to take charge of technical staff activities
essential to a department and which cannot be allocated to the three other services or
to the bureaus.

SECTION 17. Legal Service. — A Legal Service shall be provided where

the operations of the department involve substantial legal work, in which case the
Administrative Service shall not have a Legal Division. The Legal Service shall
provide legal advice to the department; interpret laws and rules affecting the operation
of the department; prepare contracts and instruments to which the department is a
party, and interpret provisions of contracts covering work performed for the
Department by private entities; assist in the promulgation of rules governing the
activities of the department; prepare comments on proposed legislation concerning the
department; answer legal queries from the public; assist the Solicitor General in suits
involving the Department or its officers, or employees or act as their principal counsel
in all actions taken in their official capacity before judicial or administrative bodies;
and perform such other functions as may be provided by law.

Where the workload of the department does not warrant a Legal Service or a
Legal Division, there shall be one or more legal assistants in the Office of the
Secretary.

CHAPTER 4

Bureaus

SECTION 18. Bureaus in General. — (1) A Bureau is any principal

subdivision of the department performing a single major function or closely related
functions. Bureaus are either staff or line.

(2) Each bureau shall be headed by a Director who may have one or more
Assistant Directors as provided by law; and

(3) Each bureau may have as many divisions as are provided by law for the
economical, efficient and effective performance of its functions.

SECTION 19. Staff Bureau. — (1) A staff bureau shall primarily perform
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 policy, program development and advisory functions.

(2) The Director of a staff bureau shall:

(a) Advise and assist the Office of the Secretary on matters

pertaining to the Bureau's area of specialization;

(b) Provide consultative and advisory services to the regional

offices of the department;

(c) Develop plans, programs, operating standards, and

administrative techniques for the attainment of the
objectives and functions of the bureau; and

(d) Perform such other duties as may be provided by law.

(3) The staff bureau shall avail itself of the planning, financial and
administrative services in the department proper. The bureau may have a separate
administrative division, if circumstances so warrant.

SECTION 20. Line Bureau. — (1) A line bureau shall directly implement
programs adopted pursuant to department policies and plans.

(2) The Director of a line bureau shall:

(a) Exercise supervision and control over all divisions and other
units, including regional offices, under the bureau;

(b) Establish policies and standards for the operations of the

bureau pursuant to the plans and programs of the
department;

(c) Promulgate rules and regulations necessary to carry out

bureau objectives, policies and functions; and

(d) Perform such other duties as may be provided by law.

(3) The line bureau may have staff units, as may be necessary, corresponding
to the services of the department proper. If the bureau is small, only a single unit
performing combined staff functions may be provided.

CHAPTER 5

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 Field Offices

SECTION 21. Regional Offices. — Regional Offices shall be established

according to law defining field service areas. The administrative regions shall be
composed of a National Capital Region and Regions I to XII. Provincial and district
offices may be established only by law whenever necessary.

SECTION 22. Integration of Field Service. — Except as otherwise

provided by law and when the needs of the service so require, the department or
agency shall organize an integrated regional office on a department or agency-wide
basis.

SECTION 23. Administration of Regional Office. — The regional office

shall be headed by a Regional Director who may be assisted by one (1) Assistant
Regional Director, except as may otherwise be provided by law. The Regional
Director shall be responsible for department or agency functions performed in the
region under his jurisdiction.

SECTION 24. Supervision of Regional Offices. — (1) Whenever the

function or activity of a department or agency requires central or interregional action,
the function may be performed by the regional offices under the supervision and
control of the department proper or line bureau concerned.

(2) The staff bureau or division shall perform primarily advisory or auxiliary
functions and exercise in behalf of the department or agency functional supervision
over the regional offices. This shall include authority to develop and set down
standards, policies and procedures to be implemented by operating units, and to
evaluate continuously such implementation for the purpose of recommending or when
authorized, taking corrective measures.

SECTION 25. Organization of Regional Offices. — Regional offices

organized on a department-wide basis shall have units or personnel in which the
functional areas of the staff bureaus and services in the department shall be
represented. Regional offices of a line bureau may have units or personnel in which
the functional areas of the primary units of the bureau are represented. Related
functions of regional units shall be consolidated.

SECTION 26. Functions of a Regional Office. — (1) A regional office

shall:

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 (a) Implement laws, policies, plans, programs, rules and regulations of
the department or agency in the regional area;

(b) Provide economical, efficient and effective service to the people in

the area;

(c) Coordinate with regional offices of other departments, bureaus and

agencies in the area;

(d) Coordinate with local government units in the area; and

(e) Perform such other functions as may be provided by law.

(2) District offices may be established only in cases of clear necessity.

SECTION 27. Duties of a Regional Director. — The Regional Director

shall:

(1) Implement laws, policies, rules and regulations within the

responsibility of the agency;

(2) Implement agency programs in the region;

(3) Exercise the management functions of planning, organizing,

directing and controlling;

(4) Appoint personnel to positions in the first level and casual and
seasonal employees; and exercise disciplinary actions over them in
accordance with the Civil Service Law;

(5) Approve sick, vacation and maternity leaves of absence with or

without pay, for a period not beyond one year;

(6) Prepare and submit budget proposals for the region to the central
office, administer the budget of the regional office, authorize
disbursement of funds pursuant to approved financial and work
programs, and administer the budget control machinery in the
region;

(7) Approve requisition for supplies, materials and equipment, as well

as books and periodicals, and other items for the region, in

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 accordance with the approved supply procurement program;

(8) Negotiate and enter into contracts for services or furnishing

supplies, materials and equipment to the regional office involving
an amount not exceeding fifty thousand pesos (P50,000.00) within
a given quarter, provided that authority in excess of fifty thousand
pesos (P50,000.00) may be further authorized by the proper
department or agency head;

(9) Approve claims for benefits under existing laws;

(10) Approve requests for overtime services;

(11) Promote coordination among the regional offices, and between his
regional office and local government units in the region;

(12) Provide housekeeping services for the regional office;

(13) Approve application of personnel for permission to teach, exercise

a profession, or engage in business outside of office hours in
accordance with standards and guidelines of the Civil Service
Commission;

(14) Issue travel vouchers authorizing employees to travel on official

business within the region for a period not exceeding thirty days;

(15) Approve attendance of personnel in conferences, seminars, and

non-degree training programs within the region;

(16) Authorize the allocation of funds to provincial/district offices; and

(17) Perform such other duties and functions as may be provided by law
or further delegated by the head of agency or other proper
authorities concerned.

SECTION 28. Review of Acts of Regional Director. — Nothing in the

preceding Section shall be construed as a limitation on the power of the Secretary to
review and modify, alter or reverse any action of the Regional Director, or to initiate
promotions and transfers of personnel from one region to another.

CHAPTER 6

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 Powers and Duties of Heads of Bureaus or Offices

SECTION 29. Powers and Duties in General. — The head of bureau or

office shall be its chief executive officer. He shall exercise overall authority in matters
within the jurisdiction of the bureau, office or agency, including those relating to its
operations, and enforce all laws and regulations pertaining to it.

SECTION 30. Authority to Appoint and Discipline. — The head of bureau

or office shall appoint personnel to all positions in his bureau or office, in accordance
with law. In the case of the line bureau or office, the head shall also appoint the
second level personnel of the regional offices, unless such power has been delegated.
He shall have the authority to discipline employees in accordance with the Civil
Service Law.

SECTION 31. Duties of Assistant Heads and Subordinates. — (1)

Assistant heads and other subordinates in every bureau or office shall perform such
duties as may be required by law or regulations, or as may be specified by their
superiors not otherwise inconsistent with law;

(2) The head of bureau or office may, in the interest of economy, designate
the assistant head to act as chief of any division or unit within the organization, in
addition to his duties, without additional compensation; and

(3) In the absence of special restriction prescribed by law, nothing shall

prevent a subordinate officer or employee from being assigned additional duties by
proper authority, when not inconsistent with the performance of the duties imposed
by law.

SECTION 32. Acting Head of Bureau or Office. — In case of the absence

or disability of the head of a bureau or office, his duties shall be performed by the
assistant head. When there are two or more assistant heads, the Secretary shall make
the designation. In the absence of an assistant head, the Secretary may designate any
officer or employee of the bureau or office as acting head without additional
compensation.

SECTION 33. Performance of Duties of Subordinate Officers Temporarily

Absent. — In case of the temporary absence or disability of any subordinate officer or
employee in any bureau or office, its head may, subject to existing laws, rules and
regulations, designate any other subordinate officer or employee within the
organization to perform temporarily the duties of the absent or disabled person.

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 SECTION 34. Filling of Vacancies. — Vacancies caused by death,
resignation or removal of any officer or subordinate may be temporarily filled in the
same manner as in the case of temporary absence or disability. The vacancies shall
not be filled by permanent appointment until the expiration of any leave allowable to
the predecessor, unless the exigencies of the service require that the appointment be
made immediately.

SECTION 35. Power to Require Bonds. — (1) The head of each bureau or
office shall, consistent with law, rules and regulations, prescribe the form and fix the
amount of all bonds executed by private parties to the government under the laws
pertaining to his bureau or office. He shall pass on the sufficiency of the security and
retain possession of the bond.

(2) When it appears that any such bond is insufficient, the head may require
additional security. He may withdraw the privilege secured by the bond upon failure
of the party to give additional security within the period fixed in the notice, but such
an action shall be without prejudice to the liability of any person or property already
obligated.

SECTION 36. Authority to Prescribe Forms and Issue Regulations. — (1)

The head of a bureau or office shall prescribe forms and issue circulars or orders to
secure the harmonious and efficient administration of his bureau or office and to carry
into full effect the laws relating to matters within his jurisdiction. Penalties shall not
be prescribed in any circular or order for its violation, except as expressly allowed by
law;

(2) Heads of bureaus or offices are authorized to issue orders regarding the
administration of their internal affairs for the guidance of or compliance by their
officers and employees;

(3) Regional directors are authorized to issue circulars of purely

informational or implementing nature and orders relating to the administration of the
internal affairs of regional offices and units within their supervision; and

(4) Issuances under paragraphs (2) and (3) hereof shall not require, for their
effectivity, approval by the Secretary or other authority.

SECTION 37. Annual Reports. — (1) All heads of bureaus or offices of

the national government shall render annual reports to their respective Secretaries on
or before the last day of February of each year.

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 (2) The reports shall contain concise statements of accomplishments and
assessment of the progress attained in terms of approved programs and projects,
including pertinent financial statements on expenditures incurred in their
implementation during the calendar year. Broad recommendations and plans for
undertaking work during the ensuing period shall be included together with matters
specifically required by law or regulation to be incorporated therein.

CHAPTER 7

Administrative Relationships

SECTION 38. Definition of Administrative Relationships. — Unless

otherwise expressly stated in the Code or in other laws defining the special
relationships of particular agencies, administrative relationships shall be categorized
and defined as follows:

(1) Supervision and Control. — Supervision and control shall include

authority to act directly whenever a specific function is entrusted by law or regulation
to a subordinate; direct the performance of duty; restrain the commission of acts;
review, approve, reverse or modify acts and decisions of subordinate officials or
units; determine priorities in the execution of plans and programs; and prescribe
standards, guidelines, plans and programs. Unless a different meaning is explicitly
provided in the specific law governing the relationship of particular agencies, the
word "control" shall encompass supervision and control as defined in this paragraph.

(2) Administrative Supervision. — (a) Administrative supervision which shall

govern the administrative relationship between a department or its equivalent and
regulatory agencies or other agencies as may be provided by law, shall be limited to
the authority of the department or its equivalent to generally oversee the operations of
such agencies and to insure that they are managed effectively, efficiently and
economically but without interference with day-to-day activities; or require the
submission of reports and cause the conduct of management audit, performance
evaluation and inspection to determine compliance with policies, standards and
guidelines of the department; to take such action as may be necessary for the proper
performance of official functions, including rectification of violations, abuses and
other forms of maladministration; and to review and pass upon budget proposals of
such agencies but may not increase or add to them;

(b) Such authority shall not, however, extend to: (1) appointments and other
personnel actions in accordance with the decentralization of personnel functions
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 under the Code, except when appeal is made from an action of the appointing
authority, in which case the appeal shall be initially sent to the department or its
equivalent, subject to appeal in accordance with law; (2) contracts entered into by the
agency in the pursuit of its objectives, the review of which and other procedures
related thereto shall be governed by appropriate laws, rules and regulations; and (3)
the power to review, reverse, revise, or modify the decisions of regulatory agencies in
the exercise of their regulatory or quasi-judicial functions; and

(c) Unless a different meaning is explicitly provided in the specific law

governing the relationship of particular agencies, the word "supervision" shall
encompass administrative supervision as defined in this paragraph.

(3) Attachment. — (a) This refers to the lateral relationship between the
department or its equivalent and the attached agency or corporation for purposes of
policy and program coordination. The coordination may be accomplished by having
the department represented in the governing board of the attached agency or
corporation, either as chairman or as a member, with or without voting rights, if this is
permitted by the charter; having the attached corporation or agency comply with a
system of periodic reporting which shall reflect the progress of programs and projects;
and having the department or its equivalent provide general policies through its
representative in the board, which shall serve as the framework for the internal
policies of the attached corporation or agency;

(b) Matters of day-to-day administration or all those pertaining to internal

operations shall be left to the discretion or judgment of the executive officer of the
agency or corporation. In the event that the Secretary and the head of the board or the
attached agency or corporation strongly disagree on the interpretation and application
of policies, and the Secretary is unable to resolve the disagreement, he shall bring the
matter to the President for resolution and direction;

(c) Government-owned or controlled corporations attached to a department

shall submit to the Secretary concerned their audited financial statements within sixty
(60) days after the close of the fiscal year; and

(d) Pending submission of the required financial statements, the corporation

shall continue to operate on the basis of the preceding year's budget until the financial
statements shall have been submitted. Should any government-owned or controlled
corporation incur an operating deficit at the close of its fiscal year, it shall be subject
to administrative supervision of the department; and the corporation's operating and
capital budget shall be subject to the department's examination, review, modification
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 and approval.

CHAPTER 8

Supervision and Control

SECTION 39. Secretary's Authority. — (1) The Secretary shall have

supervision and control over the bureaus, offices, and agencies under him, subject to
the following guidelines:

(a) Initiative and freedom of action on the part of subordinate units

shall be encouraged and promoted, rather than curtailed, and
reasonable opportunity to act shall be afforded those units before
control is exercised;

(b) With respect to functions involving discretion, experienced

judgment or expertise vested by law upon a subordinate agency,
control shall be exercised in accordance with said law; and

(c) With respect to any regulatory function of an agency subject to

department control, the authority of the department shall be
governed by the provisions of Chapter 9 of this book.

(2) This Chapter shall not apply to chartered institutions or

government-owned or controlled corporations attached to the department.

SECTION 40. Delegation of Authority. — The Secretary or the head of an

agency shall have authority over and responsibility for its operation. He shall delegate
such authority to the bureau and regional directors as may be necessary for them to
implement plans and programs adequately. Delegated authority shall be to the extent
necessary for economical, efficient and effective implementation of national and local
programs in accordance with policies and standards developed by each department or
agency with the participation of the regional directors. The delegation shall be in
writing; shall indicate to which officer or class of officers or employees the delegation
is made; and shall vest sufficient authority to enable the delegate to discharge his
assigned responsibility.

SECTION 41. Line Bureau Authority. — (1) Line bureaus of a department

shall exercise supervision and control over their regional and other field offices. They
shall be directly responsible for the development and implementation of plans and
programs within their respective functional specializations; and
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 (2) The regional and other field offices shall constitute the operating arms of
the bureau concerned for the direct implementation of the plans and programs drawn
up in accordance with approved policies and standards. As counterparts of the bureau
in the region, they shall undertake bureau operations within their respective
jurisdictions, and be directly responsible to their bureau director.

CHAPTER 9

Relationships of Government-Owned or Controlled Corporations and Regulatory

Agencies to the Department

SECTION 42. Government-Owned or Controlled Corporations. —

Government-owned or controlled corporations shall be attached to the appropriate
department with which they have allied functions, as hereinafter provided, or as may
be provided by executive order, for policy and program coordination and for general
supervision provided in pertinent provisions of this Code.

In order to fully protect the interests of the government in government-owned

or controlled corporations, at least one-third (1/3) of the members of the Boards of
such corporations should either be a Secretary, or Undersecretary, or Assistant
Secretary.

SECTION 43. Regulatory Agencies. — (1) A regulatory agency shall be

subject to the administrative supervision of the department under which they are
placed, except when they are government corporations in which case they shall be
governed by the provisions of the preceding section;

(2) The heads of regulatory agencies shall submit annually, for the approval
of the Secretary concerned, their budgets and work plans which shall be the basis of
their day-to-day operations; and

(3) The regulatory agencies may avail themselves of the common auxiliary
and management services of the department as may be convenient and economical for
their operations.

CHAPTER 10

Appointments and Qualifications

SECTION 44. Appointment of Secretaries. — The Secretaries of

Departments shall be appointed by the President with the consent of the Commission
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 on Appointments, at the beginning of his term of office, and shall hold office, unless
sooner removed, until the expiration of his term of office, or until their successors
shall have been appointed and qualified.

SECTION 45. Qualifications of Secretaries. — The Secretaries shall be

citizens of the Philippines and not less than twenty-five years of age.

SECTION 46. Appointment of Undersecretaries and Assistant Secretaries.

— The Undersecretaries and Assistant Secretaries of Department shall, upon the
nomination of the Secretary of the Department concerned, be appointed by the
President.

SECTION 47. Appointment to other Senior Positions and their

Equivalents. — Directors and Assistant Directors of Bureaus, Regional and Assistant
Regional Directors, Department Service Chiefs, and their Equivalents shall be
appointed by the President in accordance with law, rules and regulations.

SECTION 48. Disqualification of the Spouse and Relatives of the

President. — The spouse and relatives by consanguinity or affinity within the fourth
civil degree of the President shall not during his tenure be appointed as Secretaries,
Undersecretaries, Chairmen or heads of bureaus or offices including
government-owned or controlled corporations and their subsidiaries.

SECTION 49. Inhibitions Against Holding More than Two Positions. —

Even if allowed by law or by the primary functions of his position, a member of the
Cabinet, undersecretary, assistant secretary or other appointive official of the
Executive Department may, in addition to his primary position, hold not more than
two positions in the government and government-owned corporations and receive the
corresponding compensation therefor: Provided, that this limitation shall not apply to
ad hoc bodies or committees, or to boards, councils or bodies of which the President
is the Chairman.

If a Secretary, Undersecretary, Assistant Secretary or other appointive official

of the Executive Department holds more positions than what is allowed in the
preceding paragraph, he must relinquish the excess positions in favor of a subordinate
official who is next in rank, but in no case shall any official hold more than two
positions other than his primary position.

CHAPTER 11

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 Administrative Issuances

SECTION 50. General Classification of Issuances. — The administrative

issuances of Secretaries and heads of bureaus, offices or agencies shall be in the form
of circulars or orders.

(1) Circulars shall refer to issuances prescribing policies, rules and

regulations, and procedures promulgated pursuant to law,
applicable to individuals and organizations outside the
Government and designed to supplement provisions of the law or
to provide means for carrying them out, including information
relating thereto; and

(2) Orders shall refer to issuances directed to particular offices,

officials, or employees, concerning specific matters including
assignments, detail and transfer of personnel, for observance or
compliance by all concerned.

SECTION 51. Numbering System of Issuances. — Every circular or order

issued pursuant to the preceding section shall properly be identified as such and
chronologically numbered. Each class of issuance shall begin with number 1 for each
calendar year.

SECTION 52. Official Logbook. — Each department, bureau, office or

agency shall keep and preserve a logbook in which shall be recorded in chronological
order, all final official acts, decisions, transactions or contracts, pertaining to the
department, bureau, office or agency. Whenever the performance of an official act is
in issue, the date and the time record in the logbook shall be controlling. The logbook
shall be in the custody of the chief Administrative Officer concerned and shall be
open to the public for inspection.

SECTION 53. Government-wide Application of the Classification of

Issuances. — (1) The Records Management and Archives Office in the General
Services Administration shall provide such assistance as may be necessary to
effect general adherence to the foregoing classification of issuances, including the
conduct of studies for developing sub-classifications and guidelines to meet peculiar
needs; and

(2) All administrative issuances of a general or permanent character shall be

compiled, indexed and published pursuant to the provisions of this Code.

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 CHAPTER 12

Miscellaneous Receipts

SECTION 54. Charges for Property Sold or Services Rendered; Refunds.

— (1) For services required by law to be rendered for a fee, for supplies furnished, or
articles of any kind sold to other divisions of the government or to any person, the
head of bureau, office or agency may, upon approval of the Secretary, charge and
collect the cost of the service, supplies, or articles or other rate in excess of cost
prescribed by law or approved by the same authority. For local governments, the rate,
except where otherwise prescribed by law, shall be fixed at cost or at such other
reasonable rate in excess of cost by the boards or councils concerned;

(2) The officer authorized to fix the amount to be paid for service rendered
and supplies or articles furnished or sold may recommend that the whole or part of
any sum so paid be refunded, upon approval of the Commission on Audit.

SECTION 55. Disposition of Miscellaneous Bureau Receipts. — In the

absence of special provision, money collected for property sold or service rendered,
and all other receipts or earnings of bureaus, offices, and agencies not derived from
taxation, shall accrue to the general unappropriated funds of the National
Government.

SECTION 56. Printing of Studies and Researches. — With the approval of

the Secretary, a bureau, office, or agency may print its studies, researches and similar
materials for distribution at cost to the public. The Secretary may authorize the
printing or reprinting of the said materials by private persons for sale to the public
upon payment of such royalties as may be fixed by him, which shall accrue to the
general fund.

CHAPTER 13

Contracts

SECTION 57. Conveyances and Contracts to which the Government is a

Party. — Any deed, instrument or contract conveying the title to real estate or to any
other property the value of which does not exceed fifty million pesos (P50,000,000)
awarded through public bidding, and five million pesos (P5,000,000) awarded
through negotiation, shall be executed and signed by the respective Secretary on
behalf of the Government of the Philippines. Where the value of the property exceeds

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 the aforesaid ceilings, such deed, instrument or contract shall be executed and signed
by the President of the Philippines on behalf of the Government.

SECTION 58. Ceiling for Infrastructure Contracts. — The following

shall be the ceilings for all civil works, construction and other contracts for
infrastructure projects, including supply contracts for said projects, awarded through
public bidding or through negotiation, which may be approved by the Secretaries of
Public Works and Highways, Transportation and Communications, Local
Government with respect to Rural Road Improvement Project, and governing boards
of government-owned or controlled corporations:
Awarded through Awarded through
Public Bidding Negotiation
a. Secretary of Public Works
and Highways P100 Mil. P10 Mil.

b. Secretary of Transportation
and Communications 100 Mil. 10 Mil.

c. Secretary of Local Government

with respect to the Rural
Road Improvement Project 100 Mil. 2 Mil.

d. Government Boards of
Infrastructure Corporations
(National Power Corporation,
National Irrigation Administration,
Metropolitan Waterworks and
Sewerage System, National
Housing Authority, Philippine Port
Authority, National Electrification
Administration, Export Processing
Zone Authority, Philippine National
Railways, Local Water Utilities
Administration, Light Rail Transit
Authority and Philippine National
Oil Company) 50 Mil. 5 Mil.

e. Governing Boards of
Non-Infrastructure Corporations 7.5 Mil. 1 Mil.

Save as provided for above, the approval ceilings assigned to the

departments/agencies involved in national infrastructure and construction projects
shall remain at the levels provided in existing laws, rules and regulations.
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 SECTION 59. Contracts for Approval by the President. — Contracts for
infrastructure projects, including contracts for the supply of materials and equipment
to be used in said projects, which involve amounts above the ceilings provided in the
preceding section shall be approved by the President: Provided, That the President
may, when conditions so warrant, and upon recommendation of the National
Economic and Development Authority, revise the aforesaid ceilings of approving
authority.

SECTION 60. Approval of Consultancy Contracts. — All purely

consultancy contracts relating to infrastructure projects, regardless of amount, shall be
approved by the Secretaries concerned, in accordance with the Guidelines on the
Hiring of Consultants to be promulgated by the National Economic and Development
Authority: Provided, That the National Economic and Development Authority shall
be furnished by the departments, agencies or government corporations concerned,
copies of all consultancy contracts entered into by them involving an amount in
excess of P1 million for monitoring purposes.

SECTION 61. Delegation of Authority to Governing Boards of

Government Corporations. — The Secretaries are authorized to delegate to the
governing boards of government-owned or controlled corporations which are attached
to or are under the administrative supervision of their respective departments, the
authority to approve contracts for infrastructure projects entered into by said
corporations involving amounts which are beyond the ceiling provided for
government corporations under Section 57 hereof but which are within the approving
authority of the Secretaries under the said Section. In the case of government
corporations which are attached to or under the Office of the President, the delegation
shall be made by the Executive Secretary.

SECTION 62. Public Bidding of Contracts; Exceptions. — As a general

rule, contracts for infrastructure projects shall be awarded after open public bidding to
bidders who submit the lowest responsive/evaluated bids. Open Public Bidding shall
be conducted among prequalified contractors in accordance with laws, rules and
regulations not inconsistent with the provisions of this Chapter. The award of such
contracts through negotiation shall only be allowed by the Secretary or Governing
Board of the Corporation concerned within the limits as stated in Section 57 hereof in
the following cases:

a. In times of emergencies arising from natural calamities where

immediate action is necessary to prevent imminent loss of life or

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 property, in which case, direct negotiation or simplified bidding
may be undertaken;

b. Failure to award the contract after competitive public bidding for

valid cause or causes, in which case, simplified bidding may be
undertaken; and

c. Where the construction project covered by the contract is adjacent

or contiguous to an on-going project and it could be economically
prosecuted by the same contractor, in which case, direct
negotiation may be undertaken with the said contractor at the same
unit prices and contract conditions, less mobilization costs,
provided that he has no negative slippage and has demonstrated a
satisfactory performance. Otherwise, the contract shall be awarded
through public bidding.

SECTION 63. Contracts for Community Employment and Development

Program Projects. — Contracts covering projects under the Community Employment
and Development Program of the government shall be awarded through open public
bidding: Provided, That the invitation to bid for the said projects shall be advertised at
least once within one week in a newspaper of local circulation within the province
where the project is situated, through posting of notices in the premises of the
municipal/provincial office, and through other forms of media, such as radio and
television: Provided, further, That the deadline for submission of bids for projects
costing not more than P1 million each may be shortened to one week after the date of
such invitation, posting of notices or advertisement through other forms of media.

SECTION 64. Constitution of the Prequalification, Bids, and Awards

Committee. — Each department, office or agency shall have in its head office or
in its implementing offices a Prequalification, Bids and Awards Committee which
shall be responsible for the conduct of prequalification of contractors, biddings,
evaluation of bids and recommending awards of contracts. Each Prequalification,
Bids and Awards Committee shall be composed of the following:

a. A Chairman (regular) who should at least be a third ranking

official of the department/agency/implementing Office;

b. An Executive Officer and Secretary (regular) who is a Legal

Officer of the department/office/implementing office;

c. A Technical Member (regular) to be designated by the Secretary or

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 the head of the office/agency/implementing office;

d. Two members (provisional) with experience in the type of project

to be bidded and in project management, duly designated by the
Secretary or the head of the office/implementing office on a
project-to-project basis; and

e. A representative from at least one of the following organizations

who shall be a non-voting member:

1. Philippine Institute of Civil Engineers

2. Philippine Contractors Association

3. National Confederation of Contractors Associations of the

Philippines, Inc.

4. Philippine Institute of Certified Public Accountants

The representation in the Prequalification, Bids and Awards Committee of the

above-mentioned private organizations shall be made as follows:

1. During the prequalification stage, the representative to be invited

shall come from the Philippine Institute of Certified Public
Accountants; and

2. In the bidding, bid evaluation and award stages, a representative

each from the Philippine Institute of Certified Public Accountants
and from the Philippine Contractors Association or the National
Confederation of Contractors Associations of the Philippines, Inc.
shall be invited as non-voting members of the Prequalification,
Bids and Awards Committee without prejudice to inviting another
representative/s from any of the other organizations mentioned
above.

SECTION 65. Approval of other types of Government Contracts. — All

other types of government contracts which are not within the coverage of this Chapter
shall, in the absence of a special provision, be executed with the approval of the
Secretary or by the head of the bureau or office having control of the appropriation
against which the contract would create a charge. Such contracts shall be processed
and approved in accordance with existing laws, rules and regulations.

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 CHAPTER 14

Controversies Among Government Offices and Corporations

SECTION 66. How Settled. — All disputes, claims and controversies,

solely between or among the departments, bureaus, offices, agencies and
instrumentalities of the National Government, including government-owned or
controlled corporations, such as those arising from the interpretation and application
of statutes, contracts or agreements, shall be administratively settled or adjudicated in
the manner provided in this Chapter. This Chapter shall, however, not apply to
disputes involving the Congress, the Supreme Court, the Constitutional Commissions,
and local governments.

SECTION 67. Disputes Involving Questions of Law. — All cases

involving only questions of law shall be submitted to and settled or adjudicated by the
Secretary of Justice as Attorney-General of the National Government and as ex officio
legal adviser of all government-owned or controlled corporations. His ruling or
decision thereon shall be conclusive and binding on all the parties concerned.

SECTION 68. Disputes Involving Questions of Fact and Law. — Cases

involving mixed questions of law and of fact or only factual issues shall be submitted
to and settled or adjudicated by:

(1) The Solicitor General, if the dispute, claim or controversy involves

only departments, bureaus, offices and other agencies of the
National Government as well as government-owned or controlled
corporations or entities of whom he is the principal law officer or
general counsel; and

(2) The Secretary of Justice, in all other cases not falling under
paragraph (1).

SECTION 69. Arbitration. — The determination of factual issues may be

referred to an arbitration panel composed of one representative each of the parties
involved and presided over by a representative of the Secretary of Justice or the
Solicitor General, as the case may be.

SECTION 70. Appeals. — The decision of the Secretary of Justice as well

as that of the Solicitor General, when approved by the Secretary of Justice, shall be
final and binding upon the parties involved. Appeals may, however, be taken to the

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 President where the amount of the claim or the value of the property exceeds one
million pesos. The decision of the President shall be final.

SECTION 71. Rules and Regulations. — The Secretary of Justice shall

promulgate the rules and regulations necessary to carry out the provisions of this
Chapter.

TITLE I

Foreign Affairs

CHAPTER 1

General Provisions

SECTION 1. Declaration of Policy. — The State shall pursue an

independent foreign policy. In its relations with other states the paramount
consideration shall be national sovereignty, territorial integrity, national interest, and
the right to self-determination.

SECTION 2. Mandate. — The Department shall be the lead agency that

shall advise and assist the President in planning, organizing, directing, coordinating
and evaluating the total national effort in the field of foreign relations.

SECTION 3. Powers and Functions. — To carry out its mandate and

accomplish its mission, the Department shall:

(1) Conduct the country's foreign relations;

(2) Maintain and develop the country's representation with foreign

governments;

(3) Conduct Philippine representation in the United Nations, the

Association of Southeast Asian Nations (ASEAN), and other
international and regional organizations;

(4) Serve as the channel for matters involving foreign relations,

including official communications to and from the Republic of the
Philippines;

(5) Negotiate treaties and other agreements pursuant to instructions of

the President, and in coordination with other government agencies;
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 (6) Promote trade, investments, tourism and other economic relations
with other countries in cooperation with other states the paramount
consideration shall be national [sic]

(7) Foster cultural relations with other countries and protect and
enhance the Philippines' image abroad;

(8) Undertake efforts to inform the international community about the

Philippines in cooperation with other government agencies;

(9) Protect and assist Philippine nationals abroad;

(10) Carry out legal documentation functions as provided for by law

and regulations;

(11) Monitor and analyze events in other countries and report them, as
appropriate, to the President and other government agencies;

(12) Initiate, formulate, integrate and submit to the President short,

medium, and long-range foreign policy plans and programs in
cooperation with other government agencies;

(13) Supervise and direct officials and employees assigned by the

Department and other government agencies to Foreign Service
establishments abroad in accordance with the pertinent laws, rules
and inter-agency agreements;

(14) Recruit, maintain and develop a professional career foreign service

based on merit; and

(15) Perform such other functions as may be provided by law.

SECTION 4. Organizational Structure. — The Department shall have the

following units:

(1) The Department Proper which shall be composed of the Office of

the Secretary, the Offices of the Undersecretaries, the Offices of
the Assistant Secretaries, and the Home Offices;

(2) The Foreign Service Establishments which are the Philippine

Embassies, Consulates, Legations and Permanent Missions.

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 CHAPTER 2

Department Proper

SECTION 5. Offices Under the Direct Supervision of the Secretary.

— The Secretary shall exercise direct supervision over the following:

(1) Foreign Service Institute. — The Foreign Service Institute

shall continue to operate under its charter, and shall have the
following main objectives and responsibilities:

(a) Program, implement, and manage the Career Foreign

Service Development Program (CFSDP) in all of its main
components for the purpose of upgrading the professional
Career Foreign Service Corps;

(b) Program, implement and manage complementary

organizational development programs for the Department as
well as other training and educational programs for both its
career and non-career personnel, and personnel of other
government agencies assigned to foreign missions;

(c) Program, implement and manage the necessary supportive

plans and operating systems for the Career Foreign Service
Development Programs and complementary programs;

(d) Develop its own policies, and rules, program of activities,

core staff and consultants, administrative structure,
operating systems and resources, in order to enable it to
accomplish competently its activities.

It shall be revitalized as the training, research, and

career development arm of the Department, in accordance
with such rules as may be prescribed by the Secretary. The
Institute shall be an integral participant in the planning
review process in the Department.

(2) UNESCO National Commission of the Philippines. — The

United Nations Educational Scientific and Cultural Organization
(UNESCO) National Commission of the Philippines shall, in
coordination with the Office of United Nations and other
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 international organizations, advise the Philippine Government and
the Philippine delegation to the UNESCO Conference, on matters
relating to UNESCO, and shall function as a liaison agency on
matters pertaining to the Commission.

(3) Technical Assistance Council. — The Technical Assistance

Council shall continue to perform its present functions including
the conduct and expansion of its programs.

SECTION 6. Undersecretaries. — The Secretary shall be assisted by two

(2) Undersecretaries, who shall be appointed by the President, upon the
recommendation of the Secretary. The Secretary shall determine and assign the
respective functions and responsibilities of the Undersecretaries. The Secretary shall
designate one of the Undersecretaries as Acting Secretary in his absence.

SECTION 7. Assistant Secretaries. — The Secretary shall be assisted by

six (6) Assistant Secretaries who shall be appointed by the President upon
recommendation by the Secretary. The Secretary shall delineate the respective areas
of responsibility of each Assistant Secretary.

SECTION 8. Home Offices. — (1) Geographical Offices. — The

following offices shall be responsible for providing staff support and policy guidance
in the coordination, supervision, monitoring, integration, and reporting of the
activities and operations of Philippine diplomatic missions and establishments within
their geographic coverage:

(a) Office of Asian and Pacific Affairs: Japan and Northeast Asia,
China, Central Asia, Southeast Asia, South Asia and Pacific
countries;

(b) Office of Middle East and African Affairs: the Gulf States, Middle
East and North Africa, West Africa, and East Africa;

(c) Office of American Affairs: United States of America, Canada,

Mexico, the Central American and Caribbean countries, and South
America;

(d) Office of European Affairs: Union of Soviet Socialist Republics,

Western Europe, Eastern Europe and Central Europe.

(2) Office of ASEAN Affairs. — The Office of ASEAN Affairs shall be

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 responsible for Philippine participation and negotiation, as well as providing staff
support and policy guidance in the coordination, supervision, monitoring, integration,
reporting and operations of the Philippine Government in the ASEAN.

(3) Office of the United Nations and Other International Organizations. —

The Office of the United Nations and other International Organizations shall be
responsible for Philippine participation and negotiation as well as providing staff
support and policy guidance in the coordination, supervision, monitoring, integration,
reporting and operations of the Philippine Government in the United Nations, its
specialized agencies and other international organizations. It shall also serve as the
secretariat of all Philippine National Commissions and Councils created pursuant to
commitments in the United Nations and its specialized agencies.

(4) Office of International Economic Affairs and Development. — The Office

of International Economic Affairs and Development shall be responsible for
conducting programs and activities of the Department in the fields of international
trade, finance and economics; coordinate with the regional offices and the Office of
United Nations and International Organizations; and, in coordination with the
Department of Trade and Industry, conduct trade and investment promotion activities
of the Department.

(5) Office of Cultural Affairs and Public Information Services. — The Office
of Cultural Affairs and Public Information Services shall be responsible for
promoting the cultural and information program of the Government abroad and for
the development and dissemination of information and the coordination of
information activities on the Government's foreign and domestic policies.

(6) Office of Personnel and Administrative Services. — The Office of

Personnel and Administrative Services shall be responsible for the efficient
management of human resources and administrative support services, and shall make
appropriate recommendations, including those concerning job classification, salary
administration, benefits, retirement, and awards to deserving members of the Foreign
Service.

(7) Office of Financial Management Services. — The Office of Financial

Management Services shall be responsible for budgetary, financial and accounting
services in the Department and the Foreign Service.

(8) Office of Consular Services. — The Office of Consular Services shall be

responsible for the efficient and effective delivery of passport, visa and authentication

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 services. It shall also extend assistance to Filipino nationals both here and abroad.

SECTION 9. Advisory Boards and Committees. — The Secretary may

create such advisory boards and committees as he may deem necessary to assist and
provide him with advice in the formulation of policies, as well as designate as special
advisers such Chiefs of Mission who are on home assignment on specific areas of
their expertise.

CHAPTER 3

Department Services

SECTION 10. Office of the Legal Adviser. — The Office of the Legal
Adviser shall be headed by a Legal Adviser, who shall be a career Chief of Mission.
However, the Legal Adviser may be appointed by the President, upon the
recommendation of the Secretary, from outside the career service, in which case he
shall have the assimilated rank of a Chief of Mission. His term shall be co-terminus
with the tenure of the Secretary, unless sooner terminated, and he is not eligible for
foreign assignment. The Legal Adviser shall provide legal advice and services to the
Department.

SECTION 11. Office of Coordination and Policy Planning. — The Office

of Coordination and Policy Planning shall be headed by the Chief Coordinator. The
Office of Coordination and Policy Planning shall initiate, coordinate and integrate the
planning of foreign policy. It shall provide staff support to the Office of the Secretary
and perform coordinating and such other functions as may be prescribed by the
Secretary.

SECTION 12. Office of Data Banking and Communication. — The Office

of Data Banking and Communication shall establish and maintain a modern data and
communication center in the Department. The Office shall:

(1) Assist the Secretary on all matters regarding data banking and
information retrieval;

(2) Establish, develop and maintain a computerized foreign-relations

data bank for the Department;

(3) Establish, develop and maintain both domestic and foreign service
communications systems, including efficient flow systems for all
correspondence between and among all Department units;
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 (4) Establish, develop and maintain the records system of the entire
Department;

(5) Provide technical assistance to any service, office, or attached

agency of the Department, on matters within its competence; and

(6) Perform such other functions as may be assigned by the Secretary.

SECTION 13. Office of Protocol, State and Official Visits. — The Office
of Protocol, State and Official Visits shall coordinate preparations for state visits, the
reception of Chiefs of State, heads of Government, the highest foreign dignitaries
visiting the Philippines, as well as official visits of Philippine officials abroad, as may
be determined by the President. It shall also be responsible for handling all activities
of the Department concerning protocol, ceremonials and socials, the proper
observance and enforcement of formalities, courtesies, facilities, immunities and
privileges under the Vienna Convention on Diplomatic Relations and the Vienna
Convention on Consular Relations, and other applicable conventions and agreements.

SECTION 14. Office of Intelligence and Security. — The Office of

Intelligence and Security shall adopt a system of information gathering and analysis,
act as liaison with the intelligence community, and provide security services in the
Department. It shall also undertake the enforcement and monitoring of security
procedures in the Department and Foreign Service establishments.

CHAPTER 4

Board of Foreign Service Administration

SECTION 15. Composition. — The Board of Foreign Service

Administration shall be composed of nine (9) members: one (1) Undersecretary as
Chairman; the other Undersecretary as Vice-Chairman; the six (6) Assistant
Secretaries and the Legal Adviser, as members.

SECTION 16. Functions. — The Board shall be responsible for

considering and recommending policies for the efficient and economical discharge of
the administrative operations of the Department and the Foreign Service. It shall also
consider and submit recommendations on policy and other matters concerning
personnel, including the appointment, promotion and assignment of Foreign Service
Staff Officers and Employees, as well as recommend to the President through the
Secretary the appointment and promotion of Foreign Service Officers, Counselors and

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 Chiefs of Mission. It shall also act and submit recommendations on administrative
cases involving personnel of the Department and the Foreign Service.

CHAPTER 5

Board of Foreign Service Examiners

SECTION 17. Composition. — The Board of Foreign Service Examiners

shall be composed of one (1) Undersecretary as Chairman; and the Assistant
Secretary for Personnel and Administrative Services and a Commissioner of the Civil
Service Commission as members. The Board shall be under the administrative
supervision of such Undersecretary.

SECTION 18. Functions. — The Board shall be responsible for planning

and administering the Foreign Service Officers Examinations and the Foreign Service
Staff Officers and Foreign Service Staff Employees Examinations.

CHAPTER 6

Attached Agencies

SECTION 19. Attached Agencies. — The Law of the Sea Secretariat, the
Inter-Agency Technical Committee on Economic, Scientific and Technical
Cooperation with Socialist Countries (SOCCOM), the Inter-Agency Technical
Committee on Technical Cooperation Among Developing Countries (IATC-TCDC),
the Permanent Inter-Agency Technical Committee on ESCAP Matters
(PITCEM), and other agencies attached to the Department shall continue to operate
and function in accordance with their respective charters or laws creating them,
except as otherwise provided in this Code.

CHAPTER 7

The Foreign Service

SECTION 20. Functions of Diplomatic Missions. — The Diplomatic

Missions shall:

(1) Represent the Philippines abroad and promote friendly relations

with other countries in all fields;

(2) Protect national interests and the interests of Filipino nationals

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 abroad;

(3) Ascertain and evaluate conditions and developments abroad and

report thereon to the Department Head;

(4) Serve as channels of communication between the Government of

the Philippines and foreign governments; and

(5) Perform such other functions provided by law.

SECTION 21. Functions of Consular Establishments. — The consular

establishments shall:

(1) Protect national interests abroad and promote foreign relations in

all fields, particularly in the economic and trade areas;

(2) Ascertain and evaluate conditions and developments abroad in the

commercial, economic, cultural and scientific fields and report
thereon to the Department Head;

(3) Issue passports and travel documents to Filipino nationals, and

visas or appropriate documents to foreign nationals desiring to
travel to the Philippines;

(4) Protect the interests of Filipino nationals abroad, provide necessary

services and assistance, and perform notarial functions allowed by
regulations;

(5) Transmit judicial and extra-judicial documents and execute letters

rogatory or commissions to receive evidence abroad for Philippine
courts;

(6) Supervise and inspect in accordance with laws and regulations of

the Philippines, vessels and aircrafts and their crews; and

(7) Perform such other functions as may be provided by law.

CHAPTER 8

Attaches and Representatives

SECTION 22. Attaches of the Department. — The Department Head shall

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 designate attaches of the Department from the ranks of Foreign Service Officers and
Foreign Service Staff Officers.

SECTION 23. Attaches of Other Departments. — The assignment abroad

of personnel in any Department, Bureau or office of the Philippine government as
attaches or representatives shall have the prior clearance of the Secretary of Foreign
Affairs. The clearance shall include such matters as the actual need for opening
particular types of attache services, and the specific places where these services will
be made available.

SECTION 24. Appointment and Accreditation of Attaches. — (1) The

authority to appoint attaches shall be vested in the Head of the Department or agency
maintaining the attache service, who shall consult with the Secretary of Foreign
Affairs on such appointments.

(2) A Department or agency shall have only one attache accredited to it by

the receiving government, except military attaches.

(3) The designation of attaches shall apply only to those serving in

diplomatic missions. Those assigned to consular establishments shall be designated as
representatives.

Except in extraordinary cases, each foreign service establishment shall have

only military, labor, revenue, tourism, information and commercial attaches.

In the event of the actual need for more than one attache, as determined by the
department or agency in consultation with the Department of Foreign Affairs, the
succeeding attache shall be accredited as assistant attache.

SECTION 25. Relationships Between the Chief of Mission and Attaches.

— The Chief of Mission shall be responsible for the conduct of affairs of government
at the diplomatic posts. All attaches and representatives of other departments, shall
during their tour of duty, be under the immediate control and administrative
supervision of the Chief of Mission where they are assigned. They shall be required to
submit their reports to their agencies through the Chief of Mission and the
Department of Foreign Affairs, except when national security requires otherwise.
They shall clear with the Chief of Mission all their public pronouncements at the
diplomatic post, and all the documents and materials they send shall be transmitted
through the diplomatic pouch.

The supremacy of the Chief of Mission for the conduct of foreign relations at
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 the post is established. The Chief of Mission shall have the authority to discipline
attaches within his Mission, including the authority to have them recalled, if
necessary.

SECTION 26. Assimilated Ranks. — (1) Except as the President may

appoint, no officer of the Philippine government stationed abroad, outside the
Department of Foreign Affairs, shall be assigned assimilated ranks higher than
Foreign Service Officer Class I.

(2) The assignment of assimilated rank to personnel of the Philippine

government stationed abroad shall remain with the President who shall act on the
basis of recommendations of the Department of Foreign Affairs and the Department
of Budget and Management.

(3) The assimilated ranks are for purposes of compensation only and shall not
confer diplomatic rank for purposes of protocol. Civil attaches shall always rank after
the lowest ranking Foreign Service officer in the post.

SECTION 27. Relationship Between the Consul-General or the Principal

Officer at the Consulate and the Representative. — The relationship of the
Consul-General or the Principal Officer at the post and the Representatives assigned
to the said post shall be the same as the relationship between the Chief of Mission and
the attaches.

SECTION 28. Uniform Rules for Attache Services. — A uniform set of

rules and regulations shall govern attache and representative services. This shall be
drafted by an Inter-Department Committee to be composed of the Undersecretary of
Foreign Affairs as Chairman, and the Undersecretaries, or equivalent officials, of the
Departments or agencies with attaches or representatives abroad, as members.

CHAPTER 9

Personnel

SECTION 29. Policy. — To enable the Foreign Service to effectively

serve abroad the interests of the Republic of the Philippines, it shall be the policy of
the Department that only persons who are competent, of good moral character, and
fully informed of the Philippine History and current trends in Filipino life shall be
appointed to the service.

SECTION 30. Categories of Officers and Employees. — The Service shall

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 consist of the following categories of officers and employees:

(1) Chiefs of Missions

(2) Counsellors

(3) Foreign Service Officers

(4) Foreign Service Staff Officers

(5) Foreign Service Staff Employees

(6) Honorary Consuls

(7) Alien Employees

SECTION 31. Foreign Service Officers. — There shall be a career service

composed of foreign service officers. The Service shall consist of six classes of
Foreign Service Officers including Chiefs of Missions and Counsellors.

(1) A Chief of Mission may be assigned as Ambassador Extraordinary

and Plenipotentiary, Head of an Office in the Department, or
Deputy Chief of Mission.

(2) A Counsellor may be assigned as Executive Officer of an Office in

the Department, Counsellor in an Embassy, or Head of a Consular
Post.

(3) The assignments of the other classes of Foreign Service Officers

shall be as follows:

Home Office Diplomatic Consular

Service Service

Class I-Chief of First Secretary Consul

Division

Class II-Chief of Secondary Secretary Consul

Division

Class III-Chief of Third Secretary Consul

Division

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 Class IV-Asst.
Chief of Division Third Secretary Vice-Consul

(4) In the home office, assignment to a position requiring a rank

higher than the actual rank of the Foreign Service Officer shall be
in an acting capacity.

(5) A Foreign Service Officer in any class may be designated as a

special assistant to the Secretary or to an Undersecretary. A
Foreign Service Officer below the rank of Class I may be
designated as Principal Assistant to a Head of Office.

SECTION 32. Foreign Service Staff Officers. — There shall be three

classes of Foreign Service Staff Officers to provide the administrative and technical
services.

SECTION 33. Foreign Service Staff Employees. — There shall be three

classes of Foreign Service Staff Employees to provide the clerical, custodial,
messengerial and similar services.

SECTION 34. Honorary Consuls. — Honorary consuls shall be appointed

from among qualified private persons to perform certain consular functions on a
non-career basis.

CHAPTER 10

Appointments, Compensation and Benefits

SECTION 35. Foreign Service Officers. — (1) Foreign Service Officers

shall be appointed by the President.

(2) No person shall be eligible for appointment as Foreign Service Officer

unless he has passed the competitive examinations given by the Board of Foreign
Service Examiners and successfully completed his probationary service.

(3) The Secretary shall, upon the recommendation of the Board of Foreign
Service, submit to the President names of eligibles for appointment as Foreign Service
Officers. The initial appointment of Foreign Service Officers shall only be to Foreign
Service Officer Class IV minimum.

SECTION 36. Staff Officers and Employees. — The Secretary shall

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 appoint, in accordance with the Civil Service Law, all Foreign Service Officers and
Foreign Service Staff Employees who must be in the Philippines at the time of their
original or initial appointment.

SECTION 37. Alien Employees. — The Secretary shall, upon the

recommendation of the head of diplomatic or consular establishment and as much as
possible in accordance with the Civil Service Law, appoint alien employees who shall
be recruited at the post to supplement the regular staff of a foreign service
establishment.

SECTION 38. Compensation and Benefits. — The salaries, allowances,

travel expenses, insurance and other benefits of Foreign Service Officers, and
Employees shall be as provided by law and regulations.

CHAPTER 11

Promotions

SECTION 39. Merit Promotion System. — The Board of the Foreign

Service shall establish a merit promotion system for all officers and employees of the
Department.

SECTION 40. Requirements for Promotion in the Career Service. — (1)

For promotion to Chief of Mission Class I, the candidate must have served as a Chief
of Mission Class II and rendered continuous service as Foreign Service Officer for at
least twelve (12) years;

(2) For promotion to Chief of Mission Class II, the candidate must have
served as a Foreign Service Officer Class I and rendered continuous service as
Foreign Service Officer for at least ten years;

(3) For promotion to Foreign Service Officer Class I, the candidate must have
served as a Foreign Service Officer Class II, and rendered continuous service as
Foreign Service Officer for at least eight years;

(4) For promotion to Foreign Service Officer Class II, the candidate must
have served as a Foreign Service Officer Class III, and rendered continuous service as
Foreign Service Officer for at least six years;

(5) For promotion to Foreign Service Officer Class III, the candidate must
have rendered continuous service as a Foreign Service Officer Class IV for at least

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 two years.

SECTION 41. Promotion of Foreign Service Officers. — (1) Promotions

of Foreign Service Officers from one class to the next higher class shall be made by
the President upon the recommendation of the Secretary. All promotions shall be to
the lowest grade of the class.

(2) Promotion in grade within the class shall be made by the Secretary upon
the recommendation of the Board of Foreign Service Administration.

SECTION 42. Promotion of Foreign Service Staff Officers, Foreign

Service Staff Employees and Alien Employees. — Promotions of foreign service staff
officers and employees and alien employees shall be made by the Secretary, upon
recommendation of the Board of the Foreign Service Administration in accordance
with the promotion system.

CHAPTER 12

Assignments and Transfers

SECTION 43. Rotation Plan. — The Secretary shall establish a system of

assignments and transfers to ensure that all qualified officers and employees, except
the employees in the non-career service, shall serve in diplomatic and consular
establishments in different regions of the world. The assignment and transfer of
personnel shall follow a regular rotation plan. For purposes of assignments, the home
office shall be considered a post. All personnel shall be available for assignment to
any post.

SECTION 44. Initial Home Office Requirement. — No Foreign Service

Officer, Staff Officer or Employee shall be assigned to any foreign service
establishment unless he has rendered continuous and satisfactory service in the home
office for at least three (3) years.

SECTION 45. Tour of Duty. — (1) The tour of duty of a Foreign Service
Officer at any post shall be four (4) years commencing on the date of his arrival at the
post, after which he shall be transferred to another post;

(2) The tour of duty of a Foreign Service Staff Officer or Employee at any
post shall be for a period of six (6) years commencing on the date of his arrival at the
post, after which he shall be transferred to another post;

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 (3) No Foreign Service Officer, Staff Officer or Employee shall serve more
than two (2) consecutive tours of duty abroad;

(4) No Foreign Service Officer may serve more than four (4) consecutive
years in the home office, except when designated as Secretary or Undersecretary.

SECTION 46. Retirement. — (1) Any Foreign Service Officer, Staff

Officer or Employee who has reached the age of sixty-five (65) shall be compulsorily
retired from the service unless his service is extended by the President in the interest
of the service. Alien employees shall be allowed to retire from the service at the same
age as that provided for employees of the governments of their respective countries,
provided that retirement age shall not be beyond sixty-five (65) years.

(2) Foreign Service Officers reinstated to the service after retirement and who
are assigned abroad as ambassadors or chiefs of mission, and persons who are
appointed as ambassadors without previously serving as Career Foreign Service
Officers shall be considered automatically separated from the Foreign Service upon
termination of their assignment abroad as ambassadors or chief of missions.

SECTION 47. Resignation. — The Secretary shall have authority to accept

the resignation of any Foreign Service Officer, Staff Employee, Honorary Consul and
Alien Employee.

CHAPTER 13

Passport

SECTION 48. Definition. — A Philippine passport is an official document

of identity of Philippine citizenship of the holder issued for travel purposes.

SECTION 49. Persons Entitled. — Only citizens of the Philippines may be

issued passports. A minor may, upon his own application, be issued a passport, except
when his natural or legal guardian requests that the application be denied.

SECTION 50. Authority to Issue, Restrict, Withdraw or Cancel. — The

Secretary shall have authority to withhold the issuance or order the cancellation or
restriction of passports upon lawful order of the court or when he deems it necessary
in the interest of national security, public safety or public health, or in cases when a
passport was secured through misrepresentation or fraud.

SECTION 51. Period of Validity, Extension and Renewal. — The original

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 period of validity of a Philippine passport is two (2) years. It may be extended for
another two (2) years provided that the application for extension is made before the
expiration of four (4) years from the date of original issue of the passport. However,
the validity of a passport may be limited for a certain period or for a definite purpose.

SECTION 52. Supplementary Regulation. — The Secretary may prescribe

supplementary regulations for the issuance, extension or amendment of all kinds of
passports.

SECTION 53. Amendments. — Upon application, an unexpired passport

may be amended to reflect the new civil status or new name or surname of the holder,
or to add more pages, or to modify a condition or restriction therein.

SECTION 54. Fees. — The Secretary shall prescribe uniform fees for the
issuance, extension and amendment of passports, and such other services that may be
rendered by the Department relating to passports. However, no fee shall be collected
for the issuance of passports to government officials proceeding abroad in the
discharge of their official duties attested by regular travel orders or for those issued to
immediate members of their families on official travel.

CHAPTER 14

Miscellaneous Provisions

SECTION 55. Use of Savings. — The Secretary is authorized to use any

savings in the appropriations for the Department for the payment of: (a) expenses for
the evacuation or repatriation to the Philippines, when necessary due to an
emergency, of members of the household of the personnel of any diplomatic or
consular establishment as well as the transportation of their personal effects; (b)
actual return passage by the most direct and economical means of transportation and
the cost of shipment of the household effects to Manila of any officer or employee in
the Foreign Service, including the immediate dependent members of his family, who
resigns or is separated from the service for cause; (c) the cost of preparing and
transporting the remains of an officer or employee who is a citizen of the Philippines
and the immediate members of his family who may die abroad or while in travel
status; or (d) contingent and unforeseen expenses that may arise in connection with
the operation of the Foreign Service.

SECTION 56. Pool of Foreign Service Officers. — In all appropriation

acts providing funds for the operation and maintenance of the Department, the
positions of Foreign Service Officers, including those who may serve in the home
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 office, shall be in a pool grouped according to their classes with their salaries and
allowances indicated in one lump sum for each class, leaving to the head of office the
discretion to assign or commission those officers whenever their services may be
utilized to advantage, subject to the limitations provided by law.

TITLE II

Finance

CHAPTER 1

General Provisions

SECTION 1. Declaration of Policy. — It is the policy of the State that the

Department of Finance shall be primarily responsible for the sound and efficient
management of the financial resources of the Government, its subdivisions, agencies
and instrumentalities.

SECTION 2. Mandate. — The Department shall be responsible for the

formulation, institutionalization and administration of fiscal policies in coordination
with other concerned subdivisions, agencies and instrumentalities of government.

Moreover, the Department shall be responsible for the generation and

management of the financial resources of government, ensuring that said resources
are generated and managed judiciously and in a manner supportive of development
objectives.

The Department shall be responsible for the supervision of the revenue

operations of all local government units, with the objective of making these entities
less dependent on funding from the national government.

Finally, the Department shall be responsible for the review, approval and
management of all public sector debt, whether foreign or domestic, with the end in
view of ensuring that all borrowed funds are effectively utilized and all such
obligations are promptly serviced by the government.

SECTION 3. Powers and Functions. — To accomplish its goals, the

Department shall:

(1) Formulate long-range, medium-term and annual plans covering the

government's resource mobilization effort, in coordination with

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 other concerned government agencies, and involving all public
sector resources whether generated by revenues and operations,
foreign and domestic borrowings, sale or privatization of
corporation or assets, or from other sources, and supervise
the implementation of such plans;

(2) Formulate, institutionalize and administer fiscal and tax policies;

(3) Supervise, direct and control the collection of government

revenues;

(4) Act as custodian and manage all financial resources of the national
government;

(5) Undertake and supervise activities related to the negotiation,

servicing and restructuring of domestic and foreign debt incurred
or guaranteed by the government and its instrumentalities,
including taking part in activities which affect the country's
capacity to service foreign debt;

(6) Review and coordinate the policies, plans and programs of

government financial institutions and, thereafter, recommend to
them courses of action consistent with national government fiscal
policies, plans and programs;

(7) Ensure the implementation of necessary policies and measures on

local revenue administration;

(8) Coordinate with other government agencies on matters concerning

fiscal and monetary policies, credit, economic development,
international finance, trade and investment; and

(9) Perform such other powers and functions as may be provided by

law.

SECTION 4. Organizational Structure. — The Department shall consist

of the Department proper comprising the Office of the Secretary, the Offices of the
Undersecretary and Assistant Secretaries, the Economic Intelligence and Investigation
Bureau, the Services, the Operations Groups and their constituent units, and the
Regional Offices.

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 CHAPTER 2

Department Proper

SECTION 5. Office of the Secretary. — The Office of the Secretary shall

consist of the Secretary, his Undersecretaries and their immediate staffs.

SECTION 6. Undersecretaries. — The Secretary shall be assisted by five

(5) Undersecretaries appointed by the President upon the recommendation of the
Secretary, each of whom shall head, respectively, the Policy Development and
Management Services Group mentioned in Section 8 hereof and the four (4)
Operations Groups mentioned in Section 9 hereof.

SECTION 7. Assistant Secretaries. — The Secretary shall also be

assisted by five (5) Assistant Secretaries appointed by the President upon the
recommendation of the Secretary. The respective assignments of the Assistant
Secretaries and the reporting procedures to be followed by them shall be determined
by the Secretary.

CHAPTER 3

Department Services

SECTION 8. Policy Development and Management Services Group. —

The Policy Development and Management Services Group, which shall be headed by
an Undersecretary, shall consist of the following:

(1) Planning and Policy Research Office;

(2) Central Management Information Office;

(3) Central Administration Office;

(4) Central Financial Management Office;

(5) Public Information and Assistance Office;

(6) Legal Office; and

(7) Regional Coordination Office.

SECTION 9. Planning and Policy Research Office. — The Planning and

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 Policy Research Office shall have the following functions:

(1) Formulate long-range and annual projections of revenue needs,

cash position and borrowing capacity of the Government as basis
for policy decisions of the department;

(2) Supervise policy research and development on fiscal and tax

measures undertaken by the operating bureaus and offices of the
department;

(3) Coordinate with other government agencies on policy research and

its impact on fiscal and tax measures; and

(4) Perform such other functions as may be assigned by the Secretary

or his undersecretaries.

SECTION 10. Central Management Information Office. — The Central

Management Information Office shall have the following functions:

(1) Establish a Management Information System and sub-systems for

monitoring and evaluation of department-wide programs and
projects, including those that are executed by operating Bureaus
and Offices;

(2) Formulate policies, plans and procedures for data control and
systems management;

(3) Act as the central repository of existing and future computer files;
and

(4) Perform such other appropriate functions as may be assigned by

the Secretary or his undersecretaries.

SECTION 11. Central Administration Office. — The Central

Administration Office shall have the following functions:

(1) Supervise Department-wide services relating to internal cash

management, personnel administration, property and supplies
procurement and custody; and maintenance of central files, and
corresponding reporting systems;

(2) Assist in the formulation of policies and guidelines on the

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 management of human and physical resources and general
housekeeping activities for uniformity and standardization;

(3) Serve as a center for the establishment and periodic evaluation of

management operation systems, internal control and work outputs
to determine Department-wide performance efficiency;

(4) Design and develop training policies and guidelines, administer

and evaluate training programs and in coordination with external
training institutions, screen and recommend to the Secretary the
participation of Department personnel in training programs,
seminars and conferences in the country or abroad;

(5) Ensure that Department-wide activities and efforts are focused

towards a central direction as embodied in the national
socio-economic development plans; and

(6) Perform such other appropriate functions as may be assigned by

the Department or his Undersecretaries.

SECTION 12. Central Financial Management Office. — The Central

Financial Management Office shall have the following functions:

(1) Supervise Department-wide activities relating to budget

preparation and management, department accounting, and internal
audit;

(2) Perform such other appropriate functions as may be assigned by

the Department or his Secretary or his Undersecretaries.

SECTION 13. Public Information and Assistance Office. — The Public

Information and Assistance Office shall have the following functions:

(1) Provide policy direction and guidance to the operating Bureaus

and Offices of the Department for the proper dissemination of
appropriate information or Department- wide programs, operations
and activities;

(2) Provide the operating Bureaus and Offices with the general
framework for rendering direct assistance to the general public;

(3) Receive complaints and grievances from the general public;

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 prepare referrals to concerned Bureaus and Offices and monitor
responses or actions taken; and

(4) Perform such other appropriate functions as may be assigned by

the Secretary or Undersecretary for Policy Development and
Management Service.

SECTION 14. Legal Office. — The Legal Office shall have the following
functions:

(1) Prepare draft opinions or rulings for the signature of the

Department Secretary or his Undersecretaries on matters elevated
to it by the Bureaus and Offices of the Department;

(2) Conduct legal researches on all matters referred to it by the

Secretary or his Undersecretaries; and

(3) Perform such other appropriate functions as may be assigned by

the Secretary or his Undersecretaries.

SECTION 15. Regional Coordination Office. — The function of the

Regional Coordination Office is to coordinate the operations of the Regional Offices.

CHAPTER 4

Bureaus

SECTION 16. Operations Groups. — The Operations Groups, each of

which shall be headed by an Undersecretary, shall consist of the following:

(1) Revenue Operations Group, composed of the following:

(a) Bureau of Internal Revenue;

(b) Bureau of Customs;

(c) Revenue Service;

(d) Legal Service;

(2) Domestic Operations Group, composed of the following:

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 (a) Bureau of Treasury;

(b) Bureau of Local Government Finance;

(c) Financial and Fiscal Policy and Planning Office;

(3) International Finance Group, composed of the following:

(a) International Finance Policy Office;

(b) International Finance Operations Office.

SECTION 17.

SECTION 18. The Bureau of Internal Revenue. — The Bureau of

Internal Revenue, which shall be headed by and subject to the supervision and control
of the Commissioner of Internal Revenue, who shall be appointed by the President
upon the recommendation of the Secretary shall have the following functions:

(1) Assess and collect all taxes, fees and charges and account for all
revenues collected;

(2) Exercise duly delegated police powers for the proper performance
of its functions and duties;

(3) Prevent and prosecute tax evasions and all other illegal economic
activities;

(4) Exercise supervision and control over its constituent and

subordinate units; and

(5) Perform such other functions as may be provided by law.

The Commissioner of Internal Revenue, with the approval of the Secretary of

Finance, shall draft and prepare the necessary rules and regulations as may be needed
to delineate the authority and responsibility of the various groups and services of the
Bureau.

SECTION 19. Deputy Commissioners. — The Commissioner shall be

assisted by two (2) Deputy Commissioners. Each Deputy Commissioner shall
supervise one (1) of the groups defined in Sec. 20 below, to be assigned by the

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 Commissioner.

SECTION 20. Composition of the Bureau of Internal Revenue. — The

Bureau of Internal Revenue shall be composed of the following:

(1) Assessment and Collection Group, headed and supervised by a

Deputy Commissioner and composed of the following services,
each of which shall be headed by a Revenue Chief;

(2) Legal and Internal Administration Group, headed and supervised

by a Deputy Commissioner and composed of the following
services, each of which shall be headed by a Service Chief.

SECTION 21. Appointment by the President. — The aforementioned

Undersecretaries shall be appointed by the President upon the recommendation of the
Secretary.

SECTION 22. Management and Technical Staff . — The Commissioner

and the two (2) Deputy Commissioners shall each have a Management and Technical
Staff to render technical and secretarial support services.

SECTION 23. Bureau of Customs. — The Bureau of Customs which

shall be headed and subject to the management and control of the Commissioner of
Customs, who shall be appointed by the President upon the recommendation of the
Secretary and hereinafter referred to as Commissioner, shall have the following
functions:

(1) Collect customs duties, taxes and the corresponding fees, charges
and penalties;

(2) Account for all customs revenues collected;

(3) Exercise police authority for the enforcement of tariff and customs
laws;

(4) Prevent and suppress smuggling, pilferage and all other economic
frauds within all ports of entry;

(5) Supervise and control exports, imports, foreign mails, and the
clearance of vessels and aircrafts in all ports of entry;

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 (6) Administer all legal requirements that are appropriate;

(7) Prevent and prosecute smuggling and other illegal activities in all
ports under its jurisdiction;

(8) Exercise supervision and control over its constituent units;

(9) Perform such other functions as may be provided by law.

SECTION 24. Composition. — The Bureau of Customs shall be composed

of the following:

(1) Customs Revenue Collection Monitoring Group, headed and

supervised by a Deputy Commissioner and composed of Legal,
Financial and Collection Services, each of which shall be headed
by a service chief;

(2) Customs Assessment and Operations Coordinating Group, headed

and supervised by a Deputy Commissioner and composed of the
Imports and Assessment and Ports Operations Services, each of
which shall be headed by a Service Chief; and

(3) Intelligence and Enforcement Group, headed and supervised by a

Deputy Commissioner and composed of the Intelligence and
Investigation Service and the Enforcement and Security Service.

SECTION 25. Appointment by President. — The aforementioned Deputy

and Assistant Commissioners shall be appointed by the President upon the
recommendation of the Commissioner of Customs in keeping with the intent of
Executive Order No. 9.

SECTION 26. Definition of Functions. — (1) Customs Revenue Collection

Monitoring Group. The Customs Revenue Collection Monitoring Group shall have
the following functions:

(a) Maintain an updated accounting for all Customs revenues

collected;

(b) Administer legal requirements of the Bureau of Customs to include

litigation and prosecution of cases;

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 (c) Provide the Commissioner of Customs with accurate and timely
information and analysis of collection statistics;

(d) Conduct continuing audit of liquidated entries and outstanding

bonds; and

(e) Perform such other appropriate functions consistent with the

assigned tasks of the group and others which may be given by the
Commissioner;

(2) Customs Assessment and Operations Coordinating Group. The Customs

Assessment and Operations Coordinating Group shall have the following functions:

(a) Regularly gather and upon approval of the Commissioner, publish

values of commodities imported into the Philippines, such values
being the bases for the computation of customs duties and other
revenues;

(b) Monitor for decision-making purposes the implementation of rules

and regulations governing assessment, warehousing and support
operations;

(c) Monitor auction and disposal activities together with port/airport

operations related activities for decision-making purposes; and

(d) Perform other appropriate functions consistent with the assigned

tasks of the Group which may be given by the Commissioner.

(3) Intelligence and Enforcement Group. The Intelligence and

Enforcement Group shall have the following functions:

(a) Regularly and consistently gather intelligence information related

to customs and economic activities for proper dissemination to the
Customs offices concerned;

(b) Conduct internal inquiry and investigation which may serve as the
basis for prosecution;

(c) Exercise police authority conferred by the Tariff and Customs

Code or other laws which include the enforcement of seizures and
forfeitures and the imposition of penalties and fines; and
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 (d) Perform such other appropriate functions consistent with the
assigned tasks of the Group and others which may be given by the
Commissioner.

SECTION 27. The Collection Districts. — (1) The Bureau shall have
thirteen (13) Collection Districts under the direct control and supervision by the
Commissioner. Each Collection District shall have as many subports as necessary to
maximize revenue collection and the prevention of smuggling and fraud against
customs. Each Collection District shall be headed and supervised by a District
Collector while each subport will be headed by a Port Collector. The Collectors shall
have the following functions:

(a) Collect duties, taxes, fees, charges, penalties and fines accruing to
the Government under the Tariff and Customs Code and related
laws;

(b) Exercise police powers conferred to him/her by the Tariff and

Customs Code or other laws which include the enforcement of
penalties and fines;

(c) Examine goods, assess duties, fees, charges, penalties and fines
accruing to the Government under the Tariff and Customs Code
and other related laws;

(d) Supervise the entrance and clearance of vessels and aircrafts

engaged in foreign commerce;

(e) Supervise and control handling of foreign mails arriving in the

Philippines; and

(f) Supervise all import and export cargoes landed and/or stored in
piers, airports, terminal facilities, yards and freight stations;

(2) Perform such other appropriate functions consistent with the assigned
task of the District/Port Collectors and those which may be given by the
Commissioner.

SECTION 28. Management and Technical Staff . — The Commissioner

and three (3) Deputy Commissioners, and the Assistant Commissioner shall each have
a Management and Technical Staff, which shall be limited to a specific number of
personnel as determined by the Secretary, to render technical and secretarial support
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 services.

SECTION 29. Bureau of Treasury. — The Bureau of Treasury,

which shall be headed by and subject to the supervision and control of the National
Treasurer who shall be appointed by the President upon the recommendation of the
Secretary, shall have the following functions:

(1) Act as the principal custodian of all national government funds;

(2) Assist in the formulation of, and execute, policies on financial

management, public borrowings and capital market development;

(3) Formulate, in coordination with government agencies concerned,

annual projections of revenue needs, cash position and borrowing
capacity of the government;

(4) Maintain accounts of the financial transactions of all national

secretaries, bureaus, agencies and instrumentalities;

(5) Manage the cash resources of the Government and perform

banking functions in relation to receipts and disbursements of
national funds;

(6) Manage, control and service public debts from domestic or foreign
sources;

(7) Exercise line supervision over its Regional Offices/field units

within Department Regional Administrative Coordination Offices;
and

(8) Perform such other appropriate functions as may be assigned by

the Secretary or Undersecretary for Domestic Operations.

SECTION 30. Composition. — The Bureau of Treasury shall be composed

of the following:

(1) Internal Affairs Sub-Sector under the direct supervision and

control of an Assistant National Treasurer and composed of the
following:

(a) Administrative Service;

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 (b) Financial and Management Service;

(c) Management Information and Data Systems Service;

(d) Planning and Policy Research Division;

(e) Public Information and Assistance Division; and

(f) Legal Division.

(2) National Government Affairs Sub-Sector under the direct

supervision and control of an Assistant National Treasurer and
composed of the following:

(a) Public Debt Management Service;

(b) Debt Clearing Service;

(c) National Cash Accounts Service;

(d) Treasury Banking Service;

(e) Operations Planning Service;

(f) Regional Offices which shall have under their supervision

all provincial offices and shall be under the direct control
and supervision of the National Treasurer.

SECTION 31. Assistance to National Treasurer. — The National

Treasurer shall be directly assisted by the:

(1) Management and Technical Staff, which shall perform the

functions of rendering technical and secretarial support services;

(2) Intelligence and Investigation Office, which shall perform the

following functions:

(a) Monitor, gather and evaluate reports on financial and

economic activities of persons or entities, foreign and
domestic, which may adversely affect national financial
interests;

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 (b) Perform such other appropriate functions as may be
assigned by the National Treasurer.

SECTION 32. Appointment by the President. — The aforementioned two

(2) Assistant National Treasurers shall be appointed by the President upon the
recommendation of the Secretary.

SECTION 33. Bureau of Local Government Finance. — The Bureau of

Local Government Finance, which shall be headed by and subject to the supervision
and control of an Executive Director who shall be appointed by the President and
upon the recommendation of the Secretary, shall have the following functions:

(1) Assist in the formulation and implementation of policies on local

government revenue administration and fund management;

(2) Exercise administrative and technical supervision and coordination

over the treasury and assessment operations of local governments;

(3) Develop and promote plans and programs for the improvement of
resource management systems, collection enforcement
mechanisms, and credit utilization schemes at the local levels;

(4) Provide consultative services and technical assistance to the local

governments and the general public on local taxation, real property
assessment and other related matters;

(5) Exercise line supervision over its Regional Offices/field units

within the Department Regional Administrative Coordination
Office and the Local Treasury and Assessment Services; and

(6) Perform such other appropriate functions as may be assigned by

the Secretary or Undersecretary for Domestic Operations.

SECTION 34. Composition. — The Bureau of Local Government Finance

shall be composed of the following:

(1) Internal Administration Office;

(2) Policy Enforcement and Special Projects Group;

(3) Field Operations Examination Group.

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 SECTION 35. Assistance to the Executive Director. — The Executive
Director shall be directly assisted by the:

(1) Management and Technical Staff, which shall perform the

functions of rendering technical and secretarial support services;

(2) Intelligence and Investigation Office, which shall perform the

following functions:

(a) Monitor, gather and evaluate reports on financial and

economic activities of persons or entities, foreign and
domestic, which may adversely affect national financial
interests;

(b) Perform such other appropriate functions as may be

assigned by the Director.

SECTION 36. Financial and Fiscal Policy Planning. — The Financial and
Fiscal Policy and Planning Office, which shall be headed by a Director who shall be
appointed by the President upon the recommendation of the Secretary, shall have the
following functions:

(1) Coordinate, in consultation with the appropriate government

agencies, the formulation of integrated financial and fiscal plans of
the national Government and the local governments, consistent
with the national development plan;

(2) Monitor and review the implementation of such financial and fiscal
plans in relation to recent developments in the economy;

(3) Coordinate with other government agencies involved in financial,

fiscal and economic planning and policy formulation;

(4) Undertake special studies and research projects on financial and

fiscal policies;

(5) Coordinate the formulation and assessment of Department policies

affecting domestic finance operations with the different bureaus
and offices of the Department; and

(6) Perform such other appropriate functions as may be assigned by

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 the Secretary, the Undersecretary for Domestic Operations or the
Assistant Secretary directly assisting the Undersecretary for
Domestic Operations.

SECTION 37. International Finance Policy Office. — The International

Finance Policy Office, headed by a Director who shall be appointed by the President
upon recommendation of the Secretary, shall have the following functions:

(1) Monitor and analyze international monetary, financial and trade

developments and their implications for the Philippine economy
and evolve proposals for appropriate response to said events;

(2) Provide inputs into the formulation of fiscal, monetary, financial,

foreign trade and exchange rate policies as well as budgetary and
balance of payments programming in line with domestic economic
goals and the external financial and trade environment;

(3) Formulate and monitor a foreign financing program on the basis of

domestic requirements and trends in development assistance and
other capital flows;

(4) Interact with multilateral, regional and other international

organizations and formulate in coordination with appropriate
agencies Philippine positions on institutional and policy issues
taken up in these bodies;

(5) Coordinate with other appropriate secretaries and government

agencies in areas concerning international finance and foreign
trade; and

(6) Perform such other appropriate functions as may be assigned by

the Secretary or Undersecretary for International Finance.

SECTION 38. International Finance Operations Office. — The

International Finance Operations Office, headed by a Director, shall have the
following functions:

(1) Assist in the formulation of policies and guidelines for foreign

borrowings including provisions of government guarantees and
monitor compliance with these policies;

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 (2) Provide support work for international financial negotiations and
participate in such negotiations with multilateral financial
institutions, bilateral creditors and donors and commercial
creditors. This includes negotiations for new assistance (grants and
loans) as well as for debt rescheduling;

(3) Monitor implementation of projects funded by foreign assistance

and credits, utilization of such external resources and compliance
with commitments as well as debt repayment obligations;

(4) Assist in the structuring and conduct of international conferences

and meetings of the Department's officers (the term "officer" as
used in this Executive Order is intended to be within the meaning
of the term "official" as used in the Freedom Constitution) with
foreign dignitaries or organizations; and

(5) Perform such other appropriate functions as may be assigned by

the Secretary or Undersecretary for International Finance.

SECTION 39. Administrative Staff . — The Undersecretary for

International Finance shall be directly assisted by a Finance Attache Division and
Administrative Staff.

CHAPTER 5

Regional Offices

SECTION 40. Regional Offices. — There shall be a Regional Office in

each region. Each Regional Office shall be headed by a Regional Director.

A Regional Office shall have, within its administrative region, the following
functions:

(1) Implement laws, rules and regulations, policies, plans, programs

and projects of the Department;

(2) Provide efficient and effective services to the people;

(3) Coordinate with regional offices of other departments, offices and

agencies in the region;

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 (4) Coordinate with local government units; and

(5) Perform such other functions as may be provided by law.

SECTION 41. DOF-RACO. — For purposes of achieving maximum

utilization of resources, management coordination and administrative integration at
the regional levels, there is hereby created a Department of Finance Regional
Administrative Coordination Office (DOF-RACO) in each of the administrative
regions of the country, to be headed by a Regional Executive Director who shall
report directly to the Undersecretary for Internal Administration. The Secretary shall
define the appropriate functions to be delegated to the DOF-RACO.

The Regional Offices of each operating Bureau under the Department,

however, shall remain under the technical supervision and control of the head of the
Bureau to which they belong. For monitoring purposes, however, each Regional
Office shall submit operational reports to the DOF-RACO as required.

CHAPTER 6

Attached Agencies

SECTION 42. Attached Agencies. — The following agencies are hereby

attached to the Department:

(1) Philippine Crop Insurance Corporation;

(2) Philippine Export and Foreign Loan Guarantee Corporation;

(3) Insurance Commission;

(4) National Tax Research Center;

(5) Central Board of Assessment Appeals; and

(6) Fiscal Incentives Review Board.

SECTION 43. Functions of the Attached Agencies. — The agencies

attached to the Department shall continue to operate and function in accordance with
the respective charters, laws, or orders creating them, except as otherwise provided in
this Code.

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 TITLE III

Justice

CHAPTER 1

General Provisions

SECTION 1. Declaration of Policy. — It is the declared policy of the

State to provide the government with a principal law agency which shall be both its
legal counsel and prosecution arm; administer the criminal justice system in
accordance with the accepted processes thereof consisting in the investigation of the
crimes, prosecution of offenders and administration of the correctional system;
implement the laws on the admission and stay of aliens, citizenship, land titling
system, and settlement of land problems involving small landowners and members of
indigenous cultural minorities; and provide free legal services to indigent members of
the society.

SECTION 2. Mandate. — The Department shall carry out the policy

declared in the preceding section.

SECTION 3. Powers and Functions. — To accomplish its mandate, the

Department shall have the following powers and functions:

(1) Act as principal law agency of the government and as legal counsel
and representative thereof, whenever so required;

(2) Investigate the commission of crimes, prosecute offenders and

administer the probation and correction system;

(3) Extend free legal assistance/representation to indigents and poor

litigants in criminal cases and non-commercial civil disputes;

(4) Preserve the integrity of land titles through proper registration;

(5) Investigate and arbitrate untitled land disputes involving small

landowners and members of indigenous cultural communities;

(6) Provide immigration and naturalization regulatory services and

implement the laws governing citizenship and the admission and
stay of aliens;

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 (7) Provide legal services to the national government and its
functionaries, including government-owned or controlled
corporations and their subsidiaries; and

(8) Perform such other functions as may be provided by law.

SECTION 4. Organizational Structure. — The Department shall consist

of the following constituent units:

(1) Department proper;

(2) Office of the Government Corporate Counsel;

(3) National Bureau of Investigation;

(4) Public Attorney's Office (as an attached agency);

(5) Board of Pardons and Parole;

(6) Parole and Probation Administration;

(7) Bureau of Corrections;

(8) Land Registration Authority;

(9) Bureau of Immigration; and

(10) Commission on the Settlement of Land Problems.

CHAPTER 2

Department Proper

SECTION 5. The Department Proper. — The Department Proper shall be

composed of the Office of the Secretary and the Undersecretaries, Technical and
Administrative Service, Financial Management Service, Legal Staff and the Office of
the Chief State Prosecutor.

SECTION 6. Undersecretaries. — The Secretary is hereby authorized to

delineate and assign the respective functional areas of responsibility of the
Undersecretaries, provided, that such responsibility shall be with respect to the
mandate and objectives of the Department; and provided, that such responsibility

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 shall be with respect primarily administrative responsibilities. [sic] Within his
functional area of responsibility, an Undersecretary shall have the following
functions:

(1) Advise and assist the Secretary in the formulation and

implementation of the Department's policies, plans, programs and
projects;

(2) Oversee the operational activities of the Department;

(3) Coordinate the programs and projects of the Department for

efficient and effective administration;

(4) Serve as deputy for the Secretary;

(5) Perform, when so designated, the powers and functions of the

Secretary, during the latter's absence or incapacity; and

(6) Perform such other functions as may be provided by law or

assigned by the Secretary to promote efficiency and effectiveness
in the delivery of frontline services.

SECTION 7. Legal Staff. — The Legal Staff shall have the following
functions:

(1) Assist the Secretary in the performance of his duties as Attorney

General of the Philippines and as ex-officio legal adviser of
government-owned or controlled corporations or enterprises and
their subsidiaries;

(2) Prepare and finally act for and in behalf of the Secretary on all
queries and/or requests for legal advice or guidance coming from
private parties, and minor officials and employees of the
government;

(3) Maintain and supervise the operation of the Department Law

Library as well as its personnel; and

(4) Perform such other functions as are now or may hereafter be

provided by law or assigned by the Secretary.

SECTION 8. Office of the Chief State Prosecutor. — The Office of the

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 Chief State Prosecutor shall have the following functions:

(1) Assist the Secretary in the performance of powers and functions of

the Department relative to its role as the prosecution arm of the
government;

(2) Implement the provisions of laws, executive orders and rules, and
carry out the policies, plans, programs and projects of the
Department relative to the investigation and prosecution of
criminal cases;

(3) Assist the Secretary in exercising supervision and control over the
National Prosecution Service as constituted under P.D. No. 1275
and/or otherwise hereinafter provided; and

(4) Perform such other functions as may be provided by law or

assigned by the Secretary.

SECTION 9. Provincial/City Prosecution Offices. — The Provincial and

City Fiscal's Office established in each of the provinces and cities pursuant to law, is
retained and renamed Provincial/City Prosecution Office. It shall be headed by a
Provincial Prosecutor or City Prosecutor, as the case may be, assisted by such number
of Assistant Provincial/City Prosecutors as fixed and/or authorized by law. The
position titles of Provincial and City Fiscal and of Assistant Provincial and City Fiscal
are hereby abolished.

All provincial/city prosecution offices shall continue to discharge their

functions under existing law.

All provincial and city prosecutors and their assistants shall be appointed by
the President upon the recommendation of the Secretary.

CHAPTER 3

Office of the Government Corporate Counsel

SECTION 10. Office of the Government Corporate Counsel. — The

Office of the Government Corporate Counsel (OGCC) shall act as the principal law
office of all government-owned or controlled corporations, their subsidiaries, other
corporate offsprings and government acquired asset corporations and shall exercise
control and supervision over all legal departments or divisions maintained separately

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 and such powers and functions as are now or may hereafter be provided by law. In the
exercise of such control and supervision, the Government Corporate Counsel shall
promulgate rules and regulations to effectively implement the objectives of the
Office.

The OGCC is authorized to receive the attorney's fees adjudged in favor of

their client government-owned or controlled corporations, their subsidiaries, other
corporate offsprings and government acquired asset corporations. These attorney's
fees shall accrue to a special fund of the OGCC, and shall be deposited in an
authorized government depository as a trust liability and shall be made available for
expenditure without the need for a Cash Disbursement Ceiling, for purposes of
upgrading facilities and equipment, granting of employees' incentive pay and other
benefits, and defraying such other incentive expenses not provided for in the General
Appropriations Act as may be determined by the Government Corporate Counsel.

CHAPTER 4

National Bureau of Investigation

SECTION 11. National Bureau of Investigation. — The National Bureau

of Investigation (NBI) with all its duly authorized constituent units including its
regional and district offices and rehabilitation centers, shall continue to perform the
powers and functions as are now vested in it under the existing law and such
additional functions as may hereafter be provided by law.

SECTION 12. The NBI Director and Other Officials. — The NBI shall be
headed by a Director assisted by an Assistant Director and five (5) Deputy Directors,
for Intelligence, Investigation, Technical, Administrative and Comptroller Services,
respectively.

The NBI is also authorized to continue the operation and maintenance of a

Regional Office in each of the twelve (12) administrative regions of the country, to be
headed by a Regional Director and assisted by an Assistant Regional Director.

SECTION 13. Internal Organization and Assignment of Personnel. —

Subject to prior approval of the Secretary and to the limitations prescribed in the
General Appropriations Act for personnel services expenditures in the NBI, the NBI
director may be authorized to determine the internal organization of the constituent
units of the Bureau including the composition and size thereof and the number,
classes and level of positions (below the rank of presidential appointees) to be

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 assigned or allocated thereto.

CHAPTER 5

Public Attorney's Office

SECTION 14. Public Attorney's Office (PAO). — The Citizen's Legal

Assistance Office (CLAO) is renamed Public Attorney's Office (PAO). It shall
exercise the powers and functions as are now provided by law for the Citizen's Legal
Assistance Office or may hereafter be provided by law.

The PAO shall be an independent and autonomous office, but attached to

the Department of Justice in accordance with Section 38(3), Chapter 7 of Book
IV of this Code for purposes of policy and program coordination.

The PAO shall be the principal law office of the Government in extending
free legal assistance to indigent persons in criminal, civil, labor, administrative
and other quasi-judicial cases.

SECTION 14-A. Powers and Functions. — The PAO shall independently

discharge its mandate to render, free of charge, legal representation, assistance,
and counselling to indigent persons in criminal, civil, labor, administrative and
other quasi-judicial cases. In the exigency of the service, the PAO may be called
upon by proper government authorities to render such service to other persons,
subject to existing laws, rules and regulations.

SECTION 15. Organizational Structure. — The PAO shall consist of the

following constituent units:

(1) Office of the Chief Public Attorney and two (2) Deputy Chief
Public Attorneys to serve as a 'Deputy Chief Public Attorney
for Administration' and placed in charge of three divisions,
namely: Administrative; Financial Planning and Management;
and Executive Division, while the other to serve as 'Deputy
Chief Public Attorney for Operations' and shall be responsible
for special and appealed cases; legal research; and field
services and statistics upon the designation by the Chief Public
Attorney. One of the deputies shall be designated as Deputy
Chief Public Attorney for Luzon and the other Deputy Chief
Public Attorney for Visayas and Mindanao.

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 (2) Six (6) line divisions in the Central Office, namely:
Administrative; Financial Planning and Management; Special and
Appealed Cases; Legal Research and Statistics; Field Services and
Statistics; and Executive Divisions.

(3) Regional, Provincial, City and Municipal District Offices.

SECTION 16. The Chief Public Attorney and Other PAO Officials. — The
PAO shall be headed by a Chief Public Attorney and shall be assisted by two (2)
Deputy Chief Public Attorneys. Each PAO Regional Office established in each of the
administrative regions of the country shall be headed by a Regional Public Attorney
who shall be assisted by an Assistant Regional Public Attorney. The authority and
responsibility for the exercise of the mandate of the PAO and for the discharge
of its powers and functions shall be vested in the Chief Public Attorney.

The Office of the Chief Public Attorney shall include his/her immediate
staff, the six (6) line divisions in the Central Office, the Deputy Chief Public
Attorneys and the Regional, Provincial, City and Municipal District Offices.

The Chief Public Attorney shall have the same qualifications for
appointment, rank, salaries, allowances, and retirement privileges as those of the
Chief State Prosecutor of the National Prosecution Service. The Deputy Chief
Public Attorneys shall have the same qualifications for appointment, rank,
salaries, allowances, and retirement privileges as those of the Assistant Chief
State Prosecutor of the National Prosecution Service.

The services herein created shall each be headed by a staff director who
shall have the same qualifications for appointment, rank, salaries, allowances
and privileges as those of staff director of the National Prosecution Service.

Each of the PAO Regional Offices shall be headed by a Regional Public

Attorney who shall be assisted by an Assistant Regional Public Attorney. The
regional offices shall have such provincial, city and municipal district offices as
may be necessary.

The Regional Public Attorney and the Assistant Regional Public Attorney
shall have the same qualifications for appointment, rank, salaries, allowances,
and retirement privileges as those of a Regional State Prosecutor and the
Assistant Regional State Prosecutor of the National Prosecution Service,
respectively.
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 The Provincial Public Attorney, City Public Attorney and the Municipal
District Public Attorney shall have the same qualifications for appointment,
rank, salaries, allowances and retirement privileges as those of a Provincial
Prosecutor and City Prosecutor as the case may be, of the National Prosecution
Service, respectively.

The other administrative personnel in the PAO shall have the rank and
salaries equivalent to their counterpart in the National Prosecution Service.

SECTION 16-A. Appointment. — The Chief Public Attorney and the

Deputy Chief Public Attorneys shall be appointed by the President. The Deputy
Chief Public Attorneys and Regional Public Attorneys shall be appointed by the
President upon the recommendation of the Chief Public Attorney. The Chief
Public Attorney, Deputy Chief Public Attorneys and Regional Public Attorneys
shall not be removed or suspended, except for cause provided by law: Provided,
That the Deputy Chief Public Attorneys, the Regional Public Attorneys and the
Assistant Regional Public Attorneys, the Provincial Public Attorneys, the City
Public Attorneys, and the Municipal District Public Attorneys shall preferably
have served as Public Attorneys for at least five (5) years immediately prior to
their appointment as such. The administrative and support personnel and other
lawyers in the Public Attorney's Office shall be appointed by the Chief Public
Attorney, in accordance with civil service laws, rules and regulations.

SECTION 16-B. Vacancy of Office. — In case of death, permanent

incapacity, removal or resignation of the incumbent Chief Public Attorney,
Deputy Chief Public Attorneys or Regional Public Attorneys or vacancy thereof,
the President shall appoint a new Chief, Deputy Chief or Regional Public
Attorney or shall designate one, as the case may be, in an acting capacity until a
new one shall have been appointed.

In case of temporary absence of the Chief Public Attorney, the latter may
designate an Officer-in-Charge to be a caretaker of the Office.

SECTION 16-C. Incumbent Officials and Personnel. — The incumbent

officials and personnel of the Public Attorney's Office shall continue holding
his/her position without the need of new appointment.

SECTION 16-D. Exemption from Fees and Costs of the Suit. — The clients
of the PAO shall be exempt from payment of docket and other fees incidental to
instituting an action in court and other quasi-judicial bodies, as an original
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 proceeding or on appeal. IHCacT

The costs of the suit, attorney's fees and contingent fees imposed upon the
adversary of the PAO clients after a successful litigation shall be deposited in the
National Treasury as trust fund and shall be disbursed for special allowances of
authorized officials and lawyers of the PAO.

SECTION 16-E. Local Government Support. — Local government units,

subject to their capabilities, are authorized to extend financial and other support
in the form of honoraria, free office space, equipment, furniture, stationery, and
manpower to the PAO.

SECTION 16-F. Franking Privilege. — The PAO may transmit through

ordinary mail and/or registered mail with return card, free of charge, all official
communications and papers directly connected with the conduct of its duties,
functions and/or its exercise of administrative supervision over its personnel.

The envelope or wrapper of the privileged mail matter shall bear on the
left upper corner 'Public Attorney's Office' together with its address and on the
right upper corner, the word 'Private or unauthorized use to avoid payment of
postage is penalized by fine or imprisonment or both.'

CHAPTER 6

Board of Pardons and Parole

SECTION 17. Board of Pardons and Parole. — The Board of Pardons and
Parole shall continue to discharge the powers and functions as provided in existing
law and such additional functions as may be provided by law.

SECTION 18. Board Composition. — The Board shall be composed of the

Secretary as Chairman and six (6) members consisting of: The Administrator of the
Parole and Probation Administration as ex-officio member, a sociologist, a clergyman,
an educator, a person with training and experience in correction work, and a member
of the Philippine Bar; Provided, that one of them is a woman. The members of the
Board shall be appointed by the President upon the recommendation of the Secretary
and shall hold office for a term of six (6) years, without prejudice to reappointment.

In case of vacancy by reason of death, incapacity, resignation or removal of

any of the Board members, the Secretary shall have the authority to designate a
temporary member possessing the qualifications of his predecessor and to serve out
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 his unexpired term or until the President shall have appointed a regular member to fill
the vacancy.

SECTION 19. Executive Director and Board Secretary; Support Staff . —

In the performance of his duties as Chairman of the Board of Pardons and Parole, the
Secretary shall be assisted by a staff headed by the Executive Director who is at the
same time the Secretary of the Board. The Executive Director shall be appointed by
the President upon the recommendation of the Secretary. The Executive Director shall
receive a monthly salary of thirteen thousand five hundred pesos.

The Board Secretary shall prepare and keep the minutes of all the board
sessions in a book of records kept for the purpose, as well as all the resolutions and
recommendations of the Board on all actions involving parole, pardons and executive
clemency to the President; authenticate and/or attest all minutes, resolutions and
recommendations of the Board; prepare and serve all notices of board meetings or
sessions to the members of the Board; prepare an annual report of all resolutions and
recommendations for parole or executive clemency and other reports that the
Department may require. He shall also perform such other functions as the Board may
from time to time assign to him.

SECTION 20. Board Meetings. — The Board shall meet regularly every
week, or as the Board may direct, or upon call by the Chairman/Secretary. The
members shall act only as a Board, and every decision of the majority shall be valid
as an act of the Board provided, that the Board may direct a Board member to prepare
and submit a report involving any application for parole, pardon or any request for
executive clemency for appropriate action by the Board.

SECTION 21. Board Rules and Regulations. — The Board is hereby

authorized to establish and prescribe, subject to the approval of the Secretary, rules
and regulations to govern the proceedings of the Board.

SECTION 22. Indeterminate Sentence Law. — The provisions of Act No.

4103, otherwise known as the Indeterminate Sentence Law, as amended, shall
continue to apply except as otherwise amended, modified or repealed by this Code.

CHAPTER 7

Parole and Probation Administration

SECTION 23. Parole and Probation Administration. — The Parole and

Probation Administration hereinafter referred to as the Administration shall have the
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 following functions:

(1) Administer the parole and probation system;

(2) Exercise general supervision over all parolees, and probationers;

(3) Promote the correction and rehabilitation of offenders; and

(4) Such other function as may hereafter be provided by law.

SECTION 24. Structural and Personnel Organization. — (1) The

Administration shall be headed by an Administrator who shall be immediately
assisted by a Deputy Administrator. The Administrator and Deputy Administrator
shall be appointed by the President upon the recommendation of the Secretary.

The appointees to the positions of Administrator and Deputy Administrator

must be holders of a doctoral/masteral degree in public administration and/or lawyers
with at least one year of supervisory experience in probation work.

(2) The Administration shall have a Technical Service under the Office of the
Administrator which shall serve as the service arm of the Board of Pardons and Parole
in the supervision of parolees and pardonees.

The Board and the Administration shall jointly determine the staff complement
of the Technical Service.

(3) The Administration shall likewise continue to operate and maintain a

Regional Office in each of the administrative regions including the National Capital
Region and also a probation and parole office in every province and city of the
country.

The Regional, Provincial and City Offices of the Administration shall each be
headed by a Regional Probation and Parole Officer, Provincial/City Probation and
Parole Officer, respectively, all of whom shall be appointed by the Secretary upon the
recommendation of the Administrator.

The Provincial or City Probation and Parole Officers shall be assisted by such
field assistants and subordinate personnel as may be necessary to enable them to carry
out their duties and functions. For this purpose, the Administrator may appoint
citizens of good repute and probity to act as Probation and Parole Aides who shall not
receive any regular compensation for their services except reasonable travel

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 allowance.

SECTION 25. Applicability of P.D. No. 968, as amended. — The

Provisions of P.D. 968 otherwise known as the Probation Law of 1976 shall continue
to govern the operation and management of the Administration including the
enumeration of functions and qualifications for appointment of the Administrator,
Deputy Administrators, Regional, Provincial and City Probation Officers and their
assistants and other subordinate personnel not inconsistent with this title.

CHAPTER 8

Bureau of Corrections

SECTION 26. Bureau of Corrections. — The Bureau of Corrections shall

have its principal task the rehabilitation of prisoners. The Bureau of Corrections shall
exercise such powers and functions as are now provided for the Bureau of Prisons or
may hereafter be provided by law.

SECTION 27. Structural and Personnel Organization. — The Bureau of

Corrections shall be headed by a Director who shall be assisted by two (2) Assistant
Directors, one for Administration and Rehabilitation and one for Prisons and Security.
The Director and Assistant Directors of the Bureau shall be appointed by the
President upon recommendation of the Secretary.

The Bureau shall carry out its functions through its divisions and its seven (7)
Penal institutions namely — New Bilibid Prisons, Correctional Institution for
Women, Iwahig, Davao, San Ramon and Sablayan Prisons and Penal Farms and the
Leyte Regional Prisons.

CHAPTER 9

Land Registration Authority

SECTION 28. The Land Registration Authority. — The Land Registration

Authority, hereinafter referred to as the Authority shall continue to exercise its
powers and functions under existing law on the Land Titles and Deeds Registration
Authority and those which may hereafter be provided by law.

SECTION 29. Organizational Structure. — The Authority shall be headed

by an Administrator who shall be assisted by two (2) Deputy Administrators, all of
whom shall be appointed by the President upon the recommendation of the Secretary.

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 SECTION 30. Reorganization of Registry Offices in the National Capital
Region. — The Registries of Deeds in the National Capital Region is hereby
reorganized as follows:

(1) The Registries of Deeds in the cities of Manila, Quezon, Pasay and
Caloocan shall be maintained;

(2) There is hereby created Registries of Deeds in the Municipalities

of Navotas, Malabon, Valenzuela, Mandaluyong, San Juan,
Marikina, Las Piñas and Parañaque with jurisdiction over their
respective municipalities;

(3) The Registry of Deeds of Pasig shall be maintained with

jurisdiction over the Municipalities of Pasig, Taguig and Pateros;
and

(4) The Registry of Deeds of Makati shall have jurisdiction over the
municipalities of Makati and Muntinlupa.

CHAPTER 10

Bureau of Immigration

SECTION 31. Bureau of Immigration. — The Bureau of Immigration is

principally responsible for the administration and enforcement of immigration,
citizenship and alien admission and registration laws in accordance with the
provisions of the Philippine Immigration Act of 1940, as amended (C.A. No. 613, as
amended). The following units shall comprise the structural organization of the
Bureau:

(1) Office of the Commissioner and Associate Commissioners;

(2) Board of Commissioners — composed of the Commissioner as

Chairman and two (2) Associate Commissioners as members; and

(3) Boards of Special Inquiry which are authorized to be organized in

the Commission pursuant to the provisions of the Immigration Act
of 1940, as amended.

Subject to the provisions of existing law, the Secretary is hereby authorized to

review, revise and/or promulgate new rules and regulations to govern the conduct of
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 proceedings in the Board of Commissioners and the Boards of Special Inquiry,
including the determination of the size and number of the support staff to be assigned
thereat.

The Bureau shall be headed by a Commissioner assisted by two Associate

Commissioners, all of whom shall be appointed by the President upon the
recommendation of the Secretary.

The Commissioner and the two Associate Commissioners shall compose the
Board of Commissioners, a collegial body hereby granted exclusive jurisdiction over
all deportation cases. The Board shall also have appellate jurisdiction over decisions
of the Boards of Special Inquiry and shall perform such other functions as may be
provided by law.

Each Board of Special Inquiry shall be composed of a Chairman and two

members who shall be appointed by the Secretary upon the recommendation of the
Commissioner.

Likewise, the appointment of all the other personnel of the Bureau including
the designation of Acting Immigration Officers shall be vested in the Secretary upon
the recommendation of the Commissioner.

CHAPTER 11

Commission on the Settlement of Land Problems

SECTION 32. Commission on the Settlement of Land Problems. — The

Commission on the Settlement of Land Problems shall be responsible for the
settlement of land problems involving small landowners and members of cultural
minorities. It shall also perform such other functions, as are now or may hereafter be
provided by law.

SECTION 33. Structure and Personnel Organization. — The

Commission, as a collegial body, shall be composed of the Commissioner and two
Associate Commissioners. For administrative purposes, the Commissioner shall be
the head of the Commission and the two Associate Commissioners shall be his
immediate assistants.

The Commissioner and the two Associate Commissioners shall be appointed

by the President upon the recommendation of the Secretary. They shall have the same
qualifications for appointment and receive a salary, retirement benefits, longevity pay
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 and other privileges equivalent to that of an Associate Justice of the Court of Appeals
and a Judge of the Regional Trial Court, respectively, as provided in E.O. No. 561.

The Commission shall have a technical staff which shall be headed by an

Executive Director and assisted by a Deputy Executive Director who shall both be
appointed by the President upon the recommendation of the Secretary. All the other
members of the technical staff shall be appointed by the Secretary upon the
recommendation of the Commissioner.

When conditions in any province so warrant, the Commission may, subject to

the approval of the Secretary, establish a regional and provincial offices thereat which
shall exercise such powers and perform such functions as may be assigned to it by the
Commission.

CHAPTER 12

Office of the Solicitor General

SECTION 34. Organizational Structure. — The Office of the Solicitor

General shall be an independent and autonomous office attached to the Department of
Justice.

The Office of the Solicitor General shall be headed by the Solicitor General,
who is the principal law officer and legal defender of the Government. He shall have
the authority and responsibility for the exercise of the Office's mandate and for the
discharge of its duties and functions, and shall have supervision and control over the
Office and its constituent units.

The Solicitor General shall be assisted by a Legal Staff composed of fifteen

(15) Assistant Solicitors General, and such number of Solicitors and Trial Attorneys
as may be necessary to operate the Office, which shall be divided into fifteen (15)
divisions: Provided, That the Solicitor General may assign or transfer the Assistant
Solicitors General, Solicitors or Trial Attorneys to any of the divisions.

SECTION 35. Powers and Functions. — The Office of the Solicitor

General shall represent the Government of the Philippines, its agencies and
instrumentalities and its officials and agents in any litigation, proceeding,
investigation or matter requiring the services of a lawyer. When authorized by the
President or head of the office concerned, it shall also represent government-owned or
controlled corporations. The Office of the Solicitor General shall constitute the law
office of the Government and, as such, shall discharge duties requiring the services of
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 a lawyer. It shall have the following specific powers and functions:

(1) Represent the Government in the Supreme Court and the Court of
Appeals in all criminal proceedings; represent the Government and
its officers in the Supreme Court, the Court of Appeals, and all
other courts or tribunals in all civil actions and special proceedings
in which the Government or any officer thereof in his official
capacity is a party.

(2) Investigate, initiate court action, or in any manner proceed against

any person, corporation or firm for the enforcement of any
contract, bond, guarantee, mortgage, pledge or other collateral
executed in favor of the Government. Where proceedings are to be
conducted outside of the Philippines the Solicitor General may
employ counsel to assist in the discharge of the aforementioned
responsibilities.

(3) Appear in any court in any action involving the validity of any
treaty, law, executive order or proclamation, rule or regulation
when in his judgment his intervention is necessary or when
requested by the Court.

(4) Appear in all proceedings involving the acquisition or loss of

Philippine citizenship.

(5) Represent the Government in all land registration and related

proceedings. Institute actions for the reversion to the Government
of lands of the public domain and improvements thereon as well as
lands held in violation of the Constitution.

(6) Prepare, upon request of the President or other proper officer of the
National Government, rules and guidelines for government entities
governing the preparation of contracts, making of investments,
undertaking of transactions, and drafting of forms or other writings
needed for official use, with the end in view of facilitating their
enforcement and insuring that they are entered into or prepared
conformably with law and for the best interests of the public.

(7) Deputize, whenever in the opinion of the Solicitor General the

public interest requires, any provincial or city fiscal to assist him in
the performance of any function or discharge of any duty
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 incumbent upon him, within the jurisdiction of the aforesaid
provincial or city fiscal. When so deputized, the fiscal shall be
under the control and supervision of the Solicitor General with
regard to the conduct of the proceedings assigned to the fiscal, and
he may be required to render reports or furnish information
regarding the assignment.

(8) Deputize legal officers of government departments, bureaus,

agencies and offices to assist the Solicitor General and appear or
represent the Government in cases involving their respective
offices, brought before the courts, and exercise supervision and
control over such legal Officers with respect to such cases.

(9) Call on any department, bureau, office, agency or instrumentality

of the Government for such service, assistance and cooperation as
may be necessary in fulfilling its functions and responsibilities and
for this purpose enlist the services of any government official or
employee in the pursuit of his tasks.

Departments, bureaus, agencies, offices, instrumentalities and

corporations to whom the Office of the Solicitor General renders
legal services are authorized to disburse funds from their sundry
operating and other funds for the latter Office. For this purpose,
the Solicitor General and his staff are specifically authorized to
receive allowances as may be provided by the Government offices,
instrumentalities and corporations concerned, in addition to their
regular compensation.

(10) Represent, upon the instructions of the President, the Republic of

the Philippines in international litigations, negotiations or
conferences where the legal position of the Republic must be
defended or presented.

(11) Act and represent the Republic and/or the people before any court,
tribunal, body or commission in any matter, action or proceeding
which, in his opinion, affects the welfare of the people as the ends
of justice may require; and

(12) Perform such other functions as may be provided by law.

SECTION 36. Appointments. — The Solicitor General shall be appointed

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 by the President and shall have the same qualification for appointment, rank,
prerogatives, and privileges as those of the Presiding Justice of the Court of Appeals.

The Assistant Solicitors General and the Solicitors shall be appointed by the
President upon recommendation of the Solicitor General. The Trial Attorneys and
administrative personnel in the Office of the Solicitor General shall be appointed by
the Solicitor General.

SECTION 37. Acting Solicitor General. — In case of absence or

temporary incapacity of the Solicitor General, the President shall designate an Acting
Solicitor General. In case of death, permanent incapacity, removal or resignation of
the Solicitor General, or vacancy thereof, the President shall designate an Acting
Solicitor General, who shall act as such until a new Solicitor General is appointed, or
appoint a new Solicitor General.

TITLE IV

Agriculture

CHAPTER 1

General Provisions

SECTION 1. Declaration of Policy. — The State shall promote the

well-being of farmers, including share tenants, leaseholders, settlers, fishermen, and
other rural workers by providing an environment in which they can increase their
income, improve their living conditions, and maximize their contributions to the
national economy. Toward this end, the State shall accelerate agricultural
development and enhance the production of agricultural crops, fisheries, and livestock
by optimizing the use of resources and by applying modern farming systems and
technology in order to attain food security for domestic use and expand and diversify
agricultural production for export. It shall also encourage private initiative in
agri-business ventures both in the production and in the exportation and importation
of food and other allied commodities.

SECTION 2. Mandate. — The Department is the government

agency responsible for the promotion of agricultural development by providing the
policy framework, public investments, and support services needed for domestic and
export-oriented business enterprises.

In the fulfillment of this mandate, it shall be the primary concern of the

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 Department to improve farm income and generate work opportunities for farmers,
fishermen, and other rural workers. It shall encourage people's participation in
agricultural development through sectoral representation in agricultural
policy-making bodies so that the policies, plans, and programs of the Department are
formulated and executed to satisfy their needs.

It shall ensure social justice, equity, productivity and sustainability in the use
of agricultural resources.

SECTION 3. Powers and Functions. — The Department shall:

(1) Provide integrated services to farmers, fishermen, and other food

producers on production, utilization, conservation, and disposition
of agricultural and fishery resources;

(2) Be responsible for the planning, formulation, execution, regulation,

and monitoring of programs and activities relating to agriculture,
food production and supply;

(3) Promulgate and enforce all laws, rules and regulations governing
the conservation and proper utilization of agricultural and fishery
resources;

(4) Establish central and regional information systems to serve the

production, marketing, and financing data requirements of the
farmers as well as domestic and foreign investors in agri-business
ventures;

(5) Provide comprehensive and effective extension services and

training to farmers and other agricultural entrepreneurs on the
production, marketing, and financing aspects of agricultural
enterprises;

(6) Conduct, coordinate, and disseminate research studies on

appropriate technologies for the improvement and development of
agricultural crops, fisheries, and other allied commodities;

(7) Provide the mechanism for the participation of farmers, fishermen,

and entrepreneurs at all levels of policy-making, planning and
program formulation;

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 (8) Coordinate with and enlist other public and private agencies for
cooperation and assistance on matters affecting the policies, plans
and programs of the Department;

(9) Perform such other functions as may be provided by law.

SECTION 4. Organizational Structure. — The Department shall

consist of the Department Proper, the Bureaus, and the Regional, Provincial,
Municipal, and Barangay Offices.

The Department Proper shall consist of the Office of the Secretary, the Offices
of the Undersecretaries and Assistant Secretaries and their immediate staffs as
determined by them respectively, and the Department Services.

The Department Services and Bureaus shall be grouped as follows:

(1) Production Group;

(2) Research, Training and Extension Group;

(3) Agri-Business Group;

(4) Planning and Monitoring Group; and

(5) Support Group.

CHAPTER 2

Department Proper

SECTION 5. Office of the Secretary. — The Office of the Secretary

shall consist of the Secretary and his immediate staff as determined by him.

SECTION 6. Assistants to the Secretary. — The Secretary shall be

assisted by five (5) Undersecretaries, seven (7) Assistant Secretaries, and the heads of
the National Food Authority and the Philippine Coconut Authority who shall have the
rank of Undersecretaries.

SECTION 7. Undersecretaries. — The Undersecretaries shall assist

the Secretary in the exercise of the mandate and in the discharge of the powers and
functions of the Department.

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 The five (5) Undersecretaries shall be assigned the following functions:

(1) The Undersecretary assigned to Regional Operations shall oversee

the implementation of the agricultural plans, policies, programs,
and projects of the regional and field offices of the Department;

(2) The Undersecretary assigned to Staff Operations shall provide staff

support services, particularly in administration and finance,
production, research, training, and extension;

(3) The Undersecretary assigned to Policy and Planning shall provide

policy and planning support services, particularly in
policy-formulation, planning, and agri-business;

(4) The Undersecretary assigned to Attached Agencies shall exercise

supervision over the attached agencies to ensure that their
operations are in conformity with the approved plans and policies
of the Department;

(5) The Undersecretary assigned to Special Concerns shall develop

and implement agricultural policies and priority projects aimed at
improving the quality of life of disadvantaged and cultural
community groups living in lowland and upland areas. In addition,
he shall handle other special projects as may be identified or
directed by the Department Secretary.

SECTION 8. Functions of the Undersecretaries. — With respect to

his area of responsibility, an Undersecretary shall have the following functions:

(1) Advise the Secretary in the promulgation of orders and other

issuances, with respect to his area of responsibility;

(2) Exercise supervision and control over the offices, services,

operating units, and officers and employees under his
responsibility;

(3) Promulgate rules and regulations, consistent with the policies of

the Department that will efficiently and effectively govern the
activities of the units under his responsibility;

(4) Coordinate the functions and activities of the units under his
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 responsibility with those of other units under the responsibility of
the other Undersecretaries;

(5) Exercise delegated authority on matters related to the functions and

activities of the units under his responsibility to the extent granted
by the Secretary; and

(6) Perform such other functions as may be provided by law or

assigned by the Secretary.

SECTION 9. Functions of the Assistant Secretaries. — Each of the

seven (7) Assistant Secretaries shall head any of the following: Production Group,
Agri-Business Group, Research, Training and Extension Group, Planning and
Monitoring Group, Support Group, Foreign Assisted Projects and the Regional
Operations. In connection therewith, the Assistant Secretaries shall have the following
functions:

(1) The Assistant Secretary assigned to the Production Group shall be

responsible for providing services relating to planning,
programming, and project development of agricultural production.
This group shall consist of the Bureau of Animal Industry, Bureau
of Plant Industry, Bureau of Fisheries and Aquatic Resources, and
Bureau of Soils and Water Management;

(2) The Assistant Secretary assigned to the Agri-Business Group shall

be responsible for assisting farmers and other agri-business
ventures by providing marketing assistance and investment
information. This group shall consist of the Marketing Assistance
Services and the Agri-Business Investment Information Services;

(3) The Assistant Secretary assigned to the Research, Training and

Extension Group shall be responsible for conducting research and
training as well as providing assistance in the establishment of
agricultural cooperatives. This group shall be composed of the
Bureau of Agricultural Research (BAR), Agricultural Training
Institute (ATI), and Bureau of Agricultural Cooperatives
Development (BACOD);

(4) The Assistant Secretary assigned to the Planning and Monitoring

Group shall take charge of developing, integrating, monitoring and
evaluating all plans and programs of the Department and shall
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 collect, monitor, and publish agricultural statistics for the
Department and its clientele. This group shall be composed of the
Planning and Monitoring Services, Computer Services, and Bureau
of Agricultural Statistics;

(5) The Assistant Secretary assigned to the Support Group shall take
charge of providing staff support services in finance,
administration, and management. This shall be composed of the
Financial and Management Services, the Legal Services, and the
Administrative Services;

(6) The Assistant Secretary assigned to the Foreign Assisted Projects

shall be responsible for the negotiation and implementation of
foreign assisted projects of the Department;

(7) The Assistant Secretary assigned to Regional Operations shall

assist the Undersecretary for Regional Operations in the
supervision of regional offices including the coordination and
implementation of Department plans, policies and programs.

The seven (7) Assistant Secretaries shall, in addition to the abovementioned

duties, perform such other functions as may be assigned by the Secretary. They may
also be assigned or placed under the supervision of the Undersecretaries at the
discretion of the Secretary.

CHAPTER 3

Department Services

SECTION 10. Planning and Monitoring Service. — The Planning

and Monitoring Service shall be responsible for the formulation and integration of
plans and programs, emanating from all units of the Department, including the
Bureaus, Regional Offices and Attached Agencies. It shall also be responsible for data
analysis and monitoring of the implementation of said plans and programs through its
management information system.

SECTION 11. Computer Service. — The Computer Service shall be

responsible for the development and maintenance of the electronic data processing
requirements of the Department.

SECTION 12. Financial and Management Service. — The Financial

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 and Management Service shall provide services relating to budgeting, accounting, and
management.

SECTION 13. Administrative Service. — The Administrative Service

shall be responsible for providing personnel, records, information, training and other
general services.

SECTION 14. Legal Service. — The Legal Service shall handle the
legal requirements including those pertaining to the quasi-judicial and regulatory
functions of the Department Proper and its Bureaus.

SECTION 15. Agri-business Investment Information Service. — The

Agri-business Investment Information Service shall conduct research, gather and
collate data related to agri-business such as laws and regulations, taxation, production
technologies, market strategies, competition, foreign assistance, grants, credit, and
new venture considerations relating to agri-business and shall package information on
agri-business investment opportunities and provide sample feasibility studies for
different agricultural products and markets.

SECTION 16. Marketing Assistance Service. — The Marketing

Assistance Service shall be responsible for identifying markets for Philippine
agricultural products and shall assist in the planning of market centers, marketing
channels, and distribution networks.

SECTION 17. Department Services Head. — Each of the Services of the

Department shall be headed by a Staff Director.

CHAPTER 4

Bureaus and Offices

SECTION 18. Bureau of Animal Industry. — The Bureau of Animal

Industry shall:

(1) Formulate programs for the development and expansion of the

livestock, poultry, and dairy industries to meet the requirements of
the growing populace;

(2) Recommend the specific policies and procedures governing the

flow of livestock products through the various stages of marketing,
as well as the proper preservation and inspection of such products;

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 (3) Coordinate and monitor the activities and projects relating to
livestock and allied industries;

(4) Prescribe standards for quality in the manufacture, importation,

labelling, advertising, distribution, and sale of livestock, poultry,
and allied industries; and

(5) For its own sector, recommend plans, programs, policies, rules and
regulations to the Secretary and provide technical assistance in the
implementation of the same.

SECTION 19. Bureau of Plant Industry. — The Bureau of Plant

Industry shall:

(1) Be responsible for the production of improved planting materials,

protection of agricultural crops from pests and diseases, and
development and improvement of farm equipment and other
structures related to the plant industry;

(2) Prepare a program for the selection, production and certification of

improved planting materials as well as guidelines for its
implementation;

(3) Recommend plant quarantine policies, and prescribe rules and

regulations for the prevention, control, and eradication of pests,
diseases, and injuries to plants and plant products; and

(4) For its own sector, recommend plans, programs, policies, rules and
regulations to the Secretary and provide technical assistance in the
implementation of the same.

SECTION 20. Bureau of Fisheries and Aquatic Resources. — The

Bureau of Fisheries and Aquatic Resources shall:

(1) Formulate plans for the proper management, accelerated

development, and proper utilization of the country's fishery and
aquatic resources;

(2) Undertake studies on the economics of the various phases of the

fishing industry, which studies shall form the bases for the
formulation of policies and programs on fisheries and aquatic
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 resources;

(3) Render technical assistance and advisory services in the proper

procurement, construction and operation of the fishing vessels as
well as determination and designation of fish landing points for all
commercial fishing boats; and

(4) For its own sector, recommend plans, programs, policies, rules and
regulations to the Secretary and provide technical assistance in the
implementation of the same.

SECTION 21. Bureau of Soils and Water Management. — The

Bureau of Soils and Water Management shall:

(1) Advise and render assistance on matters relative to the utilization

and management of soils and water as vital agricultural resources;

(2) Formulate measures and guidelines for effective soil, land, and
water resource utilization, as well as soil conservation in croplands
and other agricultural areas;

(3) Undertake soil research programs;

(4) Coordinate with the relevant government agencies in resettlement

areas and prepare the necessary plans for the provision of technical
assistance in solving soil impounding and the prevention of soil
erosion, fertility preservation, and other related matters;

(5) Engage in rainmaking projects for agricultural areas and

watersheds to solve the problem of prolonged droughts and
minimize their effects on standing agricultural crops; and

(6) For its own sector, recommend plans, programs, policies, rules and
regulations to the Secretary and provide technical assistance in the
implementation of the same.

SECTION 22. Bureau of Agricultural Research. — The Bureau of

Agricultural Research shall:

(1) Ensure that all agricultural research is coordinated and undertaken

for maximum utility to agriculture;

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 (2) Tap farmers, farmers' organizations, and research institutions,
especially the state colleges and universities, in the conduct of
research for use of the Department and its clientele, particularly the
farmers, fishermen and other rural workers.

SECTION 23. Bureau of Agricultural Cooperatives and Development.

SECTION 24. Bureau of Agricultural Statistics. — The Bureau of

Agricultural Statistics shall:

(1) Be mainly responsible for the collection, compilation, and official

release of agricultural statistics;

(2) Exercise technical supervision over data collection centers;

(3) Coordinate all agricultural statistics and economic research

activities of all bureaus, corporations and offices under the
Department.

SECTION 25. Agricultural Training Institute. — The Agricultural

Training Institute shall:

(1) Be responsible for the training of all agricultural extension workers

and their clientele, who are mostly farmers and other agricultural
workers;

(2) Ensure that training programs address the real needs of the
agricultural sectors; and

(3) Ensure that the research results are communicated to the farmers
through the appropriate training and extension activities.

CHAPTER 5

Regional Offices

SECTION 26. Functions. — The Department of Agriculture is

authorized to establish, operate, and maintain a Regional Office in each of the
administrative regions of the country. Each Regional Office shall be headed by a
Regional Director, to be assisted by three (3) Assistant Regional Directors, assigned

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 to Operations, Research, and Support Services, respectively. Each Regional Office
shall have, within its administrative regions, the following duties and responsibilities:

(1) Provide efficient and effective frontline services to the people;

(2) Implement and enforce in its area the laws and policies, plans,
programs, projects, rules, and regulations issued by the
Department including plant and animal quarantine laws, rules and
regulations;

(3) Coordinate with regional offices of other departments, offices and

agencies in the region;

(4) Coordinate with local government units; and

(5) Perform such other functions as may be provided by law or

assigned appropriately by the Secretary.

At the provincial level, policies, plans, programs, projects, laws, rules, and
regulations of the Department shall be implemented by the Provincial Agriculture and
Fisheries Officer and, at the municipal and barangay levels, by the Municipal
Agriculture and Fisheries Office.

SECTION 27. Importation of Plants and Plant Products. — Subject to

such special quarantine orders, rules and regulations as may be promulgated by the
Secretary of Agriculture upon recommendation of the Plant Quarantine Board, it is
prohibited to import or introduce into the Philippines, plants, plant products, soil or
packing materials of plants capable of harboring plant pests or being a source or
medium of infection or infestation of plants by pests. For purposes of this Chapter,
the term "plants" shall refer to living plants and any part thereof, while "plant
products" shall mean products derived from plants either in their natural state or
processed form.

SECTION 28. Importation of Potential Animal Pests. — The importation

of certain species of animals which are liable to become agricultural crop pests and
capable of causing injury to agricultural crops is hereby prohibited, except in limited
quantities for justifiable purposes and upon written permission from the Regional
Director concerned or other officials of the Department who may be authorized by the
Secretary of Agriculture.

SECTION 29. Plants, Plant Products, and Other Materials in Transit. —

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 Commodities mentioned under the next two preceding sections, including food
provisions and ornaments on board carriers that are in transit, shall be required to get
a clearance from the Plant Quarantine Officer assigned at the port concerned.

SECTION 30. Exportation of Plants and Plant Products. — The Regional

Director concerned, the Plant Quarantine Officer or other officials of the Department
who may be authorized by the Secretary of Agriculture shall cause the inspection and
certification of all plants, plant products and other related materials for exportation,
capable of harboring plant pests, if the importing country so requires.

SECTION 31. Inspection of Plants, Plant Products, Potential Animal

Pests, and Other Materials. — The Regional Director concerned or other officials of
the Department who may be authorized by the Secretary of Agriculture shall cause
the appropriate inspection of the commodities mentioned in the next four preceding
sections and apply the necessary plant quarantine measures in order to attain the
objectives of this Chapter.

SECTION 32. Domestic Quarantine of Plants and Plant Products. — In

order to prevent and arrest the spread to other areas of injurious plant pests existing in
certain localities within the Philippines, the Regional Director concerned, the Plant
Quarantine Officer or other officials of the Department who may be authorized by the
Secretary of Agriculture shall cause the inspection, treatment and certification of
plants and plant products involved in movement from one locality to another within
the country.

SECTION 33. Appointment of Plant Quarantine Officers. — The

Secretary shall, upon recommendation of the Regional Director concerned and in
consultation with the Director of Plant Industry, appoint Plant Quarantine Officers to
act as his representatives in implementing and enforcing the provisions of this
Chapter.

SECTION 34. Powers and Duties of Plant Quarantine Officers. — The

Plant Quarantine Officers shall have authority to:

(1) Inspect all carriers, passengers, crew, luggage and incoming mails
to determine the presence of plants, plant products and other
materials capable of harboring plant pests as well as potential
animal pests;

(2) Enter into and inspect any and all areas where plants, plant
products and other materials capable of harboring plant pests are
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 landed, stored or grown;

(3) Examine imported plants, plant products, and other materials

capable of harboring plant pests as well as potential animal pests
and administer necessary measures to insure effective
implementation of the provisions of this Chapter;

(4) Inspect, administer treatment and certify plants, plant products and
other related materials intended for export, if the importing country
so requires;

(5) Confiscate and destroy or refuse entry of plants, plant products and
potential animal pests involved in prohibited importations and
deny inspection, certification or clearance of the same; and

(6) Perform such other related duties as may be provided by law.

SECTION 35. Non-Liability Clause. — (1) All charges for storage,

demurrage, cartage, labor and delays incident to inspection, cost of disinfection or
disinfestation and other post-entry requirements shall be paid by the importer or
exporter as the case may be.

(2) The Regional Director and the authorized officials of the Department
shall not be held liable for damages to the commodity in the course of the
implementation of the provisions of this Chapter.

SECTION 36. Duties of Importer and Exporter. — The importers,

exporters, or their authorized representatives shall submit a declaration to the
Regional Director concerned or other authorized officials of the Department, at or
before the time of entry or embarkation, of plants and plant products for importation
or exportation. Such declaration shall indicate the name and address of the consignor
or consignee, the purpose, nature and quantity of plants and plant products, the
country or locality where the same was grown, place and date of unloading or
embarkation and the registered name of the carrier carrying the consignment.

SECTION 37. Entrance and Clearance of Carrier. — (1) The owner,

operator, agent or master of carriers plying international or domestic routes are hereby
required to serve notice of arrival and departure and to provide inward and outward
cargo manifests and other declarations of said carriers to the Plant Quarantine Officer
at the post. Prior to departure, the agent or master of said carrier must secure a

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 clearance from the Plant Quarantine Officer thereat.

(2) The Collector of Customs or his authorized agents shall require the
owner, agent or master of carrier to submit a copy of the certificate of plant
quarantine clearance as a pre-requisite to the issuance of the customs clearance.

SECTION 38. Collection of Fees. — (1) The Regional Director concerned

shall, with the approval of the Secretary of Agriculture, promulgate rules and
regulations governing the collection of regulatory fees for inspection, certification,
import permits, commodity treatment and others, on commodities described in this
Chapter which shall constitute the revolving fund of the national plant quarantine
service.

(2) Importations and exportations of all government departments or agencies

and government-owned or controlled corporations, and donations to and for the
account of any duly registered relief organization or any charitable institution
certified by the Department of Social Services and Welfare, embassies of foreign
governments, and those that may be declared by the President, upon the
recommendation of the National Economic and Development Authority in the interest
of economic development, are exempt from payment of the fees herein prescribed
excluding, however, the expense incurred in commodity treatment.

SECTION 39. Overtime Services. — The services of Plant Quarantine

Officers, fumigators and helpers performed outside office hours and reimbursement
of meal, transportation, lodging and other incidental expenses shall be chargeable to
the party or parties served at the rates to be prescribed by the Secretary of Agriculture
upon recommendation of the Regional Director concerned.

SECTION 40. Cooperating Agencies. — The Secretary of Agriculture may

call upon the other government agencies in the implementation of plant quarantine
regulations, and dissemination of information to the general public.

SECTION 41. Special Quarantine Orders, Rules and Regulations. —

Special quarantine orders, rules and regulations shall be promulgated by the Secretary
of Agriculture upon recommendation of the Plant Quarantine Board to carry out and
implement the provisions of this Chapter.

SECTION 42. Quasi-judicial Authority. — (1) The Regional Directors and

the other officials of the Department who may be authorized by the Secretary of
Agriculture, after proper hearing, are hereby empowered to impose administrative
fines for the violation of and non-compliance with quarantine orders, rules and
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 regulations promulgated in accordance with this Chapter.

(2) The decision of the Regional Director concerned and those of the other
authorized officials of the Department under this section are appealable to the
Secretary of Agriculture whose decision shall be final.

SECTION 43. Plant Quarantine Board. — For the purpose of carrying out
the provisions of this Chapter, there shall be a Plant Quarantine Board which shall be
composed of the Undersecretary of Agriculture for Regional Operations as Chairman;
the Director of Plant Industry, as Vice-Chairman; and the following members: the
Commissioner of Customs, the General Manager of the Philippine Ports Authority,
the Director of Quarantine, the Director of Animal Industry, the Postmaster General,
the Administrator of the Philippine Coconut Authority, the Director of Forest
Development or their representatives, the Chief of the Department Legal Service, the
Chief of the Plant Quarantine Section and the Chief of the Crop Protection Division
of the Bureau of Plant Industry, and a representative each from the National
Economic and Development Authority, the Central Bank of the Philippines, and the
Importers' and Exporters' Confederation, as members.

SECTION 44. Duties of the Board. — The Plant Quarantine Board shall
act as the advisory body to assist the Secretary in formulating orders, rules and
regulations for the effective implementation of the provisions of this Chapter.

SECTION 45. Board Meeting. — The Board shall meet once every quarter
or may call special meetings when necessary, provided that such special meetings
shall not be held more than four times annually.

SECTION 46. Quorum. — A majority of the members of the Board shall

constitute a quorum.

CHAPTER 6

Attached Agencies

SECTION 47. Attached Agencies. — The following units are hereby

attached to the Department:

(1) Agricultural Credit Policy Council

(2) National Agricultural and Fishery Council

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 (3) Philippine Technical and Administrative Committee for
SEAFDEC

(4) Livestock Development Council

(5) National Meat Inspection Commission

(6) Fertilizer and Pesticide Authority

(7) Fiber Industry Development Authority

(8) National Tobacco Administration

(9) Sugar Regulatory Administration

(10) National Food Authority and its subsidiaries

(11) Quedan Guarantee Fund Board

(12) Philippine Fisheries Development Authority

(13) Philippine Rice Research Institute

(14) Philippine Coconut Authority and its subsidiaries

(15) National Irrigation Administration

(16) Sacovia Development Authority; and

(17) Regional Cooperative Development Assistance Offices (Regions

IX and XII).

SECTION 48. Specific Functions. — (1) The National Agricultural and

Fishery Council shall act as an advisory and coordinative body of the Department. As
such, it shall conduct and encourage consultative discussions among all agricultural
sectors at the municipal, provincial, regional and national levels;

(2) The Philippine Technical and Administrative Committee for Southeast

Asia Fisheries Development Center (SEAFDEC) shall be responsible for the
administration and management of the SEAFDEC Aquaculture Department and shall
monitor and assess the performance of research projects on fisheries and aquaculture
in accordance with the policies or standards established by the SEAFDEC

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 International Council and the Department;

(3) The Livestock Development Council shall be responsible for the

formulation and establishment of comprehensive policy guidelines for the livestock
industry, preparation of plans and programs and evaluation of livestock
programs/projects;

(4) The National Meat Inspection Commission shall conduct actual ante
mortem inspection on all animals presented for slaughter and post mortem inspection
on all animals presented for slaughter and post mortem inspection on all carcasses
intended for human consumption in all abattoirs in the country; render technical
assistance in the construction of meat establishments (abattoirs, dressing plants,
processing plants and meat markets) particularly on the selection of sites, and plant
design preparation, equipment design and test runs; exercise overall supervision and
control of management and operations of all abattoirs, dressing plants, meat
processing plants and meat markets.

SECTION 49. Organization and Operation. — The agencies

attached to the Department shall continue to operate and function in accordance with
their respective charters, laws or orders creating them, except as otherwise provided
in this Code. Any provision of law to the contrary notwithstanding, the Secretary shall
serve as Chairman of the governing boards of all attached units or agencies.

TITLE V

Public Works and Highways

CHAPTER 1

General Provisions

SECTION 1. Declaration of Policy. — The State shall maintain an

engineering and construction arm and continuously develop its technology, for the
purposes of ensuring the safety of all infrastructure facilities and securing for all
public works and highways the highest efficiency and the most appropriate quality in
construction. The planning, design, construction and maintenance of infrastructure
facilities, especially national highways, flood control and water resources
development system, and other public works in accordance with national
development objectives, shall be the responsibility of such an engineering and
construction arm. However, the exercise of this responsibility shall be decentralized to

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 the fullest extent feasible.

SECTION 2. Mandate. — The Department of Public Works and

Highways shall be the State's engineering and construction arm and is tasked to carry
out the policy enunciated above.

SECTION 3. Powers and Functions. — The Department, in order to

carry out its mandate, shall:

(1) Provide technical services for the planning, design, construction,

maintenance, or operation of infrastructure facilities;

(2) Develop and implement effective codes, standards, and reasonable

guidelines to ensure the safety of all public and private structures
in the country and assure efficiency and proper quality in the
construction of public works;

(3) Ascertain that all public works plans and project implementation
designs are consistent with current standards and guidelines;

(4) Identify, plan, secure funding for, program, design, construct or

undertake prequalification, bidding, and award of contracts of
public works projects with the exception only of specialized
projects undertaken by Government corporate entities with
established technical capability and as directed by the President of
the Philippines or as provided by law;

(5) Provide the works supervision function for all public works
constructions and ensure that actual construction is done in
accordance with approved government plans and specifications;

(6) Assist other agencies, including the local governments, in

determining the most suitable entity to undertake the actual
construction of public works projects;

(7) Maintain or cause to be maintained all highways, flood control,

and other public works throughout the country except those that
are the responsibility of other agencies as directed by the President
of the Philippines or as provided by law;

(8) Provide an integrated planning for highways, flood control and

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 water resource development systems, and other public works;

(9) Classify roads and highways into national, regional, provincial,

city, municipal, and barangay roads and highways, based on
objective criteria it shall adopt; provide or authorize the conversion
of roads and highways from one category to another; and

(10) Delegate, to any agency it determines to have the adequate

technical capability, any of the foregoing powers and functions;
and

(11) Perform such other functions as may be provided by law.

SECTION 4. Organizational Structure. — The Department shall be

composed of:

(1) The Department Proper consisting of the Office of the Secretary,

the Offices of the Undersecretaries and Assistant Secretaries, the
Internal Audit Service, Monitoring and Information Service,
Planning Service, Comptrollership and Financial Management
Service, Legal Service, and the Administrative and Manpower
Management Service;

(2) The Bureau of Research and Standards, Bureau of Design, Bureau

of Construction, Bureau of Maintenance, and Bureau of
Equipment; and

(3) The Field Offices, consisting of fourteen (14) Regional Offices

composed of Region I (Ilocos), Region II (Cagayan Valley),
Region III (Central Luzon), National Capital Region, Region IV-A
(Southern Tagalog Mainland Provinces), Region IV-B (Southern
Tagalog Island Provinces), Region V (Bicol), Region VI (Western
Visayas), Region VII (Central Visayas), Region VIII (Eastern
Visayas), Region IX (Western Mindanao), Region X (Northeastern
Mindanao), Region XI (Southern Mindanao), and Region XII
(Central Mindanao), and their respective District Offices.

CHAPTER 2

Department Proper

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 SECTION 5. Office of the Secretary. — The Office of the Secretary shall
be composed of the Secretary and his immediate staff.

SECTION 6. Undersecretaries. — The Secretary shall be assisted by not

more than five (5) Undersecretaries who shall be appointed by the President upon the
recommendation of the Secretary. The Secretary is hereby authorized to delineate and
assign the respective functional areas of responsibility of the Undersecretaries. Such
responsibility shall be with respect to the mandate and objectives of the Department
and no Undersecretary shall be assigned primarily administrative responsibilities.
Within his functional area of responsibility, an Undersecretary shall have the
following functions:

(1) Advise and assist the Secretary in the formulation and

implementation of Department policies, plans, programs and
projects;

(2) Supervise all the operational activities of the units assigned to him,
for which he is responsible to the Secretary; and

(3) Perform such other duties and responsibilities as may be assigned

or delegated by the Secretary to promote efficiency and
effectiveness in the delivery of public services or as may be
required by law.

SECTION 7. Assistant Secretaries. — The Secretary shall also be

assisted by six (6) Assistant Secretaries appointed by the President of the Philippines
upon the recommendation of the Secretary; one (1) to be responsible for the Internal
Audit Services; one (1) for the Monitoring and Information Service; one (1) for the
Planning Service; one (1) for the Comptrollership and Financial Management
Service; one (1) for the Legal Service; and one (1) for the Administrative and
Manpower Management Service.

CHAPTER 3

Department Services

SECTION 8. Internal Audit Service. — The Internal Audit Service

shall conduct comprehensive audit of various Department activities. Specifically, it
shall have the following functions:

(1) Advice the Secretary on all matters relating to management control

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 and operations audit;

(2) Conduct management and operations performance audit of

Department activities and units and determine the degree of
compliance with established objectives, policies, methods and
procedures, government regulations, and contractual obligations of
the Department;

(3) Review and appraise systems and procedures, organizational

structure, assets management practices, accounting and other
records, reports and performance standards (such as budgets and
standard cost) of the Department Proper, Bureaus and Regional
Offices;

(4) Analyze and evaluate management deficiencies and assist top

management to solve the problems by recommending realistic
courses of action; and

(5) Perform such other related duties and responsibilities as may be

assigned or delegated by the Secretary or as may be required by
law.

SECTION 9. Monitoring and Information Service. — The Monitoring

and Information Service is hereby created to provide the Secretary timely reports on
the status of various Department projects and activities; and develop and implement
information programs for mass dissemination in coordination with the appropriate
government agencies. The Monitoring and Information Service shall have the
following functions:

(1) Advice the Secretary on all matters relating to monitoring and

public information;

(2) Develop and maintain a system for retrieving and processing

monitoring information on all projects and activities of concern to
the Secretary;

(3) Provide accurate and timely status and exception reports to the
Secretary;

(4) Generate monitoring reports for the President, the Cabinet, or for
any other purpose as required by the Secretary;
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 (5) Develop and supervise the implementation of communications
programs to have relevant policies, programs and plans of the
Department understood by the public;

(6) Produce and supervise the dissemination of media materials in line

with the national government public information programs;

(7) Coordinate with appropriate national government agencies tasked

with public information affairs; and

(8) Perform such other related duties and responsibilities as may be

assigned or delegated by the Secretary or as may be required by
law.

The existing Infrastructure Computer Center shall be under the supervision of

the Assistant Secretary for Monitoring Information. It shall establish and maintain a
computerized data bank as a repository of statistics and information on infrastructure
operations. It shall also provide computer service to the different offices of the
Department.

SECTION 10. Planning Service. — The Planning Service shall provide the
Department with the capability to undertake infrastructure development planning and
programming. For this purpose, it shall have the following functions:

(1) Advice the Secretary on all matters relating to infrastructure

planning;

(2) Formulate strategies and priorities for infrastructure development

consistent with national development objectives; and initiate or
undertake, coordinate and review area and sector surveys for
development planning;

(3) Formulate long-range, medium-term and annual development

plans and programs for infrastructure, especially highways, flood
control and water resource development systems, and other public
works projects, including phasing of implementation;

(4) Identify priority packages for infrastructure development,

especially highways, flood control and water resource
development systems, and other public works projects, undertake
or supervise and evaluate the conduct of feasibility studies and
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 project preparation thereof;

(5) Prioritize project implementation and the allocation of funds and

other resources and package project proposals for funding and
implementation;

(6) Evaluate and appraise all regional and interregional infrastructure

development plans and programs as to their feasibility and
consistency with approved strategies and long and medium-term
plans;

(7) Initiate regular Department-wide planning exercise and act as the

secretariat thereof;

(8) Gather, analyze and organize needed statistical data and

information;

(9) Provide technical assistance related to its functions to the other

Services, Bureaus and the Regional Offices as needed; and

(10) Perform such other related duties and responsibilities as may be

assigned or delegated by the Secretary or as may be required by
law.

SECTION 11. Comptrollership and Financial Management Service. —

The Comptrollership and Financial Management Service shall provide the
Department with coordinated services relating to financial systems and procedures,
budget, cash, accounting, and all financial housekeeping matters. For such purposes,
it shall have the following functions:

(1) Advise the Secretary on all matters relating to the accounting of

government expenditures and receipts, budgeting and cash
management, project finances, and financial systems and
procedures;

(2) Prepare budget proposals and pursue formal budget authorizations;

undertake budget execution, and prepare and submit all
appropriate reports to the proper offices;

(3) Develop and maintain accounting, financial and assets

management systems, procedures, and practices in the Department

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 proper, Bureaus, and Regional Offices;

(4) Provide assistance in its area of specialization to any unit of the

Department and, when requested, to government corporations and
councils attached to the Department; and

(5) Perform such other related duties and responsibilities as may be

assigned or delegated by the Secretary or as may be required by
law.

SECTION 12. Legal Service. — The Legal Service provides the

Department with services on such legal affairs as contract letting and litigation, legal
and legislative research, complaints and investigation, legal counselling and other
matters of law. For such purposes, it shall have the following functions:

(1) Advise the Secretary on all matters relating to legal affairs;

(2) Prepare Department contracts and legal instruments, review and

interpret all contracts and agreements entered into by the
Department; evaluate all legal proposals;

(3) Conduct administrative investigation as well as the review of

administrative charges against officers and employees of the
Department;

(4) Exercise functional jurisdiction over the legal staffs of Regional

Offices;

(5) Provide legal assistance to the Department proper, the Bureaus and
Regional Offices and, when requested, the attached corporations;
and

(6) Perform such other related duties and responsibilities as may be

assigned or delegated by the Secretary or as may be required by
law.

SECTION 13. Administrative and Manpower Management Service. —

The Administrative and Manpower Management Service provides the Department
with services relating to human resources development, personnel, records, facilities
maintenance, medical and dental, security and property and procurement services. For
such purposes, it shall have the following functions:

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 (1) Advise the Secretary, on all matters relating to internal
administration and human resources management;

(2) Prepare and implement an integrated personnel plan that shall

include provisions on merit promotions, performance evaluation,
job rotation, suggestions and incentive awards systems and health
and welfare services;

(3) Provide services related to human resources training, education,

and development, including manpower and career planning and
forecasting and development of indigenous training materials;

(4) Develop, establish and maintain an efficient and cost-effective

property procurement system and facilities and coordinate or
otherwise interface with relevant agencies, whether government or
private, for the purpose of developing or upgrading the system;

(5) Secure and maintain necessary Department facilities and develop,

establish and maintain an efficient and effective security system
covering, among others, personnel, physical installations,
equipment, documents and materials, including the conduct of
security investigations;

(6) Coordinate with the appropriate government agencies for a more

efficient conduct of administrative processes;

(7) Develop, establish and maintain an efficient records system;

(8) Provide assistance in its area of specialization to the Department

proper, Bureaus and Regional Offices and, when requested, the
government agencies and corporations attached to the Department;
and

(9) Perform such other related duties and responsibilities as may be

assigned or delegated by the Secretary or as may be required by
law.

CHAPTER 4

The Bureau

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 SECTION 14. Bureau Head. — Each Bureau shall be headed by a Bureau
Director who shall be responsible for efficiently and effectively carrying out the
functions of the Bureau.

SECTION 15. Bureau of Research and Standards. — The Bureau of

Research and Standards shall develop and set effective standards and reasonable
guidelines to ensure the safety of all infrastructure facilities in the country and to
assure efficiency and proper quality in the construction of government public works.
In pursuit of this task, the Bureau shall engage in research and development in all
major areas pertinent to infrastructure development. For such purposes, it shall have
the following functions:

(1) Study, on a continuing basis, and formulate and recommend

guidelines, standards, criteria, and systems for the survey and
design, construction, rehabilitation, maintenance and improvement
of all public works and highways;

(2) Conduct or sponsor research on construction materials and

formulate and recommend policies, standards and guidelines on
materials and quality control;

(3) Undertake or cause to be undertaken specialized technical studies

to advance the inhouse technology of the Department and secure
the most complete information for project development and
implementation purposes;

(4) Formulate technical training programs for Department technical

personnel, including the identification of appropriate local and
foreign training programs, and recommend the selection of
Department personnel for such programs;

(5) Review and study, for the purpose of recognizing new

technologies especially those utilizing indigenous resources,
current national building and construction standards and
procedures and make appropriate recommendations thereon;

(6) Promote, publish and disseminate technical publications;

(7) Provide technical assistance to the Department Proper, other

Bureaus, Regional Offices and other agencies on matters within its

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 competence, including technical assistance in the upgrading or
updating of the Building Code, and other services;

(8) Cooperate or coordinate with other established research,

development, and engineering centers in areas of common or
national interests; and

(9) Perform such other duties and responsibilities as may be assigned

or delegated by the Secretary or as may be required by law.

SECTION 16. Bureau of Design. — The Bureau of Design shall ascertain

that all government infrastructure project implementation plans and designs are
consistent with current standards and guidelines. For this purpose, it shall have the
following duties and responsibilities:

(1) Conduct or initiate, supervise and review the results of field

surveys for highways, flood control and water resource
development systems, and other public works projects, including
aerial, hydrologic, hydrographic, topographic, geotechnical and
other investigations;

(2) Conduct or initiate, supervise and review the preparation of

schemes, designs, specifications, estimates, tender and contract
documents covering the architectural, structural, mechanical,
electrical and other technical design aspects of highways, flood
control and other projects of the Department or of other
departments upon request or agreement;

(3) Review and evaluate the designs, specifications, estimates, tender

and contract documents covering the architectural, structural,
mechanical, electrical and other technical design aspects of public
works projects of all agencies in accordance with current standards
and guidelines;

(4) Provide technical assistance in the selection of firms or entities that

shall undertake actual construction of public works projects via
participation in the technical evaluation aspect of the
bidding/award process; and

(5) Perform such other related duties and responsibilities as may be

assigned or delegated by the Secretary or as may be required by
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 law.

SECTION 17. Bureau of Construction. — The Bureau of Construction

shall provide technical services on construction works for infrastructure projects and
facilities. For this purpose, it shall have the following duties and responsibilities:

(1) Formulate policies relating to construction management and

contract administration;

(2) Review and evaluate construction programs, estimates, tender and

contract documents;

(3) Inspect, check and monitor construction and works supervision

activities of field implementing offices for the purpose of ensuring
that such activities are being conducted in accordance with the
current standards and guidelines of the Department;

(4) Provide specialist support to implementing field offices on

construction management and contract administration; and

(5) Perform such other related duties and responsibilities as may be

assigned or delegated by the Secretary or as may be required by
law.

SECTION 18. Bureau of Maintenance. — The Bureau of Maintenance

provides technical services on the maintenance and repair of infrastructure projects
and facilities. For this purpose, it shall have the following duties and responsibilities:

(1) Formulate policies relating to the maintenance of infrastructure

projects and facilities;

(2) Review and evaluate maintenance programs, estimates, and tender

and contract documents;

(3) Inspect, check, and monitor maintenance activities of

implementing field offices for the purpose of ensuring that such
activities are being conducted in accordance with the current
standards and policies of the Department;

(4) Provide specialist support to implementing field offices on the

maintenance of infrastructure projects and facilities;

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 (5) Perform such other related duties and responsibilities as may be
assigned or delegated by the Secretary or as may be required by
law.

SECTION 19. Bureau of Equipment. — The Bureau of Equipment

provides technical services on the management of construction and maintenance
equipment and ancillary facilities. For this purpose, it shall have the following duties
and responsibilities:

(1) Formulate policies relating to the management of infrastructure

equipment and ancillary facilities;

(2) Review and evaluate programs, estimates, tender and contract

documents for equipment;

(3) Inspect, check and monitor the management of equipment by

regional equipment services and area shops for the purpose of
ensuring that such activities are being conducted in accordance
with the current standards and policies of the Department;

(4) Provide specialist support to implementing field offices on

equipment management; and

(5) Perform such other related duties and responsibilities as may be

assigned or delegated by the Secretary or as may be required by
law.

CHAPTER 5

Regional Offices

SECTION 20. Regional Offices. — Regional Offices shall be responsible

for highways, flood control and water resource development systems, and other
public works within the region, except those defined in Section 3, par. (4) hereof. For
this purpose, their duties and responsibilities shall be as follows:

(1) Undertake and evaluate the planning, design, construction and

works supervision functions of the Department for the above
mentioned infrastructure within the region;

(2) Undertake the maintenance of the above mentioned infrastructure

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 within the region and supervise the maintenance of such local road
and other infrastructure receiving national government financial
assistance as the Secretary may determine;

(3) Ensure the implementation of laws, policies, programs, rules and

regulations regarding the above mentioned infrastructure as well as
all public and private physical structures;

(4) Provide technical assistance related to their functions to other

agencies within the region especially the local government;

(5) Coordinate with other departments, agencies, institutions and

organizations, especially local government units within the region
in the planning and implementation of infrastructure projects;

(6) Conduct continuing consultations with the local communities, take

appropriate measures to make the services of the Department
responsive to the needs of the general public, compile and submit
such information to the central office, and recommend such
appropriate actions as may be necessary; and

(7) Perform such other related duties and responsibilities as may be

assigned or delegated by the Secretary or as may be required by
law.

The Department shall retain and have such Project

Management Offices as may be required which shall be under the
supervision and control of the appropriate Regional Director,
unless otherwise determined by the Secretary for reasons of
supra-regional scope, magnitude, and multi-functional coverage.

SECTION 21. Regional Director. — The Regional Office shall be headed

by a Regional Director who shall be responsible for efficiently and effectively
carrying out the duties and responsibilities of the Regional Office. Towards this end,
and in line with the policy of decentralization, he shall, within his defined powers,
exercise functional and administrative supervision over District Offices within the
region including the authority to commit their resources and personnel to integrated
province or city-wide development thrusts.

He shall also perform such other related duties and responsibilities as may be

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 assigned or delegated by the Secretary or as may be required by law.

The Regional Director shall be assisted by two (2) Assistant Regional

Directors who shall exercise supervision, respectively over: (1) the construction,
maintenance and works supervision functions in the region; and (2) the planning,
project design, evaluation and technical assistance functions of the Regional Office.

SECTION 22. District Office. — There shall be a District Office in each of

the provinces and cities throughout the country to be headed by a District Engineer
appointed by the Secretary. A province or city may, however, be divided into two (2)
or more engineering districts, upon determination and issuance of an administrative
order by the Secretary. The District Office shall be responsible for all highways, flood
control and water resource development systems, and other public works within the
district, except those defined under Section 3, par. (4) hereof. For this purpose, it shall
have the following duties and responsibilities:

(1) Undertake and evaluate the planning, design, construction, and

works supervision functions of the Department for the above
mentioned infrastructure in the district;

(2) Undertake the maintenance of the abovementioned infrastructure

within the district and supervise the maintenance of such local
roads and other infrastructure receiving national government
financial assistance as the Secretary may determine;

(3) Coordinate with other departments, agencies, institutions, and

organizations, especially local government units within the district
in the planning and implementation of infrastructure projects;

(4) Provide technical assistance to other agencies at the local level on

public works planning, design, construction, maintenance and
other engineering matters including securing from the Regional
Office or, through the same office, assistance from the Department
Proper or Bureaus;

(5) Conduct continuing consultations with the local communities, take

appropriate measures to make the services of the Department
responsive to the needs of the general public, compile and submit
such information to the Regional Office and recommend such
appropriate actions as may be necessary; and

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 (6) Perform such other related duties and responsibilities as may be
assigned or delegated by the Secretary or as may be required by
law.

SECTION 23. District Engineer. — The District Engineer of or within a

province or city shall be accountable for the efficient and effective conduct of the
duties and responsibilities of the District Office of which he is the head. Within his
defined powers, he shall exercise functional and administrative supervision over
district operations including the authority to recommend that field resources and
personnel be committed to integrated district-wide development thrusts. He shall also
perform such other related duties and responsibilities as may be assigned or delegated
by the Secretary or as may be required by law.

SECTION 24. Equipment Services. — The Regional Equipment Services,

including regional depots and area shops are hereby reorganized to undertake the
management, repair, maintenance and rehabilitation of construction and maintenance
equipment. Each depot or shop shall be operated, to the extent practicable, as a profit
center. The Regional Equipment Services shall be under the administrative
supervision of the Regional Director and technical supervision of the Bureau of
Equipment.

CHAPTER 6

Attached Agencies

SECTION 25. Attached Agencies and Corporations. — Agencies

and corporations attached to the Department shall continue to operate and function in
accordance with their respective charters/laws/executive orders creating them.
Accordingly, the Metropolitan Waterworks and Sewerage System, the Local Water
Utilities Administration, the National Irrigation Administration, and the
National Water Resources Council, among others, shall continue to be attached
to the Department; while the Metropolitan Manila Flood Control and Drainage
Council, as reorganized, shall be attached to the Department.

TITLE VI

Education, Culture and Sports

CHAPTER 1

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 General Provisions

SECTION 1. Declaration of Policy. — The State shall protect and

promote the right of all citizens to quality education at all levels and shall take
appropriate steps to make such education accessible to all. Pursuant to this, the State
shall:

1) Establish, maintain and support a complete, adequate, and

integrated system of education relevant to the needs of the people
and society;

2) Establish and maintain a system of free public education in the

elementary and high school levels. Without limiting the natural
right of parents to rear their children, elementary education is
compulsory for all children of school age;

3) Establish and maintain a system of scholarship grants, student loan

programs, subsidies, and other incentives which shall be available
to deserving students in both public and private schools, especially
to the underprivileged;

4) Encourage non-formal, informal, and indigenous learning systems,

as well as self-learning, independent, and out-of-school study
programs particularly those that respond to community needs; and

5) Provide adult citizens, the disabled, and out-of-school youth with

training in civics, vocational efficiency, and other skills.

SECTION 2. Mandate. — The Department shall be primarily responsible

for the formulation, planning, implementation and coordination of the policies, plans,
programs and projects in the areas of formal and non-formal education at all levels,
supervise all educational institutions, both public and private, and provide for the
establishment and maintenance of a complete, adequate and integrated system of
education relevant to the goals of national development.

SECTION 3. Powers and Functions. — To accomplish its mandate and

objectives, the Department shall have the powers and functions of formulating,
planning, implementing and coordinating the policies, plans, programs and projects
for the following:

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 (1) Elementary, secondary, physical and international education;

(2) Non-formal and vocational or technical education;

(3) Higher education;

(4) Development of culture;

(5) Foreign and locally assisted projects and other activities relative to
Subsections (1), (2), (3) and (4); and

(6) Perform such other functions as may be provided by law.

SECTION 4. Organizational Structure. — The Department, aside from

the Department Proper, shall consist of Bureau and Regional Offices.

CHAPTER 2

Department Proper

SECTION 5. Office of the Secretary. — The Office of the Secretary shall

be composed of the Secretary and his immediate staff.

SECTION 6. Undersecretaries. — The Secretary shall be assisted by five

(5) Undersecretaries, each of whom shall be responsible for the following:

(1) Elementary education, secondary education, physical education

and international education programs and centers;

(2) Non-formal education, vocational/technical education, and youth

organizations;

(3) Higher education, cultural agencies, and foreign assisted projects;

(4) Internal administration and management, and regional

coordination; and

(5) Legal and legislative affairs, and other attached agencies and
centers.

CHAPTER 3

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 Department Services

SECTION 7. Functions of the Services. — The Services of the

Department shall consist of the following:

(1) The Planning Service shall be responsible for providing the

Department with economical, efficient, and effective services
relating to planning, programming, and project development;

(2) The Financial and Management Service shall be responsible for

providing the Department with staff advice and assistance on
budgetary, financial, and management improvement matters;

(3) The Administrative Service shall be responsible for providing the

Department with economical, efficient, and effective services
relating to legal assistance, information, records, supplies,
equipment, collection, disbursement, security and custodial work;

(4) The Human Resources Development Service shall:

(a) Develop and administer a personal program which shall

include selection and placement, classification and pay,
career and employment development, performance rating,
employee relations and welfare services;

(b) Act on all matters concerning attendance, leaves of

absences, appointments, promotions, and other personnel
transactions; and

(c) Conduct training programs in the Department.

(5) The Technical Service, which includes the Office of the Head
Executive Assistant and the Information and Publication Service
shall take charge of technical staff activities which cannot be
allocated to the four (4) other services.

CHAPTER 4

Board of Higher Education

SECTION 8. Organization. — The Board shall be composed of an

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 Undersecretary of the Department of Education, Culture and Sports designated as
Chairman and four other members to be appointed by the President of the Philippines
upon nomination by the Secretary of Education, Culture and Sports for a term of four
years. The four members shall have distinguished themselves in the field of higher
education and development either in the public or private sector. The Director of the
Bureau of Higher Education shall participate in the deliberation of the Board but
without the right to vote.

SECTION 9. Functions. — The Board of Higher Education shall:

(1) Articulate the policy and support the framework for both public
and private post-secondary education;

(2) Make policy recommendations regarding the planning and

management of the integrated system of higher education and the
continuing evaluation thereof;

(3) Recommend to the Secretary of Education, Culture and Sports

steps to improve the governance of the various components of the
higher education system at national and regional levels; and

(4) Assist the Secretary of Education, Culture and Sports in making

recommendations relative to the generation of resources and their
allocation for higher education.

SECTION 10. Staff Assistance. — The Bureau of Higher Education shall

provide the Board with the necessary technical and staff support; Provided, That the
Board may create technical panels of experts in the various disciplines as the need
arises.

CHAPTER 5

State Colleges and Universities

SECTION 11. Governance. — By virtue of his chairmanship of their

boards of trustees as provided in their respective charters, the Secretary, directly or
through his Undersecretaries, shall continue to govern state colleges and universities.

CHAPTER 6

Bureaus and Offices

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 SECTION 12. Bureau of Elementary Education. — The Bureau of
Elementary Education shall have the following functions:

(1) Conduct studies and formulate, develop, and evaluate programs

and educational standards for elementary education;

(2) Undertake studies necessary for the preparation of prototype

curricular designs, instructional materials and teacher training
programs for elementary education;

(3) Formulate guidelines to improve elementary school physical plans

and equipment, and general management of these schools; and

(4) Perform such other functions as may be provided by law.

SECTION 13. Bureau of Secondary Education. — The Bureau of

Secondary Education shall have the following functions:

(1) Conduct studies and formulate, develop and evaluate programs and
educational standards for secondary education;

(2) Develop curricular designs, prepare instructional materials, and

prepare and evaluate programs to upgrade the quality of the
teaching and non-teaching staff at the secondary level;

(3) Formulate guidelines to improve the secondary schools physical

plants and equipment, and general management of these schools;
and

(4) Perform such other functions as may be provided by law.

SECTION 14. Bureau of Technical and Vocational Education. —

The Bureau of Technical and Vocational Education shall have the following
functions:

(1) Collaborate with other agencies in the formulation of manpower

plans;

(2) Conduct studies, formulate, develop and evaluate post-secondary

vocational technical staff, and formulate guidelines to improve the
physical plant and equipment of post-secondary

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 vocational-technical schools; and

(3) Develop curricular designs and prepare instructional materials,

prepare and evaluate programs to upgrade the quality of teaching
and non-teaching staff, and formulate guidelines to improve the
physical plant and equipment of post-secondary,
vocational/technical schools.

SECTION 15. Bureau of Higher Education. — The Bureau of

Higher Education shall have the following functions:

(1) Develop, formulate and evaluate programs, projects and

educational standards for higher education;

(2) Provide staff assistance to the Board of Higher Education in its

policy and advisory functions;

(3) Provide technical assistance to encourage institutional

development programs and projects;

(4) Compile, analyze and evaluate data on higher education; and

(5) Perform other functions provided by law.

SECTION 16. Bureau of Non-Formal Education. — The Bureau of

Non-Formal Education shall have the following functions:

(1) Serve as a means of meeting the learning needs of those unable to

avail themselves of the educational services and programs of
formal education;

(2) Coordinate with various agencies in providing opportunities for the

acquisition of skills necessary to enhance and ensure continuing
employability, efficiency, productivity, and competitiveness in the
labor market; and

(3) Serve as a means for expanding access to educational opportunities

to citizens of varied interests, demographic characteristics and
socio-economic origins of status.

SECTION 17. Bureau of Physical Education and School Sports. —

The Bureau of Physical Education and School Sports shall have the following
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 functions:

(1) Develop human resources through mass-based sports education;

(2) Improve the general fitness of the citizenry;

(3) Promote social and cultural integration through the revival of

indigenous games and sports;

(4) Identify and nurture sports talents and promote excellence in

sports, traditional games and other physical activities; and

(5) Perform such other functions as may be provided by law.

CHAPTER 7

Regional Offices

SECTION 18. Organization. — The Department is hereby authorized to

establish, operate and maintain a Regional Office in each of the administrative
regions of the country. Each Regional Office shall be headed by a Regional Director
who shall be assisted by an Assistant Regional Director. The Regional Director shall
be responsible for the School Divisions and their Superintendents within his
administrative region.

SECTION 19. Functions. — A Regional Office shall have, within its

administrative region, the following functions:

(1) Formulate the regional plan of education based on the national

plan of the Department taking into account the specific needs and
special traditions of the region;

(2) Implement laws, rules, regulations, policies, plans, programs and

projects of the Department;

(3) Provide economical, efficient and effective education service to the

people;

(4) Coordinate with regional offices of other Departments, Offices and

agencies in the region;

(5) Coordinate with local government units; and

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 (6) Perform such other functions as may be provided by law.

CHAPTER 8

Attached Agencies

SECTION 20. Attached Agencies. — The following agencies are

hereby attached to the Department:

(1) National Museum;

(2) National Library;

(3) National Historical Institute;

(4) Institute of Philippine Languages;

(5) Instructional Materials Corporation;

(6) Instructional Materials Council;

(7) Educational Development Projects Implementing Task Force;

(8) Educational Assistance Policy Council;

(9) National Youth and Sports Development Board;

(10) National Social Action Council;

(11) National Board of Teachers;

(12) Boy Scouts of the Philippines;

(13) Girl Scouts of the Philippines; and

(14) Records Management and Archives Office.

SECTION 21. Supervised and Controlled Agencies. — The Department

shall exercise supervision and control over the following agencies:

(1) Health and Nutrition Center; and

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 (2) National Education Testing and Research Center.

SECTION 22. Functions and Duties. — The agencies attached to as well

as those under the supervision and control of the Department shall continue to operate
and function in accordance with their respective charters or laws creating them except
as otherwise provided in this Code.

CHAPTER 9

Miscellaneous Provisions

SECTION 23. Medium of Instruction. — The Department shall promulgate

rules and the regulations on the medium of instruction for all schools in accordance
with the policy declared in Section 7, Article XIV of the Constitution.

SECTION 24. School Year. — (1) The school year for public and private
schools shall consist of not less than forty (40) weeks for the elementary and
secondary levels, and thirty-six (36) weeks for the college level or eighteen (18)
weeks a semester.

2) The opening date shall be fixed by the Secretary, but it shall not be earlier
than the first day of June nor later than the last day of July of each year unless
prevented by fortuitous events.

3) The long school vacation period shall likewise be fixed by the Secretary
taking into consideration the convenience of the pupils and the special climatic
conditions prevailing during the said period.

4) The dates established for the long school vacation shall not be changed
oftener than once every five (5) years without prior public hearing properly advertised
in a newspaper of general circulation or announced by the school authorities
concerned.

SECTION 25. School Holidays. — All schools, whether public or private,

shall not hold classes on public holidays, whether regular or special. On holidays
especially proclaimed by the President, the schools in the municipality, city or
province affected by the proclamation shall not hold classes. The Secretary may, by
reason of public calamity or emergency, order the closure of any school, public or
private, as may have been affected thereby for such period as necessity may demand.

SECTION 26. School Sessions. — The regular daily sessions of all public
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 and private schools shall be held during the hours fixed by the Secretary or his duly
authorized representatives. Except in college, no class sessions shall be held on
Saturdays, Sundays, or holidays unless to offset class sessions suspended by
competent authority.

SECTION 27. School Rituals. — (1) School rituals prepared and

prescribed by the Secretary shall be observed in all public and private elementary and
secondary schools in the Philippines.

2) The school rituals shall consist of solemn and patriotic mass singing of
the Philippine National Anthem and the recitation of prescribed patriotic pledges.

3) The rituals shall be held in school premises as often as may be practicable

under the direction of the respective school authorities.

SECTION 28. Flag Ceremony. — (1) All educational institutions

shall observe a simple and dignified flag ceremony, including the playing or singing
of the Philippine National Anthem.

2) The flag ceremony shall be conducted under the rules and regulations
issued by the Secretary.

3) Failure or refusal to observe the flag ceremony in accordance with the

rules and regulations issued by the Secretary shall, after proper notice and hearing,
subject the educational institution concerned and its head to public censure as an
administrative punishment, which shall be published at least once in a newspaper of
general circulation.

4) Failure to observe for the second time the said flag ceremony shall, after
notice and hearing, be a ground for the cancellation of the recognition or the permit of
the private educational institution concerned.

5) Any teacher or student or pupil who refuses to join or participate in the

flag ceremony may be dismissed after due investigation.

SECTION 29. Local School Boards. — In every province, city or

municipality, there shall be established a Provincial School Board, City School Board
and Municipal School Board, respectively, whose composition, powers, functions and
duties shall be provided by law.

TITLE VII

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 Labor and Employment

CHAPTER 1

General Provisions

SECTION 1. Declaration of Policy. — (1) The State shall afford full

protection to labor and promote full employment and equality of employment
opportunities for all.

It shall guarantee the rights of all workers to self-organization, collective

bargaining negotiations, and peaceful concerted activities, including the right to strike
in accordance with law. They shall be entitled to security of tenure, humane
conditions of work, and a living wage. They shall also participate in policy and
decision-making processes affecting their rights and benefits as may be provided by
law.

(2) The State shall promote the principle of shared responsibility between
workers and employers and the preferential use of voluntary modes in settling
disputes, including conciliation, and shall enforce their mutual compliance therewith
to foster industrial peace.

(3) The State shall regulate the relations between workers and employers,
recognizing the right of labor to its just share in the fruits of production and the right
of enterprises to reasonable returns on investments, and to expansion and growth.

SECTION 2. Mandate. — The Department shall be the primary

policy-making, programming, coordinating and administrative entity of the Executive
Branch of the government in the field of labor and employment. It shall assume
primary responsibility for:

(1) The promotion of gainful employment opportunities and the

optimization of the development and utilization of the country's
manpower resources;

(2) The advancement of workers' welfare by providing for just and

humane working conditions and terms of employment;

(3) The maintenance of industrial peace by promoting harmonious,

equitable, and stable employment relations that assure equal

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 protection for the rights of all concerned parties.

SECTION 3. Powers and Functions. — The Department of Labor and

Employment shall:

(1) Enforce social and labor legislation to protect the working class
and regulate the relations between the worker and his employer;

(2) Formulate and recommend policies, plans and programs for

manpower development, training, allocation, and utilization;

(3) Recommend legislation to enhance the material, social and

intellectual improvement of the nation's labor force;

(4) Protect and promote the interest of every citizen desiring to work
locally or overseas by securing for him the most equitable terms
and conditions of employment, and by providing social and
welfare services;

(5) Regulate the employment of aliens, including the enforcement of a

registration or work permit system for such aliens, as provided for
by law;

(6) Formulate general guidelines concerning wage and income policy;

(7) Recommend necessary adjustments in wage structures with a view

to developing a wage system that is consistent with national
economic and social development plans;

(8) Provide for safe, decent, humane and improved working conditions
and environment for all workers, particularly women and young
workers;

(9) Maintain a harmonious, equitable and stable labor relations system

that is supportive of the national economic policies and programs;

(10) Uphold the right of workers and employers to organize and

promote free collective bargaining as the foundation of the labor
relations system;

(11) Provide and ensure the fair and expeditious settlement and
disposition of labor and industrial disputes through collective
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 bargaining, grievance machinery, conciliation, mediation,
voluntary arbitration, compulsory arbitration as may be provided
by law, and other modes that may be voluntarily agreed upon by
the parties concerned; and

(12) Perform such other functions as may be provided by law.

SECTION 4. Organizational Structure. — The Department shall consist

of the Office of the Secretary, and Undersecretaries and Assistant Secretaries, the
Services and Staff Bureaus, and the Regional Offices.

CHAPTER 2

Department Proper

SECTION 5. Office of the Secretary. — The Office of the

Secretary shall consist of the Secretary and his immediate staff.

SECTION 6. Joint RP-US Labor Committee Staff . — There is hereby

created in the Office of the Secretary a Joint RP-US Labor Committee Staff which
shall provide technical and other necessary services to the Philippine panel in the
Joint Labor Committee created under the RP-US Base Labor Agreement and for other
special projects. The unit shall be headed by a Head Executive Assistant who shall be
assisted by five (5) staff assistants.

SECTION 7. Undersecretary. — The Secretary shall be assisted by not

more than four (4) Undersecretaries who shall be appointed by the President upon the
recommendation of the Secretary. The Secretary is hereby authorized to delineate and
assign the respective functional areas of responsibility of the Undersecretaries.

SECTION 8. Assistant Secretaries. — The Secretary shall likewise be

assisted by not more than four (4) Assistant Secretaries who shall be appointed by the
President upon the recommendation of the Secretary. The Secretary is hereby
authorized to delineate and assign the respective areas of functional responsibility of
the Assistant Secretaries. Within his functional area of responsibility, the Assistant
Secretary shall assist the Secretary and Undersecretaries in the formulation,
determination and implementation of laws, policies, plans, programs and projects on
labor and shall oversee the day-to-day administration and supervision of the
constituent units of the Department.

CHAPTER 3
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 Department Services

SECTION 9. Planning Service. — The Planning Service shall provide the

Department with efficient, effective and economical services relating to planning,
programming, project development and evaluation, and the development and
implementation of a management information system.

SECTION 10. Administrative Service. — The Administrative Service shall

provide the Department with efficient, effective and economical services relating to
records, management, supplies, equipment, collections, disbursements, building
administration and maintenance, security and custodial work.

SECTION 11. Human Resource Development Service. — The Human

Resource Development Service shall provide the Department with a program and
corresponding projects that shall make available training, education and development
opportunities needed to upgrade the levels of competence and productivity of
Department managers and personnel. It shall absorb the powers and functions of the
Administrative Service in relation to the development and administration of personnel
programs including selection and placement, development, performance evaluation,
employee relations and welfare.

SECTION 12. Financial Management Service. — The Financial and

Management Service shall be responsible for providing the Department with efficient,
effective and economical services relating to budgetary, financial, management
improvement and internal control matters.

SECTION 13. Legal Service. — The Legal Service shall provide legal
advice and service to Department officers and employees; prepare informative or
clarificatory opinions on labor laws, rules and regulations for uniform interpretation
thereof; answer legal queries from the public; assist the Office of the Solicitor
General in suits involving the Department or its officers or employees or act as their
principal counsel in all actions taken in their official capacity or other causes before
judicial or administrative bodies.

SECTION 14. International Labor Affairs Service. — The International

Labor Affairs Service shall be responsible for monitoring the observance and
implementation of all obligations, courtesies, and facilities required by international
labor affairs, particularly the International Labor Organization, the Conference of
Asian Pacific Labor Ministries, the Association of Southeast Asian Nations Labor
Ministers Meeting of which the Philippines is a member, and related international
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 labor standards and agreements reached in various international labor forums, treaties,
and other multilateral, bilateral or multi-bilateral agreements in the area of labor and
employment; provide staff support and policy guidelines to the Secretary in the
supervision, monitoring and reporting of the activities of the Philippine overseas labor
officers assigned in different countries; serve as the instrumentality of the Department
for technical cooperation, programs and activities with other countries and
international institutions.

SECTION 15. Information and Publication Service. — The Information

and Publication Service shall be responsible for rapport and understanding between
the Department and the public through the development of public relations programs
and the dissemination of accurate and updated information on labor and employment,
by means of publications and media coverages of special events and related matters
on the Department's policies, plans, programs, and projects; likewise, it shall be
responsible for providing answers to queries from the public regarding the
Department's policies, rules, regulations, programs, activities and services.

CHAPTER 4

Bureaus

SECTION 16. Bureau of Labor Relations. — The Bureau of Labor

Relations shall set policies, standards, and procedures on the registration and
supervision of legitimate labor union activities including denial, cancellation and
revocation of labor union permits. It shall also set policies, standards, and procedure
relating to collective bargaining agreements, and the examination of financial records
of accounts of labor organizations to determine compliance with relevant laws.

The Bureau shall also provide proper orientation to workers on their rights and
privileges under existing laws and regulations, and develop schemes and projects for
the improvement of the standards of living of workers and their families.

SECTION 17. Bureau of Local Employment. — The Bureau of

Local Employment shall:

(1) Formulate policies, standards and procedures on productive

manpower resources, development, utilization and allocation;

(2) Establish and administer a machinery for the effective allocation of

manpower resources for maximum employment and placement;

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 (3) Develop and maintain a responsive vocational guidance and testing
system in aid of proper human resources allocation;

(4) Regulate and supervise private sector participation in the

recruitment and placement of workers locally under such rules and
regulations as may be issued by the Secretary;

(5) Establish and maintain a registration or work permit system to

regulate employment of aliens;

(6) Develop and maintain a labor market information system in aid of

proper manpower and development planning;

(7) Formulate employment programs designed to benefit

disadvantaged groups and communities; and

(8) Perform other functions as may be provided by law.

SECTION 18. Bureau of Women and Young Workers. — The Bureau of

Women and Young Workers shall:

(1) Formulate policies and promulgate orders, rules and regulations

implementing the provisions of the Labor Code affecting working
women and minors;

(2) Set standards which shall protect the welfare of the working
women and minors, improve their working conditions, increase
their efficiency, secure opportunities for their profitable
employment and find ways for their economic, educational, social
and cultural advancement;

(3) Prepare and recommend to the Secretary of Labor and

Employment the approval and issuance of such rules and
regulations necessary in the interpretation of all laws relating to the
employment of women and minors;

(4) Undertake studies and submit recommendations on the

employment of women and minors in commercial, industrial and
agricultural establishments and other places of labor;

(5) Provide legal and technical assistance on matters relating to

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 working women and minors;

(6) Act as the government's clearinghouse of all information relating

to working women and minors;

(7) Undertake development studies on the training needs of women

and minors and develop programs and projects to enhance their
productivity and effective participation in community
development;

(8) Protect every child employed in the movie, television, radio and
entertainment industries against exploitation, improper influences,
hazards and other conditions or circumstances prejudicial to his
physical, mental, emotional, social and moral development.

(9) Undertake projects and in-service training programs for working

children to improve their potentials for employment and their
capabilities and physical fitness, increase their efficiency, secure
opportunities for their promotion, prepare them for more
responsible positions, and provide for their social, educational and
cultural advancement, in cooperation with labor and management;
and

(10) Perform such other functions as may be provided by law.

SECTION 19. Bureau of Rural Workers. — The Bureau of Rural Workers

shall:

(1) Assist rural workers, displaced farmers, and migratory workers in

seeking gainful employment;

(2) Conduct studies and draw up programs for re-training of displaced

agricultural workers;

(3) Coordinate with regional offices and local government units in

preparing a census of rural workers seeking employment; and

(4) Perform such other functions as may be assigned by the Secretary.

SECTION 20. Bureau of Working Conditions. — The Bureau of Working

Conditions shall:

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 (1) Develop and prescribe safety standards, measures and devices;
promote safety consciousness and habits among workers; develop
and evaluate occupational safety and health programs for workers;

(2) Develop plans, programs, standards and procedures for the

enforcement of laws relating to labor standards, including the
operation of boilers, pressure vessels, machinery, internal
combustion engines, elevators, electrical equipment, wiring
installations, and the construction, demolition, alteration and use of
commercial and industrial buildings and other workplaces;

(3) Prepare rules and regulations, interpretative bulletins and legal

opinions relating to the administration and enforcement of labor
standards; and provide manuals and plan programs for the training
of field personnel;

(4) Provide technical and legal assistance to the Labor Standards

Commission; and

(5) Perform such other functions as may be provided by law.

SECTION 21. Institute for Labor Studies. — The Institute for Labor
Studies shall be attached to the Department of Labor and Employment. For policy and
program coordination and administrative supervision, the Institute shall absorb the
research and publication functions of the Institute of Labor and Manpower Studies.
The Institute, to be headed by an Executive Director, assisted by a Deputy
Executive Director, shall have the following functions:

(1) Undertake research and studies in all areas of labor and manpower
policy and administration;

(2) Review the rationale of existing legislation and regulations and

analyze the costs involved in the implementation of such
legislation against the benefits expected to be derived;

(3) Study and develop innovative and indigenous approaches towards

the promotion of harmonious and productive labor-management
and the improvement of workers' welfare services;

(4) Develop and undertake research programs and projects in

collaboration with other national agencies to enhance the
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 Department's capability to participate in national decision and
policy making;

(5) Enter into agreements with international or bilateral agencies for

the carrying out of the foregoing functions;

(6) Expand the scope of its research interests into other countries and
regions;

(7) Publish its research studies for dissemination to government as

well as to all concerned parties; and

(8) Perform such other functions as may be provided by law.

SECTION 22. Bureau of Labor and Employment Statistics. — The Bureau

of Labor and Employment Statistics shall:

(1) Formulate, develop and implement plans and programs on the

labor statistical system in order to provide the government with
timely, accurate and reliable data on labor and employment;

(2) Conduct nationwide surveys and studies which will generate trends
and structures on labor and employment;

(3) Develop and prescribe uniform statistical standards, nomenclatures

and methodologies for the collection, processing, presentation and
analysis of labor and employment data;

(4) Establish appropriate mechanisms for the coordination of all

statistical activities in the Department and for collaboration with
other government and private agencies including international
research organizations in the conduct of surveys and studies in the
area of labor and employment;

(5) Disseminate statistical information and provide statistical services

or advice to the users by establishing a data bank and issuing the
Bureau's statistical materials and research findings;

(6) Develop and undertake programs and projects geared toward

enhancement of the technical competence of the Department on
theories, techniques and methodologies for the improvement of the

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 labor statistical system;

(7) Monitor and exercise technical supervision over the statistical units
in the Department and its agencies; and

(8) Perform such other functions as may be provided by law or

assigned by the Secretary.

SECTION 23. National Conciliation and Mediation Board. — The

National Conciliation and Mediation Board, shall absorb the conciliation, mediation
and voluntary arbitration functions of the Bureau of Labor Relations. The Board shall
be composed of an Administrator and two (2) Deputy Administrators. It shall be an
attached agency under the administrative supervision of the Secretary of Labor and
Employment.

The Administrator and the Deputy Administrators shall be appointed by the

President upon recommendation of the Secretary of Labor and Employment. There
shall be as many Conciliators-Mediators as the needs of the public service require,
who shall have at least three (3) years of experience in handling labor relations and
who shall be appointed by the Secretary. The Board shall have its main office in
Metropolitan Manila and its Administrator shall exercise supervision over
Conciliators-Mediators and all its personnel. It shall establish as many branches as
there are administrative regions in the country, with as many Conciliators-Mediators
as shall be necessary for its effective operation. Each branch of the Board shall be
headed by an Executive Conciliator-Mediator.

The Board shall have the following functions:

(1) Formulate policies, programs, standards, procedures, manuals of

operation and guidelines pertaining to effective mediation and
conciliation of labor disputes;

(2) Perform preventive mediation and conciliation functions;

(3) Coordinate and maintain linkages with other sectors or institutions,

and other government authorities concerned with matters relative
to the prevention and settlement of labor disputes;

(4) Formulate policies, plans, programs, standards, procedures,

manuals of operation and guidelines pertaining to the promotion of
cooperative and non-adversarial schemes, grievance handling,
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 voluntary arbitration and other voluntary modes of dispute
settlement;

(5) Administer the voluntary arbitration program; maintain or update a

list of voluntary arbitrations; compile arbitration awards and
decisions;

(6) Provide counselling and preventive mediation assistance

particularly in the administration of collective agreements;

(7) Monitor and exercise technical supervision over the Board

programs being implemented in the regional offices; and

(8) Perform such other functions as may be provided by law or

assigned by the Secretary.

The Tripartite Voluntary Arbitration Advisory Council, which is attached to

the National Conciliation and Mediation Board, shall advise the National Conciliation
and Mediation Board on matters pertaining to the promotion of voluntary arbitration
as the preferred mode of dispute settlement.

The Tripartite Voluntary Arbitration Advisory Council shall consist of the

Administrator of the National Conciliation and Mediation Board as Chairman, one
other member from the government, two (2) members representing labor, and two (2)
other members representing management. The members shall be appointed by the
President to serve for a term of three (3) years. The Chairman and Members shall
serve without compensation.

CHAPTER 5

Regional Offices

SECTION 24. Regional Offices, District Offices and Provincial Extension

Units. — The Department is hereby authorized to establish, operate and maintain such
Department-wide Regional Offices, District Offices and Provincial Extension Units in
each of the administrative regions of the country, insofar as necessary to promote
economy and efficiency in the delivery of its services. Its Regional Office shall be
headed by a Regional Director who shall have supervision and control thereof. The
Regional Director, whenever necessary, shall be assisted by an Assistant Regional
Director. A Regional Office shall have, within its regional areas, the following
functions:
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 (1) Implement laws, policies, plans, programs, projects, rules and
regulations of the Department;

(2) Provide economical, efficient and effective service to the people;

(3) Coordinate with regional offices of other departments and

agencies;

(4) Coordinate with local government units; and

(5) Perform such other functions as may be provided by law or

assigned by the Secretary.

CHAPTER 6

Attached Agencies

SECTION 25. Attached Agencies. — The following agencies are attached

to the Department for policy and program coordination and administrative
supervision:

(1) National Wages Council;

(2) Philippine Overseas Employment Administration;

(3) Employees' Compensation Commission (ECC) which shall include

the Executive Director of the ECC as an ex officio member of the
Commission;

(4) The National Manpower and Youth Council;

(5) The National Labor Relations Commission;

(6) Overseas Workers' Welfare Administration;

(7) Maritime Training Council; and

(8) National Maritime Polytechnic.

TITLE VIII

National Defense

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 SUBTITLE I

Preliminary Provisions

CHAPTER 1

National Defense Policies

SECTION 1. Declaration of Policies. — (1) The prime duty of the

Government is to serve and protect the people. Government may call upon the people
to defend the State and, in fulfillment thereof, all citizens may be required, under
conditions provided by law, to render personal military or civil service.

(2) Civilian authority is, at all times, supreme over the military. The Armed
Forces of the Philippines is the protector of the people and the State. Its goal is to
secure the sovereignty of the State and the integrity of the national territory.

CHAPTER 2

National Security Council

SECTION 2. Declaration of Policies. — (1) The formulation of

integrated and rationalized national, foreign, military, political, economic, social and
educational policies, programs, and procedures is vital to the security of the state.

(2) The national interest requires that an agency exist to formulate and adopt
policies, programs, and procedures on all matters pertaining to or affecting the
national security so that judgments and actions thereon by the President may rest on
sound advice and accurate information.

SECTION 3. Mandate. — The National Security Council shall serve as

the lead agency of the government for coordinating the formulation of policies,
relating to or with implications on the national security.

SECTION 4. Composition. — The National Security Council, hereinafter

referred to as Council, shall be composed of the President as Chairman, the
Vice-President, the Secretary of Foreign Affairs, the Executive Secretary, the
Secretary of National Defense, the Secretary of Justice, the Secretary of Labor and
Employment, the Secretary of Local Governments, the National Security Director, the
Chief of Staff of the Armed Forces of the Philippines (AFP), and such other
government officials and private individuals as the President may appoint.
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 SECTION 5. Powers and Functions. — In addition to such specific
duties and responsibilities as the President may direct, the Council shall:

(1) Advise the President with respect to the integration of domestic,

foreign, military, political, economic, social, and educational
policies relating to the national security so as to enable all
concerned departments and agencies of the government to meet
more effectively, problems and matters involving the national
security;

(2) Evaluate and analyze all information, events, and incidents in

terms of the risks they pose or implications upon or threats to the
overall security and stability of the nation, for the purpose of
recommending to the President appropriate action thereon;

(3) Formulate and coordinate the implementation of policies on

matters of common interest to the various departments, and
agencies of the government concerned with the national security,
and make recommendations to the President in connection
therewith;

(4) Insure that policies adopted by the Council on national security are
effectively and efficiently implemented; and

(5) Make such recommendations or render such other reports as the

President may from time to time require.

SECTION 6. Executive Committee. — The Council shall have an

Executive Committee composed of the President as Chairman, and the Vice-President
and Secretary of Foreign Affairs, the Executive Secretary, the Secretary of National
Defense, the National Security Director, the Chief of Staff of the Armed Forces of the
Philippines and such other members or advisers as the President may appoint from
time to time.

The Executive Committee shall review national security and defense problems
and formulate positions or solutions for consideration by the Council. It shall
determine the agenda and order of business of the Council, and shall ensure that
decisions of the Council are clearly communicated to the agencies involved. It shall
advise the President on the implementation of decisions.

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 To carry out the functions of the Executive Committee, the Chairman shall
utilize the facilities and expertise of any of the government agencies and
instrumentalities and shall promulgate rules and regulations to govern the operations
of the Executive Committee.

SECTION 7. Secretariat. — The Council shall have a permanent

Secretariat which shall be under the supervision and control of the National Security
Director. The National Security Director shall be assisted by a Deputy who, like the
National Security Director, shall be appointed by, and serve at the pleasure of, the
President. The National Security Director shall attend and participate in meetings of
the Cabinet and have the privileges of a member thereof.

SECTION 8. Duties of Director. — Among other duties, the National

Security Director shall advise the President on matters pertaining to national security
and, whenever directed by the President, see to the implementation of decisions and
policies adopted by the President or the National Security Council which have
implications on national security.

CHAPTER 3

National Intelligence Coordinating Agency

SECTION 9. Functions. — The National Intelligence Coordinating

Agency, hereinafter referred to as the Agency, shall:

(1) Serve as the focal point for coordination and integration of

government activities involving national intelligence;

(2) Prepare intelligence estimates of local and foreign situations for

the formulation of national policies by the President; and

(3) Provide support and assistance to the National Security Council.

SECTION 10. The Director-General. — The Agency shall be headed by a

Director-General who shall be assisted by a Deputy Director-General. Both officials
shall be appointed by the President and shall hold office at the pleasure of the
President.

SECTION 11. The Deputy-Director General. — The Deputy

Director-General shall assist the Director-General in the performance of official

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 functions and, in his absence, perform the functions of the Director-General.

SECTION 12. Organizational Structure. — The organization of the

Agency shall consist of the following:

(1) The Office of the Director-General which shall undertake the

overall management and operation of the various components of
the agency, provide executive staff support, public relations, legal
service, and internal audit for the Agency;

(2) The Directorate for Operations, headed by the Assistant

Director-General for Operations, which shall be responsible for the
collection of information;

(3) The Directorate for Production, headed by the Assistant

Director-General for Production, which shall be responsible for the
preparation of intelligence estimates and other reports, and the
maintenance of automated data processing for the Agency;

(4) The Directorate for Administration, headed by the Assistant

Director-General for Administration, which shall be responsible
for personnel and training, transportation and communications,
supplies and materials, grounds and buildings maintenance,
security, and other support services;

(5) The Management and Planning Office which shall formulate plans,
policies and programs on the direction, integration and
coordination of national intelligence activities and on the operation
and management improvement of the Agency;

(6) The Office of the Comptroller which shall provide financial

management and control for the Agency; and

(7) As many Field Stations as may be determined by the

Director-General which shall undertake intelligence collection
activities and provide reports necessary for the preparation of
assessments and estimates.

The organization and staffing pattern of the Agency shall be recommended by

the Director-General for approval of the President.

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 SECTION 13. Administrative Supervision By the National Security
Council. — The Agency shall be under the administrative supervision of, and give
support services to, the National Security Council; however, the agency may report
directly to the President, as the President may require.

SECTION 14. National Intelligence Board. — (1) The National

Intelligence Board shall serve as an advisory body to the Director of the Agency, on
matters pertaining to the integration and coordination of intelligence activities, and
shall make recommendations on such matters as the Director may from time to time
submit to it for consideration.

(2) The members of the National Intelligence Board shall be appointed by the
President. The National Security Director may sit in all meetings of the Board.

SUBTITLE II

Department of National Defense

CHAPTER 1

General Provisions

SECTION 15. Declaration of Policy. — The defense establishment shall

be maintained to maximize its effectiveness for guarding against external and internal
threats to national peace and security, and provide support for social and economic
development.

SECTION 16. General Military Council. — The General Military Council

shall advise and assist the Secretary in the formulation of military policies and shall
consider and report on such other matters as the Secretary may direct. The Council
shall be composed of the Secretary as Chairman; and the Undersecretary of National
Defense, the Chief of Staff, the Vice-Chief of Staff, the Assistant Chief of Staff of the
Armed Forces of the Philippines, and the Commanders of the Major Services, as
members. The Deputy Chief of Staff of the Armed Forces of the Philippines shall be
the Secretary of the Council.

SECTION 17. Prohibition on Detail of AFP Personnel. — No member of

the armed forces in the active service shall, at any time, be appointed or designated in
any capacity to a civilian position in the Government including government-owned or
controlled corporations or any of their subsidiaries.

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 SECTION 18. Organizational Structure. — The Department shall be
composed of the Secretary, the Undersecretary and Assistant Secretaries and their
immediate staffs as determined by them respectively, and such other bodies as are
provided by law.

The Government Arsenal, Office of Civil Defense, Philippine Veterans Affairs

Office, Armed Forces of the Philippines, National Defense College of the Philippines
and the Integrated National Police shall be under the supervision and control of the
Department, except as may be provided by special laws.

CHAPTER 2

Department Proper

SECTION 19. Office of the Secretary. — The Office of the Secretary shall
consist of the Secretary and his immediate staff as determined by him.

SECTION 20. Office of the Undersecretary. — The functions of the

Undersecretary shall be as follows:

(1) Advise and assist the Secretary in the formulation and

implementation of Department's objectives and policies;

(2) Oversee all the operational activities of the Department for which
he shall be responsible to the Secretary;

(3) Coordinate the programs and projects of the Department, and be

responsible for its economical, efficient, and effective
administration;

(4) Serve as deputy to the Secretary, in all matters relating to the

operations of the Department; and

(5) Perform such other functions as may be provided by law.

When the Secretary is unable to perform his duties owing to illness, absence,
or other cause, as in case of vacancy in the Office, the Undersecretary shall
temporarily perform the functions of said Office.

SECTION 21. Executive Staff. — The Executive Staff shall be composed

of the Staff for Plans and Programs, Staff for Installation and Logistics, Staff for

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 Public Affairs, Staff for Strategic Assessment, Staff for Comptrollership, Staff for
Personnel, and the Legal Service.

SECTION 22. The Service Staff. — The Service Staff shall be composed
of the Administrative Services Office, and Information Management Office.

SECTION 23. Personal Staff. — There shall be a Personal Staff as may be

determined by the Secretary.

CHAPTER 3

Government Arsenal

SECTION 24. Organization. — The Government Arsenal shall be headed

by a Director who shall be assisted by one or more Assistant Directors. It shall have
staff and operating units provided by law.

SECTION 25. Qualification. — The Director and Assistant Directors shall

have the expertise, training or experience in the field of munitions.

SECTION 26. Functions. — (1) The Arsenal shall:

(1) Establish, operate, and maintain government arsenal;

(2) Formulate plans and programs to achieve self-sufficiency in arms,

mortars and other weapons and munitions;

(3) Design, develop, manufacture, procure, stockpile, and allocate

arms, mortars and other weapons and munitions without the
necessity of obtaining any permits or licenses, and devise ways
and means for the efficient mobilization of civilian industry to
augment the production of the Arsenal in times of emergency; and

(4) Perform such other functions as may be provided by law.

CHAPTER 4

Office of Civil Defense

SECTION 27. Organization. — The Office of Civil Defense shall be

headed by an Administrator who shall be assisted by a Deputy Administrator. The
Office shall have staff and operating units as may be provided by law.

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 SECTION 28. Functions. — The Office shall:

(1) In times of war and other national emergencies of equally grave

character, coordinate the activities and functions of various
government agencies and instrumentalities, as well as of private
institutions and civic organization devoted to public welfare to
maximize the utilization of the facilities and resources of the entire
nation for the protection and preservation of the civilian population
and property;

(2) Establish and administer a comprehensive national civil defense

and assistance program to include the estimation of the total
material, manpower and fiscal requirements for carrying out the
said program and coordinate the allocation to local government
units such aid in facilities, materials and funds as may be made
available by the national government;

(3) Furnish guidance and coordinate the activities of the national

government, local governments, private institutions and civic
organizations for civil preparedness;

(4) Develop and coordinate a program for informing, educating and

training the public on civil defense measures and activities; and

(5) Perform such other functions as may be provided by law.

SECTION 29. Operating Services. — The Administrator shall, subject to

the approval of the Secretary of National Defense, prescribe the organization,
functions, duties and responsibilities of civil defense units on the national and local
government levels, in connection with the various operating units for civil defense.
Civil defense operating units shall be established for the national and local
government defense organizations. The local units shall operate under the supervision
and control of the respective heads of the local government civil defense
organizations to which they appertain.

SECTION 30. Basic, Technical and Administrative Services. —

(1) The basic services of the AFP shall be composed of the Major
Services. Enlisted personnel of the standing force and the reserve
force must belong to one of the basic services.

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 (2) The technical services of the AFP shall be composed of the
Medical Corps, Dental Service, Nurse Corps, Veterinary Corps
and the Judge Advocate General Service.

(3) The administrative services shall consist of the Chaplain Service,

Women Auxiliary Corps, Medical Administrative Corps and the
Corps of Professors.

(4) Appropriate military occupational specialties may be prescribed by

the Chief of Staff for each of the basic, technical and
administrative services.

(5) Appointment of officers to the basic, technical and administrative

services, and enlistment in the basic service shall be governed by
rules and regulations prescribed by the Secretary of National
Defense.

CHAPTER 5

Philippine Veterans Affairs Office

SECTION 31. Organization. — The Philippine Veterans Affairs Office

shall be headed by an Administrator who may be assisted by one Deputy
Administrator. It shall have staff and operating units provided by law.

SECTION 32. Functions. — The Office shall:

(1) Formulate and promulgate, subject to the approval of the Secretary

of National Defense, policies, rules and regulations governing the
adjudication and administration of veterans claims and benefit;

(2) Adjudicate and administer benefits, pensions and other privileges

granted to veterans, their heirs and beneficiaries;

(3) Provide medical care and treatment to veterans pursuant to existing

law;

(4) Administer, develop, and maintain military shrines;

(5) Formulate policies concerning the affairs, placement and training

of ex-servicemen, and assist their widows and dependents, and

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 other retired military personnel; and

(6) Perform such other functions as may be provided by law.

CHAPTER 6

Armed Forces of the Philippines

SECTION 33. Functions. — The Armed Forces of the Philippines (AFP)

shall:

(1) Uphold the sovereignty, support the Constitution, and defend the
territory of the Republic of the Philippines against all enemies,
foreign and domestic;

(2) Promote and advance the national aims, goals, interests and
policies;

(3) Plan, organize, maintain, develop and deploy its regular and citizen
reserve forces for national security; and

(4) Perform such other functions as may be provided by law or

assigned by higher authorities.

SECTION 34. Composition. — (1) The AFP shall be composed of a

citizen armed force which shall undergo military training and serve, as may be
provided by law. It shall be organized and maintained in a manner that shall render it
capable of rapid expansion from a peacetime organization to a wartime or emergency
organization. The AFP shall keep a regular force necessary for the security of the
State. The officers and men of the regular force shall be recruited proportionately
from all provinces and cities as far as practicable.

(2) The Standing Force shall be composed of regular officers and enlisted
personnel; reservists called to active duty; draftees; trainees and
government-sponsored Filipino cadets enrolled in local or foreign military schools. In
time of peace, the size and composition of the Standing Force shall be prescribed by
the Secretary of National Defense, upon recommendation of the Chief of Staff.

(3) The Citizen Armed Force shall be composed of all reservists, and officers
and enlisted men on inactive status. All able-bodied citizens shall undergo military
training, after which they shall become reservists with appropriate ranks. All

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 reservists in a particular locality shall be organized into reserve geographical units
subject to call and mobilization as the need arises, individually or as a unit. The
Secretary of National Defense shall prescribe and implement a continuing program of
recruitment and training for the Citizen Armed Force to enable it to respond to all
types of threats to national security.

SECTION 35. Organizational Structure. — The AFP shall consist of the

General Headquarters; the Major Services namely: the Philippine Army, the
Philippine Air Force, the Philippine Navy and, until otherwise provided by law, the
Philippine Constabulary; and other existing units, services and commands of the AFP.
The Secretary of National Defense may, in accordance with the policies or directives
of the President, create additional units, services and commands, or reorganize the
AFP in response to any situation or in pursuance of operational or contingency [sic]
. No Major Service may be unfilled, inactivated or merged with another Major
Service, without the approval of the Congress.

SECTION 36. Basic, Technical and Administrative Service. — (1) The

basic services of the AFP shall be composed of the major services. Enlisted personnel
of the standing force and the reserve force must belong to one of the basic services.

(2) The technical services of the AFP shall be composed of Medical Corps,
Dental Service, Nurse Corps, Veterinary Corps and the Judge Advocate General
Service.

(3) The administrative service shall consist of the Chaplain Service, Women
Auxiliary Corps, Medical Administrative Corps and the Corps of Professors.

(4) Appropriate military occupational specialties may be prescribed by the

Chief of Staff for each of the basic, technical and administrative services.

(5) Appointment of officers to the basic, technical and administrative

services, and enlisted in the basic service shall be governed by rules and regulations
prescribed by the Secretary of National Defense.

SECTION 37. The Citizen Armed Force. — (1) The Secretary of

National Defense shall cause the organization of the Citizen Armed Force into
Geographical Units throughout the country. The Citizen Armed Force Geographical
Units shall consist of cadre of officers and men in the Standing Force and all qualified
reservists residing in a particular locality. The cadre may, however, be assigned to
another unit in the active force while the Geographical Units to which they are

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 assigned are on inactive status.

(2) Whenever dictated by military necessity, and upon the recommendation

of the Secretary of National Defense and approved by the President, the Citizen
Armed Force may be called or mobilized to complement the operations of the regular
force of the AFP or to support the regular force formations or units. For this purpose,
Active Auxiliary Units which shall be part of the Citizen Armed Force Geographical
Units, may be utilized, to be constituted out of volunteers to be screened in
consultations with the local executives and civic business leaders. The status of
Active Auxiliary Units shall be of a degree of activation of military reservists short of
full active duty status. They shall not be vested with law-enforcement or police
functions.

(3) All members of the Citizen Armed Force on training or service shall be
subject to military law and the Articles of War.

SECTION 38. Tactical and Territorial Organization. — Unless otherwise

prescribed by law, the major services and other units of the AFP may be organized
into such commands, forces and organizations as may be prescribed by the Secretary
of National Defense. For this purpose, the territory of the Philippines may be divided
into such tactical and geographical areas and zones or regions and districts as the
Secretary of National Defense may direct.

SECTION 39. Organizational Principles. — The organizational structure

of the AFP shall provide for:

(1) Centralized direction and control of General Headquarters to

insure unity and coordination of efforts throughout the military
establishment;

(2) Decentralized execution of operations to the Major Services and

other separate units to achieve maximum operational efficiency
within the military establishment;

(3) Common doctrine, standardized procedures and techniques

throughout the military establishment to assure common
understanding among all its forces and elements, facilitating
thereby the attainment of maximum operational efficiency and
effectiveness;

(4) Development of self-reliance concepts for each Major Service to

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 insure national defense and security and maximum utilization of
resources; and

(5) Development of the capability to participate in the infrastructure

projects of the government.

CHAPTER 7

General Headquarters

SECTION 40. Functions. — The General Headquarters, AFP, shall:

(1) Serve as military advisor and staff to the Secretary of National

Defense;

(2) Prepare strategic plans and provide for the strategic direction of the
AFP, including the direction of unified or specified commands;

(3) Prepare integrated logistic responsibilities in accordance with those

plans;

(4) Prepare integrated plans for military mobilization;

(5) Provide adequate, timely and reliable joint intelligence for use
within the Department;

(6) Review major personnel, material and logistic requirements of the

AFP in relation to strategic and logistic plans;

(7) Review plans and programs of the Major Services and separate
units to determine their adequacy, feasibility and suitability for the
performance of their respective detailed plans;

(8) Participate in the preparation of combined plans or military action

in conjunction with the armed forces of other nations;

(9) Recommend to the Secretary of National Defense the

establishment and force structure of unified or specified
commands;

(10) Determine the headquarters support, such as facilities, personnel

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 and communications required by unified or specified commands,
and assign the responsibility of providing that support to
appropriate Major Services;

(11) Prepare and submit to the Secretary of National Defense for his
consideration in the preparation of budgets and statements of
military requirements based upon strategic war plans, tasks,
priority of tasks, force requirements, and general strategic
guidance for the development of military force;

(12) Advise and assist the Secretary of National Defense on research

and engineering matters by submitting periodic reports on board
strategic guidance, overall military requirements, and relative
military importance of development activities to meet the needs of
the AFP;

(13) Prepare and submit to the Secretary of National Defense

recommendations to appropriate agencies concerning general
strategic guidance for the development of industrial mobilization
programs;

(14) Formulate policies and guidelines on the organization of the Major

Services and other elements of the military establishment, the
training of military forces, the employment of forces in the
prosecution of tasks required by law, and the employment of
forces to assist government agencies in the implementation of laws
and regulations when so directed by higher authorities; and

(15) Perform such other functions as may be provided by law or

assigned by higher authorities.

SECTION 41. Composition. — The General Headquarters shall be the

command and control element of the AFP. It shall be composed of the Office of the
Chief of Staff, Office of the Vice-Chief of Staff, the AFP General Staff, and other
staff offices and units necessary for effective command and control of the AFP.

SECTION 42. The Chief of Staff. — (1) The Chief of Staff, under the
authority and direction of the President and the Secretary of National Defense shall be
responsible for the development and execution of the national defense programs and
armed forces mission; and prescribe, in accordance with policies of the Secretary of
National Defense, the organization, powers, functions and duties of the various staffs,
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 services, installations and other units of the AFP.

(2) The President shall nominate and with the consent of the Commission on
Appointments, appoint the Chief of Staff from among the general and flag officers of
the basic services. He shall hold the grade of general (Four-Star) and shall if eligible
be retired in such a grade, upon relief from his assignment.

(3) The tour of duty of the Chief of Staff shall not exceed three (3) years.
However, in times of war or other national emergency declared by the Congress, the
President may extend such tour of duty.

SECTION 43. Vice-Chief of Staff. — The Vice-Chief of Staff shall be the

principal assistant of the Chief of Staff and shall perform the functions of the Chief of
Staff during the latter's absence or disability. He shall be appointed in the same
manner as the Chief of Staff and shall hold the grade of Lieutenant General
(Three-Star). He shall be retired in that grade if eligible for retirement after his relief
from his assignment, unless appointed as Chief of Staff.

SECTION 44. The AFP General Staff. — The AFP General Staff shall
advise and assist the Chief of Staff in the performance of his functions and in the
accomplishment of the tasks of the General Headquarters. It shall be headed by the
Deputy Chief of Staff, who shall be appointed by the Chief of Staff. The AFP General
Staff shall be a joint staff. The various General Staff Offices shall each be headed by
a Deputy Chief of Staff whose appointment and tenure shall be determined by the
Chief of Staff. The organization, functions and duties of the General Staff shall be
prescribed by the Chief of Staff.

SECTION 45. Authority to Reorganize the General Headquarters. — (1)

The Secretary of National Defense, upon recommendation of the Chief of Staff in the
interest of efficiency and economy, may:

(a) Establish and organize staffs, offices and units in the General
Headquarters in addition to the Armed Forces General Staff, and
prescribe the titles, functions and duties of their members;

(b) Abolish existing staffs, offices and units in the General

Headquarters not specifically provided in this Chapter or by any
other provision of law, or transfer or consolidate their functions
and duties with other staffs, offices or units; and

(c) Abolish the position of any Deputy Chief of Staff or any general
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 staff office and transfer or consolidate its functions and duties with
those of another Deputy Chief of Staff or General Staff Office.

(2) If the President does not prescribe otherwise, the organization, functions,
and duties of various staffs, offices and units in the General Headquarters shall
continue as provided under existing laws and regulations not in conflict with
provisions of this Chapter.

CHAPTER 8

Major Services

SECTION 46. Organization.— The Major Services shall be organized by

the Chief of Staff in accordance with the policies laid down by the Secretary of
National Defense. The commanders of the Major Services shall hold such grade as
provided by law, and shall be appointed by the President upon the recommendation of
the Secretary of National Defense.

SECTION 47. General Provisions. — The Secretary of National Defense,

upon recommendation of the Chief of Staff, AFP, shall assign to the Major Services
specific functions in support of the overall responsibilities of the AFP and the
Department.

SECTION 48. The Philippine Army. — The Philippine Army shall be

responsible for the conduct of operations on land, in coordination with the other
Major Services. It shall be organized as prescribed by the Secretary of National
Defense, upon recommendation of the Chief of Staff.

SECTION 49. Functions. — The Philippine Army shall:

(1) Organize, train and equip forces for the conduct of prompt and
sustained operations on land;

(2) Prepare such units as may be necessary for the effective

prosecution of the national defense plans and programs and armed
forces missions, including the expansion of the peacetime army
component to meet any emergency;

(3) Develop, in coordination with the other Major Services, tactics,

techniques and equipment of interest to the army for field
operations;

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 (4) Organize, train and equip all army reserve units; and

(5) Perform such other functions as may be provided by law or

assigned by higher authorities.

SECTION 50. The Philippine Air Force. — The Philippine Air Force shall
be responsible for the air defense of the Philippines. It shall be organized as
prescribed by the Secretary of National Defense, upon recommendation of the Chief
of Staff.

SECTION 51. Functions. — The Philippine Air Force shall:

(1) Organize, train, and equip forces for prompt and sustained air
operations for the defense of the Philippines;

(2) Organize, train, and equip for airlift, airborne and tactical air
operations unilaterally or in coordination with surface forces;

(3) Formulate and develop doctrines, concepts, systems, policies,

procedures, strategies, tactics and techniques for operations
peculiar to the Air Force;

(4) Organize, train, and equip all air force reserve units; and

(5) Perform such other functions as may be provided by law or

assigned by higher authorities.

SECTION 52. The Philippine Navy. — The Philippine Navy shall be

responsible for the naval defense of the Philippines. It shall be organized as
prescribed by the Secretary of National Defense, upon recommendation of the Chief
of Staff.

SECTION 53. Functions. — The Philippine Navy shall:

(1) Organize, train and equip forces for prompt and sustained naval
operations;

(2) Prepare the necessary naval units for the effective enforcement of
all applicable laws upon the Philippine seas and waters, the
prosecution of national defense plans and programs and armed
forces missions, including the expansion of a peacetime navy

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 component to meet any emergency;

(3) Formulate and develop doctrines, concepts, systems, policies,

procedures, strategies, tactics and techniques for operations
peculiar to the Navy;

(4) Enforce laws and regulations pertaining to navigation safety of life

at sea, immigration, customs revenues, narcotics, quarantine,
fishing and neutrality of the territorial contiguous waters of the
Philippines;

(5) Organize, train and equip all naval reserve units; and

(6) Perform such other functions as may be provided by law of

assigned by higher authorities.

SECTION 54. The Philippine Coast Guard. — The Philippine

Coast Guard shall remain as a major subordinate unit of the Philippine Navy and
assigned functions pertaining to safety of life at sea as vested in it by law.

SECTION 55. The Philippine Constabulary. — Unless otherwise

provided by law, the Philippine Constabulary, as the national police force, shall be
primarily responsible for the preservation of peace and order and the enforcement of
laws throughout the Philippines. It shall be organized, trained and equipped primarily
as a law enforcement agency. It shall be organized as prescribed by the Secretary of
National Defense upon recommendation of the Chief of Staff.

SECTION 56. Functions. — (1) The Philippine Constabulary shall:

(a) Prevent and suppress lawless violence, rebellion, insurrection,

riots, brigandage, breaches of the peace and other disturbances,
and see to it that perpetrators of those offenses are brought to
justice;

(b) Organize, train, equip and prepare its forces for effective law
enforcement operations and police duties;

(c) Organize, train and equip constabulary draftees, reservists and

reserve units;

(d) Develop tactics, techniques, organization, weapons, equipment and

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 supplies essential to the accomplishment of its missions; and

(e) Perform such other functions as may be provided by law or

assigned by higher authorities.

(2) In times of war or national emergency, the Philippine Constabulary or any

of its subordinate units may be employed jointly with, or in support of the operations
of, the other Major Services, as the President may direct.

SECTION 57. Authority of Constabulary Officers and Enlisted Personnel.

— (1) Commissioned officers and enlisted personnel of the Philippine Constabulary,
as peace officers, shall execute lawful warrants and orders of arrest issued against any
person for any violation of law.

(2) The Philippine Constabulary shall have police jurisdiction throughout the
Philippines.

(3) When the constabulary forces in any area are unable to cope effectively
with violations of law, the Secretary of National Defense in accordance with the
policies or directives of the President, may assign or detail commissioned officers and
enlisted personnel of the Army, Air Force, or Navy, to the Philippine Constabulary or
any of its subordinate units. The officers and enlisted personnel so assigned or
detailed shall have the authority and duties of peace officers and shall be governed by
the provisions of this section for the duration of their assignment or detail.

CHAPTER 9

Philippine Military Academy

SECTION 58. Organization. — (1) The Philippine Military Academy is

the primary training and educational institution of the AFP. It shall be the primary
source of regular officers of the Standing Force.

(2) The Academy shall be organized as prescribed by the Secretary of

National Defense, upon recommendation of the Chief of Staff, AFP.

(3) The student body of the Academy shall be known as the Cadet Corps of
the Armed Forces of the Philippines (CCAFP) and shall have such strength as the
Secretary of National Defense shall determine upon the recommendation of the Chief
of Staff, and within the strength limited by the annual Appropriation Act.

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 (4) There shall be an Academic Board organized by the Chief of Staff, which
shall be composed of not more than fifteen (15) members selected from the officers of
the Academy upon recommendation of the Superintendent. The Board shall, in
accordance with the rules and regulations prescribed by the Chief of Staff, have the
power to confer baccalaureate degrees upon the cadets who satisfactorily complete
the approved course of study.

SECTION 59. Functions. — The Academy shall prepare the candidates for
commission in the regular force of the AFP and shall instruct, train and develop
cadets so that each graduate shall possess the character, the broad and basic military
skills and the education essential to the successful pursuit of a progressive military
career.

CHAPTER 10

National Defense College of the Philippines

SECTION 60. Organization and Administration. — (1) The National

Defense College of the Philippines, hereafter referred to as the College, shall be under
the direction, supervision and control of the Secretary of National Defense.

(2) The College shall be headed by a President who shall administer the
affairs of the College with the assistance of an Executive Vice-President, a
Vice-President for Academic Affairs, a Vice-President for Administrative Affairs and
a Vice-President for Research and Special Studies. The Executive Vice-President
shall act for the President in his absence and shall perform such other functions as
may be assigned to him by the President.

(3) The Vice-President for Academic Affairs shall be responsible for the
development, implementation, supervision and evaluation of academic programs; the
Vice-President for Administrative Affairs, for the overall administrative support to all
the activities of the College; and the Vice-President for Research and Special Studies,
on the conduct of research work and special studies.

(4) The College shall have an Academic Board to assist the President
discharge the following functions:

(a) Supervise the academic affairs of the College;

(b) Recommend academic consultants, professors, lecturers,

instructors, research assistants and other resource persons of the
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 College; and

(c) Recommend the courses of studies to be conducted by the College

to accomplish its objectives.

The Board shall be composed of the Vice-President for

Academic Affairs as Chairman, and the Heads of the various
academic disciplines as members, who shall be designated by the
President subject to the approval of the Secretary of National
Defense.

(5) All resource persons of the College including but not limited to academic
consultants, professors, lecturers, instructors, thesis advisers, members of examining
and evaluating panels, examiners, correctors, and technicians who are regularly
employed in the Government shall, in addition to their salaries, be entitled to receive
honoraria, fees and other emoluments fixed by the Secretary of National Defense.

SECTION 61. Powers and Functions. — (1) The College shall train and
develop the skills and competence of potential national defense leaders, civilian
officials of the different agencies and instrumentalities of the Government, and
selected executives from the private sector in the formulation and implementation of
national security policies, and for high command and staff duty.

(2) The College shall have the power to confer the degree of Master in
National Security Administration (MNSA) upon all its students who have
satisfactorily completed the prescribed course of study.

SECTION 62. Graduates of the Regular Course of the College. — (1)

Graduates of the College will receive for purposes of promotion to key and sensitive
positions in the military and civilian offices, preferential consideration and/or credit
points in the grade or class of their respective positions.

(2) All civilian graduates who are holders of the degree of Master in National
Security Administration shall qualify for appointment to the initial rank of Lieutenant
Colonel in the reserve force of the Armed Forces of the Philippines.

(3) Authority to use with honor the abbreviation MNSA after their names is
hereby given to all graduates of the regular course of the College.

CHAPTER 11

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 Integrated National Police

SECTION 63. Composition. — Unless otherwise provided by law, the

Integrated National Police shall be composed of the Philippine Constabulary as the
nucleus, and the Integrated Police Force, Fire Services and Jail Management Services
as components, under the Department of National Defense.

SECTION 64. Organizational Structure. — The Chief of Constabulary

shall prescribe, subject to the approval of the Secretary of National Defense, the table
of organization and equipment, ranks and position titles, functions, duties and powers
of the various staffs, services, installations and other units of the Integrated National
Police. The different headquarters of the Philippine Constabulary in the national, zone
or regional and provincial levels shall be the nuclei of the corresponding headquarters
of the Integrated National Police. The appropriate offices in the different headquarters
levels may be jointly staffed by the constabulary, police, jail and fire service officers
and personnel so that an integrated police and public safety services would be
effectively discharged.

SECTION 65. Head of the Integrated National Police. — The Chief of

Constabulary to be known as Director-General shall be the head of the Integrated
National Police. He shall have command of all elements thereof. He may issue from
time to time instructions regarding personnel, funds, records, property,
correspondence and such other matters to carry out the provisions of this Chapter. As
Director-General, the Chief of Constabulary shall be assisted by the Deputy Chiefs of
Constabulary, the general staff and the special, administrative and technical staffs of
the Philippine Constabulary.

SECTION 66. Functions. — The Integrated National Police shall:

(1) Enforce law and maintain peace and order;

(2) Insure public safety;

(3) Prevent and control fires;

(4) Administer city and municipal jails; and

(5) Perform such other functions provided by law or assigned by

higher authorities.

SECTION 67. Authority of the President Over the Integrated National

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 Police. — In the exercise of its power to maintain peace, law, order, and public
safety, the Integrated National Police shall be subject to the command and supervision
and control of the President and shall function directly under the Secretary of
National Defense.

CHAPTER 12

Attached Agencies

SECTION 68. Attached Agencies. — Agencies which are attached to the

Department shall operate in accordance with their respective organizational structures
and perform the functions and duties assigned to them by law, subject to the
requirements of economy, efficiency, and effectiveness.

SUBTITLE III

The National Police Commission

SECTION 69. Declaration of Policy. — (1) The State shall establish and
maintain one police force which shall be national in scope and civilian in character, to
be administered and controlled by a national police commission and shall provide, by
law, the authority of local executives over the police units in their jurisdiction.

(2) The maintenance of peace and order, the protection of life, liberty, and
property, and the promotion of the general welfare are essential for the enjoyment by
all the people of the blessings of democracy.

SECTION 70. The National Police Commission. — Unless otherwise

provided by law, the National Police Commission shall be under the control and
supervision of the Office of the President and shall continue to operate in accordance
with its present organizational structure and perform the functions and duties assigned
to it by law.

SECTION 71. Powers and Functions. — As provided by law, the

Commission shall exercise the following functions:

(1) Investigate, decide, and review administrative cases against

members of the Integrated National Police;

(2) Adjudicate death and permanent disability benefit claims of

members of the Integrated National Police;

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 (3) Administer appropriate examinations for the police, fire and jail
services;

(4) Attest appointments of members of the Integrated National Police;

(5) Inspect and audit the performance of the Integrated National

Police;

(6) Prepare a National Crime Prevention Program and coordinate its

implementation upon approval by the President; and

(7) Perform other duties provided by law or assigned by higher

authorities.

TITLE IX

Health

CHAPTER 1

General Provisions

SECTION 1. Declaration of Policy. — The State shall protect and

promote the right to health of the people and instill health consciousness among them;
adopt an integrated and comprehensive approach to health development, with priority
for the underprivileged sick, elderly, disabled, women, and children; endeavor to
make essential goods, health and other social services available to all the people at
affordable cost; establish and maintain an effective food and drug regulatory system;
and undertake appropriate health manpower development and research, responsive to
the country's health needs and problems.

SECTION 2. Mandate. — The Department shall be primarily responsible

for the formulation, planning, implementation, and coordination of policies and
programs in the field of health. The primary function of the Department is the
promotion, protection, preservation or restoration of the health of the people through
the provision and delivery of health services and through the regulation and
encouragement of providers of health goods and services.

SECTION 3. Powers and Functions. — The Department shall:

(1) Define the national health policy and formulate and implement a

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 national health plan within the framework of the government's
general policies and plans, and present proposals to appropriate
authorities on national issues which have health implications;

(2) Provide for health programs, services, facilities and other

requirements as may be needed, subject to availability of funds and
administrative rules and regulations;

(3) Coordinate or collaborate with, and assist local communities,

agencies and interested groups including international
organizations in activities related to health;

(4) Administer all laws, rules and regulations in the field of health,
including quarantine laws and food and drug safety laws;

(5) Collect, analyze and disseminate statistical and other relevant

information on the country's health situation, and require the
reporting of such information from appropriate sources;

(6) Propagate health information and educate the population on

important health, medical and environmental matters which have
health implications;

(7) Undertake health and medical research and conduct training in

support of its priorities, programs and activities;

(8) Regulate the operation of and issue licenses and permits to

government and private hospitals, clinics and dispensaries,
laboratories, blood banks, drugstores and such other
establishments which by the nature of their functions are required
to be regulated by the Department;

(9) Issue orders and regulations concerning the implementation of

established health policies; and

(10) Perform such other functions as may be provided by law.

SECTION 4. Organizational Structure. — The Department shall consist

of the Department Proper, National Health Facilities, Regional Offices, Provincial
Health Offices, District Health Offices and Local Health Agencies.

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 CHAPTER 2

Department Proper

SECTION 5. Department Proper. — The Department Proper shall be

composed of the Office of the Secretary, the Office for Management Services, the
Office for Public Health Services, the Office for Hospital and Facilities Services, the
Office for Standards and Regulations, and the Executive Committee for National
Field Operations.

SECTION 6. Office of the Secretary. — The Office of the Secretary shall

be composed of the Secretary of Health and his immediate staff; the
Undersecretary acting as Chief of Staff in the Office of the Secretary; the Assistant
Secretary for Legal Affairs; the Assistant Secretary for Financial, Operations and
Front Line Services Audit; and the Staff Services for the Secretary.

SECTION 7. Duties of the Undersecretary Acting as Chief of Staff . —

The Undersecretary acting as Chief of Staff in the Office of the Secretary, shall
supervise the Assistant Secretary for Legal Affairs, the Assistant Secretary for
Financial Operations, and Front Line Services Audit, and the Staff Support Services
to the Secretary; and head the secretariat of the Executive Committee for National
Field Operations.

SECTION 8. Duties of the Assistant Secretary for Legal Affairs. — The

Assistant Secretary for Legal Affairs shall head the office that shall provide the
Secretary with legal advice on all policy, program and operational matters of the
Department; act as Counsel for the Department in cases in which it is a party; handle
administrative cases against Department personnel and submit recommendations
pertaining thereto; and review legislative proposals.

SECTION 9. Duties of the Assistant Secretary for Financial Operation.

— The Assistant Secretary for Financial Operations, and Front Line Services Audit
shall head the office that shall monitor the Department's financial affairs, internal
operations, and the delivery of frontline services with a view to assuring the integrity
of the Department's financial operations and the requirements of the Commission on
Audit; optimizing the internal operating efficiency of the Department and its field
offices; and ensuring that the Department's constituencies are provided front line
services from the Department with the adequacy, quality, and efficiency that they are
entitled to.

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 SECTION 10. The Staff Support Services. — The following Staff Support
Services shall undertake such staff services intended to assist the Secretary in
performing his functions;

(1) Community Health Service which shall provide services related to

formulating and implementing plans and programs for
coordinating with local governments and non-government
organizations in health related activities, programs and projects;

(2) Public Information and Health Education Service which shall

provide services related to formulating and implementing plans,
programs, and projects for public education on health and for the
timely and accurate public communication of Department policy
on health issues;

(3) Health Intelligence Service which shall provide services related to

the formulation of disease intelligence, assessment of the state of
health of the country and development and maintenance of
effective and comprehensive health information systems to support
planning and implementation of health programs;

(4) Internal Planning Service which shall provide the Department with
necessary services related to planning, programming and project
development;

(5) Foreign Assistance Coordination Service which shall provide staff

services related to the development, coordination, monitoring,
reporting and assessment of foreign assisted projects of the
Department.

SECTION 11. Undersecretaries. — The Secretary shall be assisted by five

(5) Undersecretaries who shall exercise the following functions;

(1) Advise the Secretary in the promulgation of Department orders,

administrative orders and other issuances;

(2) Exercise supervision and control over the offices, services,

operating units and individuals under their authority and
responsibility;

(3) Recommend the promulgation of rules and regulations, consistent

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 with Department policies, that will effectively implement the
activities of operating units under their authority and
responsibility;

(4) Coordinate the functions and activities of the units under their
authority with that of the Undersecretaries and regional health
directors;

(5) Exercise delegated authority on substantive and administrative

matters related to the functions and activities of agencies under
their office to the extent granted by the Secretary through
administrative issuances;

(6) Perform such other functions as may be provided by law or

appropriately assigned by the Secretary.

CHAPTER 3

Department Services

SECTION 12. Office for Management Services. — The Office for

Management Services, headed by an Undersecretary who shall be supported by an
Assistant Secretary, shall include six (6) staff services involved in providing support
services to the Department Proper, field offices and attached agencies, which are as
follows:

(1) Financial Services which shall provide the Department with staff
advice and assistance on accounting, budget and financial matters;
supervise the coordinated preparation and implementation of
annual and long term financial and work plan and budget
estimates; conduct periodic department-wide performance and
financial reviews; and design and implement improvements in
financial management systems, procedures and practices;

(2) Management Advisory Service which shall provide staff advice

and assistance on internal control and management system
improvement, including management information systems;
supervise the establishment of a management accounting system,
control procedures and management information systems for
improved decision-making;

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 (3) Health Manpower Development and Training Service which shall
formulate plans, policies, programs, standards and techniques for
the effective and efficient manpower development and training of
Department personnel; provide consultative, training and advisory
services to implementing agencies; conduct studies and research
related to health manpower development and training; and develop
plans and programs for improved recruitment, deployment,
development, and maintenance of personnel;

(4) Procurement and Logistics Service which shall undertake the

central procurement of the health care products and supplies
needed by the Department and its field offices which are not
produced by or beyond the production capacity of its in-house
production facilities; and ensure the proper, adequate and timely
flow of health products and services to the Department's field
offices;

(5) Biological Production Services which shall formulate plans,

policies, programs, standards and techniques for the processing,
manufacture, standardization, and improvement of biological
products for Departmental use; manufacture vaccines, sera,
anti-toxins, and other biologicals; provide consultative, training
and advisory services to implementing agencies; and conduct
studies and research related to biological production, distribution
and use;

(6) Administrative Service which shall provide the Department with

efficient and effective services relating to personnel, records,
collections, disbursements, security, custodial work, and other
general services not covered by the preceding Services.

CHAPTER 4

Offices and Bureaus

SECTION 13. Office for Public Health Services. — The Office for Public
Health Services, headed by an Undersecretary, shall include ten (10) staff services
involved in policy formulation, standards development, program development, and
program monitoring of disease control and service delivery programs implemented by
the field offices. The Undersecretary for Public Health Services, who shall be
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 supported by an Assistant Secretary, shall supervise the following:

(1) Maternal and Child Health Service which shall formulate plans,
policies, programs, standards and techniques relative to maternal
and child health; provide consultative training and advisory
services to implementing agencies; and conduct studies and
research related to health services for mothers and children;

(2) Tuberculosis Control Service which shall formulate plans, policies,

programs, standards and techniques relative to the control of
morbidity and mortality from tuberculosis; provide consultative,
training and advisory services to implementing agencies; and
conduct studies and research related to tuberculosis;

(3) Family Planning Service which shall formulate plans, policies,

programs, standards and techniques relative to family planning in
the context of health and family welfare; provide consultative,
training and advisory services to implementing agencies; and
conduct studies and research related to family planning;

(4) Environmental Health Service which shall formulate plans,

policies, programs, standards and techniques relative to
environmental health and sanitation; provide consultative, training
and advisory services to implementing agencies; and conduct
studies and research related to environmental health;

(5) Nutrition Service which shall formulate plans, policies, programs,

standards and techniques relative to nutrition services in the
context of primary health care, provide consultative, training and
advisory services to implementing agencies; and conduct studies
and research related to nutrition;

(6) Dental Health Service which shall formulate plans, policies,

programs, standards and techniques relative to dental health
services; provide consultative, training and advisory services to
implementing agencies; and conduct studies and research related to
dental services;

(7) Malaria Control Service which shall formulate plans, policies,

programs, standards and techniques relative to the control of
malaria; provide consultative, training and advisory services to
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 implementing agencies; and conduct studies and research to
malaria and its control;

(8) Schistosomiasis Control Service which shall formulate plans,

policies, programs, standards and techniques relative to the control
of schistosomiasis; provide consultative, training and advisory
services to implementing agencies; and conduct studies and
research related to schistosomiasis and its control;

(9) Communicable Disease Control Service which shall formulate

plans, policies, programs, standards and techniques relative to the
control of communicable diseases, other than the major causes of
mortality and morbidity, such as leprosy, sexually transmitted
diseases, filariasis and others; provide consultative, training and
advisory services to implementing agencies; and conduct studies
and research related to these other communicable diseases;

(10) Non-communicable Disease Control Service which shall formulate

plans, policies, programs, standards and techniques relative to the
control of non-communicable diseases; provide consultative,
training and advisory services to implementing agencies; and
conduct studies and research related to mental illness,
cardiovascular-disease, cancer, other non-communicable diseases,
and occupational health.

SECTION 14. Office for Hospital and Facilities Services. — The Office
for Hospital and Facilities Services, headed by an Undersecretary who shall be
supported by an Assistant Secretary, shall include four (4) staff services involved in
policy formulation, standards development, program monitoring and provision of
specialized assistance in the operations of hospitals and the management of facilities,
which are as follows:

(1) Hospital Operations and Management Service which shall

formulate and implement plans, programs, policies, standards and
techniques related to management improvement and quality
control of hospital operations; provide consultative, training and
advisory services to field offices in relation to the supervision and
management of hospital components; and conduct studies and
research related to hospital operations and management;

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 (2) Radiation Health Service which shall formulate and implement
plans, programs, policies, standards and techniques to ensure
radiation health safety; provide consultative, monitoring, training
and advisory services to private and government facilities with
radiation-emitting apparatus; and conduct studies and research
related to radiation health;

(3) Hospital Maintenance Service which shall formulate and

implement plans, programs, policies, standards and techniques
related to assuring the proper maintenance of Department
equipment; provide consultative, training and advisory services to
implementing agencies in relation to preservation, repair and
maintenance of medical and non-medical equipment of the
Department; and conduct studies and research related to equipment
and facility maintenance;

(4) Health Infrastructure Service which shall formulate and implement

plans, policies, programs, standards and techniques related to
development and preservation of health infrastructure; provide
consultative, training and advisory services to implementing
agencies in relation to infrastructure projects to assure economical
and efficient implementation; and conduct studies and research
related to infrastructure development and utilization.

SECTION 15. Office for Standards and Regulations. — The Office for
Standards and Regulations, headed by an Undersecretary and supported by an
Assistant Secretary, shall include three (3) bureaus and one (1) national office that
shall be responsible for the formulation of regulatory policies and standards over the
various areas of concern in the health sector, whose implementation shall be the
general responsibility of the Department's regional field offices. The same bureaus
shall also be responsible for those areas of activity covered by regulatory policy to
provide the Secretary with current information on the status of these regulated areas
of activity and to provide the Secretary with a basis for preliminary evaluation of the
efficiency of the Department's field offices in performing their regulatory functions.
The same bureaus shall conduct studies and research pertinent to their areas of
responsibility . In certain instances the bureaus may also perform consultative,
training and advisory services to the practitioners and institutions in the area of
regulated activity. The same bureaus and national office are the following:

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 (1) Bureau of Research and Laboratories which shall develop and
formulate plans, standards and policies, for the establishment and
accreditation and licensing of laboratories; blood banks and
entities handling biological products; provide consultative, training
and advisory services to public and private laboratories; and
conduct studies and research related to laboratory procedures and
operations;

(2) Bureau of Food and Drugs which shall act as the policy
formulation and sector monitoring arm of the Secretary on matters
pertaining to foods, drugs, traditional medicines, cosmetics and
household products containing hazardous substances, and the
formulation of rules, regulations and standards in accordance with
Republic Act 3720 (1963), as amended by Executive Order No.
175, s. 1987, and other pertinent laws for their proper enforcement;
prescribe general standards and guidelines with respect to the
veracity of nutritional and medicinal claims in the advertisement of
food, drugs and cosmetics in the various media, to monitor such
advertisements; advise the Department's field offices to call upon
any erring manufacturer, distributor, or advertiser to desist from
such inaccurate or misleading nutritional or medicinal claims in
their advertising; should such manufacturer, distributor, or
advertiser refuse or fail to obey the desistance order issued by the
Bureau, he shall be subject to the applicable penalties as may be
prescribed by law and regulations; the Bureau shall provide
consultative, training and advisory services to all agencies and
organizations involved in food and drug manufacturing and
distribution with respect to assuring safety and efficacy of food
and drugs; conduct studies and research related to food and drug
safety; maintain a corps of specially trained food and drugs
inspectors for assignment to the various field offices of the
Department; while these inspectors shall be under the technical
supervision and guidance of the Bureau, they shall be under the
administrative supervision of the head of the field offices to which
they shall be assigned, the latter being responsible for regulatory
program implementation within the geographic area of his
jurisdiction;

(3) Bureau of Licensing and Regulation which shall formulate policies

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 and establish the standards for the licensing and regulation of
hospitals, clinics and other health facilities; establish standards that
shall be the basis of inspections and licensure procedures of the
Department's field offices; and provide consultative, training and
advisory services to field offices on the conduct of licensing and
regulatory functions over hospitals, clinics and other health
facilities.

(4) National Quarantine Office which shall formulate and implement

quarantine laws and regulations and, through its field offices,
exercise supervision over rat-proof zones in designated
international ports and airports and over medical examination of
aliens for immigration purposes.

CHAPTER 5

Field Offices

SECTION 16. Office for National Field Operations. — The Office for
National Field Operations, through an Executive Committee, shall supervise the
operations of the various Regional Field Offices and the National Health Facilities, as
enumerated in Section 17(3) and further described in Sections 18, 19 and 20 hereof.

SECTION 17. Department Field Offices. — The Department field offices,

under the supervision and control of the Executive Committee for National Field
Operations, shall be composed of the following:

(1) Regional Health Offices (other than the National Capital Region)
and subordinate units that include regional medical centers,
regional hospitals, provincial health offices including component
hospitals and district health offices, city health offices;

(2) Regional Health Office for the National Capital Region: Municipal
Health Offices of Makati, Mandaluyong, Pasig, Marikina, Las
Piñas, Muntinlupa, San Juan, Valenzuela, Navotas, Malabon,
Parañaque, Taguig, Pateros;

(3) National Health Facilities which are health facilities classified as

National Health Resources because their services and activities
accrue to the whole country's health care and infrastructure. These
facilities are of two classifications: National Medical Centers and
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 the Special Research Centers and Hospitals, which are attached to
the Department:

(a) National Medical Centers: San Lazaro Hospital, Tondo

Medical Center, Jose Fabella Memorial Hospital, Quirino
Memorial Hospital, Rizal Medical Center, National
Children's Hospital, Jose Reyes Memorial Medical
Center, and the East Avenue Medical Center.

(b) Special Research Centers and Hospitals: Philippine Heart

Center, Lung Center of the Philippines, National Orthopedic
Hospital, National Center for Mental Health, Research
Institute for Tropical Medicine, National Kidney Institute,
and the Philippine Children's Medical Center.

SECTION 18. Regional Health Offices. — The Department is authorized

to establish, operate, and maintain a Department-wide Regional Office, in each of the
administrative regions of the country, under the supervision of an Executive
Committee chaired by the Secretary. Each Regional Office shall be headed by a
Regional Director to be appointed by the President, and supported by an Assistant
Regional Director. The appointment of the Regional Director and Assistant Regional
Director shall be to the Department-at-large and assignment shall be by administrative
issuances of the Secretary. The Regional Health Office shall be responsible for the
field operations of the Department in its administrative region and for providing the
region with efficient and effective health and medical services. It shall supervise all
Department agencies in its administrative region including whatever medical centers,
regional hospitals, sanitaria, provincial health offices and city health offices are
located in the region except those placed under the Department Proper.

In addition to the foregoing, a Regional Office shall have within its

administrative region, the following functions:

(1) Implement laws and rules, regulations, policies, plans, programs

and projects of the Department in the region;

(2) Provide efficient and effective health and medical services to the
people;

(3) Coordinate with regional offices of other departments, offices, and

agencies in the region;

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 (4) Coordinate with local government units; and

(5) Perform such other functions as may be provided by law.

SECTION 19. Provincial Health Office. — The Provincial Health Office

shall be the Department agency in the province. It shall exercise supervision and
control over district health offices and other field units of the department in the
province, except those otherwise placed under the Department Proper or directly
under the Regional Health Office.

The Provincial Health Office shall be headed by a Provincial Health Officer.

Depending on the size, population, and health facilities of the province as well as
budgetary provisions, a province may have one Assistant Provincial Health Officer
assisting the Provincial Health Officers, or two Assistant Provincial Health Officers,
one assisting the Provincial Health Officer in public health activities and the other
assisting in hospital operations. The Provincial Health Officers and Assistant
Provincial Health Officers shall be appointed by the Secretary to a region, and their
assignment to a province shall be made by the Secretary on recommendation of the
Regional Health Director.

SECTION 20. District Health Office. — The District Health Office shall
exercise supervision and control over district hospitals, municipal hospitals, rural
health units, barangay health stations and all other Department units in the health
district, except those otherwise placed directly under the Provincial Health Office, or
Regional Health Office, or the Department Proper.

The District Health Office shall be headed by a District Health Officer who
shall also serve as the Chief of the district hospital as well as the head of all field units
in the district. District Health Officers shall be appointed by the Secretary to a region,
and their assignments shall be made by the Secretary on the recommendation of the
Regional Health Director.

SECTION 21. Local Health Agencies. — The Department shall review

and monitor the establishment, operation and maintenance of health agencies funded
by local governments. Proposals for integrating locally funded health agencies under
the supervision and control of the Department without regard to the sourcing of funds
shall be made by the Department for the appropriate local government's approval.
Any such agreement shall be allowed and, whenever possible, funding from national
sources may be extended to achieve a nationally integrated government health service
under the Department.
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 SECTION 22. City Health Officers. — The City Health Officers and
Assistant City Health Officers shall be appointed by the Secretary. Their
compensation shall be paid out of national funds.

SECTION 23. Delegation of Power by Secretary. — The Secretary shall

have the authority to delegate such substantive and administrative powers and
authority as may be necessary to the heads of the Regional Health Offices, in addition
to such administrative authority as have been mandated for delegation for all
Departments by the President. The Secretary shall also delegate such powers and
authority to the heads of the Provincial Health Offices and those of other subordinate
units of the Regional Health Offices as in his sound judgment would make for a more
efficient and effective administration of health and medical services.

CHAPTER 6

Attached Agencies

SECTION 24. Attached Entities. — The Philippine Medical Care

Commission and the Dangerous Drugs Board shall be attached to the Department and
shall continue to operate and function in accordance with the law creating them,
except as otherwise provided in this Code.

SECTION 25. The Philippine Medical Care Commission. — The

Philippine Medical Care Commission shall be composed of the Secretary of Health as
Chairman, an Undersecretary of Health designated by the Secretary as
Vice-Chairman, and the following members: the Administrator of the Social Security
System, the President and General Manager of the Government Service Insurance
System, the Secretary of Finance, the Secretary of Local Government, the Secretary
of Labor and Employment, and four (4) other members representing the beneficiaries,
the private employers, the physicians and the hospitals. The four other members shall
be appointed by the President of the Philippines for a term of six (6) years.

The ex officio members may designate their representatives who shall exercise
the plenary powers of their principals as well as enjoy the benefits available to the
latter.

SECTION 26. The Dangerous Drugs Board. — The Dangerous

Drugs Board shall be composed of the Secretary of Health, who shall be ex officio
chairman, an Undersecretary of Health designated by the Secretary, who shall be ex
officio Vice-Chairman, an Executive Director and the following members: the

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 Secretary of Justice or his representative; the Secretary of National Defense or his
representative; the Secretary of Education or his representative; the Secretary of
Finance or his representative; and the Secretary of the Department of Social Welfare
and Development or his representative. The Director of the National Bureau of
Investigation shall be the permanent consultant of the Board.

TITLE X

Trade and Industry

CHAPTER 1

General Provisions

SECTION 1. Declaration of Policy. — The State shall develop a

self-reliant and independent national economy effectively controlled by Filipinos. It
recognizes the indispensable role of the private sector, encourages private enterprise,
and provides incentives to needed investments.

The State shall promote industrialization and full employment based on sound
agricultural development and agrarian reform, through industries that make full and
efficient use of human and natural resources, and which are competitive in both
domestic and foreign markets. It shall protect Filipino enterprises against unfair
foreign competition and trade practices.

In pursuit of these goals, all sectors of the economy and all regions of the
country shall be given optimum opportunity to develop. Private enterprises, including
corporations, cooperatives, and similar collective organizations shall be encouraged to
broaden the base of their ownership.

The State shall pursue a trade policy that serves the general welfare and utilizes
all forms and arrangements of exchange on the basis of equality and reciprocity.

The State shall regulate or prohibit monopolies when the public interest so
requires. No combinations in restraint of trade or unfair competition shall be allowed.
The state shall protect consumers from trade malpractices and from substandard or
hazardous products.

SECTION 2. Mandate. — The Department of Trade and Industry shall be

the primary coordinative, promotive, facilitative and regulatory arm of the Executive
Branch of government in the area of trade, industry and investments. It shall promote

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 and develop an industrialization program effectively controlled by Filipinos and shall
act as catalyst for intensified private sector activity in order to accelerate and sustain
economic growth through: (a) comprehensive industrial growth strategy, (b) a
progressive and socially responsible liberalization program, (c) policies designed for
the expansion and diversification of trade, and (d) policies to protect Filipino
enterprises against unfair foreign competition and trade practices.

SECTION 3. Powers and Functions. — The Department of Trade and

Industry shall:

(1) Formulate and implement policies, plans and programs relative to

the development, expansion, promotion and regulation of trade,
industry, and investments;

(2) Consolidate and coordinate all functions and efforts pertaining to

the promotion of exports, diversification and decentralization of
industries, and development of foreign trade;

(3) Encourage and promote the growth and expansion of industries

which make full use of human and natural resources and which are
competitive in domestic and foreign markets;

(4) Adopt and implement measures to protect Filipino enterprises

against unfair foreign competition and trade practices;

(5) Provide incentives to broaden the base of ownership of large-scale

industrial enterprises and accelerate the formulation and growth of
small and medium-scale enterprises;

(6) Regulate the importation of essential consumer and producer items

to maintain their fair and competitive prices to end-users;

(7) Protect consumers from trade malpractices and from substandard

or hazardous products;

(8) Adopt and implement measures to prohibit combinations in

restraint of trade and unfair competition;

(9) Develop the capabilities of industry to increase the domestic

content of its products and upgrade the quality of products
according to competitive international standards;

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 (10) Encourage and support the formation of People's Economic
Councils at regional, provincial and municipal levels as well as
other trade, industry and consumer protection institutions or
associations;

(11) Upgrade and develop the manufacture of local capital goods and
precision machinery components;

(12) Formulate the appropriate mechanics to guide and manage the

transfer of appropriate industrial technology in the country;

(13) Formulate country and product export strategies which will guide
the export promotion and development thrusts of the government;
and implement programs and activities geared towards the
overseas promotion of Philippine exports in overseas markets;

(14) Take the primary role in negotiating and reviewing existing

international trade agreements, particularly those affecting
commodity quotas limiting existing exports of Philippine products
to determine programs for renegotiations of more favorable terms;

(15) Administratively adjudicate and impose reasonable fines and

penalties for violation of existing trade and industry laws;

(16) Prepare, for consideration of the Monetary Board, proposed

programs in the commercial banking sector for directing
commercial lending facilities towards priority areas of commercial
and industrial development, as well as coordinate government
direct funding and financial guarantee programs to achieve trade
and industry growth;

(17) Issue subpoena and subpoena duces tecum to compel the

attendance of witnesses and the production of the necessary
information, papers and documents which it may deem necessary
in the exercise of its powers and functions;

(18) Prescribe and enforce compliance with such rules and regulations
as may be necessary to implement the intent and provisions of this
Code, which rules and regulations shall take effect fifteen (15)
days following their publication in the Official Gazette; and

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 (19) Perform such other functions as may be necessary or incidental in
carrying into effect the provisions of this Code and as may be
provided by law.

SECTION 4. Organizational Structure. — The department shall consist

of the offices of the secretary, undersecretaries and assistant secretaries, national
service centers, regional offices, and line corporate agencies and government entities.

CHAPTER 2

Department Proper

SECTION 5. Office of the Secretary. — The Office of the Secretary shall

consist of the Secretary, his immediate staff, the Undersecretary for Policy Planning
and Support Services, and the Offices and Services directly supportive of the Office
of the Secretary. The functions of the foregoing shall be as follows:

(1) The Undersecretary for Policy Planning and Support Services shall
supervise the Office of Policy Research, the Office of Operational
Planning, the Office of Legal Affairs, the Human Resource
Development Service, the General Administrative Service, the
Management Information Service, the Financial Management
Service and the Public Relations Office;

(2) The Office of Policy Research shall coordinate and help formulate
general trade and industry policies for the Department; evaluate the
effectiveness of trade and industry programs as such, as their
implementation by the Department's Line Operating Units; and
research on trade and industry issues for policy analysis and
formulation;

(3) The Office of Operational Planning shall develop operating plans,

programs and projects of the Department as such; supervise the
Annual Trade and Industry Development Planning Conferences
between government and the private sector; evaluate the
cost-effectiveness of various projects and activities of the
Department; coordinate the updating of the Department's operating
plans in response to relevant environment changes; review the
Department's performance against standards and targets previously
established; and provide staff services related to the development,

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 monitoring, reporting and assessment of foreign assisted projects
of the Department;

(4) The Office of Legal Affairs shall provide the Secretary with legal
advise on all policies, programs, and operational matters of the
Department; serve as Counsel for the Department in cases in which
it is a party; handle administrative cases against Department
personnel and submit recommendations pertaining thereto; and
review legislative proposals;

(5) The Human Resource Development Service shall design and

implement human resource development plans and programs for
the personnel of the Department; provide for present and future
manpower needs of the organization; and maintain high morale
and favorable employee attitudes towards the organization through
the continuing design and implementation of employee
development programs;

(6) The Financial Management Service shall formulate and manage a

financial program to ensure availability and proper utilization of
funds; and provide for an effective monitoring system of the
financial operations of the Department;

(7) The General Administrative Service shall provide services relative

to procurement and allocation of supplies and equipment,
transportation, messengerial work, cashiering, payment of salaries
and other Department obligations, office maintenance, property
safety and security, and other utility services; and comply with
government regulatory requirements in the areas of performance
appraisal, compensation and benefits, employment records and
reports;

(8) The Management Information Service shall design and implement

a comprehensive management information system, both
computerized and manual, for the Department; provide technical
assistance to the various information generating units within the
Department; and establish data exchange linkages with public and
private agencies whenever feasible;

(9) The Public Relations Office shall perform the Department's public

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 relations function; provide a two-way flow of information between
the Department and its constituencies; and coordinate the
Secretary's regular press conferences and the Department's
relations with the mass media;

(10) The Trade and Investment Information Center shall, as the primary
information arm of the Department, design and operate a
computerized system of collection, documentation, storage,
retrieval, and timely dissemination of comprehensive and relevant
information on trade, industry, and investment for use by other
government agencies and the business sector; coordinate and
monitor the information campaigns on the Department's services,
programs, and projects; develop a communications programs to
promote Philippine investment opportunities and the country's
export products which shall be directed at foreign audiences; and
provide creative services to other units of the Department in
support of their own information programs;

(11) The National Industrial Manpower Training Council shall act as

the umbrella agency to coordinate and operate the Cottage Industry
Technology Center, the Construction Manpower
Development Foundation, and the Construction Manpower
Development Center and perform other functions such as initiating
specialized industrial training centers and identifying
supply-demand factors and industrial skills subject to the direction
formulated by the National Manpower and Youth Council; and

(12) There is hereby created in the Office of the Secretary the Office of
Special Concerns to attend to matters that require special attention,
whether involving a matter that crosses several functional areas,
demands urgent action, or otherwise necessitates, in the Secretary's
opinion, attention by a special group.

SECTION 6. Undersecretaries. — The Secretary shall be assisted by five

(5) Undersecretaries. They shall exercise supervision over the offices, services,
operating units and individuals under their authority and responsibility.

The Secretary may designate any Undersecretary to supervise the bureaus,

offices, and agencies, including the attached entities, consistent with the mandate of
the Department.
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 SECTION 7. Assistant Secretaries. — The Secretary shall also be
assisted by five (5) Assistant Secretaries who shall be appointed by the President
upon the recommendation of the Secretary. The Secretary is hereby authorized to
delineate and assign the respective areas of functional responsibility of the Assistant
Secretaries. Within his functional area of responsibility, an Assistant Secretary shall
assist the Secretary and the Undersecretaries in the formulation, determination and
implementation of laws, policies, plans, programs and projects on trade and industry
and shall oversee the day-to-day administration of the constituent units of the
Department.

SECTION 8. Staff Bureaus and Services. — The Bureaus and Service

Units shall be responsible for research, formulation of policy, development of
standards, framing of rules and regulations, program formulation and program
monitoring, related to the concerns covered by the Department's mandate, powers,
and functions. Implementation of such policies, standards, rules and regulations, and
programs shall be the responsibility of the Department's Line Operating Units.

SECTION 9. Department Line Operating Units. — The Department Line

Operating Units shall be composed of the following:

(1) Regional Offices. These are offices which shall be located in the
National Capital Region and each of the twelve (12) other
administrative regions of the country. They shall be operated and
maintained on a Department-wide basis, acting as implementing
arms in the regions under their jurisdiction, of the Department's
policies, programs, rules and regulations as well as those laws
which the Department is mandated to enforce.

(2) Line Corporate Agencies and Government Entities. These are the
government entities and the government-owned or controlled
corporations under the administrative supervision of the
Department which are deemed to be integral parts of the
Department structure notwithstanding their organizational form,
and which perform a focal and implemental role in the
Department's programs for the development of trade, industry and
investments.

CHAPTER 3

Office of the Undersecretary for Domestic Trade

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 SECTION 10. Office of the Undersecretary for Domestic Trade. — The
Office of the Undersecretary for Domestic Trade shall include all the staff bureaus
and services involved in policy formulation, standards development, programs
development, and program monitoring of the development, regulatory, and service
delivery programs pertinent to domestic trade and commerce being implemented by
the Department's line operating units. The Undersecretary for Domestic Trade shall
supervise the following:

(1) Bureau of Trade Regulation and Consumer Protection. This

Bureau shall formulate and monitor the implementation of
programs for the effective enforcement of laws, correct
interpretation and adoption of policies on monopolies and restraint
of trade, mislabelling, product misrepresentation and other unfair
trade practices; monitor the registration of business names and the
licensing and accreditation of establishments and practitioners;
protect and safeguard the interest of consumers and the public,
particularly the health and safety implications of intrinsic product
features, product representation, and the like; and establish the
basis for evaluating consumer complaints and product utility
failures.

(2) Bureau of Domestic Trade Promotion. This Bureau shall prepare

and monitor the implementation of plans and programs directed at
the promotion and development of domestic trade, particularly in
the area of efficiency, fairness and balance in the distribution of
essential products and services and in the strengthening of the
domestic base for export activities; conceptualize, monitor, and
evaluate programs, plans and projects intended to create awareness
of domestic marketing opportunities for new projects, new
technologies and investments.

(3) Bureau of Patents, Trademarks, and Technology Transfer.

This Bureau shall examine applications for grant of letters, patent
for inventions, utility models and industrial designs, and the
subsequent grant or refusal of the same; register trademarks,
tradenames, service marks and other marks of ownership; hear and
adjudicate contested proceedings affecting rights to patents and
trademarks; receive, process for registration and evaluate
technology transfer arrangements as to their appropriateness and

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 need for the technology or industrial property rights,
reasonableness of the technology payment, and for the prohibition
of restrictive business clauses, and comply with all its statutory
publication requirements by publishing the same in a newspaper of
general circulation or in the Official Gazette.

(4) Bureau of Product Standards. This Bureau shall review the

products contained in the critical imports list in accordance with
established national standards or relevant international standards
and buyer-seller specifications; promulgate rules and regulations
necessary for the country's shift to the international system of
units; study and carry out research on the various reference
materials to be used as basis for the start of whatever analysis or
evaluation is demanded by the products under examination or
investigation; establish standards for all products of the Philippines
for which no standards have as yet been fixed by law, executive
order, rules and regulations and which products are not covered by
the standardization activities of other government agencies;
participate actively in international activities on standardization,
quality control and metrology; ensure the manufacture, production,
and distribution of quality products for the protection of
consumers; test and analyze standardized and unstandardized
products for purposes of product standard formulation and
certification; extend technical assistance to producers to improve
the quality of their products; check length, mass and volume
measuring instruments; and maintain consultative liaison ,
Pacific Area Standards Congress, and other international standards
organizations.

(5) Video Regulatory Board. This Board shall regulate

videogram establishments; prevent unfair practices, unfair
competition, pirating of legitimately produced video products, and
other deceptive, unfair and unconscionable acts and practices to
protect the viewing public and the general public.

CHAPTER 4

Office of the Undersecretary for International Trade

SECTION 11. Office of the Undersecretary for International Trade. —

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 The Office of the Undersecretary for International Trade shall include all the units
involved in policy formulation, standards development, program development, and
program monitoring of the development, regulatory, and service delivery programs of
the Department pertinent to international trade and commerce being implemented by
the Department's line operating units. The Undersecretary for International Trade
shall supervise the following:

(1) Bureau of International Trade Relations. This Bureau shall be the

primary agent responsible for all matters pertaining to foreign trade
relations, whether bilateral, regional or multilateral, especially
market access and market access related matters; formulate
positions and strategies for trade negotiations, consultations and
conferences as well as supervise trade negotiations, consultations
and conferences; coordinate with other Departments and agencies
of the Philippine government with the view of assuring
consistency in the government's positions in trade negotiations and
on other activities pertaining to foreign trade relations; consult
with industry groups and provide technical advice and information
on the above matters and activities; identify tariff and non-tariff
barriers affecting products of export interest to the Philippines, and
negotiate measures for liberalizing them at bilateral, regional and
multilateral form; and evaluate and submit recommendations on
existing and proposed commercial policies of the Philippines.

(2) Bureau of Export Trade Promotion. This Bureau shall formulate

and monitor programs, plans, and projects pertinent to the
development, promotion, and expansion of the foreign trade of the
Philippines; formulate country and product export strategies;
conduct research on new product development and adaptation
opportunities in the export markets, as well as identify the
domestic supply base for such products, prepare situation reports
on all export production; prepare and update country and regional
market profiles; maintain an integrated information system on all
aspects of the products and commodities relevant to export
marketing; formulate, plan, supervise, coordinate and monitor the
implementation of both private and official incoming and outgoing
missions, and review the results of such; promote and coordinate
international subcontracting arrangements between and among
foreign and Philippine investors whereby production operations

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 and facilities may be located in the Philippines; formulate and
monitor the implementation of policies and guidelines for the
registration and certification of bona fide exporters eligible for the
various export incentive programs of the Philippines; and review
and identify appropriate measures to minimize or deregulate
export-import procedures and other foreign trade laws necessary to
stimulate the international marketing of Philippine products.

(3) Foreign Trade Service Corps. This Corps shall assist Philippine
businessmen, producers, and exporters with marketing
information, project development support, and liaison with foreign
government agencies; develop marketing and commercial
intelligence for dissemination to Philippine businessmen through
the Trade and Investment Information Center; provide direct
support to the Department's overseas promotional programs; assist
Philippine businessmen handle trade complaints against foreign
firms and governments; support Department units in import and
export administration, monitoring of trade agreements, and
investments promotion; and be accountable for establishment of
foreign investment and export targets for their respective areas of
responsibility.

In addition to the existing Foreign Trade Service Corps, the

President may appoint Trade Commissioners with the rank of
Assistant Secretary to coordinate trade and investment matters in
the various continents to which they are assigned for the purpose of
increasing trade and investments.

(4) Bonded Export Marketing Board. This Board shall promote the
establishment of bonded manufacturing and trading facilities for
the re-export of those products where a clear net value added may
be generated based on the emerging comparative advantage of the
Philippine export industry; study and analyze the international
market for specific products where the Philippines has or can
develop a comparative advantage; recommend to the Bureau of
Customs the licensing of bonded manufacturing facilities and
monitor all bonded manufacturing sites, with the objective of
ensuring operational efficiency; identify and designate sites where
export bonded manufacturing sites shall be located with a view of
dispersal to the regions; and initiate studies on the development
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 and maintenance of the country's competitive advantage in export
products.

(5) Philippine Shippers' Council. This Council shall represent

Philippine shippers in international liner conferences and negotiate
in their behalf, for more favorable freight and shipping rates;
evaluate and issue waivers to the use of Philippine flag carriers;
and provide assistance and information to Philippine shippers,
specially exporters, in matters related to shipping.

(6) Philippine Trade Training Center. This Center shall develop

training modules on export and import techniques and procedures;
raise the level of awareness of Philippine businessmen of export
opportunities and the availability of alternative sources of import
products or diversified markets for exports; offer specialized
courses for specific industry groups directed at overcoming
barriers to overseas market penetration; and conduct training
programs in international trade practices, inspection techniques
and exhibitions mounting.

(7) Product Development and Design Center of the Philippines. This

Center shall provide product identification, research, and
development services to the private sector; conduct seminars and
workshops on product design and development; set up design
exhibitions; publish product design related materials; and conduct
continuing research on product and product packaging design
trends and processing technologies.

CHAPTER 5

Office of the Undersecretary for Industry and Investments

SECTION 12. Office of the Undersecretary for Industry and Investments.

— The Office of the Undersecretary for Industry and Investments shall supervise all
agencies involved in the formulation and implementation of programs and projects
pertinent to the development of domestic industries and the promotion of investments
in activities or enterprises critical to the Department's trade and industry development
program.

(1) Bureau of Small and Medium Business Development. This Bureau

shall formulate and monitor development programs for private
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 institutions involved in assisting the trade and industry sector,
delivery mechanisms and linkages for marketing, financial and
subcontracting services, and development programs for livelihood
and micro, small and medium enterprises.

(2) Board of Investments, whose functions are defined below.

(3) Export Processing Zone Authority, whose functions are defined

below.

(4) Bureau of Import Services. This Bureau shall monitor import

levels and prices, particularly liberalized items; analyze and
forecast import levels; analyze and publish import return statistics;
perform annual reviews of the substantive components of the
Philippine Tariff System and submit recommendations thereon;
perform such other functions on import transactions as the
President or the Central Bank of the Philippines shall delegate or
authorize; and ensure that the Department's views on goods under
the jurisdiction of other Departments are taken into consideration.

(5) Iron and Steel Authority.

(6) Construction Industry Authority of the Philippines.

CHAPTER 6

Office of the Undersecretary for Regional Operations

SECTION 13. Office of the Undersecretary for Regional Operations. —

The Office of the Undersecretary for Regional Operations shall exercise supervision
and control over the Department's Regional Offices, described in Section 9, par. 1
hereof. It shall be responsible for the field operations of the Department, ensuring full
compliance with Department policies, rigorous implementation of Department rules
and regulations, and proper implementation of Department plans and programs by the
Regional Offices in their respective administrative jurisdictions.

SECTION 14. Regional Offices. — The Department is hereby authorized

to establish, operate and maintain a Department-wide regional office in each of the
country's administrative regions. Each Regional Office shall be headed by a Regional
Director who shall be assisted by an Assistant Regional Director. A Regional Office
shall have, within its administrative region, the following functions:
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 (1) Implement pertinent laws, and the rules, regulations, policies,
plans, programs and projects of the Department;

(2) Provide efficient and effective service to the people;

(3) Coordinate with the regional offices of other departments, offices

and agencies in the region;

(4) Coordinate with the local government units; and

(5) Perform such other functions as may be provided by law or

appropriately assigned by the Secretary.

CHAPTER 7

Attached Agencies

SECTION 15. Line Corporate Agencies and Government Entities. — The

following are the Line Corporate Agencies and Government Entities that will perform
their specific regulatory functions, particular developmental responsibilities, and
specialized business activities in a manner consonant with the Departments' mandate,
objectives, policies, plans, and programs:

(1) National Development Company. This Company shall

promote investments in or establish enterprises for the express
purposes of encouraging the private sector to follow suit by
proving the financial viability of such enterprises; or of filling
critical gaps in the input-output structure of Philippine commerce
and industry when the private sector is unwilling or unable to
engage in such enterprises because of the magnitude of
investments required or the risk complexion of the undertaking.

(2) Garments and Textile Export Board. This Board, which

shall be supervised by the Undersecretary for International Trade,
shall oversee the implementation of the garment and textile
agreements between the Philippines and other countries,
particularly garments and textiles quotas; approve quota
allocations and export authorizations; issue export licenses and
adopt appropriate measures to expedite their processing; provide
the necessary information and statistics relating to the
administration of garments and textiles export quotas and the flow
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 of garments and textiles exports for monitoring purposes and for
negotiations with other countries; implement rules and regulations
for the administration of all international textile agreements
entered into between the Philippines and importing countries; and
fix and collect reasonable fees for the issuance of export quotas,
export authorizations, export licenses, and other related services, in
accordance with the Department policies, rules and regulations.

(3) International Coffee Organization-Certifying Agency. This

Agency, which shall be supervised by the Undersecretary for
International Trade, shall oversee the implementation of the coffee
agreements between the Philippines and other countries,
particularly coffee quotas.

(4) Philippine International Trading Corporation. This

Corporation, which shall be supervised by the Undersecretary for
International Trade, shall only engage in both export and import
trading on new or non-traditional products and markets not
normally pursued by the private business sector; provide a wide
range of export oriented auxiliary services to the private sector;
arrange for or establish comprehensive systems and physical
facilities for handling the collection, processing, and distribution of
cargoes and other commodities; monitor or coordinate risk
insurance services for existing institutions; promote or organize,
whenever warranted, production enterprises and industrial
establishments and collaborate or associate in joint venture with
any person, association, company, or entity, whether domestic or
foreign, in the fields of production, marketing, procurement, and
other related businesses; and provide technical, advisory,
investigatory, consultancy, and management services with respect
to any and all of the functions, activities, and operations of the
corporation.

(5) Board of Investments. This Board, which shall be supervised by

the Undersecretary for Industry and Investments shall be
responsible for coordinating the formulation and implementation
of short, medium and long term industrial plans as well as
promoting investments in the Philippines in accordance with
national policies and priorities; register, monitor, and grant
investment incentives to individual enterprises; formulate policies
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 and guidelines aimed at creating an environment conducive to the
expansion of existing investments or attracting prospective
investments in the Philippines, Provided, That the Board shall
place primary emphasis on its promotive functions.

(6) Export Processing Zone Authority. This Authority which

shall be supervised by the Undersecretary for Industry and
Investments, shall develop and manage export processing zones, in
consonance with Department policies and programs.

(7) The Center for International Trade Expositions and Missions, Inc.
is hereby merged with the Philippine Trade Exhibition Center. The
latter shall be the surviving entity and is hereby renamed "Center
for International Trade Expositions and Missions."

TITLE XI

Agrarian Reform

CHAPTER 1

General Provisions

SECTION 1. Declaration of Policy. — The State shall undertake an

agrarian reform program founded on the right of farmers and regular farmworkers
who are landless to own directly or collectively the lands they till or, in the case of
other farmworkers, to receive a just share of the fruits thereof.

The State shall recognize the right of farmers, farmworkers, and landowners,
as well as cooperatives, and other independent farmers' organizations to participate in
the planning, organization and management of the land reform program, and shall
provide support to agriculture through appropriate technology and research, and
through adequate financial, production, marketing, and other support services.

The State shall provide incentives for voluntary land-sharing. It may resettle
landless farmers and farmworkers in its own agricultural estates which shall be
distributed to them in the manner provided by law.

SECTION 2. Mandate. — The Department shall provide central direction

and coordination to the national agrarian reform program extended to transform farm
lessees and farm tenants into owner-cultivators of economic family-size farms to

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 improve their living conditions.

The Department shall formulate and implement policies, plans and programs
for the distribution and cultivation of all agricultural lands, including sugar and
coconut lands, with the participation of farmers, farmworkers, landowners,
cooperatives, and other independent farmers' organizations. It shall provide leadership
in developing support services to tenant-owners, farm managers, and other cultivators
through appropriate research and development programs, and shall render adequate
assistance in finance, marketing, production and other aspects of farm management.

SECTION 3. Powers and Functions. — To accomplish its mandate, the

Department shall:

(1) Implement laws, programs and policies for the acquisition and
distribution of all agricultural lands as provided by laws;

(2) Resettle landless farmers and farmworkers in government-owned

agricultural estates which shall be distributed to them as provided
by law;

(3) Recommend and provide incentives for voluntary sharing of lands

by owners of agricultural lands;

(4) Acquire, determine the value, subdivide into family-size farms,

develop and distribute to qualified tillers, actual occupants and
displaced urban poor, private agricultural lands regardless of area
and crops planted;

(5) Administer and dispose of, under a settlement scheme, all portions
of the public domain declared as alienable and disposable lands for
speedy distribution to and development by deserving and qualified
persons who do not own any land and under such terms and
conditions as the Department may prescribe, giving priority to
qualified and deserving farmers in the province where such lands
are located;

(6) Provide free legal assistance to farmers covered by agrarian reform

and expedite the resolution of agrarian conflicts and land tenure
problems either through conciliatory or adversary proceedings;

(7) Provide creative, responsive and effective information, education

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 and communication programs and projects both for the tenant
beneficiaries, landowners, the government and private sectors and
the general public, thereby generating a broad spectrum of support
and understanding of the new agrarian reform program;

(8) Strengthen agrarian reform beneficiaries organizations to a degree

of national viability that would enable them to share in the shaping
of government policies and institutionalize farmers' participation in
agrarian reform policy formulation, program implementation and
evaluation;

(9) Promote the organization and development of cooperatives of

agrarian reform beneficiaries and register the same;

(10) Implement all agrarian reform laws and for this purpose issue
subpoena, subpoena duces tecum, and writs of execution of its
orders, and decisions and other legal processes to ensure
compliance from all parties concerned for successful and
expeditious program implementation;

(11) Undertake land surveys on lands covered by agrarian reform, and

issue patents to farmers covered by agrarian reform, both on
private and public lands;

(12) Develop, implement and undertake alternative and innovative land

development schemes and land tenure systems such as, but not
limited to land consolidation, land forming, cooperative farming
and agro-industrial estates;

(13) Approve or disapprove conversion of agricultural lands to

non-agricultural uses such as residential and industrial conversions
in accordance with the existing provisions of law;

(14) Undertake land use management studies;

(15) Compensate the landowners covered by agrarian reform;

(16) Integrate and synchronize program implementation of the Land

Bank of the Philippines and other relevant civilian and military
government and private entities involved and mandated to support
the agrarian reform program through Inter-Agency Committees
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 and Agrarian Reform Coordinating Councils; and

(17) Perform such other functions as may be provided by law.

SECTION 4. Organizational Structure. — The Department shall consist

of the Office of the Secretary, the Undersecretary, the Assistant Secretary, the
Services and Staff Bureaus, the Regional Offices, the Provincial Offices, and the
Team Offices.

CHAPTER 2

Department Proper

SECTION 5. Office of the Secretary. — The Office of the Secretary shall

consist of the Secretary and his immediate staff.

SECTION 6. Undersecretary. — The Secretary shall be assisted by one

(1) Undersecretary who shall perform the following functions:

(1) Oversee the operational activities of the Department delegated to

him by and for which he shall be responsible to the Secretary;

(2) Coordinate programs and projects within the DAR and with other
government agencies and farmer organizations when so delegated
by the Secretary;

(3) Assist the Secretary in matters relating to the operations of the

Department;

(4) Assist the Secretary in the preparation of reports; and

(5) Perform such other duties and functions as may be provided by law
or assigned by the Secretary.

SECTION 7. Assistant Secretary. — The Secretary shall be assisted by

one Assistant Secretary.

CHAPTER 3

Department Services

SECTION 8. Management and Executive Services. — The Management

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 and Executive Services shall have the following functions:

(1) Recommend the implementation of appropriate systems and

procedures as it relates to the overall monitoring and feedback
mechanisms required by the Office of the Secretary;

(2) Gather, consolidate, appraise, prepare and submit regular top

management reports pertaining to the Department and overall
administration, financial, programs and projects implementation
status for decision making purposes;

(3) Design and maintain a program/project display center(s) that will

showcase the Department's various plans, programs and
accomplishments;

(4) Prepare and review office orders, memoranda and other

communications;

(5) Provide secretariat support during meetings and conferences

including international conferences and seminars relative to
agrarian reform;

(6) Supervise the implementation of department-wide records

management and disposal system;

(7) Develop alternative management systems which will increase

efficiency in the delivery of services, attain better means of
control, maximize use of available human and physical resources;

(8) Conduct periodic systems and procedures audit of the various units
of the Department;

(9) Prepare news items on agrarian reform accomplishments and

handle press and media relations work for the Secretary; and

(10) Perform such other functions as may be assigned by the Secretary.

SECTION 9. Legal and Public Assistance Service. — The Legal and

Public Assistance Service shall have the following functions:

(1) Prepare legal decisions and resolutions of administrative cases and

render legal opinions, interpretation of contracts, laws, rules and
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 other administrative issuances;

(2) Prepare legal decisions and resolutions of administrative cases; and

(3) Provide public assistance services.

SECTION 10. Research and Strategic Planning Service. — The Research

and Strategic Planning Service shall have the following functions:

(1) Review, analyze and integrate submitted plans and programs and
special project proposals by Bureaus, services, and field offices
and determine if plans and programs are in accordance with
priorities set for budgetary support;

(2) Review, coordinate and integrate all recommendations for

reprogramming and revision of work programs of the Department
to support fund releases or requests;

(3) Initiate, integrate, or prioritize research studies and recommend for

funding in coordination with units concerned and review and
interpret research findings for policy applicability;

(4) Conduct researches or case studies for policy recommendations

and application;

(5) Coordinate, integrate and assist in the assessment of programs and

projects against plans, costs and resources, standards and
performance targets;

(6) Coordinate, integrate and analyze periodic accomplishment reports

of the Department as may be required or necessary;

(7) Maintain liaison with public and private development and planning
bodies, public and private; and

(8) Perform such other functions as may be provided by law or

assigned by the Secretary.

SECTION 11. Finance and Physical Assets Management Service. — The

Finance and Physical Assets Management Service shall have the following functions:

(1) Prepare, execute and administer the Department's budget including

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 standards and guidelines;

(2) Monitor and evaluate the implementation of the Central and

Regional budget;

(3) Process all money claims related to all types of Department

expenditures including personal services, maintenance and other
operating expenses and capital outlays;

(4) Prepare financial reports and maintain books of accounts;

(5) Prepare, release and control check disbursements and index or

monitor check payments;

(6) Implement proper internal control mechanisms;

(7) Formulate and implement policies and systems on the disposition

of supplies, materials and equipment requirements of all operating
units for their effective functioning;

(8) Undertake repair and maintenance of all equipment furniture,

building facilities and grounds of the Department; and

(9) Manage and maintain an inventory of physical assets in the

Department's Central and Regional Offices.

SECTION 12. Administrative and Personnel Service. — The

Administrative and Personnel Service shall exercise the following functions:

(1) Formulate and implement policies and guidelines on personnel

placement, appraisal and action;

(2) Formulate and implement policies and guidelines on employee

services, employee relations management and staff development;

(3) Service the reproduction, utility and messengerial requirements of

all Departmental groups and offices;

(4) Provide the major operating units of the Department with basic
equipment, supplies and materials including logistical support;

(5) Engage in general canvassing and purchasing of supplies, materials

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 and equipment;

(6) Implement guidelines with respect to procurement services; and

(7) Perform such other functions as the Secretary may assign.

CHAPTER 4

Bureaus

SECTION 13. Bureau of Agrarian Legal Assistance. — The Bureau of

Agrarian Legal Assistance shall have the following functions:

(1) Formulate guidelines, plans and programs for the effective delivery
of legal assistance to the clientele;

(2) Adopt the process of mediation and conciliation to judiciously

settle agrarian problems;

(3) Investigate cases, review recommendations, and prepare orders,

decisions and resolutions on matters involving agrarian dispute;

(4) Maintain a docket of cases on claims and conflicts and issue

clearance in relation thereto;

(5) Provide legal information and prepare materials for publication;

(6) Conduct and compile legal research and studies on agrarian reform
and maintain a law library;

(7) Prepare legal opinions on matters pertaining to agrarian reform

program implementation;

(8) Represent agrarian reform beneficiaries or members of their

immediate farm households before all courts and quasi-judicial and
administrative bodies, in civil, criminal or administrative cases
instituted by or against them, arising from or are connected with,
an agrarian dispute;

(9) Develop, maintain and coordinate para-legal services for agrarian

reform clientele;

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 (10) Advise and assist the Office of the Secretary and field offices in
agrarian legal matters;

(11) Conduct a continuing follow-up and evaluation of the handling and

disposition of judicial cases, claims and conflicts adjudication,
legal information and para-legal services of the Department; and

(12) Perform such other functions and duties as may be provided by

law.

SECTION 14. Bureau of Land Development. — The Bureau shall have the
following functions:

(1) Draw up plans and programs of land surveys and determine which
land survey projects can be done by administration or by contract;

(2) Develop and prescribe procedures and techniques on land surveys

in accordance with approved standards;

(3) Develop plans and programs, guidelines, procedures and

techniques for soil surveys and classification and for complete
aerial photogrammetry;

(4) Analyze and compile soil data and survey reports essential for the
production of soil maps and identify particular areas for soil
research;

(5) Develop land use patterns, procedures and compile adequate maps
for proper land use;

(6) Draw up plans, programs and designs for agricultural development

under the scheme of land consolidation;

(7) Formulate policies, guidelines and procedures for the regulation of

conversion of private agricultural lands to non-agricultural use, in
accordance with the provisions of existing laws, as amended, and
other related issuances;

(8) Establish a schedule of priorities in the construction of houses,

waterworks, irrigation systems and other community facilities;

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 (9) Formulate policies and guidelines in the procurement, maintenance
or rehabilitation of agricultural machinery and equipment, and
review, and evaluate plans, programs, specifications, and cost
estimates of land development projects;

(10) Provide functional and technical assistance on the implementation

of land development;

(11) Monitor and evaluate activities of field offices on land

development; and

(12) Perform such other functions as may be provided by law.

SECTION 15. Bureau of Land Tenure Development. — The Bureau shall

have the following functions:

(1) Develop policies, plans and programs, and standard operating

procedures in the acquisition and distribution of and [sic]
private agricultural lands, including measures to ensure that the
lands distributed by the government to the beneficiaries of the
agrarian reform program shall be subsequently transferred or sold
only to qualified tenant-tillers, agricultural workers and other
landless citizens;

(2) Design socio-economic survey plans and prescribe standards,

guidelines and procedures in the conduct of such surveys in areas
sought to be acquired or administered by the Department of
Agrarian Reform;

(3) Develop standards for the valuation of lands placed under the
agrarian reform program and formulate appropriate land
compensation schemes for affected landowners;

(4) Formulate general policies and guidelines in the identification of

tillers and agricultural lands to be purchased or expropriated,
subject of petitions or applications for the exercise of the right of
pre-emption or redemption, or voluntarily offered for coverage
under the agrarian reform program, and portions of the public
domain which may be opened for settlement;

(5) Maintain a current inventory of tillers, landowners, landholdings,

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 including crops and production thereon and other related records;

(6) Streamline procedures governing the titling of lands transferred to

the beneficiaries of agrarian reform and the documentation of
leasehold and other tenurial arrangements;

(7) Develop alternative tenurial or working arrangements or

relationships in agrarian reform areas aimed at ensuring security of
tenure and equitable distribution of income;

(8) Formulate policies, guidelines, standards, procedures and programs

in the development and conduct of land tenure research;

(9) Identify areas of research relevant to land tenure, determine

priority needs, and prepare land tenure research designs/proposals;

(10) Undertake operational research and evaluation studies on land

tenure programs and projects;

(11) Monitor research findings on land tenure and other related studies
by various research agencies;

(12) Review and evaluate documents for the generation, registration,

and issuance of Emancipation Patents/Title, land valuation, and
landowners compensation claims as to its completeness, accuracy
and validity;

(13) Initiate verification and/or investigation of questionable or

inconsistent documents as well as data or information critical for
expeditious disposition of land transactions by authorities
concerned; and

(14) Perform such other functions as may be provided by law.

SECTION 16. Bureau of Agrarian Reform Information Education. — The

Bureau shall have the following functions:

(1) Provide policy guidance and develop plans and programs for
effective and continuing information, education and promotional
activities of the Department;

(2) Develop, conduct, assist and coordinate training and education

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 programs to increase farmer, DAR and other governmental
personnel participation in program implementation;

(3) Coordinate or implement linkage training or education programs

and projects;

(4) Integrate agrarian reform concepts into all levels of the national
education system;

(5) Develop appropriate communication materials or aids to support

agrarian reform promotion and training;

(6) Produce and disseminate media materials to implement the

information programs of the Department;

(7) Maintain and update a library of materials on agrarian reform;

(8) Provide for the establishment of a center for agrarian reform

studies;

(9) Provide functional and technical assistance on farmer education

and public information;

(10) Coordinate and evaluate training programs and activities

undertaken by the regional offices and other units of the
Department; and

(11) Perform such other functions as may be provided by law.

SECTION 17. Bureau of Agrarian Reform Beneficiaries Development. —

The Bureau shall have the following functions:

(1) Formulate plans, programs, policies and guidelines for the

development of agrarian reform areas into viable agro-industrial
estates, the promotion of cooperative systems of production,
processing, marketing, distribution, credit and services;

(2) Formulate policies, programs and guidelines for the development

and management of resettlement areas and landed estates;

(3) Promote the organization and participation of agrarian reform

beneficiaries to enhance the dignity and welfare of the
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 beneficiaries and to serve as sources of development information
inputs and feedback as basis for policy formulation;

(4) Serve as liaison between the DAR and the legitimate organizations
of agrarian reform beneficiaries and serve as receiving zone for
request and proposals from legitimately organized agrarian reform
beneficiaries associations for appropriate action by any of the
Bureaus or Services;

(5) Develop and undertake research and pilot studies of alternative

land tenure systems such as agro-industrial estates, cooperative
farming and other cooperative-cultivatorship schemes;

(6) Develop project models such as but not limited to compact farms,
and other income generating projects, and undertake research and
pilot studies on these models and other innovative schemes in
coordination with field offices;

(7) Establish linkages with concerned agencies for farm support

services and to ensure immediate and effective project
implementation;

(8) Provide functional and technical assistance on development and

management of resettlement areas and landed estates, organization
of agrarian reform beneficiaries and implementation of economic
projects;

(9) Monitor and evaluate the activities of field offices on the

development and management of resettlement areas and landed
estates, and agrarian reform beneficiaries development; and

(10) Perform such other functions as may be provided by law.

CHAPTER 5

Regional and District Offices and Attached Agencies

SECTION 18. Regional Office. — The Regional Office shall be

responsible for supporting the field units and supervising program implementation of
the Department within the region. It shall:

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 (1) Implement laws, policies, plans, rules and regulations of the
Department in the regional area;

(2) Develop and implement a regional personnel management

program;

(3) Prepare, submit, execute and control the budget for the region;

(4) Prepare and properly maintain books of accounts;

(5) Pay salaries and wages and other approved vouchers;

(6) Provide administrative services to the regional and provincial

offices;

(7) Prepare and submit plans and programs for the region on:

a. land tenure development

b. information and education

c. land use management and land development

d. legal services

e. agrarian reform beneficiaries development

(8) Provide technical assistance to the provincial offices and agrarian

reform teams in the implementation of approved plans and
programs;

(9) Extend effective legal assistance, advice or service to agrarian

reform beneficiaries;

(10) Conduct operations research and evaluation of agrarian reform

program implementation within the region;

(11) Coordinate with other government and private agencies and farmer
organizations at the Regional level through the Agrarian Reform
Coordinating Council, to carry out programs/projects for the
general welfare of the agrarian reform beneficiaries;

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 (12) Coordinate para-legal services;

(13) Maintain a data-based information system in coordination with the

established monitoring system;

(14) Review documents submitted by the Provincial and Team Offices

or by the clientele;

(15) Submit periodic feedback and recommend policy changes and/or

modification of procedures on program implementation; and

(16) Perform such other functions as may be necessary in the service of

the clientele.

SECTION 19. Provincial Offices. — The Agrarian Reform Provincial

Office is responsible for the direction and coordination of the operation and activities
of the Agrarian Reform Teams operating within the province and has the following
functions:

(1) Set priorities, specific targets, schedules and deadlines for the
execution of approved plans, programs and projects on:

a. land acquisition, distribution, transfer of land ownership to

actual tillers, including land tiller-landowners identification,
tenurial security and leasehold arrangements, land surveys,
land valuation and landowners compensation;

b. continuing information and education programs on agrarian

reform;

c. organization and development of Agrarian Reform

Beneficiaries Cooperatives and institutionalizing
farmers-government partnership in agrarian reform policy
formulation and program implementation;

d. landowner's compensation and diversion of landowner's

capital to industrial development;

e. development and implementation of alternative land tenure

systems such as cooperative farming, agro-industrial estates
and cooperative-cultivatorship schemes;
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 f. land use management;

g. compact farming, land consolidation, land reclamation,

integrated farming systems, sloping agricultural land
technology, and other land conservation measures in
agrarian reform covered areas;

h. legal services to farmers covered by agrarian reform and

resolution of agrarian conflicts and land tenure problems;

(2) Provide administrative services to the Agrarian Reform Teams

within the province;

(3) Provide legal services to agrarian reform beneficiaries in cases

arising from or are connected with agrarian disputes, handling of
expropriation proceedings, registering cooperatives organized by
Agrarian Reform Teams and reviewing and acting on all matters
initially investigated and elevated by Agrarian Reform Teams;

(4) Provide technical assistance to the Agrarian Reform Teams in the

implementation of approved plans and programs;

(5) Coordinate with government, private agencies and farmer

organizations at the provincial level to carry out programs;

(6) Conduct periodic performance audit surveys in collaboration with

the regional office, and monitor agrarian reform program
accomplishments of Agrarian Reform Teams including operational
problems and constraints and recommended appropriate remedial
measures for effective program implementation; and

(7) Perform such other functions as may be necessary in the service of

the clientele.

SECTION 20. Team Offices. — The Agrarian Reform Team shall be

responsible for directly implementing the agrarian reform programs and delivering
expected results. It shall:

(1) Implement policies and programs on land acquisition, and

distribution, and transfer of landownership to actual tillers,
including farmer-landowner's identification, leasehold
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 arrangements, land valuation and landowners compensation and
transfer actions;

(2) Undertake continuing information and education programs on

agrarian reform among the beneficiaries;

(3) Promote the organization and development of agrarian reform

beneficiaries and assist in the registration of organized
cooperatives;

(4) Institutionalize farmers participation in agrarian reform policy

formulation and program implementation;

(5) Organize and establish compact farms, land consolidation,

integrated farm systems, sloping agricultural land technology and
other cooperative-cultivatorship schemes;

(6) Provide assistance in agrarian reform research;

(7) Provide assistance to various legal services, including legal

information and legal counselling, documentation and preliminary
processing of applications for free patent and applications to
purchase lots, preliminary investigation of conflicting claims on lot
boundaries and appraisal of properties, and mediation of different
problems arising from tenancy relationship, execution and
registration of lease contracts, initial investigation of
administrative cases, and other legal services;

(8) Provide assistance on project identification, formulation and

development that would uplift the socio-economic status of the
beneficiaries including projects that would divert landlord capital
to industrial development;

(9) Coordinate with other government and private agencies and farmer
organizations within the area of coverage for effective
program/project implementation;

(10) Submit periodic reports on program/project accomplishments

including problems identified and recommended solutions thereto;

(11) Implement DAR commitment programs supportive of national

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 priority programs; and

(12) Perform such other functions as may be assigned from time to

time.

SECTION 21. Attached Agencies. — The following agencies are attached

to the Department for administrative supervision and policy coordination:

(1) Land Bank of the Philippines

(2) Agricultural Credit Administration

(3) Agrarian Reform Coordinating Council

TITLE XII

Local Government

CHAPTER 1

General Provisions

SECTION 1. Declaration of Policy. — The State shall ensure the

autonomy of local governments. For this purpose, it shall provide for a more
responsive and accountable local government structure instituted through a system of
decentralization. The allocation of powers and resources to local government units
shall be promoted, and inter-local government grouping, consolidation and
coordination of resources shall be encouraged. The State shall guarantee the local
government units their just share in national taxes and their equitable share in
proceeds from the use of natural resources, and afford them a wider latitude for
resources generation.

SECTION 2. Mandate. — The Department shall assist the President in

the exercise of general supervision over local governments and in ensuring autonomy,
decentralization and community empowerment.

SECTION 3. Powers and Functions. — To accomplish its mandate, the

Department shall:

(1) Advise the President on the promulgation of policies, rules,

regulations and other issuances relative to the general supervision
of local government units;
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 (2) Establish and prescribe rules, regulations and other issuances and
implementing laws on the general supervision of local government
units and on the promotion of local autonomy and monitor
compliance thereof by said units;

(3) Provide assistance in the preparation of national legislation

affecting local government units;

(4) Establish and prescribe plans, policies, programs and projects to

strengthen the administrative, technical and fiscal capabilities of
local government offices and personnel;

(5) Formulate and implement policies, plans, programs and projects to

meet national and local emergencies arising from natural and
man-made disasters; and

(6) Perform such other functions as may be provided by law.

SECTION 4. Organizational Structure. — The Department, shall

be composed of the Office of the Secretary, and the staff and line offices which shall
consist of the following:

(1) Bureau of Local Government Supervision;

(2) Bureau of Local Government Development;

(3) National Barangay Operations Office;

(4) Project Development Services;

(5) Department Services;

(6) Office of Public Affairs; and

(7) Regional and Field Offices.

CHAPTER 2

Department Proper

SECTION 5. Office of the Secretary. — The Office of the Secretary shall

consist of the Secretary and his immediate staff.
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 SECTION 6. Undersecretaries and Assistant Secretaries. — The
Secretary shall be assisted by not more than three (3) Undersecretaries and three (3)
Assistant Secretaries who shall be appointed by the President upon the
recommendation of the Secretary. The Secretary is hereby authorized to delineate and
assign the respective functional areas of responsibility of the Undersecretaries and
Assistant Secretaries.

CHAPTER 3

Department Services

SECTION 7. Planning Service. — The Planning Service shall be

responsible for providing the Department with efficient and effective services relating
to planning, programming, research and statistics.

SECTION 8. Financial and Management Service. — The Financial and

Management Service shall be responsible for providing the Department with efficient
and effective staff advise and assistance on budgetary, financial and management
improvement matters.

SECTION 9. Legal Service. — The Legal Service shall be responsible for

providing the Department with efficient and effective legal counselling services,
assistance to the Secretary in the review or determination of subordinate bodies or
agencies, collaboration with Solicitor General in handling cases affecting the
Department, and investigation of administrative cases involving Department
personnel and local officials;

SECTION 10. Administrative Service. — The Administrative Service shall

be responsible for providing the Department with efficient and effective services
relative to personnel, information, records, supplies, equipment, collection,
disbursements, security and custodial work, and other kinds of services not related to
the other services above enumerated.

SECTION 11. Electronic Data Processing Service. — The Electronic Data

Processing Service shall be responsible for providing adequate and up-to-date data
and management information inputs, including monitoring of all field operations, to
serve as basis for effective planning, management and control, policy formulation and
decision-making.

CHAPTER 4

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 Bureaus and Offices

SECTION 12. Bureau of Local Government Supervision. — The Bureau

of Local Government Supervision, to be headed by a Bureau Director appointed by
the President upon the recommendation of the Secretary, shall have the following
functions:

(1) Advise and assist the Secretary in the exercise of the power of
general supervision of the President over the local government
units, particularly in the formulation and implementation of
national laws, policies, and standards concerning local government
operations and their personnel;

(2) Establish and prescribe guidelines for the administration of the

Katarungang Pambarangay Laws;

(3) Monitor compliance with national laws and policies by local

government units;

(4) Provide assistance in the preparation of national legislation

affecting local government units and in the promotion of local
autonomy;

(5) Extend consultation service and advice to local government units

involved in promoting local autonomy; and

(6) Provide assistance to local governments in the promotion of

citizens participation in local government activities;

(7) Provide technical and financial assistance, as well as secretariat

services to the Leagues of Provinces, Cities, and Municipalities;
and

(8) Perform such other functions as may be provided by law.

SECTION 13. Bureau of Local Government Development. — The Bureau

of Local Government Development, to be headed by a Bureau Director appointed by
the President upon the recommendation of the Secretary, shall have the following
functions:

(1) Establish and prescribe plans, policies, programs, and projects to

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 strengthen the administrative and technical capabilities of local
government offices and personnel;

(2) Provide technical assistance to enhance the administrative, fiscal

and technical capabilities of local government officers and
personnel;

(3) Formulate, prescribe and periodically evaluate local development

policies, plans, programs and projects designed to enhance the
participation of local government units in planning and
implementation;

(4) Establish a system of incentives and grants to local governments

and prescribe policies, procedures and guidelines in the
implementation of self-help assistance projects;

(5) Formulate and develop models, standards and technical materials

on local government development;

(6) Extend consultation service and advice to local government units

involved in development programs;

(7) Establish a viable system of strategies and approaches for local

governments anchored on citizen participation within a wholistic
and integrated framework for the development of communities;
and

(8) Perform such other functions as may be provided by law.

SECTION 14. Office of Public Affairs. — The Office of Public Affairs

shall have the following functions:

(1) Provide technical assistance in the modernization and maintenance

of a Department-wide micro-telecommunications systems;

(2) Provide mechanisms for the operationalization of the intent of the

provisions of public information, coverages and documentation of
the activities of the Department;

(3) Perform functional supervision over regional information centers

in providing the citizenry with relevant information on the
program of the Department and the Government's thrust towards
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 the participation of the citizens in the democratic processes;

(4) Formulate plans and programs to implement the administrative and

technical capabilities of public officers and personnel both on the
central and regional levels;

(5) Establish and prescribe guidelines in the administration of

Information and Public Assistance Services;

(6) Extend consultation services and advice in the implementation of

Regional Information Services;

(7) Assess information needs of the people through opinion polls and
surveys;

(8) Provide assistance on various public programs of the Department;

(9) Establish and implement policies, plans, programs and projects to

meet local emergencies arising from natural and man-made
disasters; and

(10) Perform such other duties and responsibilities and projects

assigned or delegated by the Secretary in the effective delivery of
public services or as may be required by law.

SECTION 15. Local Government Academy. — The Local Government

Academy shall be responsible for human resource development and training of local
government officials and Department personnel. The Academy shall be under the
direct supervision of a Board of Trustees composed of the Secretary of Local
Government as Chairman and four (4) other members to be appointed by the
President upon recommendation of the Secretary. The structure and staffing pattern of
the Local Government Academy shall be prescribed and approved by the Secretary.

SECTION 16. National Barangay Operations Office. — The National

Barangay Operations Office which shall be headed by a Director to be appointed by
the President upon the recommendation of the Secretary, shall have the following
functions:

(1) Formulate policies, plans and programs that will promote

community and citizen participation in the political development
of the barangay through the mobilization and participation of

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 barangay assemblies;

(2) Initiate projects on innovative barangay development strategies

and approaches in close coordination with the Bureau of Local
Government Development;

(3) Provide secretariat services to the Association of Barangay

Councils and serve as a clearing house on matters affecting
barangay officials' insurance, hospitalization, educational and other
benefits as provided by law;

(4) Provide continuing information dissemination to barangay units on

national development efforts and issues in order for barangay
assembly members to participate meaningfully in national
development;

(5) Establish and maintain masterlists of barangays, barangay officials

and barangay socio-economic profiles;

(6) Provide situational and political analysis for the Secretary on

barangay affairs; and

(7) Perform other functions as may be delegated by the Secretary or as

provided for by law.

SECTION 17. Office of Project Development Services. — The Office of

Project Development Services shall have the following functions:

(1) Formulate innovative approaches and strategies designed to

promote technical capabilities of local governments;

(2) Assist in the development of program components for the

implementation of tested and appropriate systems and processes at
the local levels; and

(3) Perform other functions as may be delegated by the Secretary or as

provided by law.

CHAPTER 5

Regional and Field Offices

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 SECTION 18. Regional and Field Offices. — The Secretary is authorized
to establish, operate and maintain one Regional Office in each of the administrative
regions established by law. A Regional Office shall have, within its administrative
region, the following functions:

(1) Implement laws, rules, and regulations, other issuances, policies,

plans, programs and projects of the Department;

(2) Provide efficient and effective service to local government;

(3) Coordinate with regional offices of other departments, offices and

agencies affecting local administration and development;

(4) Assist local government units in developing their capabilities for

local government administration and development; and

(5) Perform such other functions as may be delegated by the Secretary

or as provided by law.

CHAPTER 6

Leagues of Provinces, Cities and Municipalities

SECTION 19. Leagues of Provinces, Cities and Municipalities. — There

is hereby created the Leagues of Provinces, Cities and Municipalities.

The functions, budget and records of the Katipunan ng mga Sanggunian

National Secretariat and the Pambansang Katipunan ng mga Punong Bayan sa
Pilipinas, shall be transferred to the Leagues of Provinces, Cities and Municipalities.
The Leagues shall be under the supervision of the Bureau of Local Government
Supervision.

The Secretary is hereby authorized to promulgate the necessary implementing

rules that will activate these Leagues.

TITLE XIII

Tourism

CHAPTER 1

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 General Provisions

SECTION 1. Declaration of Policy. — The State shall promote,

encourage and develop tourism as a major national activity in which private sector
investment, effort and initiative are fostered and supported, and through which
socio-economic development may be accelerated, foreign exchange earned,
international visitors offered the opportunity to travel to the Philippines and
appreciate its natural beauty, history and culture, and Filipinos themselves enabled to
see more of their country and imbued with greater pride in and commitment to the
nation.

SECTION 2. Mandate. — The Department of Tourism shall be

the primary government agency charge with the responsibility to encourage, promote
and develop tourism as a major socio-economic activity to generate foreign currency
and employment and to spread the benefits of tourism to a wider segment of the
population with the support, assistance and cooperation of both the private and public
sectors, and to assure the safe, convenient, enjoyable stay and travel of the foreign
and local tourists in the country.

SECTION 3. Powers and Functions. — The Department shall have

the following powers and functions:

(1) Formulate policies, plans, programs and projects for the

development of the tourism industry;

(2) Administer, coordinate and supervise all activities of the

Government concerning tourism;

(3) Advise the President on the promulgation of laws relative to the

policy, plans, programs and projects designed to promote and
develop the tourism industry;

(4) Effect the removal of unnecessary barriers to travel, the integration

and simplification of travel regulations as well as their efficient,
fair and courteous enforcement to assure expeditious and
hospitable reception of all tourists and travelers;

(5) Represent the government in all such conferences and meetings

concerning tourism and travel and discharge such responsibilities
of the government as may arise from treaties, agreements and other

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 commitments on tourism and travel to which it is signatory;

(6) Formulate standards for tourism-oriented establishments that will

prescribe minimum levels of operating quality and efficiency in
order to ensure that facilities, personnel and services are
maintained in accordance with acceptable local and international
norms in the operations of tourism-oriented establishments;

(7) Approve the construction standards of accredited tourism-oriented

establishments including hotels, resorts, inns, motels and other
related facilities and services and prescribe information reporting
on the purchase, sale or lease of the said establishments and
facilities;

(8) Provide the protection, maintenance and preservation of historical,

cultural and natural assets which are tourist attractions with the
appropriate government agencies or with the private sector or with
the owners of said assets or attractions;

(9) Undertake research studies and surveys for the continuing analysis
of economic conditions and trends relating to tourism and maintain
a statistical data bank on the tourism industry;

(10) Design programs to encourage private-sector investment and

participation in tourism activities and projects;

(11) Set up and organize foreign field offices for the purpose of
overseeing all marketing and promotional activities and
implementing programs of the Department;

(12) Arrange, whenever deemed appropriate, for the reclamation of any

land adjacent to or adjoining a tourist zone in coordination with
appropriate government agencies;

(13) Delegate any specific powers and functions in favor of the regional
offices to promote efficiency and effectiveness in the delivery of
public service;

(14) Enlist the aid, assistance and support of any and all government
agencies, civil or military, in the implementation of the provisions
of laws pertaining to the Department or of its rules and regulations;
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 (15) Exercise such powers and functions as may be necessary, proper,
or incidental to the attainment of its mandate;

(16) Perform such other functions as may be provided by law.

SECTION 4. Organizational Structure. — The Department shall

consist of the Department Proper, Department Services, Bureaus and Offices,
Regional Offices and Foreign Field Offices.

The Department Proper shall consist of the Offices of the Secretary and
Undersecretaries which shall be responsible for the preparation and development of
policies, plans, programs and projects of the Department.

CHAPTER 2

Department Proper

SECTION 5. Office of the Secretary. — The Office of the

Secretary shall consist of the Secretary and his immediate staff.

SECTION 6. Undersecretaries. — The Secretary shall be assisted

by four (4) Undersecretaries, namely:

(1) Undersecretary for Planning, Product Development and

Coordination, who shall be responsible for the Office of Tourism
Development Planning, Office of Product Development and Office
of Tourism Coordination;

(2) Undersecretary for Tourism Services and Regional Offices, who

shall be responsible for the Office of Tourism Standards and all
Regional Offices;

(3) Undersecretary for Tourism Promotions, who shall be responsible

for the Bureau of International Tourism Promotion, Bureau of
Domestic Tourism Promotions and Office of Tourism Information;
and

(4) Undersecretary for Internal Services, who shall be responsible for

the Financial and Management Service, Administrative Service
and Legal Service.

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 CHAPTER 3

Department Services

SECTION 7. Department Service Character and Head. — The

Department Services shall be essentially staff in character, each of which shall be
headed by a Service Chief. [(1987), Sec. 14]

SECTION 8. Financial and Management Service. — The

Financial and Management Service shall provide the Department with staff advice
and assistance on budgetary, financial and management matters and shall perform
such other related functions as may be assigned or delegated to it by the Secretary.

SECTION 9. Administrative Service. — The Administrative

Service shall provide the Department with staff advice and assistance on personnel
information, records, communications, supplies, equipment, collection,
disbursements, security, other custodial work and such other related duties and
responsibilities as may be assigned or delegated to it by the Secretary.

SECTION 10. Legal Service. — The Legal Service shall provide

the Department with staff advice and assistance on all legal matters affecting the
Department and perform such other related functions as may be assigned or delegated
to it by the Secretary.

CHAPTER 4

Bureaus and Offices

SECTION 11. Bureau and Office Character and Head. — The Bureaus
and Offices shall be essentially staff in character, each of which shall be headed by a
Staff Director.

SECTION 12. Bureau of Domestic Tourism Promotions and Information.

— The Bureau of Domestic Tourism Promotions and Information shall have
the following functions:

(1) Organize and coordinate programs of public relations, promotions,

and publicity; encourage domestic tourism and encourage overseas
visitors to travel throughout the Philippines;

(2) Design and provide support for dissemination of materials for

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 publicity as tourist attractions in the Philippines; promote
educational and cultural tours to increase travel within the country;

(3) Promote, organize and provide support for tourist councils;

(4) Plan promotional campaigns through advertising and publicity and

coordinate promotional efforts with the private sector through sales
campaigns and information dissemination; and

(5) Organize special events for the promotion of local destinations.

SECTION 13. Bureau of International Tourism Promotions. — The

Bureau of International Tourism promotions shall have the following functions:

(1) Generate favorable publicity on the Philippines;

(2) Disseminate current information on the country and its tourist

products;

(3) Provide support for the private sector in the promotional campaign;

(4) Organize special events to promote the country as a tourist

destination;

(5) Gather market intelligence and research information on tourist

markets through the Foreign Field Offices;

(6) Monitor trends and developments in international tourism through

the Foreign Field Offices;

(7) Organize, set up and participate in international meetings,

conferences and conventions on tourism; and

(8) Supervise foreign field offices charged with coordinating and

assisting in the marketing and promotional activities and programs
of the Department.

SECTION 14. Office of Tourism Information. — The Office of

Tourism Information shall have the following functions:

(1) Promote a continuing wholesome and informative relationship

between the Department and the travelling public;

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 (2) Cause the widest publicity of existing and forthcoming activities
and programs of the Department through a functional relationship
with the media; and

(3) Organize and disseminate promotional and tourist information

materials to various tourist assistance centers.

SECTION 15. Office of Tourism Standards. — The Office of

Tourism Standards shall have the following functions:

(1) Approve the construction standards of tourism-oriented

establishments including hotels, resorts, inns, motels, and other
related facilities and services, prescribe information reporting on
purchase, sale or lease of accredited tourism-oriented facilities and
ensure a harmonious, positive and constructive development of the
tourism industry;

(2) Formulate operating standards for tourism-oriented establishments

including hotels and resorts, restaurants, inns, motels, and other
related facilities and services, that will prescribe minimum levels
of operating quality and efficiency in order to ensure that facilities,
personnel and services are maintained in accordance with
acceptable local and international norms in the operations of
tourism-oriented establishments;

(3) Regulate and issue licenses to qualified travel agencies in

accordance with the rules and regulations promulgated by the
Secretary;

(4) Encourage formation of industry associations for accreditations by

the Department;

(5) Assist in auditioning Filipino entertainers in order to project

properly and enhance the Filipino image in the entertainment field
and thereby gain better international respect and reputation; and

(6) Coordinate with all agencies concerned on the enforcement of

rules and regulations promulgated by the Department.

SECTION 16. Office of Tourism Development Planning. — The

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 Office of Tourism Development Planning shall have the following functions:

(1) Formulate plans and policies for the development of the tourism
industry, including but not limited to national tourism plans and
the identification of master physical plans for tourism plans and
the identification country; [sic]

(2) Monitor and evaluate plans, programs and projects of the

Department to ensure their effective implementation;

(3) Undertake research studies and surveys for the continuing analysis
of the tourism industry;

(4) Compile and integrate statistical data on the tourism industry and
publish the same;

(5) Coordinate and assist in the implementation of tourism-oriented

projects, plans or operations of local governments, governmental
agencies, public corporations, and where clearly necessary and
feasible, those of private entities so as to make possible the
accelerated and balanced growth and development of tourism in
the Philippines which is responsible to the needs of targetted travel
markets, domestic and foreign, and beneficial to a greater number
of Filipino communities;

(6) Analyze specific geographical areas with potential tourism value

leading to the preparation of a national tourism development plan
which will establish the order of priority for the development plan
of tourist zones;

(7) Formulate a government plan for each zone in coordination with

other government agencies and local government units exercising
political jurisdiction over the area, provided, that the plan of the
zone to be developed shall cover specifically those aspects
pertaining to tourism; provided further, that the tourism
development plan is fully coordinated and integrated with other
sectoral plans for the area; and

(8) Coordinate with appropriate local government units and other

government agencies to assist in formulating and implementing
zone regulations, including building codes, hotel standards and
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 such other restrictions as may be necessary within a tourist zone to
control its orderly development; preserve such historical, cultural
or natural assets or relics giving the zone its tourism value and
significance; and assure adherence to approved zone development
plans;

(9) Ensure through proper coordination with appropriate government

agencies and local private agencies the social growth of the
community within a tourist zone; carefully control possible
negative social impact brought about by tourism development.

SECTION 17. Office of Product Development. — The Office of

Product Development shall have the following functions:

(1) Develop and conceptualize new products which can lead to the
enhancement of tourist sites and facilities;

(2) Undertake pilot tests for testing the viability and acceptability of
new tourism-related products and programs; and

(3) Encourage and promote joint undertakings with the private sector
of new tourism-related products and programs.

SECTION 18. Office of Tourism Coordination. — The Office of

Tourism Coordination shall have the following functions:

(1) Initiate and coordinate with all sectors, both government and
private, the development of the national tourism plans and policies;

(2) Coordinate priority activities and projects of the Department, and

other government agencies, and the private sector;

(3) Enlist the assistance and support of any or all of the government
agencies in the implementation of the policies of the Department;
and

(4) Provide support to all tourism-related activities of the private

sector needing government assistance.

CHAPTER 5

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 Foreign and Regional Offices

SECTION 19. Foreign Field Offices. — Subject to the approval of

the President, the Department shall have foreign offices as may be necessary in the
marketing and promotion of the Philippines as an international tourist destination,
which shall oversee and implement the marketing and promotional programs of the
Department.

SECTION 20. Regional Office. — The Department is authorized to

establish, operate and maintain a Regional Office in each of the administrative
regions of the country, under the immediate supervision of the Assistant Secretary for
Tourism Services and Regional Offices. A Regional Office shall be headed by a
Regional Director and shall, within its administrative region, have the following
functions:

(1) Implement laws, policies, plans, programs, rules and regulations of

the Department;

(2) Provide economical, efficient and effective service to the people;

(3) Coordinate with regional offices of other departments, bureaus and

agencies;

(4) Coordinate with local government units; and

(5) Perform such other functions as may be provided by law.

CHAPTER 6

Attached Agencies

SECTION 21. Attached Agencies. — The Philippine Tourism

Authority, and Philippine Convention Bureau, Intramuros
Administration, and National Parks Development Committee are hereby
attached to the Department and shall continue to operate and function in accordance
with the respective charters/laws/orders provided in this Code.

TITLE XIV

Environment and Natural Resources

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 CHAPTER 1

General Provisions

SECTION 1. Declaration of Policy. — (1) The State shall ensure, for the
benefit of the Filipino people, the full exploration and development as well as the
judicious disposition, utilization, management, renewal and conservation of the
country's forest, mineral, land, waters, fisheries, wildlife, off-shore areas and other
natural resources, consistent with the necessity of maintaining a sound ecological
balance and protecting and enhancing the quality of the environment and the
objective of making the exploration, development and utilization of such natural
resources equitably accessible to the different segments of the present as well as
future generations.

(2) The State shall likewise recognize and apply a true value system that
takes into account social and environmental cost implications relative to the
utilization, development and conservation of our natural resources.

SECTION 2. Mandate. — (1) The Department of Environment and

Natural Resources shall be primarily responsible for the implementation of the
foregoing policy.

(2) It shall, subject to law and higher authority, be in charge of carrying out
the State's constitutional mandate to control and supervise the exploration,
development, utilization, and conservation of the country's natural resources.

SECTION 3. Guidelines for Implementation. — In the discharge of its

responsibility the Department shall be guided by the following objectives:

(1) Assure the availability and sustainability of the country's natural

resources through judicious use and systematic restoration or
replacement, whenever possible;

(2) Increase the productivity of natural resources in order to meet the

demands for the products from forest, mineral, land and water
resources of a growing population;

(3) Enhance the contribution of natural resources for achieving

national economic and social development;

(4) Promote equitable access to natural resources by the different

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 sectors of the population; and

(5) Conserve specific terrestrial and marine areas representative of the

Philippine natural and cultural heritage for present and future
generations.

SECTION 4. Powers and Functions. — The Department shall:

(1) Advise the President and the Congress on the enactment of laws
relative to the exploration, development, use, regulation and
conservation of the country's natural resources and the control of
pollution;

(2) Formulate, implement and supervise the implementation of the

government's policies, plans, and programs pertaining to the
management, conservation, development, use and replenishment of
the country's natural resources;

(3) Promulgate rules and regulations in accordance with law

governing the exploration, development, conservation, extraction,
disposition, use and such other commercial activities tending to
cause the depletion and degradation of our natural resources;

(4) Exercise supervision and control over forest lands, alienable and
disposable public lands, mineral resources and, in the process of
exercising such control, impose appropriate taxes, fees, charges,
rentals and any such form of levy and collect such revenues for the
exploration, development, utilization or gathering of such
resources;

(5) Undertake the exploration, assessment, classification and inventory

of the country's natural resources, using ground surveys, remote
sensing and complementary technologies;

(6) Promote proper and mutual consultation with the private sector on
matters involving natural resources exploration, development, use
and conservation;

(7) Undertake geological surveys of the whole country including its

territorial waters;

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 (8) Issue licenses and permits for activities related to the use and
development of aquatic resources, treasure hunting,
salvaging of sunken vessels and other similar activities;

(9) Establish policies and implement programs for the:

(a) Accelerated inventory, survey and classification of lands,

forest and mineral resources, using appropriate technology,
to be able to come up with a more accurate assessment of
resource quality and quantity;

(b) Equitable distribution of natural resources through the

judicious administration, regulation, utilization,
development and conservation of public lands, forest, water
and mineral resources (including mineral reservation areas),
that would benefit a greater number of Filipinos;

(c) Promotion, development and expansion of natural

resource-based industries;

(d) Preservation of cultural and natural heritage through

wildlife conservation and segregation of national parks and
other protected areas;

(e) Maintenance of a wholesome natural environment by

enforcing environmental protection laws; and

(f) Encouragement of greater people participation and private

initiative in rural resource management;

(10) Promulgate rules and regulations necessary to:

(a) Accelerate cadastral and emancipation patent surveys, land

use planning and public land titling;

(b) Harness forest resources in a sustainable manner, to assist

rural development, support forest-based industries, and
provide raw materials to meet increasing demands, at the
same time keeping adequate reserves for environmental
stability;

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 (c) Expedite mineral resources surveys, promote the production
of metallic and non-metallic minerals and encourage
mineral marketing;

(d) Assure conservation and judicious and sustainable

development of aquatic resources.

(11) Assess, review and provide direction to, in coordination with

concerned government agencies, energy research and development
programs, including identification of sources of energy and
determination of their commercial feasibility for development;

(12) Regulate the development, disposition, extraction, exploration and

use of the country's forest, land, water and mineral resources;

(13) Assume responsibility for the assessment, development, protection,

licensing and regulation as provided for by law, where applicable,
of all energy and natural resources; the regulation and
monitoring of service contractors, licensees, lessees, and permit for
the extraction, exploration, development and use of natural
resources products; the implementation of programs and measures
with the end in view of promoting close collaboration between the
government and the private sector; the effective and efficient
classification and sub-classification of lands of the public domain;
and the enforcement of natural resources and environmental laws,
rules and regulations;

(14) Promulgate rules, regulations and guidelines on the issuance of

licenses, permits, concessions, lease agreements and such other
privileges concerning the development, exploration and utilization
of the country's marine, freshwater, and brackish water and over all
aquatic resources of the country and shall continue to oversee,
supervise and police our natural resources; cancel or cause to
cancel such privileges upon failure, non-compliance or violations
of any regulation, order, and for all other causes which are in
furtherance of the conservation of natural resources and supportive
of the national interest;

(15) Exercise exclusive jurisdiction on the management and disposition

of all lands of the public domain and serve as the sole agency
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 responsible for classification, sub-classification, surveying and
titling of lands in consultation with appropriate agencies;

(16) Implement measures for the regulation and supervision of the

processing of forest products, grading and inspection of lumber
and other forest products and monitoring of the movement of
timber and other forest products;

(17) Promulgate rules and regulations for the control of water, air and
land pollution;

(18) Promulgate ambient and effluent standards for water and air
quality including the allowable levels of other pollutants and
radiations;

(19) Promulgate policies, rules and regulations for the conservation of

the country's genetic resources and biological diversity, and
endangered habitats;

(20) Formulate an integrated, multi-sectoral, and multi-disciplinary

National Conservation Strategy, which will be presented to the
Cabinet for the President's approval;

(21) Perform such other functions as may be provided by law.

SECTION 5. Organizational Structure. — The Department shall consist

of the Department Proper, the Staff Offices, the Staff Bureaus, and the Regional
Offices, Provincial Offices and Community Offices.

CHAPTER 2

The Department Proper

SECTION 6. Composition. — The Department Proper shall be composed

of the Office of the Secretary, the Offices of the Undersecretaries and Assistant
Secretaries, and the Public Affairs Office, Special Concerns Office, and the Pollution
Adjudication Board.

SECTION 7. Office of the Secretary. — The Office of the Secretary shall

consist of the Secretary and his immediate staff.

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 SECTION 8. The Secretary. — The Secretary shall:

(1) Advise the President on the promulgation of rules, regulations and

other issuances relative to the conservation, management,
development and proper use of the country's natural resources;

(2) Establish policies and standards for the efficient and effective
operations of the Department in accordance with the programs of
the government;

(3) Promulgate rules, regulations and other issuances necessary in

carrying out the Department's mandate, objectives, policies, plans,
programs and projects.

(4) Exercise supervision and control over all functions and activities of
the Department;

(5) Delegate authority for the performance of any administrative or

substantive function to subordinate officials of the Department;
and

(6) Perform such other functions as may be provided by law or

assigned by the President.

SECTION 9. Undersecretaries. — The Secretary shall be assisted by five

(5) Undersecretaries upon the recommendation of the Secretary. The Secretary is
hereby authorized to delineate, assign and/or reassign the respective functional areas
of responsibility of each Undersecretary, Provided, That such responsibility shall be
with respect to the mandate and objectives of the Department; and Provided, further,
That no Undersecretary shall be assigned primarily administrative responsibilities.
Within his functional area of responsibility, an Undersecretary shall have the
following functions:

(1) Advise the Secretary in the promulgation of Department orders,

administrative orders and other issuances, with respect to his area
of responsibility;

(2) Exercise supervision and control over the offices, services,

operating units and officers and employees under his
responsibility;

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 (3) Promulgate rules and regulations, consistent with Department
policies, that will efficiently and effectively govern the activities of
units under his responsibility;

(4) Coordinate the functions and activities of the units under his
responsibility with those of other units under the responsibility of
other Undersecretaries;

(5) Exercise such authority on substantive and administrative matters

related to the functions and activities of units under his
responsibility to the extent granted by the Secretary through
administrative issuances; and

(6) Perform such other functions as may be provided by law or

assigned by the Secretary.

SECTION 10. Assistant Secretaries. — The Secretary and the

Undersecretaries shall, in the formulation, management and implementation of natural
resources laws, policies, plans, and programs and projects, also be assisted by seven
(7) Assistant Secretaries who shall be responsible for the following: one (1) for Policy
and Planning Studies, one (1) for Foreign-Assisted and Special Projects, one (1) for
Field Operations in Luzon, one (1) for Field Operations in the Visayas, and one (1)
for Field Operations in Mindanao, one (1) for Legal Affairs, and one (1) for
Management Services.

SECTION 11. Public Affairs Office. — The Public Affairs Office, under
the Office of the Secretary, shall be headed by a Director to be assisted by an
Assistant Director, and shall serve as the public information arm of the Department. It
shall be responsible for disseminating information on natural resources development
policies, plans, programs and projects and respond to public queries related to the
development and conservation of natural resources.

SECTION 12. Special Concerns Office. — The Special Concerns Office,

also under the Office of the Secretary, shall be headed by a Director to be assisted by
an Assistant Director, and shall be responsible for handling priority areas or subjects
identified by the Secretary which necessitate special and immediate attention.

SECTION 13. Pollution Adjudication Board. — The Pollution

Adjudication Board, under the Office of the Secretary, shall be composed of the
Secretary as Chairman, two Undersecretaries as may be designated by the Secretary,

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 the Director of Environmental Management, and three others to be designated by the
Secretary as members. The Board shall assume the powers and functions of the
Commission/Commissioners of the National Pollution Control Commission with
respect to the adjudication of pollution cases under Republic Act 3931 and
Presidential Decree 984, particularly with respect to Section 6 letters (e), (f), (g), (j),
(k) and (p) of P.D. 984. The Environmental Management Bureau shall serve as the
Secretariat of the Board. These powers and functions may be delegated to the regional
officers of the Department in accordance with rules and regulations to be promulgated
by the Board.

CHAPTER 3

The Staff Sectoral Bureaus

SECTION 14. Forest Management Bureau. — The Forest Management

Bureau shall be headed by a Director and assisted by an Assistant Director, and shall
integrate and absorb the powers of the Bureau of Forest Development and the Wood
Industry Development Authority which were abolished by Executive Order No. 131,
except those line functions and powers thereof which are transferred to the regional
field office.

It shall advise the Secretary on matters pertaining to forest development and

conservation. As its primary functions, it shall:

(1) Recommend policies and/or programs for the effective protection,

development, occupancy, management and conservation of forest
lands and watersheds, including the grazing and mangrove areas;
reforestation and rehabilitation of critically denuded or degraded
forest reservations, improvement of water resource use and
development, development of national parks, preservation of
wilderness areas, game refuges and wildlife sanctuaries, ancestral
lands, wilderness areas and other natural preserves, development
of forest plantations, including rattan, bamboo, and other valuable
non-timber forest resources; and rationalization of the wood-based
industries, regulation of the utilization and exploitation of forest
resources, including wildlife, to ensure continuous supply of forest
and goods and services;

(2) Advise the regional offices in the implementation of the above

policies and/or programs;

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 (3) Develop plans, programs, operating standards and administrative
measures to promote the Bureau's objectives and functions;

(4) Assist in the monitoring and evaluation of forestry and watershed

development projects to ensure efficiency and effectiveness;

(5) Undertake studies on the economics of forestry and forest-based

industries, including supply and demand trends on the local,
national and international levels, identifying investment problems
and opportunities in various areas; and

(6) Perform such other functions as may be provided by law or

assigned by the Secretary.

SECTION 15. Lands Management Bureau. — The Lands Management

Bureau, to be headed by a Director and assisted by an Assistant Director, shall absorb
the functions and powers of the Bureau of Lands abolished by Executive Order No.
131, except those line functions and powers thereof which are transferred to the
regional field offices.

It shall advise the Secretary on matters pertaining to rational land management

and disposition and shall have the following functions:

(1) Recommend policies and programs for the efficient and effective
administration, surveys, management and disposition of alienable
and disposable lands of the public domain and other lands outside
the responsibilities of other government agencies, such as
reclaimed areas and other areas not needed for or are not being
utilized for the purposes for which they have been established;

(2) Advise the Regional Offices on the efficient and effective

implementation of policies, programs and projects for more
effective public lands management;

(3) Assist in the monitoring and evaluation of land surveys,

management and disposition of lands to ensure efficiency and
effectiveness thereof;

(4) Issue standards, guidelines, regulations and orders to enforce

policies for the maximization of land use and development;

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 (5) Develop operating standards and procedures to promote the
Bureau's objectives and functions; and

(6) Perform such other functions as may be provided by law or

assigned by the Secretary.

SECTION 16. Mines and Geo-Sciences Bureau. — The Mines and

Geo-Sciences Bureau, to be headed by a Director and assisted by an Assistant
Director shall absorb the functions of the Bureau of Mines and Geo-Sciences, Mineral
Reservations Development Board, and the Gold Mining Industry Development Board
which were abolished by Executive Order No. 131, except line functions and powers
thereof which are transferred to the regional field offices.

It shall advise the Secretary on matters pertaining to geology and mineral

resources exploration, development, utilization and conservation and shall:

(1) Recommend policies, regulations or programs pertaining to

mineral resources development and geology;

(2) Advise the Secretary on the granting of mining rights and contracts
over areas containing metallic mineral resources;

(3) Advise the Regional Offices on the effective implementation of

mineral development and conservation programs as well as
geological surveys;

(4) Recommend policies, regulations and oversee the development and

exploitation of mineral resources of the sea within the country's
jurisdiction such as silica sand, gold placer, magnetic and chromite
sand, etc;

(5) Assist in the monitoring and evaluation of the Bureau's programs

and projects to ensure efficiency and effectiveness thereof;

(6) Develop and promulgate standards and operating procedures on

mineral resources development and geology;

(7) Supervise and control the development and packaging of

nationally applicable technologies on geological survey, mineral
resource assessment, mining and metallurgy; the provision of
geological, metallurgical, chemical and rock mechanics laboratory
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 services; the conduct of marine geological and geophysical survey
and natural exploration drilling programs; and

(8) Perform such other functions as may be provided by law or

assigned by the Secretary.

SECTION 17. Environmental Management Bureau. — The Environmental

Management Bureau, to be headed by a Director who shall be assisted by an Assistant
Director shall, subject to the provisions of this Code relative to the Pollution
Adjudication Board, absorb and integrate the powers and functions of the National
Environmental Protection Council, the National Pollution Control Commission, and
the Environmental Center of the Philippines which are hereby abolished.

It shall advise the Secretary on matters relating to environmental management,

conservation, and pollution control, and shall:

(1) Recommend possible legislation, policies and programs for

environmental management and pollution control;

(2) Advise the Regional Offices in the efficient and effective

implementation of policies, programs, and projects for the
effective and efficient environmental management and pollution
control;

(3) Formulate environmental quality standards such as the quality

standards for water, air, land, noise and radiations;

(4) Recommend rules and regulations for environmental impact

assessments and provide technical assistance for their
implementation and monitoring;

(5) Formulate rules and regulations for the proper disposition of solid
wastes, toxic and hazardous substances;

(6) Advise the Secretary on the legal aspects of environmental

management and pollution control and assist in the conduct of
public hearings in pollution cases;

(7) Provide secretariat assistance to the Pollution Adjudication Board;

(8) Coordinate the inter-agency committees that may be created for the

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 preparation of the State of the Philippine Environment Report and
the National Conservation Strategy;

(9) Provide assistance to the Regional Offices in the formulation and

dissemination of information on environmental and pollution
matters to the general public;

(10) Assist the Secretary and the Regional Officers by providing

technical assistance in the implementation of environmental and
pollution laws; and

(11) Provide scientific assistance to the Regional Offices in the conduct

of environmental research programs.

SECTION 18. Ecosystems Research and Development Bureau. — The

Ecosystems Research and Development Bureau, to be headed by a Director and
assisted by an Assistant Director, shall absorb the powers and functions of the Forest
Research Institute and the National Mangrove Committee, which are hereby
abolished.

It shall:

(1) Formulate and recommend an integrated research program relating

to Philippine ecosystems and natural resources such as minerals,
lands, forests, as holistic and interdisciplinary fields of inquiry;

(2) Assist the Secretary in determining a system of priorities for the

allocation of resources to various technological research programs
of the department;

(3) Provide technical assistance in the implementation and monitoring

of the aforementioned research programs;

(4) Generate technologies and provide scientific assistance in the

research and development of technologies relevant to the
sustainable uses of Philippine ecosystems and natural resources;
and

(5) Assist the Secretary in the evaluation of the effectiveness of the

implementation of the integrated research program.

The Ecosystems Research and Development Bureau shall directly manage and
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 administer the Forest Research Institute Research Offices, laboratories, and forest
experiment stations located at UP Los Baños and such other field laboratories as the
Secretary may assign to its direct supervision. The Bureau shall coordinate all
technological researches undertaken by the field offices, assess and translate all
recommendable findings and disseminate such findings for all possible users and
clientele.

SECTION 19. Protected Areas and Wildlife Bureau. — The

Protected Areas and Wildlife Bureau, to be headed by a Director and assisted by an
Assistant Director, shall absorb the Division of Parks and Wildlife and the Marine
Parks Program of the Bureau of Forest Development as well as the Calauit Game
Preserve and Wildlife Sanctuary, Presidential Committee on the Conservation of
Tamaraw, Ninoy Aquino Parks and Wildlife Center (formerly Parks and Wildlife
Nature Center), shares in Kabuhayan Program and Agro Forestry State Projects of the
KKK Processing Authority, all national parks, wildlife sanctuaries and game
preserves previously managed and administered by the Ministry of Human
Settlements including National Parks Reservation situated in the provinces of
Bulacan, Rizal, Laguna and Quezon formerly declared as Bagong Lipunan Sites of
said Ministry, Magat Forest Reservation and Mt. Arayat National Park, formerly with
the Ministry of Tourism.

The Bureau shall:

(1) Formulate and recommend policies, guidelines, rules and

regulations for the establishment and management of an Integrated
Protected Areas Systems such as national parks, wildlife
sanctuaries and refuge, marine parks, and biospheric reserves;

(2) Formulate and recommend policies, guidelines, rules and

regulations for the preservation of biological diversity, genetic
resources, the endangered Philippine flora and fauna;

(3) Prepare an up-to-date listing of endangered flora and fauna and

recommend a program of conservation and propagation of the
same;

(4) Assist the Secretary in the monitoring and assessment of the

management of the Integrated Protected Areas System and provide
technical assistance to the Regional Offices in the implementation
of programs for these areas; and

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 (5) Perform such other functions as may be provided by law or
assigned by the Secretary.

CHAPTER 4

The Department Field Offices

SECTION 20. Field Offices of the Department. — The field offices of the
Department are the Environmental and Natural Resources Regional Offices in the
thirteen (13) administrative regions of the country; the Environment and Natural
Resources Provincial Office in every province, and the Community Office in every
municipality, whenever deemed necessary.

SECTION 21. Environment and Natural Resources Regional Office. — A

Regional Office shall be directly under the supervision and control of the
Undersecretary for Field Operations and shall be headed by a Regional Executive
Director (with the rank of Regional Director) who shall be assisted by five (5)
Assistant Regional Technical Directors, (with the rank of Assistant Regional
Director), one (1) each for Forestry, for Lands Management, for Mines and
Geo-Sciences, Environmental Management and Ecosystems Research, respectively,
and who shall be Career Executive Service Officers.

An Environment and Natural Resources Regional Office shall be located in the

identified regional capital and shall have the following functions:

(1) Implement laws, policies, plans, programs, projects, rules and

regulations of the Department to promote the sustainability and
productivity of natural resources, social equity in natural resource
utilization and environmental protection;

(2) Provide efficient and effective delivery of services to the people;

(3) Coordinate with regional offices of other departments, offices,

agencies in the region and local government units in the
enforcement of natural resource conservation laws and regulations,
and in the formulation/implementation of natural resource
programs and projects;

(4) Recommend and, upon approval, implement programs and projects

on forestry, minerals, and land management and disposition;

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 (5) Conduct a comprehensive inventory of natural resources in the
region and formulate regional short and long-term development
plans for the conservation, utilization and replacement of natural
resources;

(6) Evolve respective regional budget in conformity with the priorities

established by the Regional Development Councils;

(7) Supervise the processing of natural resources products, grade and

inspect minerals, lumber and other wood processed products, and
monitor the movement of these products;

(8) Conduct field researches for appropriate technologies

recommended for various projects; and

(9) Perform such other functions as may be provided by law or

assigned by the Secretary.

SECTION 22. Provincial and Community Offices. — The Natural

resources provincial and community offices shall each be headed by a provincial
natural resource officer and community natural resource officer, respectively. They
shall take over the functions of the district offices of the former Bureau of Forest
Development, Bureau of Lands, and Bureau of Mines and Geo-Sciences.

CHAPTER 5

Attached Agencies and Corporations

SECTION 23. Attached Agencies and Corporations. — The

following agencies and corporations shall be attached to and under the administrative
supervision of the Department:

(1) National Mapping and Research Information Authority;

(2) National Electrification Administration; and

(3) National Resources Development Corporation.

The agencies attached to the Department shall continue to operate and function
in accordance with the respective laws creating them, except as otherwise provided in
this Code.

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 TITLE XV

Transportation and Communications

CHAPTER 1

General Provisions

SECTION 1. Declaration of Policy. — The State is committed to the

maintenance and expansion of viable, efficient, fast, safe and dependable
transportation and communications systems as effective instruments for national
recovery and economic progress. It shall not compete as a matter of policy with
private enterprise and shall operate transportation and communications facilities only
in those areas where private initiatives are inadequate or non-existent.

SECTION 2. Mandate. — The Department of Transportation and

Communications shall be the primary policy, planning, programming, coordinating,
implementing, regulating and administrative entity of the Executive Branch of the
government in the promotion, development and regulation of dependable and
coordinated networks of transportation and communications systems as well as in the
fast, safe, efficient and reliable postal, transportation and communications services.

SECTION 3. Powers and Functions. — To accomplish its

mandate, the Department shall:

(1) Formulate and recommend national policies and guidelines for the
preparation and implementation of integrated and comprehensive
transportation and communications systems at the national,
regional and local levels;

(2) Establish and administer comprehensive and integrated programs

for transportation and communications, and for this purpose, it
may call on any agency, corporation or organization, whether
public or private, whose development programs include
transportation and communications as integral parts thereof, to
participate and assist in the preparation and implementation of
such programs;

(3) Assess, review and provide direction to transportation and

communications research and development programs of the

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 government in coordination with other institutions concerned;

(4) Administer and enforce all laws, rules and regulations in the field
of transportation and communications;

(5) Coordinate with the Department of Public Works and Highways in

the design, location, development, rehabilitation, improvement,
construction, maintenance and repair of all infrastructure projects
and facilities of the Department. However, government corporate
entities attached to the Department shall be authorized to undertake
specialized telecommunications, ports, airports and railways
projects and facilities as directed by the President of the
Philippines or as provided by law;

(6) Establish, operate and maintain a nationwide postal system that

shall include mail processing, delivery services and money order
services and promote the art of philately;

(7) Issue certificates of public convenience for the operation of public

land and rail transportation utilities and services;

(8) Accredit foreign aircraft manufacturers or international

organizations for aircraft certification in accordance with
established procedures and standards;

(9) Establish and prescribe rules and regulations for identification of

routes, zones or areas of operation of particular operators of public
land services;

(10) Establish and prescribe rules and regulations for the establishment,
operation and maintenance of such telecommunications facilities in
areas not adequately served by the private sector in order to render
such domestic and overseas services that are necessary with due
consideration for advances in technology;

(11) Establish and prescribe rules and regulations for the issuance of
certificates of public convenience for public land transportation
utilities, such as motor vehicles, trimobiles and railways;

(12) Establish and prescribe rules and regulations for the inspection and
registration of air and land transportation facilities, such as motor
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 vehicles, trimobiles, railways and aircraft;

(13) Establish and prescribe rules and regulations for the issuance of
licenses to qualified motor vehicle drivers, conductors and airmen;

(14) Establish and prescribe the corresponding rules and regulations for
enforcement of laws governing land transportation, air
transportation and postal services, including the penalties for
violations thereof, and for the deputation of appropriate law
enforcement agencies in pursuance thereof;

(15) Determine, fix or prescribe charges or rates pertinent to postal

services and to the operation of public air and land transportation
utility facilities and services, except such rates or charges as may
be prescribed by the Civil Aeronautics Board under its charter and,
in cases where charges or rates are established by international
bodies or associations of which the Philippines is a participating
member or by bodies or associations recognized by the Philippine
government as the proper arbiter of such charges or rates;

(16) Establish and prescribe the rules, regulations, procedures and

standards for the accreditation of driving schools;

(17) Administer and operate the Civil Aviation Training Center

(CATC) and the National Telecommunications Training Institute
(NTTI); and

(18) Perform such other powers and functions as may be provided by

law.

SECTION 4. Organizational Structure. — The Department shall consist

of the Department Proper, the Department Regional Offices, the Land Transportation
Franchising and Regulatory Board, and the Attached Agencies.

CHAPTER 2

Department Proper

SECTION 5. Office of the Secretary. — The Office of the Secretary shall

consist of the Secretary, his immediate staff, the Franchising Review Staff and the
Investigation, Security and Law Enforcement Staff.

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 The Franchising Review Staff shall be headed by a Review Staff Director with
the same rank, salary and privileges of a Department Regional Director who shall be
appointed by the President upon the recommendation of the Secretary. The
Franchising Review Staff shall assist the Secretary in the review of cases and matters
pertaining to, among others, grants of franchises and the regulation thereof.

The Investigation, Security and Law Enforcement Staff shall be headed by a

Staff Director with the same rank, salary and privileges of a Department Service
Chief. The Investigation, Security and Law Enforcement Staff shall be responsible
for: (a) providing security and intelligence for the Department; (b) coordinating
security and intelligence activities of security units of its offices and attached
agencies; and (c) undertaking law enforcement, functions and activities relating to
land transportation.

SECTION 6. Undersecretaries. — The Secretary shall be assisted by four

(4) Undersecretaries. Each Undersecretary shall have control and supervision over the
respective offices and services assigned to him by the Secretary.

SECTION 7. Assistant Secretaries. — The Secretary shall also be

assisted by eight (8) Assistant Secretaries each of whom shall be responsible for the
four (4) staff offices and four (4) line offices. Each Assistant Secretary shall report to
the respective Undersecretary to whom he is assigned by the President.

SECTION 8. Staff Offices. — The Department shall have the following

staff offices:

(1) The Office of the Assistant Secretary for Administrative and Legal
Affairs composed of the Administrative Service and the Legal
Service;

(2) The Office of the Assistant Secretary for Finance and

Comptrollership composed of the Finance and Management
Service and the Comptrollership Service;

(3) The Office of the Assistant Secretary for Planning and Project
Development composed of the Planning Service and the Project
Development Service; and

(4) The Office of the Assistant Secretary for Management Information

and Project Management composed of the Management

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 Information Service and the Project Management Service.

SECTION 9. Line Offices. — The Department shall have the following

line offices:

(1) The Office of the Assistant Secretary for Land Transportation;

(2) The Office of the Assistant Secretary for Postal Services;

(3) The Office of the Assistant Secretary for Telecommunications; and

(4) The Office of the Assistant Secretary for Air Transportation.

The line offices shall each have an Executive Director who shall assist the
respective Assistant Secretary in the implementation and enforcement of the policies,
programs and projects, and the pertinent laws on their respective areas of
responsibilities.

SECTION 10. Service Units in the Office of the Assistant Secretary for
Land Transportation. — There shall be two service units in the Office of the
Assistant Secretary for Land Transportation, namely:

(1) Law Enforcement Service, and

(2) Traffic Adjudication Service.

Each of the aforesaid service units shall be headed by a Service Chief to be

appointed by the President upon recommendation of the Secretary of Transportation
and Communication.

SECTION 11. Functions of the Law Enforcement Service. — The Law

Enforcement Service shall have the same functions and powers as those that the
former Law Enforcement Division in the Office of the Assistant Secretary for Land
Transportation exercised.

SECTION 12. Functions of the Traffic Adjudication Service. — The

Traffic Adjudication Service shall have the following powers and functions:

(1) To hear and decide cases involving violations of laws, rules and
regulations governing land transportation and to impose fines
and/or penalties therefor; provided that violations resulting in
damage to property and/or physical injuries or violations
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 constituting offenses punishable under the Revised Penal Code and
other penal laws shall be under the jurisdiction of the regular
courts;

(2) To order the impounding of motor vehicles and confiscation of

plates or the arrest of violators of laws, rules and regulations
governing land transportation;

(3) To issue subpoena and subpoena duces tecum and to summon

witnesses to appear in any proceedings thereof, and to administer
oaths and affirmations;

(4) To promulgate rules and regulations governing the proceedings

before it; provided that except with respect to paragraph C, the
rules of procedure and evidence prevailing in the courts of law
shall not be controlling and all reasonable means to ascertain the
facts in each case shall be used without regard to technicalities of
law and procedures but all in the interest of due process; and

(5) To perform such other functions and duties as may be provided by

law, or as may be necessary, or proper or incidental to its powers
and functions.

CHAPTER 3

Department Services

SECTION 13. Department Services. — The Department Services shall

include the following:

(1) Administrative Service;

(2) Legal Service;

(3) Finance and Management Service;

(4) Comptrollership Service;

(5) Planning Service;

(6) Project Development Service;

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 (7) Management Information Service; and

(8) Project Management Service.

Each of the above named services shall be headed by a Service Chief

appointed by the President upon the recommendation of the Secretary.

CHAPTER 4

Regional Offices

SECTION 14. Regional Offices. — The Department shall have three (3)
Regional Offices in each of the administrative regions of the country: the Regional
Office for Land Transportation, the Regional Office for Telecommunications and the
Regional Office for Postal Services. Each Regional Office shall be headed by a
Regional Director to be assisted by an Assistant Regional Director.

The Regional Offices shall essentially be line in character and shall be

responsible for the delivery of all front line services of the Department.

For such purposes, the Regional Offices shall have, within their respective
administrative regions, the following functions:

(1) Implement laws, policies, plans, programs, projects, rules and

regulations of the Department;

(2) Provide efficient and effective service to the people;

(3) Coordinate with regional offices of other departments, offices and

agencies;

(4) Coordinate with local government units; and

(5) Perform such other functions as may be provided by law.

The Office of the Secretary shall have direct line supervision and control over
Regional Offices.

CHAPTER 5

Regulatory Board

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 SECTION 15. Land Transportation Franchising and Regulatory Board.
— The quasi-judicial powers and functions with respect to land transportation
shall be exercised through the Land Transportation and Regulatory Board, hereinafter
referred to as the "Board".

SECTION 16. Composition of the Board. — The Board shall be composed

of a Chairman and two (2) members with the rank, salary and privileges of an
Assistant Secretary, all of whom shall be appointed by the President of the
Philippines upon recommendation of the Secretary of Transportation and
Communications. One (1) member of the Board shall be a member of the Bar and
shall have been engaged in the practice of law in the Philippines for at least five (5)
years, another a holder of a degree in civil engineering, and the other a holder of a
degree in economics, finance or management both with the same number of years of
experience and practice.

SECTION 17. Executive Director and Support Staff of the Board. — The
Board shall have an Executive Director who shall also be appointed by the President
of the Philippines upon the recommendation of the Secretary of Transportation and
Communications. He shall have the rank, salary and privileges of a Department
Service Chief. He shall assist the Board in the performance of its powers and
functions.

The Board shall be supported by the Technical Evaluation Division, Legal

Division, Management Information Division, Administrative Division and Finance
Division.

SECTION 18. Supervision and Control Over the Board. — The Secretary
of Transportation and Communications, through his duly designated Undersecretary,
shall exercise administrative supervision and control over the Land Transportation
Franchising and Regulatory Board.

SECTION 19. Powers and Functions of the Land Transportation

Franchising and Regulatory Board. — The Board shall:

(1) Prescribe and regulate routes, economically viable capacities, and

zones or areas of operation of public land transportation services
provided by motorized vehicles in accordance with the public land
transportation development plans and programs approved by the
Department of Transportation and Communications;

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 (2) Issue, amend, revise, suspend or cancel Certificates of Public
Convenience or permits authorizing the operation of public land
transportation services provided by motorized vehicles, and
prescribe the appropriate terms and conditions therefor;

(3) Determine, prescribe, approve and periodically review and adjust

reasonable fares, rates and other related charges, relative to the
operation of public land transportation services provided by
motorized vehicles;

(4) Issue preliminary or permanent injunction, whether prohibitory or

mandatory, in all cases in which it has jurisdiction and in which
cases the pertinent provisions of the Rules of Court shall apply;

(5) Punish for contempt of the Board, both direct and indirect, in
accordance with the pertinent provisions of, and the penalties
prescribed by, the Rules of Court;

(6) Issue subpoena and subpoena duces tecum and to summon

witnesses appear in any proceedings of the Board, to administer
oaths and affirmations, and, in appropriate cases, to order the
search and seizure of all vehicles and documents, upon probable
cause and as may be necessary for the proper disposition of the
cases before it;

(7) Conduct investigations and hearings of complaints for violation of

the public service laws on land transportation and of the Board's
rules and regulations, orders, decisions or rulings and to impose
fines or penalties for such violations;

(8) Review motu proprio the decisions/actions of the Regional

Franchising and Regulatory Offices;

(9) Promulgate rules and regulations governing proceedings before the

Board and the Regional Franchising and Regulatory Office.
However, except with respect to paragraphs 4, 5, 6 and 7 hereof,
the rules of procedure and evidence prevailing in the courts of law
should not be controlling but rather the spirit and intention of said
rules. The Board and the Regional Franchising and Regulatory
Offices shall use every and all reasonable means to ascertain facts

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 in each case speedily and objectively and without regard to
technicalities of law and procedures, all in the interest of due
process;

(10) Fix, impose and collect, and periodically review and adjust,
reasonable fees and other related charges for services rendered;

(11) Formulate, promulgate, administer, implement and enforce rules

and regulations on land transportation public utilities, standards of
measurements or design, and rules and regulations requiring
operators of any public land transportation service to equip, install
and provide in their utilities and in their stations such devices,
equipment, facilities and operating procedures and techniques as
may promote safety, protection, comfort and convenience to
persons and property in their charges as well as the safety of
persons and property within their areas of operation;

(12) Coordinate and cooperate with other government agencies and

entities concerned with any aspect involving public land
transportation services with the end in view of effecting continuing
improvement of such services; and

(13) Perform such other functions and duties as may be provided by

law, or as may be necessary, or proper or incidental to the purposes
and objectives of the Department;

SECTION 20. Decisions of the Board; Appeals therefrom or Review

Thereof . — The Board, in the exercise of its powers and functions, shall sit and
render its decision en banc. Every such decision, order, or resolution of the Board
must bear the concurrence and signature of at least two (2) members thereof.

The decision, order or resolution of the Board shall be appealable to the

Secretary within thirty (30) days from receipt of the decision. However, the Secretary
may motu proprio review any decision or action of the Board before the same
becomes final.

SECTION 21. Regional Franchising and Regulatory Offices. — There

shall be a Regional Franchising and Regulatory Office in each of the administrative
regions of the country which shall be headed by a Regional Director having the rank,
salary and privileges of a Department Assistant Regional Director. The Regional
Franchising and Regulatory Offices shall hear and decide uncontested
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 applications/petitions for routes, within their respective administrative regions but that
applications/petitions for routes extending beyond their respective territorial
jurisdiction shall be heard and decided by the Board.

SECTION 22. Appeals. — The decisions, orders or resolutions of the

Regional Franchising and Regulatory Offices shall be appealable to the Board within
thirty (30) days from receipt of the decision.

CHAPTER 6

Attached Agencies

SECTION 23. Attached Agencies and Corporations. — The

following agencies and corporations are attached to the Department: The Philippine
National Railways, the Maritime Industry Authority, the Philippine
National Lines, the Philippine Aerospace Development Corporation, the
Metro Manila Transit Corporation, the Office of Transport Cooperatives,
the Philippine Ports Authority, the Philippine Merchant Marine Academy,
the Toll Regulatory Board, the Light Rail Transit Authority, the
Transport Training Center, the Civil Aeronautics Board, the National
Telecommunications Commission and the Manila International Airport
Authority.

SECTION 24. Functions of Attached Agencies and Corporations. — The

Agencies attached to the Department shall continue to operate and function in
accordance with the respective charters or laws creating them, except when they
conflict with this Code.

TITLE XVI

Social Welfare and Development

CHAPTER 1

General Provisions

SECTION 1. Declaration of Policy. — The State is committed to the

care, protection, and rehabilitation of individuals, families and communities which
have the least in life and need social welfare assistance and social work intervention
to restore their normal functioning and enable them to participate in community
affairs.

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 SECTION 2. Mandate. — The Department shall provide a balanced
approach to welfare whereby the needs and interests of the population are addressed
not only at the outbreak of crisis but more importantly at the stage which would
inexorably lead to such crisis. Following such strategy, the Department's objectives
shall be to:

(1) Care for, protect and rehabilitate the physically and mentally
handicapped and socially disabled constituents, for effective social
functioning;

(2) Provide an integrated welfare package to its constituents on the

basis of their needs and coordinate the service facilities required
from such departments or agencies, governmental and
non-governmental, which can best provide them;

(3) Arrest the further deterioration of the socially disabling or

dehumanizing conditions of the disadvantaged segment of the
population at the community level; and

(4) Advocate for policies and measures addressing social welfare

concerns.

SECTION 3. Powers and Functions. — To accomplish its

mandate and objectives, the Department shall:

(1) Formulate, develop and implement plans, programs and projects in

the field of social welfare and development;

(2) Adopt policies to ensure effective implementation of programs for

public and private social welfare services;

(3) Promote, support and coordinate the establishment, expansion and

maintenance of non-governmental social welfare facilities, projects
and services;

(4) Establish, operate, maintain and otherwise support institutional

facilities, projects and services for its constituents;

(5) Promote, build and strengthen people's organizations for a

self-directing welfare system at the grassroots level;

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 (6) Promote, support and coordinate networks and facilities for the
identification and delivery of appropriate interventions to its
welfare constituents;

(7) Accredit institutions and organizations engaged in social welfare

activities and provide consultative and information services to
them;

(8) Undertake researches and studies on matters pertaining to its

constituency;

(9) Initiate, promote and maintain bilateral and multilateral linkages,

for technical cooperation, in coordination with the Department of
Foreign Affairs;

(10) Provide advisory services and develop and implement training

standards and programs for personnel, social workers and students
and third-country participants for career and staff development in
social welfare activities;

(11) Disseminate information and publish technical bulletins on social

welfare and development;

(12) Deputize law enforcement agencies to assist in the implementation

of laws, rules and regulations for the protection of the rights of the
exploited, abused and disadvantaged;

(13) Regulate fund drives, public solicitations and donations for

charitable or welfare purposes;

(14) Set standards, accredit and monitor performance of all social

welfare activities in both public and private sectors;

(15) Exercise functional and technical supervision over social workers

in other government settings or agencies like courts, hospitals,
schools and housing projects;

(16) Deputize local government units and other agencies of government

as are necessary in providing disaster relief;

(17) Coordinate all activities pertaining to the implementation of

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 programs and services for the disabled, the aging and other
socially disadvantaged; and

(18) Perform such other functions as may be provided by law.

SECTION 4. Organizational Structure. —The Department, aside from

the Department Proper comprising the Office of the Secretary, the Offices of the
Undersecretaries and Assistant Secretaries and the Services, shall consist of the
Bureaus, Regional Offices, Provincial/City Offices and Municipal/District Offices.

CHAPTER 2

Department Proper

SECTION 5. Office of the Secretary. — The Office of the Secretary shall

consist of the Secretary and the Secretary's immediate staff, and the Public Affairs
and Liaison Service.

SECTION 6. Undersecretaries. — The Secretary shall be assisted by two

(2) Undersecretaries, at least one of whom must belong to the career executive
service. One Undersecretary shall supervise internal operations while the other
Undersecretary shall handle the liaison between the Secretary and the attached
agencies of the Department.

SECTION 7. Assistant Secretaries. — The Secretary shall also be

assisted by three (3) career Assistant Secretaries who shall respectively perform the
following functions:

(1) Supervise the Personnel Development Service; Administrative

Service and Financial Service;

(2) Supervise the Bureau of Child and Youth Welfare; Bureau of

Women's Welfare; Bureau of Family Community Welfare; Bureau
of Emergency Assistance; and Bureau of Disabled Persons'
Welfare;

(3) Supervise the Planning and Monitoring Service and the Legal
Service, and assist the Undersecretary and the Secretary in matters
pertaining to regional or field operations.

CHAPTER 3

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 Department Services

SECTION 8. Services of the Department. —The Services listed in

Section 7(1) and (3) hereof and the Public Affairs and Liaison Service shall
respectively have the following functions:

(1) The Personnel Development Service shall provide the Department

with services relating to manpower, career planning and
development, personnel transactions, and employee welfare;

(2) The Financial Service shall provide the Department with services
relating to budget, collection, disbursement, and other financial
matters;

(3) The Administrative Service shall provide the Department with

services relating to records, correspondence, supplies, property and
equipment, security and general services;

(4) The Planning and Monitoring Service shall provide technical

services to the Department in the areas or overall policy
formulation, strategic and operational planning, management
systems or procedures, and the evaluation and monitoring of
Department programs, projects and internal operations;

(5) The Legal Service shall provide the Department with services on
legal matters, especially on proposed legislations;

(6) The Public Affairs and Liaison Service in the Office of the
Secretary shall provide public information services and
publications as well as coordinate and mobilize volunteers,
non-governmental organizations and cause-oriented groups in
partnership with the Department.

Each of the Services shall be headed by a Staff Director and may have
divisions whenever necessary for the performance of its functions.

CHAPTER 4

Bureaus and Offices

SECTION 9. Composition. — The Staff bureaus listed in Section 7(2)

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 hereof shall be essentially staff in character and as such shall exercise technical
supervision over the Regional Offices; shall be primarily involved in the development
of policies and programs within their respective functional specializations; and shall
formulate and develop related policies, guidelines and standards necessary in guiding
the Regional Offices in the proper implementation of such policies and programs.

SECTION 10. Functions. — Each of the staff bureaus shall:

(1) Formulate programs, policies, rules, regulations and standards

relative to the implementation of their respective functional
specialization;

(2) Initiate and administer pilot or special projects for demonstration

of the corresponding policies, programs, services, strategies,
methods, procedures and guidelines prior to nationwide
implementation;

(3) Audit, evaluate, and provide technical assistance and consultative

services to operating units and field offices and local government
welfare departments on program implementation;

(4) Develop standards and assess agencies for licensing and

accreditation;

(5) Review applications for regulatory purposes including tax

exemptions for foreign donations;

(6) Provide advisory services to non-governmental agencies

implementing programs and services for welfare and development;

(7) Formulate the substantive content of, and assist in the orientation
and training on, the bureaus' programs, services, strategies,
procedures, methods and guidelines;

(8) Develop indigenous literature and other media materials for

clients, volunteers and other audiences;

(9) Promote and develop a system of networking and coordination

with relevant welfare councils;

(10) Undertake studies and action researches on matters pertaining to

client welfare and development and propose relevant policies and
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 amendments for legislation;

(11) Maintain linkages relative to welfare programs or projects for

national, regional and interregional cooperation.

SECTION 11. Areas of Specialization. — The substantive/functional areas

of specialization of the staff bureaus shall be:

(1) Bureau of Emergency Assistance — relief and rehabilitation of

victims of natural calamities and social disorganization and of
cultural communities and other distressed and displaced persons;

(2) Bureau of Family and Community Welfare — assistance to socially

disadvantaged families and communities including family
planning, planning outreach programs to develop their capability
in defining needs and formulating solutions as well as setting up
viable community structures which bring about desired social
changes;

(3) Bureau of the Disabled Person's Welfare — disability prevention

and rehabilitation of the physically, mentally and socially disabled
persons;

(4) Bureau of Women's Welfare — promoting women's welfare, with

specific attention to the prevention or eradication of exploitation of
women in any form, such as but not limited to prostitution and
illegal recruitment; as well as the promotion of skills for
employment and self-actualization;

(5) Bureau of Child and Youth Welfare — care and protection of

abandoned, neglected, abused or exploited children and youth,
delinquents, offenders, the disturbed, street children, victims of
prostitution and others, for their social adjustment and economic
self-sufficiency.

CHAPTER 5

Regional Offices

SECTION 12. Regional Office. — The Department is hereby authorized to

establish, operate and maintain a Regional Office in each of the administrative

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 regions of the country.

SECTION 13. Functions. —A Regional Office shall:

(1) Provide within the region efficient and effective services to its
constituents; and for such purposes, establish, operate, promote
and support, at the minimum, the following welfare facilities:

(a) Vocational Rehabilitation and Special Education Center for

the Handicapped;

(b) Reception and Study Center;

(c) Rehabilitation Center for Youth Offenders;

(d) Day Care Centers;

(2) Ensure the implementation of laws, policies, programs, rules, and

regulations regarding social welfare and development within the
region;

(3) Secure effective coordination with other departments, agencies,

institutions and organizations, especially local government units
within the region;

(4) Conduct continuing studies and planning, to improve its services to

its constituents.

SECTION 14. Welfare Facilities. — The Regional Offices are hereby

authorized to establish, operate, and maintain the following, insofar as necessary and
authorized by the Secretary:

(1) Other Vocational Rehabilitation and Special Education Centers for

the Handicapped;

(2) "Street Children" Centers;

(3) Centers for Youth with Special Needs;

(4) Other Centers for Youth Offenders;

(5) Homes for the Aged;

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 (6) Homes for Unwed Mothers;

(7) Drug Abuse Centers;

(8) Other Reception and Study Centers; and

(9) Such other facilities as may be necessary to assist the socially

disadvantaged.

SECTION 15. Regional Director. — The Regional Office shall be headed

by a Regional Director who shall be responsible for efficiently and effectively
carrying out its functions. Toward this end, and in line with the policy of
decentralization, the Regional Director shall be vested with the authority to exercise
functional and administrative supervision over Department provincial operations as
delegated by the Secretary including the authority to contribute resources and
personnel to integrated region and province-wide development thrusts.

The Regional Director shall be assisted by two (2) Assistant Regional

Directors, one for programs and one for administration.

CHAPTER 6

Provincial/City Offices

SECTION 16. Provincial/City Office. — The Department is hereby

authorized to establish, operate and maintain Provincial/City Offices throughout the
country with jurisdiction over all municipalities/districts within the province. The
Provincial/City Offices shall have the following functions:

(1) Formulate and coordinate the implementation of operational,

field-level plans/programs of the Department;

(2) Provide specialized services and comprehensive assistance to other

department/agency units whenever necessary;

(3) Secure all pertinent feedback and information from field units as
well as appropriate department/agency units, particularly local
government units, and communicate the same regularly to the
Regional Office;

(4) Establish and maintain a vocational rehabilitation and special

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 education program for the handicapped in the form and magnitude
appropriate for the needs of the province.

SECTION 17. Provincial/City Welfare Office. — The Provincial/City

Office shall be headed by a Provincial/City Social Welfare Officer who shall be
accountable for the efficient and effective performance of its functions and
implementation of programs of the Department, within the province. The
Provincial/City Social Welfare officer shall exercise functional administrative
supervision over field operations of the Department, including the authority to
recommend that field resources and personnel be contributed to integrated,
municipality-wide development efforts.

CHAPTER 7

Municipal/District Offices

SECTION 18. Municipal/District Office. — The Department is hereby

authorized to establish, operate and maintain a Municipal/District Office to service a
municipality or city district which shall be headed by the Supervising Social Welfare
Officer and shall be primarily responsible for the efficient and effective
implementation of the Department's field programs in the municipality or city, under
the supervision of the Provincial/City Office.

CHAPTER 8

Attached Agencies

SECTION 19. Agencies Under Administrative Supervision and Attached

Agencies. — The Population Commission, Council for the Welfare of
Children, National Nutrition Council and the National Council for the
Welfare of Disabled Persons and the agencies attached to the Department shall
continue to operate and function in accordance with their respective charters or laws
creating them, except as otherwise provided in this Code.

CHAPTER 9

Fund Drives

SECTION 20. Solicitation. — Any person, corporation, organization, or

association desiring to solicit or receive contributions for charitable or public welfare
purposes shall first secure a permit from the Regional Offices of the Department.

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 Upon the filing of a written application for a permit in the form prescribed by the
Regional Offices of the Department, the Regional Director or his duly authorized
representative may, in his discretion, issue a permanent or temporary permit or
disapprove the application. In the interest of the public, he may in his discretion
renew or revoke any permit issued under Act 4075.

SECTION 21. Requirements. — The Regional Director of the Department

may require the person, corporation, organization or association duly authorized to
solicit contributions for the above mentioned purposes to submit from time to time a
verified report or information regarding their activities, the period covered by the
report, the collection and expenditures made and the names and addresses of the
contributors and persons to whom assistance was rendered from the funds obtained.
This report or information shall be open for inspection of the general public. The
Regional Director or his duly authorized representative may, for the protection of the
public, likewise investigate the books, papers, affairs and activities related to the
aforestated purposes of any such person, corporation, organization, or association:
Provided, however, That the provisions of the preceding Section shall not apply to
any organization or institution established for charitable or public welfare purposes in
its campaign for raising funds or soliciting public subscriptions or any means for
collecting funds which has been authorized by Executive Proclamation.

SECTION 22. Fees. — Upon approval of the application for a solicitation

permit, a fee of Twenty-Five Pesos (P25.00) shall be paid to the cashier of the
Department. The money collected as fee for the issuance of solicitation permits shall
accrue to the Department as aid for the maintenance of its institutions and social
services for its clientele.

CHAPTER 10

Social Welfare Agencies and Services

SECTION 23. Social Welfare Services by Others. — Social welfare

services by the Department shall be without prejudice to similar efforts by any local
government unit or private agency, institution or group. All Department units shall
actively promote and extend maximum assistance, including the provision of
counterpart or supplementary funds and resources, upon approval by the Secretary, to
such efforts.

SECTION 24. Social Work Agency. — (1) No social work agency shall
operate and be accredited as such unless it is registered with the Department which

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 shall issue the corresponding certificate of registration.

(2) Before any social work agency shall be duly registered, the following
requirements must have been complied with:

(a) The applicant must be engaged mainly or generally in social work

activity or social services;

(b) The applicant has employed a sufficient number of duly qualified

and registered social worker to supervise and take charge of its
social service functions in accordance with accepted social work
standards;

(c) The applicant must show, in a duly certified financial statement

that at least sixty (60) percent of its funds are disbursed for direct
social work services; and

(d) The applicant keeps a social work record of all cases and welfare
activities handled by it.

(3) A certificate of registration may be revoked if after due investigation, the

Department finds that the social work agency has failed to perform its function or has
violated existing laws, rules and regulations.

SECTION 25. Child Welfare Agency. — (1) No person, natural or

juridical, shall establish any child welfare agency without first securing a license from
the Department. Such license shall not be transferable and shall be used only by the
person or institution to which it was issued at the place stated therein. No license shall
be granted unless the purpose or function of the agency is clearly defined and stated
in writing. Such definition shall include the geographical area to be served, the
children to be accepted for care, and the services to be provided.

If the applicant is a juridical person, it must be registered in accordance with

Philippine laws.

(2) The work of all registered and licensed child welfare agencies shall be
supervised and coordinated by the Department.

(3) The Department may, after notice and hearing, suspend or revoke the
license of a child welfare agency on any of the following grounds:

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 (a) That the agency is being used for immoral purposes;

(b) That said agency is insolvent or is not in a financial position to

support and maintain the children therein or to perform the
functions for which it was granted;

(c) That the children therein are being neglected or are

undernourished;

(d) That the place is so unsanitary as to make it unfit for children;

(e) That said agency is located in a place or community where

children should not be, or is physically dangerous to children or
would unduly expose children to crime, vice, immorality,
corruption or severe cruelty; or

(f) That said agency has by any act or omission shown its
incompetence or unworthiness to continue acting as a child welfare
agency. During the period of suspension, the agency concerned
shall not accept or admit any additional children. In any case, the
Department shall make such order as to the custody of the children
under the care of such agency as the circumstances may warrant.
The suspension may last for as long as the agency has not
complied with any order of the Department to remove or remedy
the conditions which have given rise to the suspension. The
aggrieved agency may appeal the suspension or revocation in a
proper court action. In such a case, the court shall within fifteen
(15) days from the filing of the Department's answer, conduct a
hearing and decide the case, either by lifting the suspension, or
continuing it for such period of time as it may order, or by
revoking the license of the agency where the Department has
proven the revocation to be justified.

SECTION 26. Foster Homes. — No foster home, day care center and other
substitute parental arrangement shall operate unless it is first registered with and
licensed by the Department.

TITLE XVII

Budget and Management

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 CHAPTER 1

General Provisions

SECTION 1. Declaration of Policy. — The national budget shall be

formulated and implemented as an instrument of national development, reflective of
national objectives and plans; supportive of and consistent with the socio-economic
development plans and oriented towards the achievement of explicit objectives and
expected results, to ensure that the utilization of funds and operations of government
entities are conducted effectively; formulated within the context of a regionalized
governmental structure and within the totality of revenues and other receipts,
expenditures and borrowings of all levels of government and of government-owned
or controlled corporations; and prepared within the context of the national long-term
plans and budget programs of the Government.

SECTION 2. Mandate. — The Department shall be responsible for the

formulation and implementation of the National Budget with the goal of attaining our
national socio-economic plans and objectives.

The Department shall be responsible for the efficient and sound utilization of
government funds and revenues to effectively achieve our country's development
objectives.

SECTION 3. Powers and Functions. — The Department of Budget

and Management shall assist the President in the preparation of a national resources
and expenditures budget, preparation, execution and control of the National Budget,
preparation and maintenance of accounting systems essential to the budgetary
process, achievement of more economy and efficiency in the management of
government operations, administration of compensation and position classification
systems, assessment of organizational effectiveness and review and evaluation of
legislative proposals having budgetary or organizational implications.

CHAPTER 2

Department Proper

SECTION 4. Office of the Secretary. — The Office of the Secretary shall

consist of his immediate staff, the Budget Control Staff, Research Staff, a Regional
Coordination Staff for Luzon, and a Regional Coordination Staff for Visayas and
Mindanao.

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 SECTION 5. Undersecretaries. — The Secretary shall be assisted by five
(5) Undersecretaries, who shall all be appointed by the President upon the
recommendation of the Secretary. They shall exercise supervision over the offices,
services, operating units and individuals under their authority and responsibility.

SECTION 6. Assistant Secretaries. — There shall be five (5) Assistant

Secretaries, each of whom shall assist the Secretary and the Undersecretaries in the
formulation, determination and implementation of laws, policies, plans, programs and
projects on budget and management and shall oversee the day-to-day administration
of the constituent units of the Department.

CHAPTER 3

Department Services

SECTION 7. Management Services Office. — The Management Services

Office shall consist of the following bureaus:

(1) The Systems and Procedures Bureau which shall review and
design the management reporting systems, review and evaluate the
applicability and economics of computerization,
purchasing/inventory systems, formulate measures on internal
controls to ensure accuracy, integrity and reliability of records
systems, and develop a system of controls for capital operational
and cash budgeting;

(2) The Organization and Productivity Improvement Bureau which

shall develop performance standards as bases for agency budgeting
and performance evaluation, conduct studies on work
simplification and methods improvement, review the equipment
procurement programs of agencies, and prepare operations
manuals and conduct continuing studies on organizational changes
of government agencies;

(3) The Compensation and Position Classification Bureau which shall

classify positions and determine appropriate salaries for specific
position classes and review the compensation benefits programs of
agencies and shall design job evaluation programs.

SECTION 8. The Legislative, Administrative and Procurement Services

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 Office. — The Legislative, Administrative, Procurement and Services Office shall
consist of:

(1) The Legislative Services which shall provide legal advice and
service to the Department Officers and employees, review
legislative proposals and provide clarificatory opinions on budget
laws.

(2) The Administrative Services which shall provide the services

relative to personnel, records management, allocation of property
and supplies, and shall perform security and custodial functions.

(3) The Procurement Services which shall implement an integrated

programs for the procurement of supplies and materials for the
Department.

SECTION 9. The Financial and Computer Services. — The Financial

and Computer Services shall consist of:

(1) The Financial Services which shall provide services relative to

cash management, budgetary and financial matters.

(2) The Data Processing Service which shall provide computer

services, prepare and generate management reports, maintain and
operate computer-based information monitoring systems.

CHAPTER 4

Bureaus

SECTION 10. The Budget Operations Office. — The Budget Operations

Office shall review and analyze the work and financial flows, the budgetary proposals
of national and local government agencies and corporations, check each agency's
compliance with the budgetary policies and project priorities, determine the budgetary
implications of foreign assisted projects from the time of project design to the
negotiation for financial assistance, prepare recommendations for fund releases,
formulate and implement fiscal policies and plans for budget preparation and control,
and conduct studies on economic trends and factors affecting government revenues,
expenditures and borrowings. It shall consist of the following Bureaus:

(1) National Government Budget Bureaus A and B which shall

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 evaluate and review the budgetary proposals, work and financial
flows of the national government and ensure its compliance with
budgetary policies and project priorities of the bureaus assigned to
each group.

(2) Local Government Budget Bureau which shall recommend and

effect the release of National Assistance for Local Government
(NALGU) funds and those for autonomous regions based on
approved work and financial plans as limited by the Secretary.

(3) Government Corporation Budget Bureau which shall evaluate and

analyze the budgetary proposals, plans and financial flows of
government corporations and agencies and ensure its compliance
with budgetary policies and project priorities;

(4) Budget Planning Bureau which shall assist the Secretary in the
preparation and management of fiscal policies and plans for budget
coordination, conduct studies on economic trends and factors
affecting government revenues, expenditures and borrowings, and
shall collaborate with the Office of the President, Department of
Finance, Central Bank, National Economic and Development
Authority, and other agencies in the formulation of financial plans.

(5) Foreign Assisted Projects Bureau which shall review and evaluate
foreign assisted projects to determine the annual funding
requirements of certain projects identified by implementing
agencies and supported by foreign funding; assist the Secretary in
determining the budgetary implications of foreign assisted projects
from the time of project design to negotiations for financial
assistance; ensure the concurrence of the Secretary of Budget on
all loan agreements; evaluate the work-financial plan of projects
chargeable against the Foreign Assistance Projects (FAPS) support
fund; and recommend and effect the releases from such fund based
on the approved work financial plans as may be directed by the
Secretary.

SECTION 11. National Accounting and Finance Office. — The National

Accounting and Finance Office shall take charge of the maintenance of the data bank
of financial information and shall provide the necessary data required by the
President, fiscal agencies and international financial institutions, analyze and evaluate
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 the accounts and overall financial performance of the government, and supervise the
management of the accounts of government agencies and instrumentalities. It shall
consist of the following Bureaus:

(1) National Government Account and Finance Bureau;

(2) Local Government Accounting and Finance Bureau; and

(3) Government Corporate Accounting and Finance Bureau.

SECTION 12. Regional Offices. — The Regional Offices shall implement

the policies, programs, standards and guidelines on budget administration and
management in the regions.

TITLE XVIII

Science and Technology

CHAPTER 1

General Provisions

SECTION 1. Declaration of Policy. — The State shall:

(1) Support and encourage local scientific and technological efforts

that address national and local problems and positively contribute
to national development;

(2) Promote the development of local capability in science and

technology to achieve technological self-reliance in selected areas
that are vital to national development;

(3) Support and encourage public and private sector partnership aimed
at accelerating self-reliance in the selected areas; and

(4) Encourage and support private sector initiatives in science and

technology and provide the necessary incentives and assistance to
enable the private sector to take increasing responsibility and a
greater role in the country's research and development efforts.

SECTION 2. Mandate. — The Department shall provide central

direction, leadership and coordination of scientific and technological efforts and

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 ensure that the results therefrom are geared and utilized in areas of maximum
economic and social benefits for the people.

The Department shall formulate and implement policies, plans, programs and
projects for the development of science and technology and for the promotion of
scientific and technological activities for both the public and private sectors and
ensure that the results of scientific and technological activities are properly applied
and utilized to accelerate economic and social development.

The Department shall continually review the state and needs of science and
technology in the context of the country's developmental goals.

SECTION 3. Powers and Functions. — To accomplish its

mandate, the Department shall:

(1) Formulate and adopt a comprehensive National Science and

Technology Plan including specific goals, policies, plans,
programs and projects based on the recommendation of the
Inter-Council Review Board and, upon approval by the President,
monitor and coordinate its funding and implementation by all
government agencies and instrumentalities;

(2) Promote, assist and where appropriate, undertake scientific and

technological research and development in those areas which are
determined to be vital to the country's development and offer
optimum returns for the resources employed;

(3) Promote the development of indigenous technology and adaptation

and innovation of suitable imported technology, and in this regard,
undertake technology development up to the commercial state,
preferably in joint venture with the private sector or with public
agencies;

(4) Undertake design and engineering work to complement its

research and development functions;

(5) Promote, assist and where appropriate undertake the transfer of the
results of scientific and technological research and development, to
their end-users;

(6) Promote, assist and where appropriate undertake technological

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 services needed by agriculture, industry, transport, and the general
public;

(7) Develop and maintain an information system and databank on

science and technology for use by both the public and private
sectors;

(8) Develop and implement, together with other entities concerned,

programs for strengthening scientific and technological capabilities
in the relevant disciplines through manpower training, and through
infrastructure and institution building and rationalization, in both
the public and private sectors;

(9) Promote public consciousness of science and technology;

(10) Undertake policy research, technology assessment studies,

feasibility studies and technical studies; and

(11) Perform such other functions as may be provided by law.

SECTION 4. Structural Organization. — The Department shall consist of

the Office of the Secretary, Undersecretaries and Assistant Secretaries, the Services,
Inter-Council Review Board, Sectoral Planning, Councils, Institutes and Regional
Offices. The Secretary shall have supervision and control of the Department except
the Inter-Council Review Board and the Sectoral Planning Councils over which he
shall only exercise administrative supervision.

CHAPTER 2

Department Proper

SECTION 5. Office of the Secretary. — The Office of the Secretary shall

consist of the Secretary and his immediate staff.

SECTION 6. Undersecretaries. — The Secretary shall be assisted by

three (3) Undersecretaries, one for research and development, one for regional
operations and one for scientific and technical services. The Undersecretaries shall
have supervision over the Institutes under their respective functional areas of
responsibility.

SECTION 7. Assistant Secretaries. — The Secretary shall also be

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 assisted by three (3) Assistant Secretaries.

CHAPTER 3

Services

SECTION 8. Services. — The Services of the Department shall consist of

the following:

(1) Planning and Evaluation Service, which shall be responsible for

providing the Department with efficient and effective services
relating to planning, programs and project monitoring and
development;

(2) Financial and Management Service, which shall be responsible for

providing the Department with efficient and effective staff advice
and assistance on budgetary, financial, and management
improvement matters;

(3) Administrative and Legal Service, which shall be responsible for

providing the Department with efficient and effective services
relating to personnel, information, records, supplies, equipment
collection, disbursement, security and custodial work, and all legal
matters.

CHAPTER 4

Board, Councils and Institutes

SECTION 9. Inter-Council Review Board. — There shall be an

Inter-Council Review Board, composed of the Secretaries or their designated
Undersecretaries who are members of the sectoral planning councils under Sections
10, 11, 12, 13, 14, and 15, and shall be chaired by the Secretary of Science and
Technology.

The main function of the Board shall be to review the plans of the sectoral
planning councils and the National Science and Technology Plan and, in connection
therewith, shall be assisted by the Planning and Evaluation Service.

SECTION 10. Sectoral Planning Councils. — There shall be five (5)

sectoral planning councils as follows:

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 (1) Philippine Council for Industry and Energy Research and
Development, for industry and energy and mineral resources;

(2) Philippine Council for Health Research and Development for

health;

(3) Philippine Council for Agriculture, Forestry and Natural Resources

Research and Development, for agriculture and forestry resources;

(4) Philippine Council for Aquatic and Marine Research and

Development, for aquatic and marine resources; and

(5) Philippine Council for Advanced Science and Technology

Research and Development, for advanced science and technology.

Each of the councils shall be responsible, in its respective sector, for the
formulation of strategies, policies, plans, programs and projects for science and
technology development; for programming and allocation of government and external
funds for research and development; for monitoring of research and development
projects; and for the generation of external funds.

Each council shall have a secretariat which shall be headed by an Executive

Director who shall be appointed by the President upon the recommendation of the
Secretary.

SECTION 11. Philippine Council for Industry and Energy Research and
Development. — The Philippine Council for Industry and Energy Research and
Development shall be under the administrative supervision of the Department, and
shall consist of the Secretary as Chairman and eight (8) members, as follows:
Secretary of Trade and Industry, Secretary of Transportation and Communications,
Secretary of Public Works and Highways or their designated Undersecretaries, and
Executive Director of the Council Secretariat, and four (4) representatives of the
private sector in the field of industry and energy, who are chief executive officers of
their respective companies in the field of industry or energy or are acknowledged
leaders in their professions to be appointed by the President, in their personal
capacity, upon recommendation of the Secretary, each of whom shall be for a term of
two (2) years; Provided, however, That the tenure of the members first appointed by
the President shall be as follows: two (2) for one (1) year and two (2) for two (2)
years, as fixed in their respective appointments. The members shall serve and
continue to hold office until their respective successors shall have been duly

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 appointed and qualified. Appointment to any vacancy in the Council shall be by the
President and shall only be for the unexpired portion of the term of the predecessor.

SECTION 12. Philippine Council for Agriculture and Forestry Research

and Development. — The Philippine Council for Agriculture and Forestry Research
and Development shall be under the administrative supervision of the Department,
and shall consist of the Secretary as Chairman and eight (8) members, as follows:
Secretary of Agriculture and Food, Secretary of Natural Resources or their designated
Undersecretaries, Chancellor of the University of the Philippines at Los Baños,
Administrator of the National Food Authority and Executive Director of the Council
Secretariat and three (3) representatives of the private sector in the fields of
agriculture or forestry, who are chief executive officers of their respective companies
in the field of agriculture or forestry or are acknowledged leaders in their professions
to be appointed by the President, in their personal capacity, upon recommendation of
the Secretary, each of whom shall be for a term of two (2) years; Provided, however,
That the tenure of the members first appointed by the President shall be as follows:
one (1) for one (1) year and two (2) for two (2) years, as fixed in their respective
appointments. The members shall serve and continue to hold office until their
successors shall have been duly appointed and qualified. Appointment to any vacancy
in the Council shall be by the President and shall only be for the unexpired portion of
the term of the predecessor.

SECTION 13. Philippine Council for Health Research and Development.

— The Philippine Council for Health Research and Development shall be under the
administrative supervision of the Department, and shall consist of the Secretary as
Chairman and eight (8) members, as follows: Secretary of Health or his designated
Undersecretary, Chancellor of the University of the Philippines of Manila, Executive
Director of the National Nutrition Council, Executive Director of the Council
Secretariat and four (4) representatives of the private sector in the field of health, who
are chief executive officers of their respective companies in the field of health or are
acknowledged leaders in their professions to be appointed by the President, in their
personal capacity, upon recommendation of the Secretary, each of whom shall be for
a term of two (2) years; Provided, however, that the tenure of the members first
appointed by the President shall be as follows: two (2) for one (1) year and two (2) for
two (2) years, as fixed in their respective appointments. The members shall serve and
continue to hold office until their successors shall have been duly appointed and
qualified. Appointment to any vacancy in the Council shall be by the President and
shall only be for the unexpired portion of the term of the predecessor.

SECTION 14. Philippine Council for Aquatic and Marine Research and
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 Development. — The Philippine Council for Aquatic and Marine Research and
Development shall be under the administrative supervision of the Department, and
shall consist of the Secretary as Chairman, and eight (8) members as follows:
Secretary of Agriculture and Food, Secretary of Natural Resources or their designated
Undersecretaries, Executive Director of the Council Secretariat, two (2)
representatives from the academic/research institution and three (3) representatives
from the private sector who are chief executive officers of their respective companies
in the field of aquaculture or marine research or development or are acknowledged
leaders of their professions to be appointed by the President, in their personal
capacity, upon recommendation of the Secretary, each of whom shall be for a term of
two (2) years; Provided, however, that the terms of the members first appointed by the
President shall be as follows: two (2) for one (1) year and the other three (3) for two
(2) years, as fixed in their respective appointments. The members shall serve and
continue to hold office until their successors shall have been duly appointed and
qualified. Appointment to any vacancy in the Council shall be by the President and
shall only be for the unexpired portion of the term of the predecessor.

SECTION 15. Philippine Council for Advanced Science and Technology

Research and Development. — The Philippine Council for Advanced Science and
Technology Research and Development shall be under the Administrative supervision
of the Department and shall consist of the Secretary as Chairman and eight (8)
members, as follows: Secretary of Education, Culture and Sports or his designated
Undersecretary, President of the University of the Philippines System, two (2)
representatives from the government sector, and four (4) representatives from the
private sector in the field of advanced science research, all of whom shall be
appointed by the President, in their personal capacity, upon recommendation of the
Secretary, each of whom shall serve for a term of two (2) years.

SECTION 16. Institutes. — The Institutes of the Department are the

following, which shall be line in character: Industrial Technology Development
Institute; Philippine Nuclear Research Institute; Food and Nutrition Research
Institute; Forest Products Research and Development Institute; Philippine Textile
Research Institute; Advanced Science and Technology Institute; Science Education
Institute; Science and Technology Information Institute; and Technology Application
Promotion Institute; Philippine Atmospheric, Geophysical and Astronomical Services
Administration, and Philippine Institute of Volcanology and Seismology. Each
Institute shall be headed by a Director, who shall be appointed by the President upon
the recommendation of the Secretary and shall be assisted by one or more Deputy
Directors as may be necessary.

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 SECTION 17. Industrial Technology Development Institute. — The
Industrial Technology Development Institute shall have the following functions:

(1) Undertake applied research and development to develop

technologies and technological innovations in the field of
industrial manufacturing, mineral processing and energy;

(2) Undertake the transfer of research results directly to end-users or

preferably via linkage units of their government agencies;

(3) Undertake technical services, such as but not limited to, standards,
analytical and calibration services mandated by law or as needed
by industry; and

(4) Conduct training and provide technical advisory and consultancy

services to industry clientele and end-users.

SECTION 18. Philippine Nuclear Research Institute. — The Philippine

Nuclear Research Institute shall have the following functions:

(1) Conduct research and development on the application of radiation

and nuclear materials, processes and techniques in agriculture,
food, health, nutrition and medicine and in industrial or
commercial enterprises;

(2) Undertake the transfer of research results to end-users, including

technical extension and training services;

(3) Operate and maintain nuclear research reactors and other radiation
facilities; and

(4) License and regulate activities relative to production, transfer, and

utilization of nuclear and radioactive substances.

SECTION 19. Food Nutrition Research Institute. — The Food Nutrition

Research Institute shall have the following functions:

(1) Undertake research that defines the citizenry's nutritional status,

with reference particularly to the malnutrition problem, its causes
and effects, and identify alternative solutions to them;

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 (2) Develop and recommend policy options, strategies, programs and
projects, which address the malnutrition problem for
implementation by the appropriate agencies; and

(3) Disseminate research findings and recommendations to the

relevant end-users.

SECTION 20. Forest Products Research and Development Institute.

— The Forest Products Research and Development Institute shall have the following
functions:

(1) Conduct applied research and development in secondary and

tertiary processing for the forest-based industry to generate
information and technology which can improve the utility value of
wood and other forest products;

(2) Undertake the transfer of completed researches directly to the

end-users or via linkage units of other government agencies;

(3) Undertake technical services and provide training programs.

SECTION 21. Philippine Textile Research Institute. — The Philippine

Textile Research Institute shall have the following functions:

(1) Conduct applied research and development for the textile industry
sector;

(2) Undertake the transfer of completed researches to end-users or via

linkage units of other government agencies; and

(3) Undertake technical services and provide training programs.

SECTION 22. Advanced Science and Technology Institute. — The

Advanced Science and Technology Institute shall have the following functions:

(1) Undertake long-term researches to strengthen and modernize

science and technology infrastructure;

(2) Conduct research and development work in the advanced fields of

studies including biotechnology and microelectronics; and

(3) Complement the overall endeavor in the scientific field with

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 intensive activities in the computer and information technologies.

SECTION 23. Science Education Institute. — The Science Education

Institute shall have the following functions:

(1) Undertake science education and training;

(2) Administer scholarships, awards and grants;

(3) Undertake science and technology manpower development; and

(4) Formulate plans and establish programs and projects for the
promotion and development of science and technology education
and training in coordination with the Department of Education,
Culture and Sports, and other institutions of learning in the field of
science and technology.

SECTION 24. Science and Technology Information Institute. — The

Science and Technology Information Institute shall have the following functions:

(1) Establish a science and technology databank and library;

(2) Disseminate science and technology information; and

(3) Undertake training on science and technology information.

SECTION 25. Technology Application and Promotion Institute. — The

Technology Application and Promotion Institute (TAPI) whose primary responsibility
is to serve as the implementing arm of the Department in promoting the
commercialization of technologies and in marketing the services of the other
operating units in the Department shall have the following functions:

(1) Undertake contract research, particularly at the pilot plant and

semi-commercial stage;

(2) Provide technical consultancy including engineering design

services, patenting and licensing services; and

(3) Provide grants and/or venture-financing for new and/or emerging

projects.

SECTION 26. Philippine Atmospheric, Geophysical and Astronomical

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 Services Administration. — The Philippine Atmospheric, Geophysical and
Astronomical Services Administration shall have the following functions:

(1) Maintain a nationwide network pertaining to observation and

forecasting of weather and other climatological conditions
affecting national safety, welfare and economy;

(2) Undertake activities relative to observation, collection, assessment

and processing of atmospheric and allied data for the benefit of
agriculture, commerce and industry;

(3) Engage in studies of geophysical and astronomical phenomena

essential to the safety and welfare of the people;

(4) Undertake researches on the structure, development and motion of

typhoons and formulate measures for their moderation; and

(5) Maintain effective linkages with scientific organizations here and

abroad, and promote exchange of scientific information and
cooperation among personnel engaged in atmospheric, geophysical
and astronomical studies.

SECTION 27. Philippine Institute of Volcanology and Seismology. — The

Philippine Institute of Volcanology and Seismology shall have the following
functions:

(1) Predict the occurrence of volcanic eruptions and earthquakes and

their geotectonic phenomena;

(2) Determine how eruptions and earthquakes shall occur and the
likely areas to be affected;

(3) Exploit the positive aspects of volcanoes and volcanic terrain in

furtherance of the socio-economic development efforts of the
government;

(4) Generate sufficient data for forecasting volcanic eruptions and

earthquakes;

(5) Formulate appropriate disaster-preparedness plans; and

(6) Mitigate hazards of volcanic activities through appropriate

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 detection, forecast, and warning systems.

CHAPTER 5

Regional Offices

SECTION 28. Regional Offices. — The Department is authorized to

establish, operate and maintain a Regional Office, whenever appropriate, in each of
the administrative regions of the country, to be headed by a Regional Director who
shall report and be subject to the supervision of, the Undersecretary for Regional
Operations. A Regional Office shall have, within its administrative region, the
following functions:

(1) Implement laws, rules, regulations, policies, plans, programs and

projects of the Department;

(2) Provide efficient and effective service to the people;

(3) Coordinate with regional offices of other departments, offices and

agencies in the administrative region;

(4) Coordinate with local government units; and

(5) Perform such other functions as may be provided by law.

SECTION 29. Department Offices in Other Countries. — The Department

may also have such offices and representatives in other countries in places where its
presence is considered necessary, subject to the approval of the President for each of
them.

CHAPTER 6

Attached Agencies

SECTION 30. Attached Agencies. — The following agencies shall be

attached to the Department: the Philippine National Science Society, the
National Academy of Science and Technology, the Philippine Science High School,
and the Metals Industry Research and Development Center.

SECTION 31. The Philippine National Science Society. — The

Philippine National Science Society shall be a corporate body composed of prominent
scientists and technical men and shall have the following functions:
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 (1) To stimulate research in the mathematical, physical, biological and
other basic sciences and in the application of these sciences to
engineering, agricultural, medicine, and other useful arts, with the
object of increasing knowledge and of contributing in other ways
to the public welfare;

(2) To give encouragement to individual initiative in research as

fundamentally important to the advancement of science; and

(3) To gather and collate scientific and technical information at home

and abroad, in cooperation with governmental and other agencies
and to render such information available to duly accredited
persons.

SECTION 32. Powers of the Philippine National Science Society. — The

Philippine National Science Society shall have the power to:

(1) Make its own organization, including its Constitution, by-laws and
rules and regulations;

(2) Fill all vacancies created by death, resignation or otherwise;

(3) Provide for the election of members, division into classes, and for
all other matters needful or usual in such institutions;

(4) Receive bequests and donations and hold the same in trust, to be
applied in aid of scientific investigations according to the will of
the donors;

(5) Be exempt from the payment of all internal-revenue taxes, fees,

assessments and other charges of the Government in carrying out
its aims, functions, and powers;

(6) Submit an annual report to the Congress and to the President of the
Philippines an accurate account of its works and activities during
the corresponding fiscal year; and

(7) Perform such powers as may be provided by law or necessary to

carry out its purposes and functions.

SECTION 33. The National Academy of Science and Technology. — The

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 National Academy of Science and Technology shall be composed of outstanding
scientists to serve as reservoir of competent and technological manpower for the
country. The total membership of the Academy shall not exceed fifty (50) at any one
time; however, this number may be increased by a two-thirds vote of all the members
and approval thereof by the President.

The Academy shall have its own Secretariat/Administrative staff and shall
have the following functions and powers:

(1) Provide its members the following benefits and privileges:

(a) free publications of scientific and technological works;

(b) travel support for attendance and participation in

international conference; and

(c) such other incentives, financial or otherwise designed to

promote a scientific and technological effort and
achievement.

(2) Recommend annually for Presidential awards not more than ten
(10) scientists for distinguished individual or collaborative
achievement in science or technology who shall be accorded by the
President the rank and title of "National Scientists." Said "National
Scientists" shall each be given gratuity in such amount to be fixed
by the Academy and entitled to other privileges as enjoyed by the
National Artists.

(3) Engage in other projects and programs designed to recognize

outstanding achievements in science to promote scientific
productivity.

SECTION 34. The Philippine Science High School. — The Philippine

Science High School shall offer on a free scholarship basis a secondary course with
special emphasis on subjects pertaining to the sciences with the end view of preparing
its students for a science career. The exercise of its corporate powers is vested
exclusively in the Board of Trustees and in the Director of the High School insofar as
authorized by said Board. The Board of Trustees shall be composed of the Secretary
of Science and Technology, who shall be ex officio Chairman of the Board, the
Secretary of Education, who shall be ex officio Vice-Chairman, and the following
members: the President of the University of the Philippines, the Chairman of the
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 UNESCO National Commission of the Philippines, the Director of the Philippine
Science High School, all ex officio members, a representative from the
American-Philippine Science Foundation, Inc., to be designated by the President, one
representative from the Philippine National Science Society, one representative from
the National Academy of Science and Technology, one member representing
industry, and one member representing agriculture.

The members of the Board representing the Philippine National Science

Society, the National Academy of Science and Technology, Industry and Agriculture
shall be appointed by the President of the Philippines upon the recommendation of the
Secretary of Science and Technology.

SECTION 35. The Metals Industry and Research Development Center. —

The Metals Industry and Research Development Center shall be a non-profit research
and technological institution which shall provide both the government and the private
sector with professional management and technical expertise on such vital activities
for the development of the industry as training of engineers and technicians,
information exchange, trade accreditation service, quality control and testing of metal
products, research and business economic advisory services.

The Administration of the Center and the exercise of its corporate powers are
vested exclusively in the Board of Trustees which shall be composed of the Secretary
of Science and Technology, who shall be ex officio Chairman, the Secretary of Trade
and Industry, who shall be ex officio Co-Chairman, and the following members: the
Executive Director of the Philippine Council for Industry and Energy Research and
Development, a representative each from the Department of Natural Resources, the
National Economic and Development Authority, the Metals Industry Research and
Development Center and three representatives from the metals, engineering and allied
industries sub-sector to be appointed by the Secretary of Science and Technology.

The Center shall have the powers and functions assigned to it by law.

BOOK V

TITLE I

Constitutional Commissions

SUBTITLE A

Civil Service Commission

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 CHAPTER 1

General Provisions

SECTION 1. Declaration of Policy. — The State shall insure and

promote the Constitutional mandate that appointments in the Civil Service shall be
made only according to merit and fitness; that the Civil Service Commission, as the
central personnel agency of the Government shall establish a career service, adopt
measures to promote morale, efficiency, integrity, responsiveness, and courtesy in the
civil service, strengthen the merit and rewards system, integrate all human resources
development programs for all levels and ranks, and institutionalize a management
climate conducive to public accountability; that public office is a public trust and
public officers and employees must at all times be accountable to the people; and that
personnel functions shall be decentralized, delegating the corresponding authority to
the departments, offices and agencies where such functions can be effectively
performed.

SECTION 2. Duties and Responsibilities of Public Officers and

Employees. — Public Officers and employees shall have the duties, responsibilities,
and accountability provided in Chapter 9, Book I of this Code.

SECTION 3. Terms and Conditions of Employment. — The terms and

conditions of employment of all government employees, including those in
government-owned or controlled corporations with original charters, shall be fixed by
law. The terms and conditions of employment which are not fixed by law may be the
subject of negotiation between duly recognized employees' organizations and
appropriate government authorities.

SECTION 4. Compensation. — The Congress shall provide for the

standardization of compensation of government officials and employees including
those in government-owned or controlled corporations with original charters, taking
into account the nature of the responsibilities pertaining to, and the qualifications
required for the position concerned.

SECTION 5. Definitions of Terms. — As used in this title, the following

shall be construed thus:

(1) Agency means any bureau, office, commission, administration,

board, committee, institute, corporation with original charter,
whether performing governmental or proprietary function, or any

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 other unit of the National Government, as well as provincial, city,
or municipal government, except as hereinafter otherwise
provided.

(2) Appointing officer is the person or body authorized by law to make

appointments in the Philippine Civil Service.

(3) Class includes all positions in the government service that are
sufficiently similar as to duties and responsibilities and require
similar qualifications that can be given the same title and salary
and for all administrative and compensation purposes, be treated
alike.

(4) Commission refers to the Civil Service Commission.

(5) Chairman refers to the Chairman of the Commission.

(6) Commissioner refers to either of the two other members of the

Commission.

(7) Department includes any of the executive departments or entities

having the category of a department including the judiciary,
Commission on Elections and Commission on Audit.

(8) Eligible refers to a person who obtains a passing grade in a civil

service examination or is granted a civil service eligibility and
whose name is entered in the register of eligibles.

(9) Examination refers to a civil service examination conducted by the

Commission and its regional offices or by other departments or
agencies with the assistance of the Commission, or in coordination
or jointly with it, and those that it may delegate to departments and
agencies pursuant to this Title, or those that may have been
delegated by law.

(10) Form refers to those prescribed by the Civil Service Commission.

CHAPTER 2

Coverage of the Civil Service

SECTION 6. Scope of the Civil Service. — (1) The Civil Service

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 embraces all branches, subdivisions, instrumentalities, and agencies of the
Government, including government-owned or controlled corporations with original
charters.

(2) Positions in the Civil Service shall be classified into career service and
non-career service.

SECTION 7. Career Service. — The Career Service shall be

characterized by (1) entrance based on merit and fitness to be determined as far as
practicable by competitive examination, or based on highly technical qualifications;
(2) opportunity for advancement to higher career positions; and (3) security of
tenure.

The Career Service shall include:

(1) Open Career positions for appointment to which prior qualification

in an appropriate examination is required;

(2) Closed Career positions which are scientific, or highly technical in

nature; these include the faculty and academic staff of state
colleges and universities, and scientific and technical positions in
scientific or research institutions which shall establish and
maintain their own merit systems;

(3) Positions in the Career Executive Service; namely, Undersecretary,

Assistant Secretary, Bureau Director, Assistant Bureau Director,
Regional Director, Assistant Regional Director, Chief of
Department Service and other officers of equivalent rank as may
be identified by the Career Executive Service Board, all of whom
are appointed by the President;

(4) Career officers, other than those in the Career Executive Service,
who are appointed by the President, such as the Foreign Service
Officers in the Department of Foreign Affairs;

(5) Commissioned officers and enlisted men of the Armed Forces

which shall maintain a separate merit system;

(6) Personnel of government-owned or controlled corporations,

whether performing governmental or proprietary functions, who
do not fall under the non-career service; and
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 (7) Permanent laborers, whether skilled, semi-skilled, or unskilled.

SECTION 8. Classes of Positions in the Career Service. — (1) Classes of

positions in the career service appointment to which requires examinations shall be
grouped into three major levels as follows:

(a) The first level shall include clerical, trades, crafts, and custodial
service positions which involve non-professional or
subprofessional work in a non-supervisory or supervisory capacity
requiring less than four years of collegiate studies;

(b) The second level shall include professional, technical, and

scientific positions which involve professional, technical, or
scientific work in a non-supervisory or supervisory capacity
requiring at least four years of college work up to Division Chief
level; and

(c) The third level shall cover positions in the Career Executive
Service.

(2) Except as herein otherwise provided, entrance to the first two levels shall
be through competitive examinations, which shall be open to those inside and outside
the service who meet the minimum qualification requirements. Entrance to a higher
level does not require previous qualification in the lower level. Entrance to the third
level shall be prescribed by the Career Executive Service Board.

(3) Within the same level, no civil service examination shall be required for
promotion to a higher position in one or more related occupational groups. A
candidate for promotion should, however, have previously passed the examination for
that level.

SECTION 9. Non-Career Service. — The Non-Career Service shall be

characterized by (1) entrance on bases other than those of the usual tests of merit and
fitness utilized for the career service; and (2) tenure which is limited to a period
specified by law, or which is coterminous with that of the appointing authority or
subject to his pleasure, or which is limited to the duration of a particular project for
which purpose employment was made.

The Non-Career Service shall include:

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 (1) Elective officials and their personal or confidential staff;

(2) Secretaries and other officials of Cabinet rank who hold their
positions at the pleasure of the President and their personal or
confidential staff(s);

(3) Chairman and members of commissions and boards with fixed

terms of office and their personal or confidential staff;

(4) Contractual personnel or those whose employment in the

government is in accordance with a special contract to undertake a
specific work or job, requiring special or technical skills not
available in the employing agency, to be accomplished within a
specific period, which in no case shall exceed one year, and
performs or accomplishes the specific work or job, under his own
responsibility with a minimum of direction and supervision from
the hiring agency; and

(5) Emergency and seasonal personnel.

CHAPTER 3
Organization and Functions of the Civil Service Commission

SECTION 10. Composition. — The Commission shall be composed of a

Chairman and two Commissioners who shall be natural born citizens of the
Philippines and, at the time of their appointment, at least thirty-five years of age, with
proven capacity for public administration, and must not have been candidates for any
elective position in the elections immediately preceding their appointment.

SECTION 11. Appointment of Chairman and Commissioners. — The

Chairman and the Commissioners shall be appointed by the President with the
consent of the Commission on Appointments for a term of seven years without
reappointment. Of the first appointed, the Chairman shall hold office for seven years,
a Commissioner for five years, and another Commissioner for three years, without
reappointment. Appointment to any vacancy shall be only for the unexpired term of
the predecessor. In no case shall any Member be appointed or designated in a
temporary or acting capacity.

SECTION 12. Powers and Functions. — The Commission shall

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 have the following powers and functions:

(1) Administer and enforce the constitutional and statutory provisions

on the merit system for all levels and ranks in the Civil Service;

(2) Prescribe amend and enforce rules and regulations for carrying into
effect the provisions of the Civil Service Law and other pertinent
laws;

(3) Promulgate policies, standards and guidelines for the Civil Service
and adopt plans and programs to promote economical, efficient
and effective personnel administration in the government;

(4) Formulate policies and regulations for the administration,

maintenance and implementation of position classification and
compensation and set standards for the establishment, allocation
and reallocation of pay scales, classes and positions;

(5) Render opinion and rulings on all personnel and other Civil
Service matters which shall be binding on all heads of
departments, offices and agencies and which may be brought to the
Supreme Court on certiorari;

(6) Appoint and discipline its officials and employees in accordance

with law and exercise control and supervision over the activities of
the Commission;

(7) Control, supervise and coordinate Civil Service examinations.

Any entity or official in government may be called upon by
the Commission to assist in the preparation and conduct of said
examinations including security, use of buildings and facilities as
well as personnel and transportation of examination materials
which shall be exempt from inspection regulations;

(8) Prescribe all forms for Civil Service examinations, appointments,

reports and such other forms as may be required by law, rules and
regulations;

(9) Declare positions in the Civil Service as may properly be primarily

confidential, highly technical or policy determining;

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 (10) Formulate, administer and evaluate programs relative to the
development and retention of qualified and competent work force
in the public service;

(11) Hear and decide administrative cases instituted by or brought

before it directly or on appeal, including contested appointments,
and review decisions and actions of its offices and of the agencies
attached to it. Officials and employees who fail to comply with
such decisions, orders, or rulings shall be liable for contempt of the
Commission. Its decisions, orders, or rulings shall be final and
executory. Such decisions, orders, or rulings may be brought to the
Supreme Court on certiorari by the aggrieved party within thirty
(30) days from receipt of a copy thereof;

(12) Issue subpoena and subpoena duces tecum for the production of
documents and records pertinent to investigations and inquiries
conducted by it in accordance with its authority conferred by the
Constitution and pertinent laws;

(13) Advise the President on all matters involving personnel

management in the government service and submit to the President
an annual report on the personnel programs;

(14) Take appropriate action on all appointments and other personnel

matters in the Civil Service including extension of Service beyond
retirement age;

(15) Inspect and audit the personnel actions and programs of the
departments, agencies, bureaus, offices, local government units
and other instrumentalities of the government including
government-owned or controlled corporations; conduct periodic
review of the decisions and actions of offices or officials to whom
authority has been delegated by the Commission as well as the
conduct of the officials and the employees in these offices and
apply appropriate sanctions whenever necessary;

(16) Delegate authority for the performance of any function to

departments, agencies and offices where such function may be
effectively performed;

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 (17) Administer the retirement program for government officials and
employees, and accredit government services and evaluate
qualifications for retirement;

(18) Keep and maintain personnel records of all officials and employees
in the Civil Service; and

(19) Perform all functions properly belonging to a central personnel

agency and such other functions as may be provided by law.

SECTION 13. Duties and Responsibilities of the Chairman. — Subject to

policies and rules adopted by the Commission, the Chairman shall:

(1) Direct all operations of the Commission;

(2) Establish procedures for the effective operations of the

Commission;

(3) Transmit to the President rules and regulations, and other

guidelines adopted by the Chairman which require Presidential
attention including annual and other periodic reports;

(4) Issue appointments to, and enforce decisions on administrative

discipline involving officials and employees of the Commission;

(5) Delegate authority for the performance of any function to officials

and employees of the Commission;

(6) Approve and submit the annual and supplemental budget of the
Commission; and

(7) Perform such other functions as may be provided by law.

SECTION 14. Membership of the Chairman in Boards. — The Chairman

shall be a member of the Board of Directors or of other governing bodies of
government entities whose functions affect the career development, employment
status, rights, privileges, and welfare of government officials and employees, such as
the Government Service Insurance System, Foreign Service Board, Foreign Trade
Service Board, National Board for Teachers, and such other similar boards as may be
created by law.

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 SECTION 15. Duties and Responsibilities of the Members of the
Commission. — Jointly with the Chairman, the two (2) Commissioners shall be
responsible for the effective exercise of the rule-making and adjudicative functions of
the Commission. They shall likewise perform such functions as may be delegated by
the Commission. In case of the absence of the Chairman owing to illness or other
cause, the senior member shall perform the functions of the Chairman.

SECTION 16. Offices in the Commission. — The Commission shall have

the following offices:

(1) The Office of the Executive Director headed by an Executive

Director, with a Deputy Executive Director shall implement
policies, standards, rules and regulations promulgated by the
Commission; coordinate the programs of the offices of the
Commission and render periodic reports on their operations, and
perform such other functions as may be assigned by the
Commission.

(2) The Merit System Protection Board composed of a Chairman and

two (2) members shall have the following functions:

(a) Hear and decide on appeal administrative cases involving

officials and employees of the Civil Service. Its decision
shall be final except those involving dismissal or separation
from the service which may be appealed to the Commission;

(b) Hear and decide cases brought before it on appeal by

officials and employees who feel aggrieved by the
determination of appointing authorities involving personnel
actions and violations of the merit system. The decision of
the Board shall be final except those involving division
chiefs of officials of higher ranks which may be
appealed to the Commission;

(c) Directly take cognizance of complaints affecting functions

of the Commission, those which are unacted upon by the
agencies, and such other complaints which require direct
action of the Board in the interest of justice;

(d) Administer oaths, issue subpoena and subpoena duces

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 tecum, take testimony in any investigation or inquiry,
punish for contempt in accordance with the same
procedures and penalties prescribed in the Rules of Court;
and

(e) Promulgate rules and regulations to carry out the functions

of the Board subject to the approval of the Commission.

(3) The Office of Legal Affairs shall provide the Chairman with legal
advice and assistance; render counselling services; undertake legal
studies and researchers; prepare opinions and rulings in the
interpretation and application of the Civil Service law, rules and
regulations; prosecute violations of such laws, rules and
regulations; and represent the Commission before any Court or
tribunal.

(4) The Office of Planning and Management shall formulate

development plans, programs and projects; undertake research and
studies on the different aspects of public personnel management;
administer management improvement programs; and provide fiscal
and budgetary services.

(5) The Central Administrative Office shall provide the Commission

with personnel, financial, logistics and other basic support
services.

(6) The Office of Central Personnel Records shall formulate and

implement policies, standards, rules and regulations pertaining to
personnel records maintenance, security, control and disposal;
provide storage and extension services; and provide and maintain
library services.

(7) The Office of Position Classification and Compensation shall

formulate and implement policies, standards, rules and regulations
relative to the administration of position classification and
compensation.

(8) The Office of Recruitment, Examination and Placement shall

provide leadership and assistance in developing and implementing
the overall Commission programs relating to recruitment,
examination and placement, and formulate policies, standards,
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 rules and regulations for the proper implementation of the
Commission's examination and placement programs.

(9) The Office of Career Systems and Standards shall provide

leadership and assistance in the formulation and evaluation of
personnel systems and standards relative to performance appraisal,
merit promotion, and employee incentive benefits and awards.

(10) The Office of Human Resource Development shall provide

leadership and assistance in the development and retention of
qualified and efficient work force in the Civil Service; formulate
standards for training and staff development; administer
service-wide scholarship programs; develop training literature and
materials; coordinate and integrate all training activities and
evaluate training programs.

(11) The Office of Personnel Inspection and Audit shall develop

policies, standards, rules and regulations for the effective conduct
or inspection and audit of personnel and personnel management
programs and the exercise of delegated authority; provide technical
and advisory services to Civil Service Regional Offices and
government agencies in the implementation of their personnel
programs and evaluation systems.

(12) The Office of Personnel Relations shall provide leadership and

assistance in the development and implementation of policies,
standards, rules and regulations in the accreditation of employee
associations or organizations and in the adjustment and settlement
of employee grievances and management-employee disputes.

(13) The Office of Corporate Affairs shall formulate and implement

policies, standards, rules and regulations governing corporate
officials and employees in the areas of recruitment, examination,
placement, career development, merit and awards systems,
position classification and compensation, performing appraisal,
employee welfare and benefits, discipline and other aspects of
personnel management on the basis of comparable industry
practices.

(14) The Office of Retirement Administration shall be responsible for

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 the enforcement of the constitutional and statutory provisions,
relative to retirement and the regulation for the effective
implementation of the retirement of government officials and
employees.

(15) The Regional and Field Offices. — The Commission shall have
not less than thirteen (13) Regional offices each to be headed by a
Director, and such field offices as may be needed, each to be
headed by an official with at least the rank of an Assistant
Director. Each Regional Office shall have the following functions:

(a) Enforce Civil Service law and rules, policies, standards on

personnel management within their respective jurisdiction;

(b) Provide technical advice and assistance to government

offices and agencies regarding personnel administration;
and

(c) Perform such other functions as may be delegated by the

Commission.

SECTION 17. Organizational Structure. — Each office of the

Commission shall be headed by a Director with at least one (1) Assistant Director,
and may have such divisions as are necessary to carry out their respective functions.
As an independent constitutional body, the Commission may effect changes in the
organization as the need arises.

CHAPTER 4

Interdepartment Relations

SECTION 18. Civil Service Assistance to Departments and Agencies. —

Each Secretary or head of office, agency, government-owned or controlled
corporation with original charter and local government shall be responsible for
personnel administration in his office which shall be in accordance with the provision
relating to civil service embodied in the Constitution, this Title and the rules,
principles, standards, guidelines and regulations established by the Commission. The
Civil Service Commission shall, whenever it deems it in the interest of the public
service, organize in each department, office, agency, government-owned or controlled
corporation, and provincial and city government a Civil Service Staff which shall be
headed by an officer of the Commission. The necessary staff personnel and office
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 facilities and equipment shall be provided by the department, government-owned or
controlled corporation or local government where the staff is established but the
Commission may augment these with its own. The staff shall serve as the principal
liaison between the Civil Service and the Department concerned and shall perform the
following specific functions and those functions which may hereafter be assigned to it
by the Commission:

(1) Provide technical assistance in all aspects of personnel

management;

(2) Monitor and audit periodically the personnel practices and

performance of the Department or agency concerned as well as
those of public officers and employees thereat;

(3) Determine agency compliance with Civil Service Law and rules;
and

(4) In the performance of these functions, the staff shall welcome and
receive from the public any suggestions, observations and
complaints pertaining to the conduct of public officers and
employees.

In the performance of their functions, the units so organized shall avail of the
technical assistance and guidelines of the Civil Service Commission.

SECTION 19. Council of Personnel Officers. — There shall be a Council

of Personnel Officers to be composed of chief personnel officers of the different
executive departments and of agencies with the category of department that the
Chairman of the Commission shall select for membership. Except for its Executive
Officer who shall be designated by the Chairman from among the appropriate
officials in the Civil Service Commission, the Council is authorized to elect such
other officers from among its members and to fix its own rules or procedures
concerning attendance at meetings, approval of policy declaration, and other business
matters. Provisions for necessary facilities and clerical assistance for the Council shall
be made in the annual budget of the Commission.

The Council shall have the following functions:

(1) Offer advice, upon request of the Secretary of a Department or the

Commission, in developing constructive policies, standards,
procedures, and programs as well as on matters relating to the
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 improvement of personnel methods and to the solution of
personnel problems confronting the various departments and
agencies of the government;

(2) Promote among the departments and agencies, through study and
discussion, uniform and consistent interpretation and application of
personnel policies; and

(3) Serve as a clearing house of information and stimulate the use of

methods of personnel management that will contribute most to
good government.

SECTION 20. Inspection and Audit. — The Commission, through its

designated representatives, shall conduct a periodic inspection and audit of the
personnel management program of each department, agency, province or city, in
order to: (a) determine compliance with the Civil Service law, rules and standards; (b)
review discharge of delegated authority; (c) make an adequate evaluation of the
progress made and problems encountered in the conduct of the merit system in the
national and local governments; (d) give advice and provide assistance in developing
constructive policies, standards and procedures, and (e) stimulate improvement in all
areas of personnel management.

Periodic inspection and audit will include an appraisal of personnel

management operations and activities relative to: (a) formulation and issuance of
personnel policy; (b) recruitment and selection of employees; (c) personnel action and
employment status; (d) career and employee development; (e) performance evaluation
system; (f) employee suggestions and incentive award; (g) employee relations and
services; (h) discipline; (i) personnel records and reporting; and (j) programs
evaluation.

CHAPTER 5

Personnel Policies and Standards

SECTION 21. Recruitment and Selection of Employees. — (1)

Opportunity for government employment shall be open to all qualified citizens and
positive efforts shall be exerted to attract the best qualified to enter the service.
Employees shall be selected on the basis of fitness to perform the duties and assume
the responsibilities of the positions.

(2) When a vacancy occurs in a position in the first level of the Career
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 Service as defined in Section 8, the employees in the department who occupy the next
lower positions in the occupational group under which the vacant position is
classified, and in other functionally related occupational groups and who are
competent, qualified and with the appropriate civil service eligibility shall be
considered for promotion.

(3) When a vacancy occurs in a position in the second level of the Career
Service as defined in Section 8, the employees in the government service who occupy
the next lower positions in the occupational group under which the vacant position is
classified and in other functionally related occupational groups and who are
competent, qualified and with the appropriate civil service eligibility shall be
considered for promotion.

(4) For purposes of this Section, each department or agency shall evolve its
own screening process, which may include tests of fitness, in accordance with
standards and guidelines set by the Commission. Promotion boards shall be formed to
formulate criteria for evaluation, conduct tests or interviews, and make systematic
assessment of training experience.

(5) If the vacancy is not filled by promotion as provided herein the same shall
be filled by transfer of present employees in the government service, by
reinstatement, by re-employment of persons separated through reduction in force, or
by appointment of persons with the civil service eligibility appropriate to the
positions.

(6) A qualified next-in-rank employee shall have the right to appeal initially
to the Secretaries or heads of agencies or instrumentalities including
government-owned or controlled corporations with original charters, then to the Merit
System Protection Board, and finally to the Civil Service Commission an
appointment made in favor of another employee if the appellant is not satisfied with
the written special reason or reasons given by the appointing authority for such
appointment; Provided, however, that the decision of the Civil Service Commission
may be reviewed on certiorari only by the Supreme Court within thirty (30) days
from receipt of the decision of the aggrieved party. For purposes of this Section,
"qualified next-in-rank" refers to an employee appointed on a permanent basis to a
position previously determined to be next-in-rank and who meets the requirements for
appointment thereto as previously determined by the appointing authority and
approved by the Commission.

(7) Qualification in an appropriate examination shall be required for

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 appointment to positions in the first and second levels in the career service in
accordance with the Civil Service rules, except as otherwise provided in this Title:
Provided, That whenever there is a civil service eligible actually available for
appointment, no person who is not such an eligible shall be appointed even in a
temporary capacity to any vacant position in the career service in the government or
in any government-owned or controlled corporation with original charter, except
when the immediate filling of the vacancy is urgently required in the public interest,
or when the vacancy is not permanent, in which cases temporary appointments of
non-eligibles may be made in the absence of eligibles actually and immediately
available.

(8) The appropriate examinations herein referred to shall be those given by

the Commission and the different agencies: Provided, however, That nothing herein
shall affect those eligibilities acquired prior to the effectivity of the Civil Service
Law: Provided, further, That a person with a civil service eligibility acquired by
successfully passing an examination shall be qualified for a position requiring a lower
eligibility if he possesses the other requirements for appointment to such position.

SECTION 22. Qualification Standards. — (1) A qualification standard

expresses the minimum requirements for a class of positions in terms of education,
training and experience, civil service eligibility, physical fitness, and other qualities
required for successful performance. The degree of qualifications of an officer or
employee shall be determined by the appointing authority on the basis of the
qualification standard for the particular position.

Qualification standards shall be used as basis for civil service examinations for
positions in the career service, as guides in appointment and other personnel actions,
in the adjudication of protested appointments, in determining training needs, and as
aid in the inspection and audit of the agencies' personnel work programs.

It shall be administered in such manner as to continually provide incentives to

officers and employees towards professional growth and foster the career system in
the government service.

(2) The establishment, administration and maintenance of qualification

standards shall be the responsibility of the department or agency, with the assistance
and approval of the Civil Service Commission and in consultation with the Wage and
Position Classification Office.

SECTION 23. Release of Examination Results. — The results of any

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 particular civil service examination held in a number of places on the same date shall
be released simultaneously.

SECTION 24. Register of Eligibles. — The names of the competitors who

pass an examination shall be entered in a register of eligibles arranged in the order of
their general ratings and containing such information as the Commission may deem
necessary.

SECTION 25. Cultural Communities. — In line with the national

policy to facilitate the integration of the members of cultural communities and
accelerate the development of the areas occupied by them, the Commission shall give
special civil service examinations to qualify them for appointment in the civil service.

SECTION 26. Personnel Actions. — All appointments in the career

service shall be made only according to merit and fitness, to be determined as far as
practicable by competitive examinations. A non-eligible shall not be appointed to any
position in the civil service whenever there is a civil service eligible actually available
for and ready to accept appointment.

As used in this Title, any action denoting the movement or progress of

personnel in the civil service shall be known as personnel action. Such action shall
include appointment through certification, promotion, transfer, reinstatement,
re-employment, detail, reassignment, demotion, and separation. All personnel actions
shall be in accordance with such rules, standards, and regulations as may be
promulgated by the Commission.

(1) Appointment through certification. — An appointment through

certification to a position in the civil service, except as herein
otherwise provided, shall be issued to a person who has been
selected from a list of qualified persons certified by the
Commission from an appropriate register of eligibles, and who
meets all the other requirements of the position.

All such persons must serve a probationary period of six

months following their original appointment and shall undergo a
thorough character investigation in order to acquire permanent
civil service status. A probationer may be dropped from the service
for unsatisfactory conduct or want of capacity any time before the
expiration of the probationary period: Provided, That such action is
appealable to the Commission.

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 (2) Promotion. — A promotion is a movement from one position to
another with an increase in duties and responsibilities as
authorized by law and usually accompanied by an increase in pay.
The movement may be from one department or agency to another
or from one organizational unit to another in the same department
or agency.

(3) Transfer. — A transfer is a movement from one position to another

which is of equivalent rank, level, or salary without break in
service involving the issuance of an appointment.

It shall not be considered disciplinary when made in the

interest of public service, in which case, the employee concerned
shall be informed of the reasons therefor. If the employee believes
that there is no justification for the transfer, he may appeal his case
to the Commission.

The transfer may be from one department or agency to

another or from one organizational unit to another in the same
department or agency: Provided, however, That any movement
from the non-career service to the career service shall not be
considered a transfer.

(4) Reinstatement. — Any person who has been permanently

appointed to a position in the career service and who has, through
no delinquency or misconduct, been separated therefrom, may be
reinstated to a position in the same level for which he is qualified.

(5) Reemployment. — Names of persons who have been appointed

permanently to positions in the career service and who have been
separated as a result of reduction in force or reorganization, shall
be entered in a list from which selection for reemployment shall be
made.

(6) Detail. — A detail is the movement of an employee from one

agency to another without the issuance of an appointment and shall
be allowed, only for a limited period in the case of employees
occupying professional, technical and scientific positions. If the
employee believes that there is no justification for the detail, he
may appeal his case to the Commission. Pending appeal, the
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 decision to detail the employee shall be executory unless otherwise
ordered by the Commission.

(7) Reassignment. — An employee may be reassigned from one

organizational unit to another in the same agency: Provided, That
such reassignment shall not involve a reduction in rank, status or
salary.

SECTION 27. Employment Status. — Appointment in the career service

shall be permanent or temporary.

(1) Permanent status. — A permanent appointment shall be issued to a

person who meets all the requirements for the positions to which
he is being appointed, including the appropriate eligibility
prescribed, in accordance with the provisions of law, rules and
standards promulgated in pursuance thereof.

(2) Temporary appointment. — In the absence of appropriate

eligibles and it becomes necessary in the public interest to fill a
vacancy, a temporary appointment shall be issued to a person who
meets all the requirements for the position to which he is being
appointed except the appropriate civil service eligibility: Provided,
That such temporary appointment shall not exceed twelve months,
but the appointee may be replaced sooner if a qualified civil
service eligible becomes available.

SECTION 28. Salary Increase or Adjustment. — Adjustments in salaries

as a result of increase in pay levels or upgrading of positions which do not involve a
change in qualification requirements shall not require new appointments except that
copies of the salary adjustment notices shall be submitted to the Commission for
record purposes.

SECTION 29. Reduction in Force. — Whenever it becomes necessary

because of lack of work or funds or due to a change in the scope or nature of an
agency's program, or as a result of reorganization, to reduce the staff of any
department or agency, those in the same group or class of positions in one or more
agencies within the particular department or agency wherein the reduction is to be
effected, shall be reasonably compared in terms of relative fitness, efficiency and
length of service, and those found to be least qualified for the remaining positions
shall be laid off.

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 SECTION 30. Career and Personnel Development. — The development
and retention of a competent and efficient work force in the public service is a
primary concern of government. It shall be the policy of the government that a
continuing program of career and personnel development be established for all
government employees at all levels. An integrated national plan for career and
personnel development shall serve as the basis for all career and personnel
development activities in the government.

SECTION 31. Career and Personnel Development Plans. — Each

department or agency shall prepare a career and personnel development plan which
shall be integrated into a national plan by the Commission. Such career and personnel
development plans which shall include provisions on merit promotions, performance
evaluation, in-service training, including overseas and local scholarships and training
grants, job rotation, suggestions and incentive award systems, and such other
provisions for employees' health, welfare, counseling, recreation and similar services.

SECTION 32. Merit Promotion Plans. — Each department or agency shall

establish merit promotion plans which shall be administered in accordance with the
provisions of the Civil Service law and the rules, regulations and standards to be
promulgated by the Commission. Such plans shall include provisions for a definite
screening process, which may include tests of fitness, in accordance with standards
and guidelines set by the Commission. Promotion Boards may be organized subject to
criteria drawn by the Commission.

SECTION 33. Performance Evaluation System. — There shall be

established a performance evaluation system, which shall be administered in
accordance with rules, regulations and standards, promulgated by the Commission for
all officers and employees in the career service. Such performance evaluation system
shall be administered in such manner as to continually foster the improvement of
individual employee efficiency and organizational effectiveness.

Each department or agency may, after consultation with the Commission,

establish and use one or more performance evaluation plans appropriate to the various
groups of positions in the department or agency concerned. No performance
evaluation shall be given, or used as a basis for personnel action, except under an
approved performance evaluation plan: Provided, That each employee shall be
informed periodically by his supervisor of his performance evaluation.

SECTION 34. Responsibility for Training. — The Commission shall be

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 responsible for the coordination and integration of a continuing program of personnel
development for all government personnel in the first and second levels.

Central staff agencies and specialized institutes shall conduct continuing

centralized training for staff specialists from the different agencies. However, in those
cases where there is sufficient number of participants to warrant training at
department or agency or local government levels, such central staff agencies and
specialized institutes shall render the necessary assistance, and consultative services.

To avoid duplication of effort and overlapping of training functions, the

following functional responsibilities are assigned:

(1) Public and private colleges and universities and similar institutions
shall be encouraged to organize and carry out continuing programs
of executive development.

(2) The Commission, the Commission on Audit, the Department of

Budget and Management, the General Services Administration,
and other central staff agencies shall conduct centralized
training and assist in the training program of the Departments or
agencies along their respective functional areas of specialization.

(3) In coordination with the Commission, the Department of Local

Government and Community Development shall undertake local
government training programs.

(4) In coordination with the Commission, each department or agency,

province or city shall establish, maintain and promote a systematic
plan of action for personnel training at all levels in accordance
with standards laid down by the Commission. It shall maintain
appropriate training staffs and make full use of available training
facilities.

Whenever it deems it necessary, the Commission shall take the initiative in

undertaking programs for personnel development.

SECTION 35. Employee Suggestions and incentive Award System. —

There shall be established a government-wide employee suggestions and incentive
awards system which shall be administered under such rules, regulations, and
standards as may be promulgated by the Commission.

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 In accordance with rules, regulations, and standards promulgated by the
Commission, the President or the head of each department or agency is authorized to
incur whatever necessary expenses involved in the honorary recognition of
subordinate officers and employees of the government who by their suggestions,
inventions, superior accomplishment, and other personal efforts contribute to the
efficiency, economy, or other improvement of government operations, or who
perform such other extraordinary acts or services in the public interest in connection
with, or in relation to, their official employment.

SECTION 36. Personnel Relations. — (1) It shall be the concern of the

Commission to provide leadership and assistance in developing employee relations
programs in the department or agencies.

(2) Every Secretary or head of agency shall take all proper steps toward the
creation of an atmosphere conducive to good supervisor-employee relations and the
improvement of employee morale.

SECTION 37. Complaints and Grievances. — Employees shall have the

right to present their complaints or grievances to management and have them
adjudicated as expeditiously as possible in the best interest of the agency, the
government as a whole, and the employee concerned. Such complaint or grievances
shall be resolved at the lowest possible level in the department or agency, as the case
may be, and the employee shall have the right to appeal such decision to higher
authorities.

Each department or agency shall promulgate rules and regulations governing

expeditious, fair and equitable adjustment of employees' complaints or grievances in
accordance with the policies enunciated by the Commission.

In case any dispute remains unresolved after exhausting all the available
remedies under existing laws and procedures, the parties may jointly refer the dispute
to the Public Sector Labor Management Council constituted under section 46, for
appropriate action.

CHAPTER 6

Right to Self-Organization

SECTION 38. Coverage. — (1) All government employees, including

those in government-owned or controlled corporations with original charters, can

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 form, join or assist employees' organizations of their own choosing for the furtherance
and protection of their interests. They can also form, in conjunction with appropriate
government authorities, labor-management committees, work councils and other
forms of workers' participation schemes to achieve the same objectives.

(2) The provisions of this Chapter shall not apply to the members of the
Armed Forces of the Philippines, including police officers, policemen, firemen and
jail guards.

SECTION 39. Ineligibility of High-Level Employees to Join Rank-and-File

Employees' Organization. — High-level employees whose functions are normally
considered as policy-making or managerial or whose duties are of highly confidential
nature shall not be eligible to join the organization of rank-and-file government
employees.

SECTION 40. Protection of the Right to Organize. — (1) Government

employees shall not be discriminated against in respect of their employment by reason
of their membership in employees' organizations or participation in the normal
activities of their organizations. Their employment shall not be subject to the
condition that they shall not join or shall relinquish their membership in the
employees' organizations.

(2) Government authorities shall not interfere in the establishment,

functioning or administration of government employees' organizations through acts
designed to place such organizations under the control of government authority.

SECTION 41. Registration of Employees' Organization. — Government

employees' organizations shall register with the Civil Service Commission and the
Department of Labor and Employment. The application shall be filed with the Bureau
of Labor Relations of the Department which shall process the same in accordance
with the provisions of the Labor Code of the Philippines. Applications may also be
filed with the Regional Offices of the Department of Labor and Employment which
shall immediately transmit the said applications to the Bureau of Labor Relations
within three (3) days from receipt thereof.

SECTION 42. Certificate of Registration. — Upon approval of the

application, a registration certificate shall be issued to the organization recognizing it
as a legitimate employees' organization with the right to represent its members and
undertake activities to further and defend its interests. The corresponding certificates
of registration shall be jointly approved by the Chairman of the Civil Service

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 Commission and the Secretary of Labor and Employment.

SECTION 43. Appropriate Organizational Unit. — The appropriate

organizational unit shall be the employer's unit consisting of rank-and-file employees
unless circumstances otherwise require.

SECTION 44. Sole and Exclusive Employees' Representatives. — (1) The

duly registered employees' organization having the support of the majority of the
employees in the appropriate organizational unit shall be designated as the sole and
exclusive representative of the employees.

(2) A duly registered employees' organization shall be accorded voluntary

recognition upon a showing that no other employees' organization is registered or is
seeking registration, based on the records of the Bureau of Labor Relations, and that
the said organization has the majority support of the rank-and-file employees in the
organizational unit.

(3) Where there are two or more duly registered employees' organizations in
the appropriate organizational unit, the Bureau of Labor Relations shall, upon
petition, order the conduct of a certification election and shall certify the winner as
the exclusive representative of the rank-and-file employees in said organizational
unit.

SECTION 45. The Public Sector Labor-Management Council. — A Public

Sector Labor-Management Council is hereby constituted to be composed of the
following: The Chairman of the Civil Service Commission, as Chairman; the
Secretary of Labor and Employment, as Vice-Chairman; and the Secretary of
Finance, the Secretary of Justice and the Secretary of Budget and Management, as
members.

The Council shall implement and administer the provisions of this Chapter. For
this purpose, the Council shall promulgate the necessary rules and regulations to
implement this Chapter.

CHAPTER 7

Discipline

SECTION 46. Discipline: General Provisions. — (a) No officer or

employee in the Civil Service shall be suspended or dismissed except for cause as
provided by law and after due process.
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 (b) The following shall be grounds for disciplinary action:

(1) Dishonesty;

(2) Oppression;

(3) Neglect of duty;

(4) Misconduct;

(5) Disgraceful and immoral conduct;

(6) Being notoriously undesirable;

(7) Discourtesy in the course of official duties;

(8) Inefficiency and incompetence in the performance of

official duties;

(9) Receiving for personal use of a fee, gift or other valuable

thing in the course of official duties or in connection
therewith when such fee, gift, or other valuable thing is
given by any person in the hope or expectation of receiving
a favor or better treatment than that accorded other persons,
or committing acts punishable under the anti-graft laws;

(10) Conviction of a crime involving moral turpitude;

(11) Improper or unauthorized solicitation of contributions from

subordinate employees and by teachers or school officials
from school children;

(12) Violation of existing Civil Service Law and rules or

reasonable office regulations;

(13) Falsification of official document;

(14) Frequent unauthorized absences or tardiness in reporting for

duty, loafing or frequent unauthorized absences from duty
during regular office hours;

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 (15) Habitual drunkenness;

(16) Gambling prohibited by law;

(17) Refusal to perform official duty or render overtime service;

(18) Disgraceful, immoral or dishonest conduct prior to entering

the service;

(19) Physical or mental incapacity or disability due to immoral

or vicious habits;

(20) Borrowing money by superior officers from subordinates or

lending by subordinates to superior officers;

(21) Lending money at usurious rates of interest;

(22) Willful failure to pay just debts or willful failure to pay

taxes due to the government;

(23) Contracting loans of money or other property from persons

with whom the office of the employee concerned has
business relations;

(24) Pursuit of private business, vocation or profession without

the permission required by Civil Service rules and
regulations;

(25) Insubordination;

(26) Engaging directly or indirectly in partisan political activities

by one holding a non-political office;

(27) Conduct prejudicial to the best interest of the service;

(28) Lobbying for personal interest or gain in legislative halls or

offices without authority;

(29) Promoting the sale of tickets in behalf of private enterprises

that are not intended for charitable or public welfare
purposes and even in the latter cases if there is no prior

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 authority;

(30) Nepotism as defined in Section 60 of this Title.

(c) Except when initiated by the disciplining authority, no complaint against

a civil service official or employee shall be given due course unless the same is in
writing and subscribed and sworn to by the complainant.

(d) In meting out punishment, the same penalties shall be imposed for similar
offenses and only one penalty shall be imposed in each case. The disciplining
authority may impose the penalty of removal from the service, demotion in rank,
suspension for not more than one year without pay, fine in an amount not exceeding
six months' salary, or reprimand.

SECTION 47. Disciplinary Jurisdiction. — (1) The Commission

shall decide upon appeal all administrative disciplinary cases involving the imposition
of a penalty of suspension for more than thirty days, or fine in an amount exceeding
thirty days' salary, demotion in rank or salary or transfer, removal or dismissal from
office. A complaint may be filed directly with the Commission by a private citizen
against a government official or employee in which case it may hear and decide the
case or it may deputize any department or agency or official or group of officials to
conduct the investigation. The results of the investigation shall be submitted to the
Commission with recommendation as to the penalty to be imposed or other action to
be taken.

(2) The Secretaries and heads of agencies and instrumentalities, provinces,

cities and municipalities shall have jurisdiction to investigate and decide matters
involving disciplinary action against officers and employees under their jurisdiction.
Their decisions shall be final in case the penalty imposed is suspension for not more
than thirty days or fine in an amount not exceeding thirty days' salary. In case the
decision rendered by a bureau or office head is appealable to the Commission, the
same may be initially appealed to the department and finally to the Commission and
pending appeal, the same shall be executory except when the penalty is removal, in
which case the same shall be executory only after confirmation by the Secretary
concerned.

(3) An investigation may be entrusted to regional director or similar officials

who shall make the necessary report and recommendation to the chief of bureau or
office or department within the period specified in Paragraph (4) of the following
Section.

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 (4) An appeal shall not stop the decision from being executory, and in case
the penalty is suspension or removal, the respondent shall be considered as having
been under preventive suspension during the pendency of the appeal in the event he
wins an appeal.

SECTION 48. Procedures in Administrative Cases Against

Non-Presidential Appointees. — (1) Administrative proceedings may be
commenced against a subordinate officer or employee by the Secretary or head of
office of equivalent rank, or head of local government, or chiefs of agencies, or
regional directors, or upon sworn, written complaint of any other person.

(2) In the case of a complaint filed by any other persons, the complainant
shall submit sworn statements covering his testimony and those of his witnesses
together with his documentary evidence. If on the basis of such papers a prima facie
case is found not to exist, the disciplining authority shall dismiss the case. If a prima
facie case exists, he shall notify the respondent in writing, of the charges against the
latter, to which shall be attached copies of the complaint, sworn statements and other
documents submitted, and the respondent shall be allowed not less than seventy-two
hours after receipt of the complaint to answer the charges in writing under oath,
together with supporting sworn statements and documents, in which he shall indicate
whether or not he elects a formal investigation if his answer is not considered
satisfactory. If the answer is found satisfactory, the disciplining authority shall
dismiss the case.

(3) Although a respondent does not request a formal investigation, one shall
nevertheless be conducted when from the allegations of the complaint and the answer
of the respondent, including the supporting documents, the merits of the case cannot
be decided judiciously without conducting such an investigation.

(4) The investigation shall be held not earlier than five days nor later than ten
days from the date of receipt of respondent's answer by the disciplining authority, and
shall be finished within thirty days from the filing of the charges, unless the period is
extended by the Commission in meritorious cases. The decision shall be rendered by
the disciplining authority within thirty days from the termination of the investigation
or submission of the report of the investigator, which report shall be submitted within
fifteen days from the conclusion of the investigation.

(5) The direct evidence for the complainant and the respondent shall consist
of the sworn statement and documents submitted in support of the complaint or
answer, as the case may be, without prejudice to the presentation of additional
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 evidence deemed necessary but was unavailable at the time of the filing of the
complaint or answer, upon which the cross-examination, by respondent and the
complainant, respectively, shall be based. Following cross-examination, there may be
redirect and recross-examination.

(6) Either party may avail himself of the services of counsel and may require
the attendance of witnesses and the production of documentary evidence in his favor
through the compulsory process of subpoena or subpoena duces tecum.

(7) The investigation shall be conducted only for the purpose of ascertaining
the truth and without necessarily adhering to technical rules applicable in judicial
proceedings. It shall be conducted by the disciplining authority concerned or his
authorized representative.

The phrase "any other party" shall be understood to be a complainant other

than those referred to in subsection (a) hereof.

SECTION 49. Appeals. — (1) Appeals, where allowable, shall be made by

the party adversely affected by the decision within fifteen days from receipt of the
decision unless a petition for reconsideration is seasonably filed, which petition shall
be decided within fifteen days. Notice of the appeal shall be filed with the disciplining
office, which shall forward the records of the case, together with the notice of appeal,
to the appellate authority within fifteen days from filing of the notice of appeal, with
its comment, if any. The notice of appeal shall specifically state the date of the
decision appealed from and the date of receipt thereof. It shall also specifically set
forth clearly the grounds relied upon for excepting from the decision.

(2) A petition for reconsideration shall be based only on any of the following
grounds: (a) new evidence has been discovered which materially affects the decision
rendered; (b) the decision is not supported by the evidence on record; or (c) errors of
law or irregularities have been committed which are prejudicial to the interest of the
respondent: Provided, That only one petition for reconsideration shall be entertained.

SECTION 50. Summary Proceedings. — No formal investigation is

necessary and the respondent may be immediately removed or dismissed if any of the
following circumstances is present:

(1) When the charge is serious and the evidence of guilt is strong;

(2) When the respondent is a recidivist or has been repeatedly charged

and there is reasonable ground to believe that he is guilty of the
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 present charge; and

(3) When the respondent is notoriously undesirable.

Resort to summary proceedings by the disciplining authority shall be done

with utmost objectivity and impartiality to the end that no injustice is committed:
Provided, That removal or dismissal except those by the President, himself or upon
his order, may be appealed to the Commission.

SECTION 51. Preventive Suspension. — The proper disciplining authority

may preventively suspend any subordinate officer or employee under his authority
pending an investigation, if the charge against such officer or employee involves
dishonesty, oppression or grave misconduct, or neglect in the performance of duty, or
if there are reasons to believe that the respondent is guilty of charges which would
warrant his removal from the service.

SECTION 52. Lifting of Preventive Suspension Pending Administrative

Investigation. — When the administrative case against the officer or employee under
preventive suspension is not finally decided by the disciplining authority within the
period of ninety (90) days after the date of suspension of the respondent who is not a
presidential appointee, the respondent shall be automatically reinstated in the service:
Provided, That when the delay in the disposition of the case is due to the fault,
negligence or petition of the respondent, the period of delay shall not be counted in
computing the period of suspension herein provided.

SECTION 53. Removal of Administrative Penalties or Disabilities. — In

meritorious cases and upon recommendation of the Commission, the President may
commute or remove administrative penalties or disabilities imposed upon officers or
employees in disciplinary cases, subject to such terms and conditions as he may
impose in the interest of the service.

CHAPTER 8

Prohibitions

SECTION 54. Limitation on Appointment. — (1) No elective official shall

be eligible for appointment or designation in any capacity to any public office or
position during his tenure.

(2) No candidate who has lost in any election shall, within one year after
election, be appointed to any office in the Government or any government-owned or
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 controlled corporations or in any of its subsidiaries.

(3) Unless otherwise allowed by law or by the primary functions of his

position, no appointive official shall hold any other office or employment in the
Government or any subdivision, agency or instrumentality thereof, including
government-owned or controlled corporations or their subsidiaries.

SECTION 55. Political Activity. — No officer or employee in the Civil

Service including members of the Armed Forces, shall engage directly or indirectly in
any partisan political activity or take part in any election except to vote nor shall he
use his official authority or influence to coerce the political activity of any other
person or body. Nothing herein provided shall be understood to prevent any officer or
employee from expressing his views on current political problems or issues, or from
mentioning the names of candidates for public office whom he supports: Provided,
That public officers and employees holding political offices may take part in political
and electoral activities but it shall be unlawful for them to solicit contributions from
their subordinates or subject them to any of the acts involving subordinates prohibited
in the Election Code.

SECTION 56. Additional or Double Compensation. — No elective or

appointive public officer or employee shall receive additional or double compensation
unless specifically authorized by law nor accept without the consent of the President,
any present, emolument, office, or title of any kind from any foreign state.

Pensions and gratuities shall not be considered as additional, double or indirect

compensation.

SECTION 57. Limitations on Employment of Laborers. — Laborers,

whether skilled, semi-skilled or unskilled, shall not be assigned to perform clerical
duties.

SECTION 58. Prohibition on Detail or Reassignment. — No detail or

reassignment whatever shall be made within three (3) months before any election.

SECTION 59. Nepotism. — (1) All appointments in the national,

provincial, city and municipal governments or in any branch or instrumentality
thereof, including government-owned or controlled corporations, made in favor of a
relative of the appointing or recommending authority, or of the chief of the bureau or
office, or of the persons exercising immediate supervision over him, are hereby
prohibited.

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 As used in this Section, the word "relative" and members of the family referred
to are those related within the third degree either of consanguinity or of affinity.

(2) The following are exempted from the operation of the rules on nepotism:
(a) persons employed in a confidential capacity, (b) teachers, (c) physicians, and (d)
members of the Armed Forces of the Philippines: Provided, however, That in each
particular instance full report of such appointment shall be made to the Commission.

The restriction mentioned in subsection (1) shall not be applicable to the case
of a member of any family who, after his or her appointment to any position in an
office or bureau, contracts marriage with someone in the same office or bureau, in
which event the employment or retention therein of both husband and wife may be
allowed.

(3) In order to give immediate effect to these provisions, cases of previous

appointments which are in contravention hereof shall be corrected by transfer, and
pending such transfer, no promotion or salary increase shall be allowed in favor of the
relative or relatives who were appointed in violation of these provisions.

CHAPTER 9

Leave of Absence

SECTION 60. Leave of Absence. — Officers and employees in the Civil

Service shall be entitled to leave of absence, with or without pay, as may be provided
by law and the rules and regulations of the Civil Service Commission in the interest
of the service.

CHAPTER 10

Miscellaneous Provisions

SECTION 61. Examining Committee, Special Examiners and Special

Investigators. — Subject to approval by the proper head of a department or agency,
the Commission may select suitable persons in the government service to act as
members of examining committees, special examiners or special investigators. Such
person shall be designated examiners or investigators of the Commission and shall
perform such duties as the Commission may require, and in the performance of such
duties they shall be under its exclusive control. Examining committees, special
examiners or special investigators so designated may be given allowances or per
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 diems for their services, to be paid out of the funds of, and at a rate to be determined
by, the Commission.

SECTION 62. Fees. — The Commission shall collect and charge fees for
civil service examinations, certifications of civil service ratings, service records, and
other civil service matters, training courses, seminars, workshops in personnel
management and other civil service matters. For this purpose, the Commission shall
prescribe standard and reasonable rates for such examinations, certifications, training
courses, seminars, and workshops: Provided, That no examination fees shall be
collected in examinations given for the selection of scholars.

SECTION 63. Income. — The income of the Commission from fees, costs
for services it may assess and levy, and such other proceeds generated in the
performance of its functions shall be directly utilized by the Commission for its
expenses.

SECTION 64. Authority of Officers to Administer Oaths, Take Testimony,

Prosecute and Defend Cases in Court. — Members of the Commission, chiefs of
offices, and other officers and employees of the Commission designated in writing by
the Chairman may administer such oath as may be necessary in the transactions of
official business and administer oaths and take testimony in connection with any
authorized investigation. Attorneys of the Commission may prosecute and defend
cases in connection with the functions of the Commission before any court or
tribunal.

SECTION 65. Liability of Appointing Authority. — No person employed

in the Civil Service in violation of the Civil Service Law and rules shall be entitled to
receive pay from the government; but the appointing authority responsible for such
unlawful employment shall be personally liable for the pay that would have accrued
had the employment been lawful, and the disbursing officials shall make payment to
the employee of such amount from the salary of the officers so liable.

SECTION 66. Liability of Disbursing Officers. — Except as may

otherwise be provided by law, it shall be unlawful for a treasurer or other fiscal
officer to draw or retain from the salary due an officer or employee any amount for
contribution or payment of obligations other than those due the government or its
instrumentalities.

SECTION 67. Penal Provision. — Whoever makes any appointment or

employs any person in violation of any provision of this Title or the rules made

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 thereunder or whoever commits fraud, deceit or intentional misrepresentation of
material facts concerning other civil service matters, or whoever violates, refuses or
neglects to comply with any of such provisions or rules, shall upon conviction be
punished by a fine not exceeding one thousand pesos or by imprisonment not
exceeding six (6) months, or both such fine and imprisonment in the discretion of the
court.

SUBTITLE B

The Commission on Audit

CHAPTER 1

General Provisions

SECTION 1. Declaration of Policy. — All resources of the government

shall be managed, expended or utilized in accordance with law and regulations and
safeguarded against loss or wastage through illegal or improper disposition to ensure
efficiency, economy and effectiveness in the operations of government. The
responsibility to take care that such policy is faithfully adhered to rests directly with
the chief or head of the government agency concerned.

SECTION 2. Definition of Terms. — Unless the context otherwise

requires, when used in this Title:

(1) "Fund" is a sum of money or other resources set aside for the
purpose of carrying out specific activities or attaining certain
objectives in accordance with special regulations, restrictions, or
limitations, and constitutes an independent fiscal and accounting
entity.

(2) "Government funds" includes public moneys of every sort and

other resources pertaining to any agency of the Government.

(3) "Revenue funds" comprises all funds deprived from the income of
any agency of the Government and available for appropriation or
expenditure in accordance with law.

(4) "Trust funds" refers to funds which have come officially into the
possession of any agency of the Government or of a public officer
as trustee, agent, or administrator, or which have been received for

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 the fulfillment of some obligation.

(5) "Depository funds" comprises funds over which the officer

accountable therefor may retain control for the lawful purposes for
which they came into his possession. It embraces moneys in any
and all depositories.

(6) "Depository" refers to any financial institution lawfully authorized

to receive government moneys upon deposit.

(7) "Resources" refers to the actual assets of any agency of the

Government such as cash, instruments representing or convertible
to money, receivables, lands, buildings, as well as contingent
assets, such as estimated revenues applying to the current fiscal
period not accrued or collected, and bonds authorized and
unissued.

(8) "Government agency" or "agency of the government," or "agency"

refers to any department, bureaus or office of the National
Government, or any of its branches and instrumentalities, or any
political subdivision, as well as any government-owned or
controlled corporation, including its subsidiaries, or other
self-governing board or commission of the Government.

CHAPTER 2

Organization of the Commission on Audit

SECTION 3. The Commission Proper. — The Commission Proper shall

be composed of the Chairman and two Commissioners. It shall sit as a body to
formulate policies, promulgate rules and regulations, and prescribe standards
governing the discharge of its powers and functions.

SECTION 4. The Chairman. — The Chairman shall act as

Presiding Officer of the Commission Proper and Chief Executive Officer of the
Commission. The Chairman may be assisted by the commissioners in the general
administration of the Commission. He shall perform the following duties:

(1) Control and supervise the general administration of the

commission;

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 (2) Direct and manage the implementation and execution of policies,
standards, rules and regulations of the commission;

(3) Control and supervise the audit of highly technical or confidential

transactions or accounts of any government agency; and

(4) Perform such other related functions as may be assigned from time
to time by the Chairman.

SECTION 5. Offices of the Commissioners. — There shall be two

(2) Commissioners who shall assist the Chairman, upon proper delegation in the
general administration of the Commission. They shall assist in the review and
evaluation of existing policies as well as in the formulation of new ones.

SECTION 6. The Commission Secretariat. — The Commission

Secretariat shall be headed by the Secretary to the Commission who shall have the
privileges of a COA service chief. The Commission Secretariat shall perform the
following functions:

(1) Prepare the agenda for the sessions of the Commission Proper;

(2) Prepare and keep the minutes of all sessions, hearings and
conferences of the Commission Proper;

(3) Maintain the records of the Commission Proper; and

(4) Perform such related functions as may be assigned by the

Chairman of the Commission Proper.

CHAPTER 3

Offices

SECTION 7. Central Offices. — The Commission shall have the

following central offices:

(1) The Administrative Office shall be headed by a Director and shall

perform the following functions:

(a) Develop and maintain a personnel program which shall

include recruitment, selection, appointment, performance

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 evaluation, employee relations, and welfare services;

(b) Provide the Commission with services related to personnel,

records, supplies, equipment, medical, collections and
disbursements, and other related services; and

(c) Perform such other related functions as may be assigned

from time to time by the Chairman.

(2) The Planning, Financial and Management Office shall:

(a) Formulate long range and annual plans and programs for the
Commission;

(b) Formulate basis policies and guidelines for the preparation

of the budget of the Commission, coordinate with the
Department of Budget and Management, and the Office of
the President in the preparation of the said budget;

(c) Maintain and administer the accounting system pertaining to

the accounts of the Commission;

(d) Develop and maintain the management information system

of the Commission;

(e) Develop and administer a management improvement

program, including a system for measurement of
performance of auditing units on which an annual report
shall be submitted to the Chairman not later than the 31st of
January of each year;

(f) Render consultancy services related to the discharge of

government auditing functions; and

(g) Perform such other related functions as may be assigned

from time to time by the Chairman.

(3) The State Accounting and Auditing Development Office shall be

headed by a Director and shall perform the following functions:

(a) Formulate long range plans for a comprehensive training

program for all personnel of the Commission and personnel
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 of the agencies of government, with respect to Commission
rules and regulations and audit matters;

(b) Prepare and implement annual training programs, consistent

with its long range plans;

(c) Develop its capability to implement training programs;

(d) Publish the professional journal of the Commission;

(e) Establish and maintain such training centers and libraries as

may be authorized by the Commission; and

(f) Perform such other related functions as may be assigned

from time to time by the Chairman.

(4) The Accountancy Office shall be headed by a Director and shall

perform the following functions:

(a) Prepare for the Commission, the annual financial report of

the National Government and such other financial or
statistical works as may be required by the Commission;

(b) Maintain the accounts of the current surplus of the general

fund of the national government;

(c) Verify appropriations of national government agencies and

control fund releases pertaining thereto; and

(d) Assist in the formulation of accounting rules and regulations

and supervise the implementation of such rules and
regulations in government agencies.

(5) The Special Audits Office shall be headed by a Director and shall
perform the following functions:

(a) Conduct, consistent with the exercise by the Commission of

its visitorial powers as conferred by the variable scope audit
of non-governmental firms subsidized by the government
(1) required to pay levies or government shares; (2) those
funded by donations through the government; and (3) those
for which the government has put up a counterpart fund.
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 Such audits shall be limited to the funds coming from the
government;

(b) Undertake, on a selective basis, financial compliance,

economy, efficiency and effectiveness audit of national
agencies and local government units, government-owned or
controlled corporations, and other self-governing boards,
commissions, or agencies of government, as well as specific
programs and projects of the government;

(c) Audit financial operations of public utilities and franchise

grantees for rate determination and franchise tax purposes;

(d) Conduct such other special audits as may be directed by the

Chairman; and

(e) Perform such other related functions as may be assigned

from time to time by the Chairman.

(6) The Technical Services Office shall perform the following

functions:

(a) Review and evaluate contracts with emphasis on the

engineering and other technical aspects;

(b) Inspect and appraise infrastructure projects, deliveries of

materials and equipment, and property for disposal;

(c) Develop and administer a system for monitoring the prices

of materials, supplies, and equipment purchased by the
government;

(d) Initiate special studies on technical matters related to

auditing; and

(e) Perform such other related functions as may be assigned

from time to time by the Chairman.

(7) The Legal Office shall be headed by a General Counsel with the
rank and privileges of a director and which shall perform the
following functions:

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 (a) Perform advisory and consultative functions and render
legal services with respect to the performance of the
functions of the Commission and the interpretation of
pertinent laws and regulations;

(b) Handle the investigation of administrative cases filed

against the personnel of the Commission, evaluate and act
on all reports of involvement of the said personnel in
anomalies or irregularities in government transactions, and
perform any other investigative work required by the
Commission upon assignment by the Chairman;

(c) Represent the Commission in preliminary investigation of

malversation and similar cases discovered in audit, assist
and collaborate with the prosecuting agencies of
Government in the prosecution thereof, and assist and
collaborate with the Solicitor General in handling civil cases
involving the Chairman or any of the Commissioners and
other officials and employees of the Commission in their
official capacity;

(d) Extend assistance by way of legal advice or counsel to

auditors of the Commission who face harassment or
retaliatory suits, whether civil or criminal, in consequence
of the performance of their official functions;

(e) Coordinate and initiate for the Commission, with

appropriate legal bodies of government with respect to legal
proceedings towards the collection and enforcement of
debts and claims, and the restitution of funds and property,
found to be due any government agency in the settlement
and adjustment of its accounts by the Commission; and

(f) Perform such other related functions as may be assigned

from time to time by the Chairman.

(8) The National Government Audit Offices I and II shall be headed

by a Director and which shall perform the following functions:

(a) Exercise control and supervision over the implementation of

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 auditing rules and regulations in agencies of national
government in the National Capital Region (NCR),
including self-governing boards, commissions or agencies
funded from national appropriations;

(b) Review audit reports covering agencies of the national

government under its audit jurisdiction;

(c) Exercise control and supervision over personnel, planning,

financial (budgetary and accounting), and legal matters
pertaining to the Office and the Auditing Units under it;

(d) Formulate and develop plans, operating standards, methods

and techniques for the implementation of auditing rules and
regulations for agencies of the national government;

(e) Formulate accounting and auditing rules and regulations for

agencies of the national government;

(f) Advise and assist the Chairman on matters pertaining to the

audit of agencies of the national government under their
respective jurisdictions; and

(g) Perform such other related functions as may be assigned

from time to time by the Chairman.

(9) The Corporate Audit Office shall be headed by a Director and shall
perform the following functions:

(a) Exercise control and supervision over the implementation of

auditing rules and regulations in government-owned or
controlled corporations in the National Capital Region;

(b) Review audit reports covering government-owned or

controlled corporations;

(c) Exercise control and supervision over personnel, planning,

financial (budgetary and accounting), and legal matters
pertaining to the Office and the Auditing units under it;

(d) Formulate and develop plans, operating standards, methods

and techniques for the implementation of accounting and
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 auditing rules and regulations in government-owned or
controlled corporations;

(e) Formulate accounting and auditing rules and regulations for

government-owned or controlled corporations;

(f) Prepare for the Commission, the annual financial report of

government-owned or controlled corporations;

(g) Advise and assist the Chairman on matters pertaining to the

audit of government-owned or controlled corporations; and

(h) Perform such other related functions as may be assigned

from time to time by the Chairman.

(10) The Local Governments Audit Office shall be headed by a

Director and shall perform the following functions:

(a) Exercise control and supervision over the implementation of

auditing rules and regulations in local government units in
the National Capital Region;

(b) Review audit reports covering local government units in the

National Capital Region;

(c) Exercise control and supervision over personnel, planning,

financial (budgetary and accounting), and legal matters
pertaining to the Office and Auditing units under it;

(d) Formulate and develop plans, operating standards, methods

and techniques for the implementation of auditing rules and
regulations in local government units;

(e) Formulate accounting and auditing rules and regulations for

local government units;

(f) Prepare for the Commission, the annual financial report of

local government units;

(g) Advise and assist the Chairman on matters pertaining to the

audit of local government units; and

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 (h) Perform such other related functions as may be assigned
from time to time by the Chairman.

SECTION 8. Auditing Units in Regional Offices: Structure and

Functions. — The Regional Offices in Regions I to XII, each to be headed by a
Director shall perform the following functions:

(1) Exercise supervision and control over the implementation of

auditing rules and regulations in any agency of the government
with principal office or place of operations within the regions;

(2) Review local, national and corporate audit reports pertaining to the
region;

(3) Exercise control and supervision over personnel, planning,

financial (budgetary and accounting), and legal matters pertaining
to the region; and

(4) Perform such other related functions as may be assigned by the

Chairman.

SECTION 9. Auditing Units in Government Agencies: Structure and

Functions. — The Auditing Units in government agencies shall perform the following
functions:

(1) Examine, audit and settle all accounts, funds, financial transactions
and resources of government agencies under their jurisdiction;

(2) Submit audit reports and such other reports as may be required by
the Commission;

(3) Keep and preserve expense vouchers, journal vouchers, stubs of

treasury warrants and checks, reports of collections and
disbursements and similar documents together with their
supporting papers, under regulations of the Commission; and

(4) Perform such other functions as may be assigned to them by the

Chairman.

CHAPTER 4

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 Jurisdiction, Powers and Functions of the Commission

SECTION 10. Statement of Objectives. — In keeping with the

constitutional mandate, the Commission adheres to the following objectives:

(1) Determine whether or not the fiscal responsibility that rests

directly with the head of the government agency has been properly
and effectively discharged;

(2) Develop and implement a comprehensive audit program that shall

encompass an examination of financial transactions, accounts and
reports, including evaluation of compliance with applicable laws
and regulations;

(3) Institute control measures through the promulgation of auditing

and accounting rules and regulations governing the receipts,
disbursements, and uses of funds and property, consistent with the
total economic development efforts of the Government;

(4) Promulgate auditing and accounting rules and regulations so as to

facilitate the keeping, and enhance the information value of the
accounts of the Government;

(5) Institute measures designed to preserve and ensure the

independence of its representatives; and

(6) Endeavor to bring its operations closer to the people by the

delegation of authority through decentralization, consistent with
the provisions of the Constitution and the laws.

SECTION 11. General Jurisdiction. — (1) The Commission on Audit

shall have the power, authority, and duty to examine, audit, and settle all accounts
pertaining to the revenue and receipts of, and expenditures or uses of funds and
property, owned or held in trust by, or pertaining to, the Government, or any of its
subdivisions, agencies, or instrumentalities, including government-owned or
controlled corporations with original charters, and on a post-audit basis: (a)
constitutional bodies, commissions and offices that have been granted fiscal
autonomy under this Constitution; (b) autonomous state colleges and universities; (c)
other government-owned or controlled corporations and their subsidiaries; and (d)
such non-governmental entities receiving subsidy or equity, directly or indirectly,
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 from or through the Government, which are required by law or the granting institution
to submit to such audit as a condition of subsidy or equity. However, where the
internal control system of the audited agencies is inadequate, the Commission may
adopt such measures, including temporary or special pre-audit, as are necessary and
appropriate to correct the deficiencies. It shall keep the general accounts of the
Government and, for such period as may be provided by law, preserve the vouchers
and other supporting papers pertaining thereto.

(2) The Commission shall have exclusive authority, subject to the limitations
in this Article, to define the scope of its audit and examination, establish the
techniques and methods required therefor, and promulgate accounting and auditing
rules and regulations, including those for the prevention and disallowance of
irregular, unnecessary, excessive, extravagant, or unconscionable expenditures, or
uses of government funds and properties.

SECTION 12. Appointing Power. — The Commission Proper shall

appoint in accordance with the Civil Service Law, the officials and employees of the
Commission wherever they are stationed or assigned.

SECTION 13. Examining Authority. — The Commission shall have

authority to examine books, papers, documents filed by individuals and corporations
with, and which are in the custody of, government offices in connection with
government revenue collection operations, for the sole purpose of ascertaining that all
funds determined by the appropriate agencies and collectible and due the Government
have actually been collected, except as otherwise provided in the Internal Revenue
Code of 1977.

SECTION 14. Visitorial Authority. — (1) The Commission shall have

visitorial authority over non-government entities subsidized by the Government, those
required to pay levies or have government shares, those which have received
counterpart funds from the Government or are partly funded by donations through the
Government. This authority, however, shall pertain only to the audit of these funds or
subsidies coming from or through the Government; and

(2) Upon direction of the President, the Commission shall likewise exercise
visitorial authority over non-governmental entities whose loans are guaranteed by the
Government, provided that such authority shall pertain only to the audit of the
government's contingent liability.

SECTION 15. Fee for Audit and Other Services. — (1) The Commission

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 shall fix and collect reasonable fees for the different services rendered to
non-government entities that shall be audited in connection with their dealings with
the Government arising from subsidiaries, counterpart funding by Government, or
where audited records become the basis for a government levy or share. Fees of this
nature shall accrue to the General Fund and shall be remitted to the Treasurer of the
Philippines within ten (10) days following the completion of the audit; and

(2) Whenever the Commission contracts with any government entity to

render audit and related services beyond the normal scope of such services, the
Commission is empowered to fix and collect reasonable fees. Such fees shall either be
appropriated in the agency's current budget, charged against its savings, or
appropriated in its succeeding year's budget. Remittance shall accrue to the General
Fund and shall be made to the Treasurer of the Philippines within the time provided
for in the contract of service, or in the billing rendered by the Commission.

SECTION 16. Deputization of Private Licensed Professionals to Assist

Government Auditors. — (1) The Commission may, when the exigencies of the
service so require, deputize and retain in the name of the Commission such certified
public accountants and other licensed professionals not in the public service as it may
deem necessary to assist government auditors in undertaking specialized audit
engagements; and

(2) The deputized professionals shall be entitled to such compensation and

allowances as may be stipulated, subject to pertinent rules and regulations on
compensation and fees.

SECTION 17. Government Contracts for Auditing, Accounting and

Related Services. — (1) No government agency shall enter into any contract with any
private person or firm for services to undertake studies and services relating to
government auditing, including services to conduct, for a fee, seminars or workshops
for government personnel on these topics, unless the proposed contract is first
submitted to the Commission to enable it to determine if it has the resources to
undertake such studies or services. The Commission may engage the services of
experts from the public or private sectors in the conduct of these studies; and

(2) Should the Commission decide not to undertake the study or service, it
shall nonetheless have the power to review the contract in order to determine the
reasonableness of its costs.

SECTION 18. Settlement of Accounts Between Agencies. — The

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 Commission shall have the power, under such regulations as it may prescribe, to
authorize and enforce the settlement of accounts subsisting between agencies of the
Government.

SECTION 19. Collection of Indebtedness Due to the Government. — The

Commission shall, through proper channels, assist in the collection and enforcement
of all debts and claims, and the restitution of all funds or the replacement or payment
as a reasonable price of property, found to be due the Government, or any of its
subdivisions, agencies or instrumentalities, or any government-owned or controlled
corporation or self-governing board, commission or agency of the Government, in the
settlement and adjustment of its accounts. If any legal proceeding is necessary to that
end, the Commission shall refer the case to the Solicitor General, the Government
Corporate Counsel, or the Legal Staff of the Creditor Government Office or agency
concerned to institute such legal proceeding. The Commission shall extend full
support in the litigation. All such moneys due and payable shall bear interest at the
legal rate from the date of written demand by the Commission.

SECTION 20. Power to Compromise Claims. — (1) When the interest of

the Government so requires, the Commission may compromise or release in whole or
in part, any settled claim or liability to any government agency not exceeding ten
thousand pesos arising out of any matter or case before it or within its jurisdiction,
and with the written approval of the President, it may likewise compromise or release
any similar claim or liability not exceeding one hundred thousand pesos. In case the
claim or liability exceeds one hundred thousand pesos, the application for relief
therefrom shall be submitted, through the Commission and the President, with their
recommendations, to the Congress; and

(2) The Commission may, in the interest of the Government, authorize the
charging or crediting to an appropriate account in the National Treasury, small
discrepancies (overage or shortage) in the remittances to, and disbursements of, the
National Treasury, subject to the rules and regulations as it may prescribe.

SECTION 21. Retention of Money for Satisfaction of Indebtedness to

Government. — When any person is indebted to any government agency, the
Commission may direct the proper officer to withhold the payment of any money due
such person or his estate to be applied in satisfaction of the indebtedness.

SECTION 22. Authority to Examine Accounts of Public Utilities. — (1)

The Commission shall examine and audit the books, records and accounts of public
utilities in connection with the fixing of rates of every nature, or in relation to the
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 proceedings of the proper regulatory agencies, for purposes of determining franchise
taxes;

(2) Any public utility refusing to allow an examination and audit of its books
of accounts and pertinent records, or offering unnecessary obstruction to the
examination and audit, or found guilty of concealing any material information
concerning its financial status shall be subject to the penalties provided by law; and

(3) During the examination and audit, the public utility concerned shall
produce all the reports, records, books of accounts and such other papers as may be
required. The Commission shall have the power to examine under oath any official or
employee of the said public utility.

SECTION 23. Submission of Papers Relative to Obligations. — (1) The

Commission shall have the power, for purposes of inspection, to require the
submission of the original of any order, deed, contract, or other document under
which any collection, or payment from, government funds may be made, together
with any certificate, receipt, or other evidence in connection therewith. If
authenticated copy is needed for record purposes, the copy shall upon demand be
furnished;

(2) In the case of deeds to property purchased by any government agency, the
Commission shall require a certificate of title entered in favor of the Government or
other evidence satisfactory to it that the title is in the Government; and

(3) It shall be the duty of the officials or employees concerned, including

those in non-government entities under audit, or affected in the audit of government
and non-government entities, to comply with these requirements. Failure or refusal to
do so without justifiable cause shall be a ground for administrative disciplinary action
as well as for disallowing permanently a claim under examination, assessing
additional levy or government share, or withholding or withdrawing government
funding or donations through the Government.

SECTION 24. Investigatory and Inquisitorial Powers. — The Chairman or

any Commissioner, the Central Office Managers, the Regional Directors, the Auditors
of any government agency, and any other official or employee of the Commission
specially deputed in writing for the purpose by the Chairman shall, in compliance
with the requirement of due process, have the power to summon the parties to a case
brought before the Commission for resolution, issue subpoena and subpoena duces
tecum, administer oaths, and otherwise take testimony in any investigation or inquiry

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 on any matter within the jurisdiction of the Commission.

SECTION 25. Power to Punish Contempt. — The Commission shall have

the power to punish contempt provided for in the Rules of Court under the same
procedure and with the same penalties provided therein. Any violation of any final
and executory decision, order or ruling of the Commission shall constitute contempt
of the Commission.

SECTION 26. Annual Report of the Commission. — (1) The Commission

shall submit to the President and the Congress not later than the last day of September
of each year an annual report on the financial condition and results of operation of all
agencies of the Government which shall include recommendations of measures
necessary to improve the efficiency and effectiveness of these agencies;

(2) To carry out the purposes of this section, the Chief Accountant or the
official in charge of keeping the accounts of government agency shall submit to the
Commission year-end trial balances and such other supporting or subsidiary
statements as may be required by the Commission not later than the fourteenth (14)
day of February. Trial balances returned by the Commission for revision due to
non-compliance with accounting rules and regulations shall be resubmitted within
three days after the date of receipt by the official concerned; and

(3) Failure on the part of any official or employee to comply with the
provisions of the immediately preceding paragraph shall cause the automatic
suspension of the payment of his salary and other emoluments until he shall have
complied therewith. The violation of these provisions for at least three (3) times shall
subject the offender to administrative disciplinary action.

SECTION 27. Statement of Monthly Receipts and Disbursements. — The

Commission shall forward to the Secretary of Finance, as soon as and within sixty
(60) days after the expiration of each month, a statement of all receipts of the national
government of whatever class, and payments of moneys made on warrants or
otherwise during the preceding month.

SECTION 28. Powers, Functions, Duties of Auditors as Representatives of

the Commission. — (1) The Auditors shall exercise such powers and functions as may
be authorized by the Commission in the examination, audit and settlement of the
accounts, funds, financial transactions and resources of the agencies under their
respective audit jurisdiction;

(2) A report of audit for each calendar year shall be submitted on the last
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 working day of February following the close of the year by the head of each auditing
unit through the Commission to the head or the governing body of the agency
concerned, and copies thereof shall be furnished the government officials concerned
or authorized to receive them. Subject to such rules and regulations as the
Commission may prescribe, the report shall set forth the scope of audit and shall
include statements of financial conditions, surplus or deficit analysis, operations,
changes in financial position, and such comments and information as may be
necessary together with such recommendations with respect thereto as may be
advisable, including a report of any impairment of capital noted in the audit. It shall
also show specifically any program, expenditure, or other financial transaction or
undertaking observed in the course of audit which in the opinion of the auditor has
been carried out or made without authority of law. The auditor shall render such other
reports as the Commission may require;

(3) In the performance of their respective audit functions as herein specified,

the auditors shall employ such auditing procedures and techniques as are determined
by the Commission under regulations that it may promulgate; and

(4) The auditors in all auditing units shall have the custody and be
responsible for the safekeeping and preservation of paid expense vouchers, journal
vouchers, stubs of treasury warrants or checks, reports of collections and
disbursements and similar documents, together with their respective supporting
papers, under regulations of the Commission.

SECTION 29. Check and Audit of Property or Supplies. — The auditor

shall from time to time conduct a careful and thorough check and audit of all property
or supplies of the agency to which he is assigned. Such check and audit shall not be
confined to a mere inspection and examination of the pertinent vouchers, inventories,
and other papers but shall include an ocular verification of the existence and condition
of the property or supplies. The recommendation of the auditor shall be embodied in
the proper report.

SECTION 30. Annual Audit and Work Program. — Each Auditor who is
head of an auditing unit shall develop and devise an annual work program and the
necessary audit program for his unit in accordance with regulations of the
Commission.

SECTION 31. Seizure of Office by Auditor. — (1) The books, accounts,

papers and cash of any local treasurer or other accountable officer shall at all times be
open to the inspection of the Commission or its authorized representative;
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 (2) In case an examination of the accounts of a local treasurer discloses a
shortage in cash which should be on hand, it shall be the duty of the examining officer
to seize the office and its contents, notify the Commission and the local chief
executive, thereupon immediately take full possession of the office and its contents,
close and render his accounts to the date of taking possession, and temporarily
continue the public business of such office; and

(3) The auditor who takes possession of the office of the local treasurer under
this section shall ipso facto supersede the local treasurer until the officer involved is
restored, or another person has been appointed or designated to the position or other
provision has been lawfully made for filling the office.

SECTION 32. Constructive Distraint of Property of Accountable Officer.

— (1) Upon discovery in audit of a shortage in the accounts of any accountable
officer and upon a finding of a prima facie case of malversation of public funds or
property against him, in order to safeguard the interest of the Government, the
Commission may place under constructive distraint personal property of the
accountable officer concerned where there is reasonable ground to believe that the
said officer is retiring from the government service or intends to leave the Philippines
or remove his property therefrom or hide or conceal his property;

(2) The constructive distraint shall be effected by requiring the accountable

officer concerned or any other person having possession or control of the property to
accomplish a receipt, in the form prescribed by the Commission, covering the
property distrained and obligate himself to preserve the same intact and unaltered and
not to dispose of it in any manner whatever without the express authority of the
Commission; and

(3) In case the said accountable officer or other person having the possession
and control of the property sought to be placed under constructive distraint refuses or
fails to accomplish the receipt herein referred to, the representative of the
Commission effecting the constructive distraint shall proceed to prepare a list of such
property and, in the presence of two (2) witnesses, leave a copy thereof in the
premises where the property distrained is located, after which the said property shall
be deemed to have been placed under constructive distraint.

CHAPTER 5

Decisions of the Commission

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 SECTION 33. Appeal from Decision of Auditors. — Any person aggrieved
by the decision of an auditor of any government agency in the settlement of an
account or claim may, within six (6) months from receipt of a copy thereof, appeal in
writing to the Commission.

SECTION 34. Period for Rendering Decisions of the Commission. — The

Commission shall decide any case brought before it within sixty (60) days from the
date of its submission for resolution. If the account or claim involved in the case
needs reference to other persons or offices, or to a party interested, the period shall be
counted from the time the last comment necessary to a proper decision is received by
it.

SECTION 35. Appeal from Decision of the Commission. — Any decision,

order or ruling of the Commission may be brought to the Supreme Court on certiorari
by the aggrieved party within thirty days from his receipt of a copy thereof in the
manner provided by law and the Rules of Court. When the decision, order or ruling
adversely affects the interest of any government agency, the appeal may be taken by
the proper head of that agency.

SECTION 36. Finality of Decision of the Commission or Any Auditor. —

A decision of the Commission or of any Auditor upon any matter within its or his
jurisdiction, if not appealed as herein provided, shall be final and executory.

SECTION 37. Opening and Revision of Settled Accounts. — (1) At any

time before the expiration of three (3) years after the settlement of any account by an
auditor, the Commission may motu proprio review and revise the account or
settlement and certify a new balance. For this purpose, it may require any account,
vouchers or other papers connected with the matter to be forwarded to it;

(2) When any settled account appears to be tainted with fraud, collusion, or
error of calculation, or when new and material evidence is discovered, the
Commission may, within three (3) years after the original settlement, open the
account and, after a reasonable time for reply or appearance of the party concerned,
certify thereon a new balance. An auditor may exercise the same power with respect
to settled accounts pertaining to the agencies under his audit jurisdiction; and

(3) Accounts once finally settled shall in no case be opened or reviewed

except as herein provided.

CHAPTER 6

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 Government Auditing and Accounting

SECTION 38. Definition of Government Auditing. — Government

auditing is the analytical and systematic examination and verification of financial
transactions, operations, accounts and reports of any government agency for the
purpose of determining their accuracy, integrity and authenticity, and satisfying the
requirements of law, rules and regulations.

SECTION 39. General Standards. — (1) The audit shall be performed by

a person possessed with adequate technical training and proficiency as auditor;

(2) In all matters relating to the audit work, the auditor shall maintain
complete independence, impartiality and objectivity and shall avoid any possible
compromise of his independence or any act which may create a presumption of lack
of independence or the possibility of undue influence in the performance of his duties;
and

(3) The auditor shall exercise due professional care and be guided by
applicable laws, regulations and the generally accepted principles of accounting in the
performance of the audit work as well as in the preparation of audit and financial
reports.

SECTION 40. Definition of Government Accounting. — Government

accounting includes the processes of analyzing, recording, classifying, summarizing
and communicating all transactions involving the receipt and dispositions of
government funds and property, and interpreting the results thereof.

SECTION 41. Objectives of Government Accounting. — Government

accounting shall aim to produce information concerning past operations and present
conditions; provide a basis for guidance for future operations; provide for control of
the acts of public bodies and officers in the receipt, disposition and utilization of
funds and property; and report on the financial position and the results of operations
of government agencies for the information of all persons concerned.

CHAPTER 7

Receipt and Disposition of Funds and Property

SECTION 42. Accounting for Money and Property Received by Public

Officials. — Except as may otherwise be specifically provided by law or competent
authority, all moneys and property officially received by a public officer in any
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 capacity or upon any occasion must be accounted for as government funds and
government property. Government property shall be taken up in the books of the
agency concerned at acquisition cost or an appraised value.

SECTION 43. Special, Fiduciary and Trust Funds. — Receipts shall be

recorded as income of Special, Fiduciary or Trust Funds or Funds other than the
General Fund only when authorized by law as implemented pursuant to law.

SECTION 44. Issuance of Official Receipts. — (1) No payment of any

nature shall be received by a collecting officer without immediately issuing an official
receipt in acknowledgment thereof. The receipt may be in the form of postage,
internal revenue or documentary stamps and the like, or officially numbered receipts,
subject to proper custody, accountability and audit; and

(2) Where mechanical devices are used to acknowledge cash receipts, the
Commission may approve, upon request, exemption from the use of accountable
forms.

CHAPTER 8

Application of Appropriated Funds

SECTION 45. Disbursement of Government Funds. — (1) Revenue funds

shall not be paid out of any public treasury or depository except in pursuance of an
appropriation law or other specific statutory authority;

(2) Trust funds shall not be paid out of any public treasury or depository
except in fulfillment of the purpose for which the trust was created or funds received,
and upon authorization of the legislative body, or head of any other agency of the
government having control thereof, and subject to pertinent budget laws, rules and
regulations;

(3) National revenue and trust funds shall not be withdrawn from the
National Treasury except upon warrant or other instruments of withdrawal approved
by the Secretary of Finance as recommended by the Treasurer of the Philippines; and

(4) Temporary investment of investible cash in the National Treasury in any

securities issued by the National Government and its political subdivisions and
instrumentalities, including government-owned or controlled corporations as
authorized by the Secretary of Finance, shall not be construed as disbursements of
funds.
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 SECTION 46. Appropriation Before Entering into Contract. — (1) No
contract involving the expenditure of public funds shall be entered into unless there is
an appropriation therefor, the unexpended balance of which, free of other obligations,
is sufficient to cover the proposed expenditure; and

(2) Notwithstanding this provision, contracts for the procurement of supplies

and materials to be carried in stock may be entered into under regulations of the
Commission provided that when issued, the supplies and materials shall be charged to
the proper appropriations account.

SECTION 47. Certificate Showing Appropriation to Meet Contract. —

Except in the case of a contract for personal service, for supplies for current
consumption or to be carried in stock not exceeding the estimated consumption for
three (3) months, or banking transactions of government-owned or controlled banks,
no contract involving the expenditure of public funds by any government agency shall
be entered into or authorized unless the proper accounting official of the agency
concerned shall have certified to the officer entering into the obligation that funds
have been duly appropriated for the purpose and that the amount necessary to cover
the proposed contract for the current calendar year is available for expenditure on
account thereof, subject to verification by the auditor concerned. The certificate
signed by the proper accounting official and the auditor who verified it, shall be
attached to and become an integral part of the proposed contract, and the sum so
certified shall not thereafter be available for expenditure for any other purpose until
the obligation of the government agency concerned under the contract is fully
extinguished.

SECTION 48. Void Contract and Liability of Officer. — Any contract

entered into contrary to the requirements of the two (2) immediately preceding
sections shall be void, and the officer or officers entering into the contract shall be
liable to the Government or other contracting party for any consequent damage to the
same extent as if the transaction had been wholly between private parties.

SECTION 49. Countersigning of Warrants or Checks by Auditors. — No

warrant or check shall be paid by the Treasurer of the Philippines, local treasurer, or
any government depository unless it is countersigned by a duly authorized official of
the Commission. When, in the opinion of the Commission, the interest of the service
so requires, the warrant or check may be paid without the countersignature under such
rules and regulations as it may prescribe from time to time.

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 CHAPTER 9
Accountability and Responsibility for Government Funds and Property

SECTION 50. Accountable Officers; Board Requirements. — (1) Every

officer of any government agency whose duties permit or require the possession or
custody government funds shall be accountable therefor and for safekeeping thereof
in conformity with law; and

(2) Every accountable officer shall be properly bonded in accordance with

law.

SECTION 51. Primary and Secondary Responsibility. — (1) The head of

any agency of the Government is immediately and primarily responsible for all
government funds and property pertaining to his agency;

(2) Persons entrusted with the possession or custody of the funds or property
under the agency head shall be immediately responsible to him, without prejudice to
the liability of either party to the Government.

SECTION 52. General Liability for Unlawful Expenditures. —

Expenditures of government funds or uses of government property in violation of law
or regulations shall be a personal liability of the official or employee found to be
directly responsible therefor.

SECTION 53. Prohibition Against Pecuniary Interest. — No accountable

or responsible officer shall be pecuniarily interested, directly or indirectly, in any
contract or transaction of the agency in which he is such an officer.

CHAPTER 10

Miscellaneous Provisions

SECTION 54. Duty to Respect the Commission's Independence. — It shall

be the duty of every person to respect, protect and preserve the independence of the
Commission.

SECTION 55. Administrative Disciplinary Action. — Subject to rules and

regulations as may be approved by the President, any unjustified failure by the public
officer concerned to comply with any requirement imposed in Title I-B, Book V of
this Code shall constitute neglect of duty and shall be a ground for administrative

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 disciplinary action against said public officer who, upon being found guilty thereof
after hearing, shall be meted out such penalty as is commensurate with the degree of
his guilt in accordance with the Civil Service Law. Repeated unjustified failure to
comply with the requirement imposed in Title I-B, Book V of this Code shall be
conclusive proof that the public officer concerned is notoriously undesirable.

SUBTITLE C

Commission on Elections

CHAPTER 1

General Provisions

SECTION 1. Declaration of Policy. — The State shall at all times ensure

free, orderly, honest, peaceful and credible elections under a free and open party
system which shall be allowed to evolve according to the free choice of the people
subject to the provisions of Article IX-C of the 1987 Constitution of the Philippines.

SECTION 2. Powers and Functions. — 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 insuring free, orderly, honest, peaceful and credible
elections, and shall:

(1) Promulgate rules and regulations implementing the provisions of

the Omnibus Elections Code or other laws which the Commission
is required to enforce and administer;

(2) Fix other reasonable periods for certain pre-election requirements

in order that voters shall not be deprived of their right of suffrage
and certain groups of rights granted them in the Omnibus Election
Code;

Unless indicated in the Omnibus Election Code, the

Commission is hereby authorized to fix the appropriate period for
the various prohibited acts enumerated therein consistent with the
requirements of free, orderly, honest, peaceful and credible
elections.

(3) Exercise direct and immediate supervision and control over

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 national and local officials or employees, including members of
any national or local law enforcement agency and instrumentality
of the government required by law to perform duties relative to the
conduct of elections, plebiscite, referendum, recall and initiative.
In addition, it may authorize CMT cadets, eighteen years of age
and above to act as its deputies for the purpose of enforcing its
orders;

The Commission may relieve any officer or employee

referred to in the preceding paragraph from the performance of his
duties relating to electoral processes who violates the election law
or fails to comply with its instructions, orders, decisions or rulings,
and appoint his substitute. Upon recommendation of the
Commission, the corresponding proper authority shall suspend or
remove from office any or all of such officers or employees who
may, after due process, be found guilty of such violation or failure.

(4) During the period of the campaign and ending thirty days
thereafter, when in any area of the country there are persons
committing acts of terrorism to influence people to vote for or
against any candidate or political party, the Commission shall have
the power to authorize any member or members of the Armed
Forces of the Philippines, the National Bureau of Investigation, the
Integrated National Police or any similar agency or instrumentality
of the government, except civilian home defense forces, to act as
deputies for the purpose of insuring the holding of free, orderly,
honest, peaceful and credible elections;

(5) Publish at least ten (10) days before an election in a newspaper of

general circulation certified data on the number of official ballots
and election returns and the names and address of the printers and
the number printed by each;

(6) Refuse, motu propio or upon a verified petition, to give due course
to or cancel a certificate of candidacy if it is shown that said
certificate has been filed to put the election process in mockery or
disrepute or to cause confusion among the voters by the similarity
of the names of the registered candidates or by other circumstances
or acts which clearly demonstrate that the candidate has no bona
fide intention to run for the office for which the certificate of
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 candidacy has been filed and thus prevent a faithful determination
of the true will of the electorate;

(7) Postpone, motu propio or upon verified petition and after due
notice and hearing whereby all interested parties are afforded equal
opportunity to be heard, the election to a date which should be
reasonably close to the date of the election not held, suspended or
which resulted in a failure to elect but not later than thirty days
after the cessation of the cause for such postponement or
suspension of the election or failure to elect, when for any serious
cause such as violence, terrorism, loss or destruction of election
paraphernalia or records, force majeure, and other analogous
causes the holding of a free, orderly, honest, peaceful and credible
election should become impossible in any political subdivision.

(8) Call for the holding or continuation of election not held in any
polling place where on account of force majeure, violence,
terrorism, fraud or other analogous causes the election has not
been held on the date fixed, or had been suspended before the hour
fixed by law for the closing of the voting, or after the voting and
during the preparation and the transmission of the election returns
or in the custody or canvass thereof, such election results in a
failure to elect, and in any of such cases the failure or suspension
of election would affect the result of the election. Such call should
be on the basis of a verified petition by any interested party and
after due notice and hearing, and the new date should be
reasonably close to the date of the election not held, suspended or
which resulted in a failure to elect but not later than thirty (30)
days after the cessation of the cause of such postponement or
suspension of the election or failure to elect.

(9) Call a special election to elect the member to serve the unexpired
portion in case a vacancy arises in the Senate or in the House of
Representatives eighteen (18) months or more before a regular
election, to be held within sixty (60) days after the vacancy occurs;

(10) Summon the parties to a controversy pending before it, issue

subpoena duces tecum and take testimony in any investigation or
hearing before it, and delegate such power to any officer of the
Commission who shall be a member of the Philippine Bar. In case
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 of failure of a witness to attend, the Commission, upon proof of
service of the subpoena to said witness, may issue a warrant to
arrest the witness and bring him before the Commission or the
officer before whom his attendance is required;

Any controversy submitted to the Commission shall, after

compliance with the requirements of due process, be immediately
heard and decided by it within sixty (60) days from the date of its
submission for decision or resolution. No decision or resolution
shall be rendered by the Commission either en banc or by division
unless taken up in a formal session properly convened for the
purpose;

The Commission may when necessary, avail itself of the

assistance of any national or local law enforcement agency and or
instrumentality of the government to execute under its direct and
immediate supervision any of its final decisions, orders,
instructions or rulings;

(11) Punish for contempt according to the procedure, and with the same
penalties provided, in the Rules of Court. Any violation of any
final and executory decision, order or ruling of the Commission
shall constitute contempt thereof;

(12) Enforce and execute its decisions, directives, orders and

instructions which shall have precedence over those emanating
from any other authority, except the Supreme Court and those
issued in habeas corpus proceedings;

(13) Prescribe the forms to be used in the election, plebiscite or

referendum, recall or initiative;

(14) Procure any supplies, equipment, materials or services needed for

the holding of the election by public bidding; but if it finds the
requirements of public bidding impractical to observe, then by
negotiations or sealed bids, and in both cases, the accredited
parties shall be duly notified;

(15) Prescribe the use or adoption of the latest technological and

electronic devices, taking into account the situation prevailing in
the area and funds available for the purpose. The Commission
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 shall notify the authorized representatives of accredited political
parties and candidates in areas affected by the use or adoption of
technological and electronic devices not less than thirty days prior
to the effectivity of the use of such devices;

(16) Constitute a pool of standby-teachers from which substitutes shall

be drawn in case a member/s of the Board of Election Inspectors
who, for one reason or another, failed to report or refused to act as
such on the day of election;

(17) Carry out a continuing and systematic campaign through

newspapers of general circulation, radio and other media forms to
educate the public and fully inform the electorate about election
laws, procedures, decisions, and other matters relative to the works
and duties of the Commission and the necessity of clean, free,
orderly, honest, peaceful and credible electoral processes;

(18) Accredit non-partisan groups or organizations of citizens from the

civic, youth, professional, education, business or labor sectors
known for their probity, impartiality and integrity with the
membership and capability to undertake a coordinated operation
and activity to assist it in the implementation of the provisions of
Omnibus Election Code and the resolutions, orders and
instructions of the Commission for the purpose of ensuring free,
orderly, honest, peaceful and credible elections in any
constituency. Such groups or organizations shall function under
the direct and immediate control and supervision of the
Commission;

(19) Conduct hearing on controversies pending before it in the cities or

provinces upon proper motion of any party, taking into
consideration the materiality and number of witnesses to be
presented, the situation prevailing in the area and the fund
available for the purpose;

(20) Have exclusive jurisdiction over all pre-proclamation

controversies. It may motu proprio or upon written petition, and
after due notice and hearing, order the partial or total suspension of
the proclamation of any candidate-elect or annul partially or totally
any proclamation, if one has been made, as the evidence shall
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 warrant. Notwithstanding the pendency of any pre-proclamation
controversy, the Commission may, motu propio or upon filing of a
verified petition and after due notice and hearing, order the
proclamation of other winning candidates whose election will not
be affected by the outcome of the controversy.

(21) Have the exclusive power, through its duly authorized legal
officers, to conduct preliminary investigation of all election
offenses punishable under the Omnibus Election Code and to
prosecute the same. The Commission may avail itself of the
assistance of other prosecuting arms of the government: Provided,
however, that in the event that the Commission fails to act on any
complaint within four (4) months from its filing, the complainant
may file the complaint with the office of the fiscal or with the
Department of Justice for proper investigation and prosecution, if
warranted; and

(22) Perform such other functions as may be provided by law.

SECTION 3. Enforcement Powers. — For the effective enforcement of

the provisions of the Omnibus Election Code, the Commission is further vested and
charged with the following powers, duties and responsibilities:

1. To stop any illegal activity, or confiscate, tear down, and stop any
unlawful, libelous, misleading or false election propaganda, after
due notice and hearing; and

2. To inquire into the financial records of candidates and any

organization or group of persons, motu propio or upon written
representation for probable cause by any candidate, organization or
group of persons or qualified voter, after due notice and hearing.

For purposes of this Section, the Commission may avail itself of the assistance
of the Commission on Audit, the Central Bank, the National Bureau of Investigation,
the Bureau of Internal Revenue, the Armed Forces of the Philippines, the Integrated
National Police of the Philippines, barangay officials and other agencies of the
government.

CHAPTER 2

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 The Commission Proper

SECTION 4. Composition and Qualification. — There shall be a

Commission on Elections composed of a Chairman and six (6) Commissioners
who shall be natural born citizens of the Philippines and, at the time of their
appointment, at least thirty-five (35) years of age, holders of a college degree, and
must not have been candidates for any elective position in the immediately preceding
elections. However, a majority thereof, including the Chairman, shall be members of
the Philippine Bar who have been engaged in the practice of law for at least ten (10)
years.

SECTION 5. Appointment and Term of Office. — The Chairman and the

Commissioners shall be appointed by the President with the consent of the
Commission on Appointments for a term of seven (7) years without reappointment.
Of those first appointed, three (3) Members shall hold office for seven (7) years, two
(2) members for five (5) years, and the last members for three (3) years, without
reappointment. Appointment to any vacancy shall be only for the unexpired term of
the predecessor. In no case shall any Member be appointed or designated in a
temporary or acting capacity.

SECTION 6. Disqualifications. — The Chairman and members of the

Commission shall be subject to the canons of judicial ethics in the discharge of their
functions.

No chairman or commissioner shall sit in any case in which he has manifested

bias or prejudice or antagonism against any party thereto and in connection therewith,
or in any case in which he would be disqualified under the Rules of Court. If it be
claimed that the chairman or a commissioner is disqualified as above provided, the
party objecting to his competency may file his objection in writing with the
Commission stating the ground therefor. The official concerned shall continue to
participate in the hearing or withdraw therefrom in accordance with his determination
of the question of his disqualification. The decision shall forthwith be made in writing
and filed with the other papers of the case in accordance with the Rules of Court. If a
disqualification should result in a lack of quorum in the Commission sitting en banc,
the Presiding Justice of the Court of Appeals shall designate a justice of said court to
sit in said case for the purpose of hearing and reaching a decision thereon.

SECTION 7. Chairman as Executive Officer; Powers and Duties. — The

Chairman, who shall be the Chief Executive Officer of the Commission, shall:

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 (1) Execute and administer the policies, decisions, orders and
resolutions approved by the Commission;

(2) Direct and supervise the operations and internal administration of

the Commission;

(3) Sign appointments of subordinate officials and employees made by

the Commission and enforce decisions on administrative discipline
involving them;

(4) Make temporary assignments, rotate and transfer personnel in

accordance with the provisions of the civil service law;

(5) Submit an annual budget to the Commission for its approval;

(6) Delegate his authority, in whole or in part, to other officials of the

Commission, in accordance with the rules and regulations of the
Commission; and

(7) Perform such other duties as may be authorized by the

Commission.

SECTION 8. Executive Director; Powers and Duties. — The Executive

Director of the Commission shall:

(1) Advise and assist the Chairman in the formulation and

implementation of the objectives, policies, plans and programs of
the Commission;

(2) Serve as the principal assistant of the Chairman in the overall

supervision of the administrative business of the Commission;

(3) Oversee all the operational activities of the Commission;

(4) Coordinate the programs and projects of the Commission and be

responsible for its economical, efficient and effective
administration;

(5) Serve as deputy to the Chairman in all matters relating to the

operational activities of the Commission;

(6) Administer oaths in connection with all matters relating to the

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 business of the Commission; and

(7) Perform such other duties as may be assigned by the Chairman.

SECTION 9. Staff and Operating Units. — The Commission shall have

the following staff and operating units: Office of the Chairman, Office of the
Executive Director, Office of Electoral Contests Adjudication, Regional Offices,
Election and Barangay Affairs Department, Law Department, Election Records and
Statistics Department, Administrative Service Department, Planning Department,
Personnel Department, Finance Services Department and Education and Information
Department.

SECTION 10. Duties and Functions of Offices and Departments of the

Commission. — The different offices and departments of the Commission shall
operate in accordance with their respective duties and functions assigned to them by
the Commission, subject to the requirements of efficiency, economy and
effectiveness, and pertinent Budget and Civil Service Law, rules and regulations.

CHAPTER 3

The Field Offices

SECTION 11. Field Office of the Commission. — The Commission shall

have the following field offices:

(1) Regional Election Office, headed by the Regional Election

Director and assisted by the Assistant Regional Director and such
other subordinate officers or employees as the Commission may
appoint;

(2) Provincial Election Office, headed by the Provincial Election

Supervisor and assisted by such other subordinate officers or
employees as the Commission may appoint;

(3) City Municipal Election Office, headed by the City/Municipal

Election Registrar who shall be assisted by an election clerk and
such other employees as the Commission may appoint.

The Commission may delegate its powers and functions or order the
implementation or enforcement of its orders, rulings or decisions through the heads of
its field offices.

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 SECTION 12. Qualifications of Heads of Field Offices. — Only members
of the Philippine Bar shall be eligible for appointment to the position of regional
director, assistant regional director, provincial election supervisor and election
registrar. However, if there are no members of the Philippine Bar available for
appointment as election registrar, except in cities and capital towns, graduates of duly
recognized schools of law, liberal arts, education or business administration who
possess the appropriate civil service eligibility may be appointed to said position.

SECTION 13. Changes in the Composition, Distribution of Assignment of

Field Offices. — The Commission may make changes in the composition, distribution
and assignment of field offices, as well as its personnel, whenever the exigencies of
the service and the interest of free, orderly, honest, peaceful and credible election so
require: Provided, That such changes shall be effective and enforceable only for the
duration of the election period concerned and shall not affect the tenure of office of
the incumbents of positions affected and shall not constitute a demotion, either in
rank or salary, nor result in a change of status; and Provided, further, That there shall
be no changes in the composition, distribution or assignment within thirty (30) days
before election, except for cause and after due notice and hearing, and that in no case
shall a regional or assistant regional director be assigned to a region, or a provincial
election supervisor to a province, or a city municipal election registrar to a city or
municipality, where he and/or his spouse are related to any candidate within the
fourth civil degree of consanguinity or affinity as the case may be.

TITLE II

Other Bodies

SUBTITLE A

Commission on Human Rights

SECTION 1. Composition and Qualification. — The Commission on

Human Rights shall be composed of a Chairman and four (4) Members who must be
natural-born citizens of the Philippines and, at the time of their appointment, at least
thirty-five years of age, and must not have been candidates for any elective position in
the elections immediately preceding their appointment. However, a majority thereof
shall be members of the Philippine Bar.

SECTION 2. Powers and Functions. — The Commission on Human

Rights shall:

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 (1) Investigate, on its own or on complaint by any party, all forms of
human rights violations involving civil and political rights;

(2) Adopt its operational guidelines and rules of procedure, and cite
for contempt violations thereof in accordance with the Rules of
Court;

(3) Provide appropriate legal measures for the protection of human

rights of all persons within the Philippines, as well as Filipinos
residing abroad, and provide for preventive measures and legal aid
services to the under-privileged whose human rights have been
violated or need protection;

(4) Exercise visitorial powers over jails, prisons, or detention facilities;

(5) Establish a continuing program of research, education and

information to enhance respect for the primacy of human rights;

(6) Recommend to the Congress effective measures to promote human

rights and to provide for compensation to victims of violations of
human rights, or their families;

(7) Monitor the Philippine Government's compliance with

international treaty obligations on human rights;

(8) Grant immunity from prosecution to any person whose testimony

or whose possession of documents or other evidence is necessary
or convenient to determine the truth in any investigation conducted
by it or under its authority;

(9) Request the assistance of any department, bureau, office, or agency

in the performance of its functions;

(10) Appoint its officers and employees in accordance with law; and

(11) Perform such other duties and functions as may be provided by

law.

SECTION 3. Inhibitions Against Commissioners. — The Chairman and

the Members of the Commission on Human Rights shall not, during their tenure, hold
any other office or employment. Neither shall they engage in the practice of any
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 profession or in the active management or control of any business which in any way
will be affected by the functions of their office, nor shall they be financially
interested, directly or indirectly, in any contract with, or in any franchise or privilege
granted by the government, any of its subdivisions, agencies, or instrumentalities,
including government-owned or controlled corporations or their subsidiaries.

SECTION 4. Term of Office. — The Chairman and the Members of the

Commission on Human Rights shall be appointed by the President for a term of seven
years without reappointment. Appointment to any vacancy shall be only for the
unexpired term of the predecessor.

SECTION 5. Compensation. — The Chairman and the Members of the

Commission on Human Rights shall receive the same salary as the Chairman and
Members, respectively, of the Constitutional Commissions, which shall not be
decreased during their term of office.

SECTION 6. Annual Appropriations. — The approved annual

appropriations of the Commission on Human Rights shall be automatically and
regularly released.

SUBTITLE B

Office of the Ombudsman

SECTION 1. Composition. — (1) The Office of the Ombudsman shall be

headed by the Ombudsman to be known as the Tanodbayan, who shall be
assisted by one overall Deputy and at least by one Deputy each for Luzon, Visayas
and Mindanao. A separate Deputy for the military establishment may likewise be
appointed.

(2) It shall have such other officials and employees, to be appointed by the
Ombudsman according to the Civil Service Law.

SECTION 2. Powers and Functions. — The Office of the Ombudsman

shall:

(1) Investigate on its own, or on complaint by any person, any act or

omission of any public official, employee, office or agency, when
such act or omission appears to be illegal, unjust, improper, or
inefficient;

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 (2) Direct, upon complaint or at its own instance, any public official or
employee of the Government, or any subdivision, agency or
instrumentality thereof, as well as of any government-owned or
controlled corporation with original charter, to perform and
expedite any act or duty required by law, or to stop, prevent, and
correct any abuse or impropriety in the performance of duties;

(3) Direct the officer concerned to take appropriate action against a

public official or employee at fault, and recommend his removal,
suspension, demotion, fine, censure, or prosecution, and ensure
compliance therewith;

(4) Direct the officer concerned, in any appropriate case, and subject
to such limitations as may be provided by law, to furnish it with
copies of documents relating to contracts or transactions entered
into by his office involving the disbursement or use of public funds
or properties, and report any irregularity to the Commission on
Audit for appropriate action;

(5) Request any government agency for assistance and information

necessary in the discharge of its responsibilities, and to examine, if
necessary, pertinent records and documents;

(6) Publicize matters covered by its investigation when circumstances

so warrant and with due prudence;

(7) Determine the causes of inefficiency; red tape,

mismanagement, fraud, and corruption in the Government and
make recommendations for their elimination and the observance of
high standards of ethics and efficiency;

(8) Promulgate its rules of procedure and exercise such other powers
or perform such functions or duties as may be provided by law.

SECTION 3. Action and Complaints. — The Ombudsman and his

Deputies, as protectors of the people, shall act promptly on complaints filed in any
form or manner against public officials or employees of the Government, or any
subdivision, agency or instrumentality thereof, including government-owned or
controlled corporations, and shall, in appropriate cases, notify the complainants of the
action taken and the result thereof.

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 SECTION 4. Fiscal Autonomy. — The Office of the Ombudsman shall
enjoy fiscal autonomy. Its approved annual appropriations shall be automatically and
regularly released.

SUBTITLE C

The National Economic and Development Authority

CHAPTER 1

General Provisions

SECTION 1. Declaration of Policy. — The State shall ensure that all

socio-economic programs and activities of the government shall be programmed
within the context of well-formulated and consistent long, medium, and short-term
development plans and policies to promote both the growth of the economy and the
equitable distribution of the benefits of such growth to the members of society. To
this end, it is recognized that the formulation of the required socio-economic
development policies and plans is a vital process that calls for the participation of the
various government agencies and private sector institutions and individuals
concerned, both on national, regional, and local levels. This process of policy and
plan formulation, however, needs to be coordinated closely by a central government
agency to ensure consistency of these plans and policies and optimal use of the
nation's scarce resources.

SECTION 2. National Economic and Development Authority. — The

National Economic and Development Authority shall serve as an independent
planning agency of the government.

SECTION 3. Powers and Functions of the Authority. — The powers and

functions of the Authority are vested in the NEDA Board.

The Authority shall primarily be responsible for formulating continuing,

coordinated and fully integrated social and economic policies, plans and programs, on
the basis of the following:

(1) The State aims to achieve objectives of growth coupled with

equity;

(2) Development leading to the attainment of the above mentioned

goals is a multi-faceted process that calls for the coordination and
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 integration of policies, plans, programs and projects of all sectors
of society;

(3) In the formulation of basic policies, plans, programs and projects,

there shall be maximum participation by and consultation with
concerned private sector groups, community organizations and
beneficiaries and local government units in order to ensure that
priority needs are incorporated into such policies, plans, programs
and projects;

(4) National plans shall be in fact the sum of nationally and regionally
identified targets and strategies and locally formulated approaches
to perceived local needs and priorities, carried out within the
framework of national strategies;

(5) Major socio-economic policies, plans, programs and projects of

different government agencies must be properly coordinated with
the Authority at both the national and regional levels prior to their
adoption, in order to ensure their consistency with established
national priorities and coordination with other policies, plans,
programs and projects of the government; and

(6) The linkage between development planning, programming and

budgeting shall be of the highest priority in planning and
budgeting activities.

The Authority, after due consultation with the private sector, community
organizations and beneficiaries, local government units and appropriate public
agencies, shall be responsible for studying, reviewing, formulating and
recommending continuing, coordinated and fully integrated economic and
development policies, plans and programs, including the formulation of annual and
medium-term public investment programs, programming official development
assistance in the form of grants and concessional loans from foreign governments and
multilateral agencies and organizations and the monitoring and evaluation of plan
implementation.

SECTION 4. Composition of the Authority. — The Authority shall be

composed of two separate and distinct entities: the Board and the Secretariat.

CHAPTER 2

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 NEDA Board

SECTION 5. Composition of the NEDA Board. — The NEDA

Board shall be composed of the following:

The President — Chairman

Director-General of the NEDA
Secretariat — Vice-Chairman
Executive Secretary — Member
Secretary of Finance — Member
Secretary of Trade & Industry — Member
Secretary of Agriculture — Member
Secretary of Environment & Natural
Resources — Member
Secretary of Public Works and
Highways — Member
Secretary of Budget and Management — Member
Secretary of Labor & Employment — Member
Secretary of Local Government — Member

The President may, however, revise the membership of the NEDA Board
whenever the same is deemed necessary for the effective performance of the Board's
functions through an administrative or memorandum order.

SECTION 6. Meetings. — The NEDA Board shall meet at least once a

month or as frequently as is necessary to discharge its responsibilities as called for by
the President. When the President is unable to attend a meeting, the Director-General
of the NEDA may preside as Chairman, in the absence of any Presidential preference.

The President however continues to have the power to designate from among
the members of the NEDA Board the Chairman that can appropriately represent the
President, to preside over specific meetings.

SECTION 7. National Economic Development Authority Inter-agency

Committees. — To assist the NEDA Board in the performance of its functions, there
are hereby created the following committees which shall hereafter be under the direct
control of the NEDA Board and shall submit all their recommendations to the
President for approval on matters involving their respective concerns. The Chairmen
of these committees shall be designated by the President. The NEDA Board shall
likewise determine where the technical staff of the said committees shall be based.

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 (1) Development Budget Coordination Committee (DBCC) — The
DBCC, to be composed of the Director-General of the National
Economic Development Authority Secretariat, the Executive
Secretary and the Secretaries of Finance and of Budget and
Management, shall have the following functions:

(a) Recommend for Presidential approval the level of the

annual government expenditure program and the ceiling of
government spending for economic and social development,
national defense, general government and debt service;

(b) Recommend to the President the proper allocation of

expenditures for each development activity between current
operating expenditures and capital outlay; and

(c) Recommend to the President the amount set to be allocated

for capital outlay under each development activity for the
various capital or infrastructure projects.

(2) Investment Coordination Committee (ICC) — The ICC to be

composed of the Director-General of the National Economic
Development Authority Secretariat, the Executive Secretary, the
Secretaries of Finance, Agriculture, Trade and Industry and of
Budget and Management and the Governor of the Central Bank
shall have the following functions:

(a) Evaluate the fiscal, monetary and balance of payments

implications of major national projects and recommend to
the President the timetable for the implementation of these
projects on a regular basis; and

(b) Recommend to the President a domestic and foreign

borrowing program updated each year; and subsequently
submit to the President a status of the fiscal, monetary and
balance of payments implications of major national projects.

(3) Committee on Social Development (SDC) — The SDC to

be composed of the Director-General of the National Economic
Development Authority Secretariat, the Executive Secretary, and
the Secretaries of Education, Culture and Sports, Labor and

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 Employment, Health, Local Government, Agrarian Reform,
Agriculture and Social Welfare and Development shall have the
following functions:

(a) Advise the President and the NEDA Board on matters

concerning social development, including education,
manpower, health and nutrition, population and family
planning, housing, human settlements and the delivery of
other social services;

(b) Coordinate the activities of government agencies concerned

with social development; and

(c) Recommend to the President government policies, programs

and projects on social development consistent with national
development objectives and priorities.

(4) Committee on Infrastructure (INFRACOM) — the

INFRACOM to be composed of the Director-General of the
National Economic Development Authority Secretariat, the
Executive Secretary, and the Secretaries of Public Works and
Highways, Transportation and Communications, Finance, and
Budget and Management shall have the following functions:

(a) Advise the President and the NEDA Board on matters

concerning infrastructure development including highways,
airports, seaports and shore protection; railways; power
generation, transmission and distribution;
telecommunications; irrigation, flood control and drainage;
water supply; national buildings for government offices;
hospitals, sanitation and related buildings; state colleges and
universities, elementary and secondary school buildings;
and other public works;

(b) Coordinate the activities of agencies, including

government-owned or controlled corporations concerned
with infrastructure development; and

(c) Recommend to the President government policies, programs

and projects concerning infrastructure development
consistent with national development objectives and
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 priorities.

(5) Committee on Tariff and Related Matters (TRM) — The TRM to

be composed of the Director-General of the National Economic
Development Authority Secretariat, the Executive Secretary, the
Secretaries of Trade and Industry, Foreign Affairs, Agriculture,
Environment and Natural Resources and Budget and Management,
the Governor of the Central Bank and the Chairman of the Tariff
Commission shall have the following functions:

(a) Advise the President and the NEDA Board on Tariff and
related matters, and on the effects on the country of various
international developments;

(b) Coordinate agency positions and recommend national

positions for international economic negotiations; and

(c) Recommend to the President a continuous rationalization

program for the country's tariff structure.

CHAPTER 3

NEDA Secretariat

SECTION 8. The NEDA Secretariat. — The Secretariat of NEDA shall

have the following functions:

(1) Serve as the research and technical support arm of the NEDA
Board;

(2) Provide through its various organizational units, technical staff

support and assistance, including the conduct of studies and
development of policy measures and other recommendations, on
the various aspects of the substantive functions of development
planning and policy formulation, and coordination, evaluation and
monitoring of plan implementation;

(3) Serve as the Secretariat of the NEDA Board; and

(4) Perform such other functions as may be assigned to it by the

NEDA Board to achieve its goals and objectives.

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 SECTION 9. Structural Organization. — The NEDA Secretariat shall be
composed of the Director-General, three (3) Deputy Directors-General, five (5)
Assistant Directors-General, the National Development Office, the Regional
Development Office, the Central Support Office and the Regional Offices.

SECTION 10. Director-General. — The Director-General shall head the

Secretariat and shall likewise serve as Vice-Chairman of the NEDA Board. He shall
be appointed by the President and shall carry the rank and title of Secretary of
Socio-Economic Planning and shall be a member of the Cabinet.

As Chief Executive Officer, he shall exercise general supervision and control

over its technical and administrative personnel.

SECTION 11. Deputy Directors-General. — The Director-General shall

be assisted by three (3) Deputy Directors-General to be appointed by the President,
one to be responsible for the National Development Office, one, for the Regional
Development Office and one, for the Central Support Office.

SECTION 12. Assistant Directors-General. — The Director-General shall

also be assisted by five (5) Assistant Directors-General to be appointed by the
President, who shall be assigned to assist the Deputy Directors-General in their tasks
of coordinating and supervising their respective Offices.

SECTION 13. National Development Office. — The National

Development Office shall provide technical staff support as may be required by the
NEDA Board in coordinating the formulation of national and sectoral policies, plans
and programs; monitor macro-economic and sectoral performances; prepare the
necessary economic reports; conduct economic and development studies on
macro-level plans and policies; and perform such other appropriate planning tasks as
may be assigned by the Director-General.

It shall be composed of the following:

(1) National Planning and Policy Staff;

(2) Agriculture Staff;

(3) Trade, Industry and Utilities Staff;

(4) Infrastructure Staff;

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 (5) Social Development Staff; and

(6) Public Investment Staff.

SECTION 14. Regional Development Office. — The Regional

Development Office shall provide technical staff support as may be required by the
implementing agencies in the regions; monitor regional and inter-regional
development policies, plans and programs; prepare integrated reports on regional
planning; conduct studies on regional development policies; and perform such other
planning tasks as may be assigned by the Director-General.

It shall be composed of the following:

(1) Regional Development Coordination Staff;

(2) Project Monitoring Staff; and

(3) Regional Offices.

In each of the administrative regions, there shall be a regional office which

shall be headed by a Regional Director who shall report to the Deputy
Director-General for Regional Development Office. The Regional Director shall be
appointed by the President.

SECTION 15. Central Support Office. — The Central Support Office shall
be responsible for providing technical assistance and support services to the
Secretariat's organizational units in the areas of development administration, internal
management improvement, legal services, development information, administrative
services, and perform such other support service tasks as may be assigned by the
Director-General.

It shall be composed of the following:

(1) Management Staff;

(2) Legal Staff;

(3) Administrative Staff;

(4) Management Information System Staff; and

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 (5) Development Information Staff.

CHAPTER 4

Attached Agencies

SECTION 16. Retained Agencies. — The following agencies,

currently attached to the Authority, shall continue to be so attached for purposes of
supervision:

(1) Philippine Institute for Development Studies;

(2) Philippine National Volunteer Service Coordinating Agency;

and

(3) Tariff Commission.

The Authority shall arrange for the transfer of the functions of the following
agencies to the Regional Development Councils concerned or other agencies as may
be appropriate:

(1) Kalinga Special Development Authority;

(2) Laguna Lake Development Authority;

(3) Leyte Sab-a Basin Development Authority.

The National Council for Integrated Area Development (NACIAD) and the
Central Visayas Regional Projects Office (CVRPO) are hereby transferred to the
Authority which shall, within one (1) year from the date of effectivity of this Code,
recommend their transfer to the appropriate department in conjunction with the
Department of Budget and Management. The Authority shall further review the
functions and activities of all other Integrated Area Development programs and
projects and any other programs requiring multi-sectoral and/or multi-disciplinary
approaches in order to recommend the appropriate disposition and supervision of the
same.

The Authority shall furthermore review the mandate, objectives and functions
of all development authorities in order to recommend such dispositions or revisions of
their charters, as may be deemed advisable.

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 BOOK VI

National Government Budgeting

CHAPTER 1

General Provisions

SECTION 1. Constitutional Policies on the Budget. — (1) All

appropriations, revenue or tariff bills, bills authorizing increase of the public debt,
bills of local application, and private bills shall originate exclusively in the House of
Representatives but the Senate may propose or concur with amendments.

(2) The Congress may not increase the appropriations recommended by the
President for the operation of the Government as specified in the budget. The form,
content and manner of preparation of the budget shall be prescribed by law.

(3) No provision or enactment shall be embraced in the general

appropriations bill unless it relates specifically to some particular appropriation to
which it relates.

(4) The procedures in approving appropriations for the Congress shall strictly
follow the procedure for approving appropriations for other departments and
agencies.

(5) A special appropriations bill shall specify the purpose for which it is
intended, and shall be supported by funds actually available as certified by the
National Treasurer or to be raised by a corresponding revenue proposal therein.

(6) No law shall be passed authorizing any transfer of appropriations.

However, the President, the President of the Senate, the Speaker of the House of
Representatives, the Chief Justice of the Supreme Court and the heads of
Constitutional Commissions may, by law, be authorized to augment any item in the
general appropriations laws for their respective offices from savings in other items of
their respective appropriations.

(7) Discretionary funds appropriated for particular official shall be disbursed

only for public purposes to be supported by appropriate vouchers and subject to such
guidelines as may be prescribed by law.

(8) If, by the end of any fiscal year, the Congress shall have failed to pass the
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 general appropriations bill for the ensuing fiscal year, the general appropriations law
for the preceding fiscal year shall be deemed reenacted and shall remain in force and
effect until the general appropriations bill is passed by the Congress.

(9) Fiscal autonomy shall be enjoyed by the Judiciary, Constitutional

Commissions, Office of the Ombudsman, Local Government and Commission on
Human Rights.

SECTION 2. Definition of Terms. — When used in this Book:

(1) "Appropriation" refers to an authorization made by law or other

legislative enactment, directing payment out of government funds
under specified conditions or for specified purposes.

(2) "Allotment" refers to an authorization issued by the Department of

the Budget to an agency, which allows it to incur obligations for
specified amounts contained in a legislative appropriation.

(3) "Budget" refers to a financial plan required to be prepared pursuant

to Section 16(1), Article VIII of the Constitution, reflective of
national objectives, strategies and programs.

(4) "Current operating expenditures" refers to appropriations for the

purchase of goods and services for current consumption or for
benefits expected to terminate within the fiscal year.

(5) "Capital outlay" or "capital expenditures" refers to an

appropriation for the purchase of goods and services, the benefits
of which extend beyond the fiscal year and which add to the assets
of the Government, including investments in the capital of
government-owned or controlled corporations and their
subsidiaries.

(6) "Continuing appropriation" refers to an appropriation available to

support obligations for a specified purpose or project, even when
these obligations are incurred beyond the budget year.

(7) "Expected result" means service, product, or benefit that will

accrue to the public, estimated in terms of performance measures
or targets.

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 (8) "Fiscal year" refers to the period beginning with the first day of
January and ending with the thirty-first day of December of each
calendar year.

(9) The "Government" means the National Government, including the

Executive, the Legislative and the Judicial Branches, and the
Constitutional Commissions.

(10) "Department and agency" and "department or agency" include all

departments, bureaus, offices, boards, commissions, courts,
tribunals, councils, authorities, administrations, centers, institutes,
state colleges and universities, and all other establishments and
instrumentalities of the National Government as defined in the
preceding paragraph.

(11) "Obligation" refers to an amount committed to be paid by the

Government for any lawful act made by an authorized officer for
and in behalf of the government.

(12) "Program" refers to the functions and activities necessary for the
performance of a major purpose for which a government agency is
established.

(13) "Project" means a component of a program covering a

homogenous group of activities that results in the accomplishment
of an identifiable output.

CHAPTER 2

Budget Policy and Approach

SECTION 3. Declaration of Policy. — It is hereby declared the policy of

the State to formulate and implement a National Budget that is an instrument of
national development, reflective of national objectives, strategies and plans. The
budget shall be supportive of and consistent with the socio-economic development
plan and shall be oriented towards the achievement of explicit objectives and
expected results, to ensure that funds are utilized and operations are conducted
effectively, economically and efficiently. The national budget shall be formulated
within the context of a regionalized government structure and of the totality of
revenues and other receipts, expenditures and borrowings of all levels of government

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 and of government-owned or controlled corporations. The budget shall likewise be
prepared within the context of the national long-term plan and of a long-term budget
program.

SECTION 4. Planning and Budgeting Linkage. — The budget shall be

formulated as an instrument for the attainment of national development goals and as
part of the planning-programming-budgeting continuum. Levels of revenue,
expenditure and debt shall be established in relation to macro-economic targets of
growth, employment levels, and price level change, and shall be developed consistent
with domestic and foreign debt, domestic credit and balance of payments objectives
for the budget period. The aggregate magnitudes of the budget shall be determined in
close consultation among the planning and fiscal agencies of government. Budgetary
priorities shall be those specified in the approved national plans, keeping in mind the
capability and performance of the implementing agencies concerned. Agency budget
proposals shall explicitly state linkage to approved agency plans.

SECTION 5. National Resource Budget. — The finances of government

shall be analyzed and determined as the aggregate of revenue, expenditure and debt of
all units of government, including the national government and its agencies and
instrumentalities, local government units and government-owned or controlled
corporations. The national government budget shall be evolved within the framework
of the total impact of government activity on the national economy. The budgets of
government corporations and local governments shall be consistent in form and
timing with that of the national government, to facilitate comprehensive evaluation.

SECTION 6. Regional Budgeting. — The budgets of national

government agencies shall take into full and explicit consideration the goals, plans
and requirements of their respective regional offices, in the interest of full
government response to local thinking and initiative. The budget preparation process
shall originate at regional and local levels, and shall be consolidated and reviewed by
the central offices of the various national agencies. The regional development
strategies and plans, including physical framework and resource-use plans, shall be
considered in the preparation of the budget.

SECTION 7. Long Term Budgeting. — The annual budgets of the

national government shall be prepared as an integral part of a long-term budget
picture. The long-term economic and physical framework plans of government,
multi-year requirements of approved programs and projects, organizational and
personnel development strategies, and other commitments entered into or otherwise

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 assumed by government shall be specified in the budget process.

SECTION 8. Development Projects. — The development process

requires the implementation of major development projects of such size as to
significantly affect the infrastructure program, debt ceilings, the balance of payments,
domestic credit, and government expenditure levels. The budget process shall
formally consider the timing of major national projects, in order to ensure the
observance of established fiscal, monetary, international payments, and other
constraints.

SECTION 9. Performance and Financial Review. — The analysis of

agency operating performance, the evaluation of performance relative to costs
incurred and the review of agency operating systems and procedures are inherent
parts of the budget process. Agencies shall therefore design and implement (1)
management information systems yielding both performance and financial
information which will adequately monitor and control budget implementation, and
(2) improvements in operating systems, procedures and practices, so as to ensure that
the targets approved in budget authorization are in fact attained at minimum cost.

SECTION 10. Compensation and Position Classification. — The size of

personnel services expenditures relative to the total budget and the number of
agencies and personnel in government call for an effective national compensation and
position classification policy. The Constitutional principle of a single compensation
scheme for the government and its instrumentalities is one of the bases of the
government budget process.

CHAPTER 3

Budget Preparation

SECTION 11. Submission of the Budget. — The President shall, in

accordance with Section 22(1), article VII of the Constitution, submit within thirty
(30) days from the opening of each regular session of the Congress as the basis for the
preparation of the General Appropriations Act, a national government budget
estimated receipts based on existing and proposed revenue measures, and of estimated
expenditures.

The President shall include in the budget submission the proposed expenditure
level of the Legislative and Judicial Branches and of Constitutional bodies, which
shall have undergone the same process of evaluation and which shall have been
subject to the same budgetary policies and standards applicable to agencies in the
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 Executive Branch.

The President may transmit to the Congress from time to time, such proposed
supplemental or deficiency appropriations as are, in his judgment, (1) necessary on
account of laws enacted after the transmission of the Budget, or (2) otherwise needed
in the public interest.

SECTION 12. Form and Content of the Budget. — The budget proposal of
the President shall include current operating expenditures and capital outlays. It shall
comprise such funds as may be necessary for the operation of the programs, projects
and activities of the various departments and agencies. The proposed General
Appropriations Act and other Appropriations Acts necessary to cover the budget
proposals shall be submitted to the Congress to accompany the President's budget
submission.

The budget shall be presented to the Congress in such form and content as may
be approved by the President and may include the following:

(1) A budget message setting forth in brief the government's budgetary

thrusts for the budget year, including their impact on development
goals, monetary and fiscal objectives, and generally on the
implications of the revenue, expenditure and debt proposals; and

(2) Summary financial statements setting forth:

(a) Estimated expenditures and proposed appropriations

necessary for the support of the Government for the ensuing
fiscal year, including those financed from operating
revenues and from domestic and foreign borrowings;

(b) Estimated receipts during the ensuing fiscal year under laws
existing at the time the budget is transmitted and under the
revenue proposals, if any, forming part of the year's
financing program;

(c) Actual appropriations, expenditures, and receipts during the

last completed fiscal year;

(d) Estimated expenditures and receipts and actual or proposed

appropriations during the fiscal year in progress;

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 (e) Statements of the condition of the National Treasury at the
end of the last completed fiscal year, the estimated
condition of the Treasury at the end of the fiscal year in
progress and the estimated condition of the Treasury at the
end of the ensuing fiscal year, taking into account the
adoption of financial proposals contained in the budget and
showing, at the same time, the unencumbered and
unobligated cash resources;

(f) Essential facts regarding the bonded and other long-term

obligations and indebtedness of the Government, both
domestic and foreign, including identification of recipients
of loan proceeds; and

(g) Such other financial statements and data as are deemed

necessary or desirable in order to make known in reasonable
detail the financial condition of the government.

SECTION 13. Budget Levels. — The ordinary income of government shall

be used primarily to provide appropriations for current operations, except in case of a
national emergency or serious financial stress, the existence of which has been duly
proclaimed by the President.

The level of aggregate revenue expenditure and debt shall be jointly

recommended to the President by the Department of Budget and Management, the
Department of Finance, the National Economic and Development Authority and the
Central Bank of the Philippines, acting within the Development Budget Coordination
Committee of the National Economic and Development Authority.

No appropriations for current operations and capital outlays of the Government

shall be proposed unless the amount involved is covered by the ordinary income, or
unless it is supported by a proposal creating additional sources of funds or revenue,
including those generated from domestic and foreign borrowings, sufficient to cover
the same. Likewise, no appropriation for any expenditure, the amount of which is not
covered by the estimated income from the existing sources of revenue or available
current surplus, may be proposed, unless it is supported by a proposal creating an
additional source of funds sufficient to cover the same.

Proposals creating additional sources of funds shall be prepared in the form of

revenue bills.
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 The provisions of this section shall not be construed as impairing in any way
the power of the Congress to enact revenue and appropriation bills, nor the authority
of the President to propose special revenue and appropriation bills after the
submission of the budget.

SECTION 14. Budget Estimates. — Each head of department, office or

agency of the National Government, including the Legislative and Judicial Branches,
and including government owned or controlled corporations, shall submit his request
for appropriations to the Department of Budget in accordance with the budget
calendar, format, and such rules and regulations as may be issued in implementation
of this Decree.

The budget estimates of agencies include the following information:

(1) Objectives, functions, activities, programs and projects showing

the general character and relative importance of the work to be
accomplished or the services to be rendered, and the principal
elements of cost involved;

(2) Linkage of the work and financial proposals to approved

development plans;

(3) Estimated current operating expenditures and capital outlays, with

comparative data for the preceding and current budget years;

(4) Identification by region, pursuant to policies on the regionalization

of government operations;

(5) Financial sources, reflecting all revenues, proceeds of foreign and

domestic borrowings, and other sources, particularly those which
accrue to the General Fund;

(6) Contingent liabilities, including national government guarantees of

obligations of government-owned or controlled corporations and
their subsidiaries;

(7) Brief description of the major thrusts and priority programs and
projects for the budget year, results expected for each budgetary
program and project, the nature of work to be performed, estimated
costs per unit of work measurement, including the various objects

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 of expenditure for each project;

(8) Organization charts and staffing patterns indicating the list of

existing and proposed positions with corresponding salaries, and
proposals for position classification and salary changes, duly
supported by adequate justification.

SECTION 15. Regional Budget. — The Budgets of national government

agencies shall be prepared taking into full and careful consideration the opportunities
and requirements specific to the various regions of the country. Where they are
organized, regional offices shall originate agency budget proposals, in accordance
with approved priorities and guidelines.

Agencies which are not regionalized shall nonetheless estimate the amounts
planned to be spent for each region of the country.

The Secretary shall identify by region the expenditure programs of the national
government agencies in the national government budget, and release funds to national
government agencies in accordance with the approved regional distribution of
expenditures, specifying the region of destination.

Departments and agencies shall sub-allot in full and without the imposition of
reserves, the approved budget allocation of their various regional offices, except as
may be authorized by the Secretary, in case realignment of expenditures prove to be
necessary in the course of budget execution. The Secretary shall issue the rules and
regulations needed to implement the provisions of this section.

SECTION 16. Budget Evaluation. — Agency proposals shall be reviewed

on the basis of their own merits and not on the basis of a given percentage or peso
increase or decrease from a prior year's budget level, or other similar rule of thumb
that is not based on specific justification. Proposed activities, whether new or
ongoing, shall be evaluated using a zero-base approach and on the basis of (1)
relationship with the approved development plan, (2) agency capability as
demonstrated by past performance, (3) complemental role with related activities of
other agencies, and (4) other similar criteria. The realization of savings in a given
budget year and the consequent non-utilization of funds appropriated or released to a
given agency shall not be a negative factor in the budget evaluation for a subsequent
year.

SECTION 17. Foreign-Assisted Projects. — The budgetary implications

of foreign-assisted projects shall be explicitly considered at the time of project design
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 and financing negotiation. The project study shall specify the cash flow requirements
of the project, among others, for (1) payment of principal and interest, (2) peso
component of capital costs and project preparation, (3) infrastructure and support
facilities needed to be directly financed by government, (4) operating and other
expenditures which will be ultimately required for General Fund support when the
project is implemented, and (5) peso requirements needed as counterpart. The
concurrence of the Department of Budget and Management shall be obtained with
respect to peso requirements and implication on expenditure ceilings.

SECTION 18. Coordinating Bodies. — The budgets of coordinating

agencies, councils, task forces, authorities, committees, or other similar bodies shall
be limited to and used to fund only such planning, coordinating and monitoring
functions as are assigned to it. Funds for implementation shall be budgeted and
released to the line implementing agencies concerned: provided, that the budgets of
coordinating bodies may include a lump-sum for purposes related to their assigned
functions, which lump-sum shall be sub-allotted to implementing agencies and not
used by the agency for its own operations: provided, further, that funds budgeted for a
given agency falling within the jurisdiction of a coordinating body, may be subject to
release upon approval by the coordinating agency of such release or of the agency's
work program.

SECTION 19. Budgetary Requirements of Government-Owned or

Controlled Corporations. — The internal operating budgets of government-owned or
controlled corporations and of chartered institutions shall be approved by their
respective governing boards in accordance with a budget calendar and format as may
be approved by the President: Provided, that such budgets shall be subject to review
and approval as part of the budget process in cases where national government
budgetary support is needed, in terms of (a) capital or equity inputs, (b) operating
contributions to support specific activities undertaken by the institution as part of its
regular functions, and (c) guarantee of the national government for obligations or
contracts entered into by the corporations: provided, further, that the submission of
interim financial statements may be required by the Secretary.

SECTION 20. Tax and Duty Exemption. — All units of government,

including government-owned or controlled corporations, shall pay income taxes,
customs duties and other taxes and fees as are imposed under revenue law: provided,
that organizations otherwise exempted by law for the payment of such taxes/duties
may ask for a subsidy from the General Fund in the exact amount of taxes/duties due:
Provided, further, that a procedure shall be established by the Secretary of Finance
and the Secretary of the Budget, whereby such subsidies shall automatically be
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 considered as both revenue and expenditure of the General Fund.

SECTION 21. Appropriation for Personal Services. — Appropriations for

personal services shall be considered as included in the amount specified for each
budgetary program and project of each department, bureau, office or agency, and
shall not be itemized. The itemization of personal services shall be prepared by the
Secretary for consideration and approval of the President as provided in Section 23
hereof: Provided, That the itemization of personal services shall be prepared for all
agencies of the Legislative, Executive and Judicial Branches and the Constitutional
bodies, except as may be otherwise approved by the President for positions concerned
with national security matters.

SECTION 22. Department Approval of Proposed Appropriations. — No

legislative proposal which, if enacted, would authorize subsequent appropriations,
shall be transmitted to the President by any bureau or agency, without the prior
approval of the Head of the Department concerned or by the Chairman or Chief
Executive Officer of a Cabinet level body which coordinates the multi-sectoral
formulation and implementation of a particular program of expenditure involving one
or more departments. No legislative proposal involving the appropriation of funds
shall be transmitted to the Congress without the approval of the President.

CHAPTER 4

Budget Authorization

SECTION 23. Content of the General Appropriations Act. — The General

Appropriations Act shall be presented in the form of budgetary programs and projects
for each agency of the government, with the corresponding appropriations for each
program and project, including statutory provisions of specific agency or general
applicability. The General Appropriations Act shall not contain any itemization of
personal services, which shall be prepared by the Secretary after enactment of the
General Appropriations Act, for consideration and approval of the President.

SECTION 24. Prohibition Against the Increase of Appropriation. — The

Congress shall in no case increase the appropriation of any project or program of any
department, bureau, agency or office of the Government over the amount submitted
by the President in his budget proposal. In case of any reduction in the proposed
appropriation for a project or program, a corresponding reduction shall be made in the
total appropriation of the department, office or agency concerned and in the total of
the General Appropriations Bill.

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 SECTION 25. Prohibition Against Enactment of Additional Special
Provisions. — The Congress shall not add special provisions in the budget
earmarking the use of appropriations for specific programs or activities nor shall it
increase the amounts specified in special provisions, beyond those proposed by the
President.

SECTION 26. Automatic Appropriations. — All expenditures for (1)

personnel retirement premiums, government service insurance, and other similar fixed
expenditures, (2) principal and interest on public debt, (3) national government
guarantees of obligations which are drawn upon, are automatically appropriated:
Provided, that no obligations shall be incurred or payments made from funds thus
automatically appropriated except as issued in the form of regular budgetary
allotments.

SECTION 27. Supplemental Appropriations. — All appropriation

proposals shall be included and considered in the budget preparation process. After
the President shall have submitted the Budget, no supplemental appropriation
measure supported from existing revenue measures shall be passed by the Congress.
However, supplemental or deficiency appropriations involving the creation of new
offices, programs or activities may be enacted if accompanied and supported by new
revenue sources.

SECTION 28. Reversion of Unexpended Balances of Appropriations,

Continuing Appropriations. — Unexpended balances of appropriations authorized in
the General Appropriation Act shall revert to the unappropriated surplus of the
General Fund at the end of the fiscal year and shall not thereafter be available for
expenditure except by subsequent legislative enactment: Provided, that appropriations
for capital outlays shall remain valid until fully spent or reverted: Provided, further,
that continuing appropriations for current operating expenditures may be specifically
recommended and approved as such in support of projects whose effective
implementation calls for multi-year expenditure commitments: Provided, finally, that
the President may authorize the use of savings realized by an agency during a given
year to meet non-recurring expenditures in a subsequent year.

The balances of continuing appropriations shall be reviewed as part of the

annual budget preparation process and the preparation process and the President may
approve upon recommendation of the Secretary, the reversion of funds no longer
needed in connection with the activities funded by said continuing appropriations.

SECTION 29. Loan Proceeds. — Expenditures funded by foreign and

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 domestic borrowings shall be included within the expenditure program of the agency
concerned. Loan proceeds, whether in cash or in kind, shall not be used without the
corresponding release of funds through a Special Budget as herein provided.

SECTION 30. Contingent Liabilities. — Government agencies,

particularly government-owned or controlled corporations, shall periodically report to
the Secretary of Finance and the Secretary of Budget on the status of obligations they
have entered into and which are the subject of government guarantees.

SECTION 31. Liability for Unauthorized Printing Press Revisions. — It

shall be unlawful for any person to make any unauthorized revision of any figure, text
or provision in the General Appropriations Act and in the other budget documents
during or in the process of the printing. Any unauthorized change made either by
addition, modification or deletion, shall be null and void.

Persons who, in violation of this section, make any unauthorized revision in

the budget documents, shall be criminally liable for falsification of legislative
documents under the Revised Penal Code. When the offender is a government official
or employee, he shall, in addition to criminal prosecution, be dismissed from the
service.

CHAPTER 5

Budget Execution

SECTION 32. Use of Appropriated Funds. — All moneys appropriated for

functions, activities, projects and programs shall be available solely for the specific
purposes for which these are appropriated.

SECTION 33. Allotment of Appropriations. — Authorized appropriations

shall be allotted in accordance with the procedure outlined hereunder:

(1) Appropriations authorized for any Department or agency of the

Government may be made available for expenditure when the head
for each Department or agency submits to the Secretary a request
for allotment of funds showing the estimated amounts needed for
each function, activity or purpose for which the funds are to be
expended during the applicable allotment period. The form and the
time of submission of the request for allotment showing the
proposed quarterly allotments of the whole authorized
appropriation for the department or agency, shall be prescribed by
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 the Secretary.

(2) In the administration of the allotment system herein provided, each

calendar year shall be divided into four quarterly allotment periods
beginning, respectively, on the first day of January, April, July and
October. In any case where the quarterly allotment period is found
to be impractical or otherwise undesirable, the Secretary may
prescribe a different period suited to the circumstances.

(3) Request for allotment shall be approved by the Secretary who shall
ensure that expenditures are covered by appropriations both as to
amount and purpose and who shall consider the probable needs of
the department or agency for the remainder of the fiscal year or
period for which the appropriation was made.

(4) At the end of every quarter, each department or agency shall report
to the Secretary the current status of its appropriations, the
cumulative allotments, obligations incurred or liquidated, total
disbursements, unliquidated obligations and unexpended balances
and the result of expended appropriations.

(5) Releases of funds appropriated for a given agency may be made to

its regional offices if dictated by the need and urgency of regional
activities.

(6) The Secretary shall have authority to modify or amend any

allotment previously issued. In case he shall find at any time that
the probable receipts from taxes or other sources of any fund will
be less than anticipated and that as a consequence the amount
available for the remainder of the term of the appropriations or for
any allotment period will be less than the amount estimated or
allotted therefor, he shall, with the approval of the President and
after notice to the department or agency concerned, reduce the
amount or amounts allotted so as to conform to the targeted
budgetary goals.

(7) The Secretary shall maintain a control record showing quarterly by

funds, accounts, and other suitable classifications, the amounts
appropriated, the estimated revenues, the actual revenues or
receipts, the amounts allotted and available for expenditures, the

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 unliquidated obligations, actual balances on hand, and the
unencumbered balance of the allotments for each department or
agency of the Government.

SECTION 34. Program of Expenditure. — The Secretary of Budget shall

recommend to the President the year's program of expenditure for each agency of the
government on the basis of authorized appropriations. The approved expenditure
program shall constitute the basis for fund release during the fiscal period, subject to
such policies, rules and regulations as may be approved by the President.

SECTION 35. Special Budgets for Lump-Sum Appropriations. —

Expenditures from lump-sum appropriations authorized for any purpose or for any
department, office or agency in any annual General Appropriations Act or other Act
and from any fund of the National Government, shall be made in accordance with a
special budget to be approved by the President, which shall include but shall not be
limited to the number of each kind of position, the designations, and the annual salary
proposed for which an appropriation is intended. This provision shall be applicable to
all revolving funds, receipts which are automatically made available for expenditure
for certain specific purposes, aids and donations for carrying out certain activities, or
deposits made to cover to cost of special services to be rendered to private parties.
Unless otherwise expressly provided by law, when any Board, head of department,
chief of bureau or office, or any other official, is authorized to appropriate, allot,
distribute or spend any lump-sum appropriation or special, bond, trust, and other
funds, such authority shall be subject to the provisions of this section.

In case of any lump-sum appropriation for salaries and wages of temporary and
emergency laborers and employees, including contractual personnel, provided in any
General Appropriation Act or other Acts, the expenditure of such appropriation shall
be limited to the employment of persons paid by the month, by the day, or by the
hour.

SECTION 36. Cash Budgets. — An operational cash budget shall be

implemented to ensure the availability of cash resources for priority development
projects and to establish a sound basis for determining the level, type and timing of
public borrowings. The procedure, format, accounts, and other details necessary for
the execution, monitoring and control aspects of the system shall be determined
jointly by the Secretary of Finance, the Secretary of the Budget and the Chairman of
the Commission on Audit.

SECTION 37. Creation of Appropriation Reserves. — The Secretary may

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 establish reserves against appropriations to provide for contingencies and
emergencies which may arise later in the calendar year and which would otherwise
require deficiency appropriations.

The establishment of appropriation reserves shall not necessarily mean that

such portion of the appropriation will not be made available for expenditure. Should
conditions change during the fiscal year justifying the use of the reserve, necessary
adjudgments may be made by the Secretary when requested by the department, office
or agency concerned.

SECTION 38. Suspension of Expenditure of Appropriations. — Except as

otherwise provided in the General Appropriations Act and whenever in his judgment
the public interest so requires, the President, upon notice to the head of office
concerned, is authorized to suspend or otherwise stop further expenditure of funds
allotted for any agency, or any other expenditure authorized in the General
Appropriations Act, except for personal services appropriations used for permanent
officials and employees.

SECTION 39. Authority to Use Savings in Appropriations to Cover

Deficits. — Except as otherwise provided in the General Appropriations Act, any
savings in the regular appropriations authorized in the General Appropriations Act for
programs and projects of any department, office or agency, may, with the approval of
the President, be used to cover a deficit in any other item of the regular
appropriations: Provided, that the creation of new positions or increase of salaries
shall not be allowed to be funded from budgetary savings except when specifically
authorized by law: Provided, further, that whenever authorized positions are
transferred from one program or project to another within the same department, office
or agency, the corresponding amounts appropriated for personal services are also
deemed transferred, without, however increasing the total outlay for personal services
of the department, office or agency concerned.

SECTION 40. Certification of Availability of Funds. — No funds shall be

disbursed, and no expenditures or obligations chargeable against any authorized
allotment shall be incurred or authorized in any department, office or agency without
first securing the certification of its Chief Accountant or head of accounting unit as to
the availability of funds and the allotment to which the expenditure or obligation may
be properly charged.

No obligation shall be certified to accounts payable unless the obligation is

founded on a valid claim that is properly supported by sufficient evidence and unless
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 there is proper authority for its incurrence. Any certification for a non-existent or
fictitious obligation and/or creditor shall be considered void. The certifying official
shall be dismissed from the service, without prejudice to criminal prosecution under
the provisions of the Revised Penal Code. Any payment made under such certification
shall be illegal and every official authorizing or making such payment, or taking part
therein or receiving such payment, shall be jointly and severally liable to the
government for the full amount so paid or received.

SECTION 41. Prohibition Against the Incurrence of Overdraft. — Heads

of departments, bureaus, offices and agencies shall not incur nor authorize the
incurrence of expenditures or obligations in excess of allotments released by the
Secretary for their respective departments, offices and agencies. Parties responsible
for the incurrence of overdrafts shall be held personally liable therefor.

SECTION 42. Adjustment of Appropriations for Reorganization. — When

under authority of law, a function or an activity is transferred or assigned from one
agency to another, the balances of appropriations which are determined by the head of
such department to be available and necessary to finance or discharge the function or
activity so transferred or assigned may, with the approval of the President, be
transferred to and be made available for use by the agency to which said function or
activity is transferred or assigned for the purpose for which said funds were originally
available. Balances so transferred shall be credited to any applicable existing
appropriation account or to new appropriation accounts which are hereby authorized
to be established, and shall be merged with any fund already in the applicable existing
or newly established appropriation account or accounts and thereafter accounted for
as one fund.

The funding requirement of agencies reorganized in accordance with approved

reorganization plans or reorganized pursuant to law enacted after the approval of the
General Appropriations Act, are deemed appropriated and shall be available for
expenditure as soon as the reorganization plans are approved. The Secretary of
Budget is hereby authorized to make necessary adjustments in the appropriations to
carry out the provisions of this section. The department head concerned, with the
approval of the Secretary of Budget, is hereby authorized to make necessary salary
adjustments resulting from final selection of personnel to fill the positions in the
staffing patterns of reorganized agencies, to make necessary salary adjustments
resulting from new appointments, promotions or salary increases, subject to the
provisions of Presidential Decree No. 985.

SECTION 43. Liability for Illegal Expenditures. — Every expenditure or

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 obligation authorized or incurred in violation of the provisions of this Code of
the general and special provisions contained in the annual General or other
Appropriations Act shall be void. Every payment made in violation of said provisions
shall be illegal and every official or employee authorizing or making such payment,
or taking part therein, and every person receiving such payment shall be jointly and
severally liable to the Government for the full amount so paid or received.

Any official or employee of the Government knowingly incurring any

obligation, or authorizing any expenditure in violation of the provisions herein, or
taking part therein, shall be dismissed from the service, after due notice and hearing
by the duly authorized appointing official. If the appointing official is other than the
President and should he fail to remove such official or employee, the President may
exercise the power of removal.

SECTION 44. Accrual of Income to Unappropriated Surplus of the

General Fund. — Unless otherwise specifically provided by law, all income accruing
to the departments, offices and agencies by virtue of the provisions of existing laws,
orders and regulations shall be deposited in the National Treasury or in the duly
authorized depository of the Government and shall accrue to the unappropriated
surplus of the General Fund of the Government: Provided, That amounts received in
trust and from the business-type activities of government may be separately recorded
and be disbursed in accordance with such rules and regulations as may be determined
by the Permanent Committee created under this Act.

SECTION 45. Special, Fiduciary and Trust Funds. — Receipts shall be

recorded as income of Special, Fiduciary or Trust Funds or Funds other than the
General Fund, only when authorized by law and following such rules and regulations
as may be issued by a Permanent Committee consisting of the Secretary of Finance as
Chairman, and the Secretary of the Budget and the Chairman, Commission on Audit,
as members. The same Committee shall likewise monitor and evaluate the activities
and balances of all Funds of the national government other than the General fund and
may recommend for the consideration and approval of the President, the reversion to
the General fund of such amounts as are (1) no longer necessary for the attainment of
the purposes for which said Funds were established, (2) needed by the General fund
in times of emergency, or (3) violative of the rules and regulations adopted by the
Committee: Provided, that the conditions originally agreed upon at the time the funds
were received shall be observed in case of gifts or donations or other payments made
by private parties for specific purposes.

SECTION 46. Service Fees and Honoraria. — Agencies are authorized to

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 charge fees, including honoraria and other reasonable allowances as compensation
for consultation, seminars or training programs, or technical services rendered to
other government agencies or private parties. Such fees or honoraria shall be
recorded as income of the government and subject to the usual accounting, auditing
and other pertinent requirements.

SECTION 47. Administration of Lump-Sum Funds. — The Department of

Budget shall administer the Lump-Sum Funds appropriated in the General
Appropriations Act, except as otherwise specified therein, including the issuance of
Treasury Warrants covering payments to implementing agencies or other creditors, as
may be authorized by the President.

SECTION 48. Cost Reduction. — Each head of a department, bureau,

office or agency shall implement a cost reduction program for his department, bureau,
office or agency for the purpose of reducing cost of operations and shall submit to the
President reports on the results of the implementation thereof. The Department of
Budget shall provide technical and other necessary assistance in the design and
implementation of cost reduction activities. An incentive award not exceeding one
month's salary may be granted to any official or employee whose suggestion for cost
reduction has been adopted and shall have actually resulted in cost reduction, payable
from the savings resulting therefrom.

SECTION 49. Authority to Use Savings for Certain Purposes. — Savings

in the appropriations provided in the General Appropriations Act may be used for the
settlement of the following obligations incurred during a current fiscal year or
previous fiscal years as may be approved by the Secretary in accordance with rules
and procedures as may be approved by the President:

(1) Claims of officials, employees and laborers who died or were

injured in line of duty, including burial expenses as authorized
under existing law;

(2) Commutation of terminal leaves of employees due to retirement,

resignation or separation from the service through no fault of their
own in accordance with the provisions of existing law, including
unpaid claims for commutation of maternity leave of absence;

(3) Payment of retirement gratuities or separation pay of employees

separated from the service due to government reorganization;

(4) Payment of salaries of employees who have been suspended or

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 dismissed as a result of administrative or disciplinary action, or
separated from the service through no fault of their own and who
have been subsequently exonerated and reinstated by virtue of
decisions of competent authority;

(5) Cash awards to deserving officials and employees in accordance

with civil service law;

(6) Salary adjustments of officials and employees as a result of

classification action under, and implementation of, the provisions
of the Compensation and Position Classification Act, including
positions embraced under the Career Executive Service;

(7) Peso support to any undertaking that may be entered into by the
government with international organizations, including
administrative and other incidental expenses;

(8) Covering any deficiency in peso counterpart fund commitments for

foreign-assisted projects, as may be approved by the President;

(9) Priority activities that will promote the economic well-being of the
nation, including food production, agrarian reform, energy
development, disaster relief, and rehabilitation.

(10) Repair, improvement and renovation of government buildings and

infrastructure and other capital assets damaged by natural
calamities;

(11) Expenses in connection with official participation in trade fairs,

civic parades, celebrations, athletic competitions and cultural
activities, and payment of expenses for the celebration of regular
or special official holidays;

(12) Payment of obligations of the government or any of its

departments or agencies as a result of final judgment of the Courts;
and

(13) Payment of valid prior year's obligations of government agencies

with any other government office or agency, including
government-owned or controlled corporations.

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 SECTION 50. Appointment of Budget Officers. — No person shall be
appointed as budget officer in any department, bureau, office or agency unless he
meets the qualification and training requirements established by the Budget
Commission as prerequisite to appointment, in addition to other qualification
requirements prescribed by the Civil Service Commission for the position.

CHAPTER 6

Budget Accountability

SECTION 51. Evaluation of Agency Performance. — The President,

through the Secretary shall evaluate on a continuing basis the quantitative and
qualitative measures of agency performance as reflected in the units of work
measurement and other indicators of agency performance, including the standard and
actual costs per unit of work.

SECTION 52. Budget Monitoring and Information System. — The

Secretary of Budget shall determine accounting and other items of information,
financial or otherwise, needed to monitor budget performance and to assess
effectiveness of agencies' operations and shall prescribe the forms, schedule of
submission, and other components of reporting systems, including the maintenance of
subsidiary and other records which will enable agencies to accomplish and submit
said information requirements: Provided, that the Commission on Audit shall, in
coordination with the Secretary of Budget, issue rules and regulations that may be
applicable when the reporting requirements affect accounting functions of agencies:
Provided, further, that the applicable rules and regulations shall be issued by the
Commission on Audit within a period of thirty (30) days after the Department of
Budget and Management prescribes the reporting requirements.

SECTION 53. Monitoring of Expenditures. — Expenditures of national

government agencies shall be recorded so as to identify expenditures as classified into
such categories as may be determined by the Department of Budget and Management,
including but not limited to the following: (1) agency incurring the obligation, (2)
program, project and activity, (3) object of expenditure, including personal services,
operating and maintenance expenditures, equipment, and capital outlays, (4) region or
locality of use, (5) economic or functional classification of the expenditure, (6)
obligational authority and cash transactions arising from fund releases, and such other
classifications as may be necessary for the budget process. The Secretary of Budget
shall determine the data and information requirements thus needed and the
Commission on Audit shall formulate the accounting rules and regulations, including
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 changes in the Chart of Accounts and the general or subsidiary accounting records, as
may be necessary to generate the desired data and information. The Chief
Accountants of agencies and where necessary, accountants of regional offices, shall
submit the data needed by the Department of Budget and Management in accordance
with such rules and regulations as it may formulate.

SECTION 54. Standard Costs. — The Department of Budget and

Management shall develop standard costs for duly approved units of work
measurement for each agency's budgetary projects or activities. These standard costs
shall be compared with actual unit costs and utilized in the evaluation of agency
budgetary performance.

SECTION 55. Review of Budgetary Programs. — The Secretary of Budget

shall conduct a continuing review of the budgetary program and project structure of
each department, office or agency, the result of which shall be the basis for modifying
or amending such structure for incorporation in the President's budget proposals to the
Congress.

SECTION 56. Semi-Annual Report on Accomplishments of Government

Agencies. — The heads of departments, bureaus, offices or agencies of the
government shall submit a semi-annual report of their accomplishments, both work
and financial results, in accordance with such content and format as may be
prescribed by the Secretary. These reports shall be designed and use for the purpose
of monitoring the efficiency and effectiveness with which budgeted funds are being
utilized, and generally for verifying the attainment of goals established in the budget
process.

SECTION 57. Failure to Submit Reports. — Failure on the part of agency

heads, chief accountants, budget officers, cashiers, disbursing officers, administrative
and personnel officers, and other responsible officers of departments, bureaus, offices
and agencies to submit trial balances, work and financial plans, special budgets,
reports of operation and income, plans, special budgets, reports of operation and
income, current agency plantilla of personnel and such other reports as may be
necessary and required by the Department of Budget shall automatically cause the
suspension of payment of their salaries until they have complied with the
requirements of the Department of Budget. No appropriation authorized in the
General Appropriations Act shall be made available to pay the salary of any official
or employee who violates the provisions of this section, in addition to any
disciplinary action that may be instituted against such erring official or employee.

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 CHAPTER 7

Expenditure of Appropriated Funds

SECTION 58. Contracting of Activities. — Agencies may enter into

contracts with individuals or organizations, both public and private, subject to
provisions of law and applicable guidelines approved by the President: Provided, that
contracts shall be for specific services which cannot be provided by the regular staff
of the agency, shall be for a specific period of time, and shall have a definite expected
output: Provided, further, That implementing, monitoring and other regular and
recurring agency activities shall not be contracted for, except for personnel hired on
an individual and contractual basis and working as part of the organization, or as
otherwise may be approved by the President: Provided, finally, That the cost of
contracted services shall not exceed the amount that would otherwise be incurred had
the work been performed by regular employees of government, except as may be
authorized under this section.

SECTION 59. Authority to Receive Additional Compensation. — Officials

and employees who are duly appointed by competent authority to any position in
another government office or agency in a concurrent capacity, may, in the discretion
of the President, be allowed to receive additional compensation in the form of
allowance or honorarium at such rates he shall fix and subject to such conditions as
he may prescribe. Such additional compensation shall be paid from the appropriations
of the office or agency benefitting from the concurrent service.

SECTION 60. Restrictions on Salary Increases. — No portion of the

appropriations provided in the General Appropriations Act shall be used for payment
of any salary increase or adjustment unless specifically authorized by law or
appropriate budget circular nor shall any appropriation for salaries authorized in the
General Appropriations Act, save as otherwise provided for under the Compensation
and Position Classification Act, be paid unless the positions have been classified by
the Budget Commission.

SECTION 61. Merit Increases. — The budgets of national government

agencies may provide for a lump-sum for merit increases, subject to such terms and
conditions as may be approved by the President. Such lump-sum shall be used to fund
salary increases approved by the head of agency in recognition of meritorious
performance: Provided, That the Civil Service Commission and the Department of
Budget shall jointly issue the rules and regulations governing the granting of such

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 merit increases.

SECTION 62. Salary for Substitutionary Service. — When an official or

employee is issued a duly approved appointment in a temporary or acting capacity to
take the place and perform the duties of another who is temporarily absent from his
post with pay, savings in the appropriations of the department, bureau or office may
be used for the payment of his salary or differential, subject to the approval of the
Secretary.

SECTION 63. Additional Compensation for Overtime Service. — Officials

and employees of the National Government, when required to work overtime after
regular working hours during ordinary days, during half-day sessions, or on
Saturdays, Sundays and holidays, by the heads of departments concerned, to finish
work that must be completed within a specified time, may be paid overtime
compensation from any unexpected balance of the appropriation for salaries and
wages authorized in the General Appropriations Act and under such guidelines as
may be issued by the President.

SECTION 64. Compensation of Persons Receiving Pension. — A person

receiving life pension, annuity, or gratuity as a result of service in the national
government or any local government unit, or from any government-owned or
controlled corporation, who is reappointed to any position, the appropriation for the
salary of which is provided from funds of the office, shall have the option to receive
either the compensation for the position, or the pension, gratuity or annuity, but in no
case shall he receive both.

SECTION 65. Prohibition of Voluntary Service. — Unless otherwise

specifically approved by the President, no person shall be employed or appointed in
the government under the guise of voluntary service, with compensation below the
authorized hiring rate for the position, but with privilege of transportation and/or
representation expenses in any form, or of receiving per diems, allowances,
honoraria, subsistence, quarters in cash or in kind, payable from government funds:
Provided, That the application of this provisions may be waived to authorize
voluntary service in the Armed Forces of the Philippines or in connection with relief
operations.

SECTION 66. Additional Compensation for School Faculty Members. —

Professors, instructors, teachers, or members of the faculty of government schools,
colleges and universities, when required to teach more than their regular teaching
loads may be paid additional compensation not exceeding seventy-five percentum of
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 their basic salary.

SECTION 67. Laundry. — At the discretion of the department head

concerned, any official or employee of the national government serving in any
hospital, penal institution, or other similar institution, who is required to wear a
uniform during the performance of his duties, may be granted laundry allowance in
kind, or which may be commuted at such rates as may be authorized by the
Department of Budget.

SECTION 68. Hazard Pay. — Upon recommendation of the department

head concerned and approval of the Secretary, hazard pay may be allowed to
employees who are actually assigned to danger or strife-torn areas, disease-infested
places, or in distressed or isolated stations and camps, which expose them to great
danger of contagion or peril to life. Such hazard pay shall be paid from savings of the
department concerned at such rates, terms and conditions as the Secretary may
prescribe.

SECTION 69. Subsistence. — No official or employee of the national

government shall be given subsistence, the cost of which is payable from any fund,
except the following and only when an appropriation therefor is specifically provided:

(1) Marine officers, engineers and crew of government vessels,

launches, and motorboats, who shall take their meals on the mess
when aboard the said vessels, launches, or motorboats;

(2) Lightkeepers and other employees in light stations duly authorized

by the head of the department to receive subsistence, who shall be
furnished raw canned, or preserved food supplies;

(3) Officials and employees who are required to render service within
the premises of hospitals, penal institutions, leper institutions,
military installations, and other similar institutions, for a
continuous period that includes meal time, may be allowed full
subsistence when required to live in said premises to make their
services available at any and all times;

(4) Laborers temporarily fielded to isolated or unsettled districts shall

be furnished the usual rations or the equivalent in cash, at the
expense of the government.

In hospitals and leper institutions where there are no mess halls or whenever
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 these are inadequate, personnel entitled to subsistence allowance in kind may
commute such subsistence upon request of the personnel concerned subject to the
approval of the department head at authorized rates chargeable against the
appropriation for supplies and materials authorized in the General Appropriations
Act.

SECTION 70. Subsistence of Crew of Government Vessels. — The

subsistence allowance for the officers and crew of the coast guard and revenue cutters
and lighthouse tenders and other large vessels operated by the Government shall be
spent for conducting a mess under the charge and administration of one or more
members of the complement in each vessel to be designated by the corresponding
head of department, and in accordance with regulations to be issued by him. The
person or persons so designated shall keep an account of the advances of funds
received and expenditures made therefrom for the operation of the mess and shall
render such report to the corresponding Accounting Officer promptly at the end of
each month.

SECTION 71. Furnished Quarters. — When the position of any official or

employee is provided with "furnished quarters", such official or employee shall be
entitled to the use of such government-owned furniture and equipment as are
necessary for his board and lodging and those for his family including children below
twenty-one years of age.

SECTION 72. Per Diems of Government Officials and Employees.

— When a government official or employee is authorized to travel on official
business outside of his permanent station, he shall be entitled to per diems to cover his
board and lodging in accordance with his schedule: Provided, That in addition to per
diems, the official or employee may be entitled to transportation expenses in going to
and coming from his destination and to a daily allowance while in the field: Provided,
further, That officials and employees on travel status whose expenses for board and
lodging are paid directly or indirectly by government may not be entitled to receive
the per diems and allowances corresponding to such payments.

Department secretaries, heads of Constitutional bodies, undersecretaries and all

other positions of equivalent rank are authorized the reimbursement of actual
expenses supported by receipts, within such limits as may be imposed under the
provisions of this section.

Officials and employees authorized to travel abroad may be granted clothing

allowance: Provided, That no official or employee shall be granted such clothing
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 allowance oftener than once every twenty-four (24) months.

The rates of per diems and other allowances as authorized in this section shall
be determined by the President. The rates may be changed from time to time upon
recommendation of a Travel Rates Committee which is hereby created, consisting of
the Secretary of Budget as Chairman and the Secretary of Foreign Affairs, the
Secretary of Tourism and the Chairman, Commission on Audit, or their
representatives, as members.

The Committee shall review travel rates and shall recommend to the President
for consideration and approval modification in rates and policy when found to be
warranted by actual domestic or foreign travel costs, as the case may be.

Government-owned or controlled corporations shall observe the rates

established under this section: Provided, That profit-making corporations may adopt
their own scales as may be provided by law. The Travel Rates Committee shall issue
the necessary rules and regulations to enforce the provisions of this section.

SECTION 73. Additional Conditions for Payment of Travel Expenses. —

When travel is done by water and subsistence is not included in the transportation
cost, the amount actually and necessarily spent for subsistence during such travel time
shall be paid, and no per diems shall be allowed in lieu thereof.

Per diems and travel allowances shall not be granted to members of field
parties or others for whom subsistence and allowances in kind are supplied or other
special provision made to cover travel expenses.

The travel expenses of a government official or employee who is assigned to

render a special service to any private person or entity, the expenses for which are
payable by the latter, shall be paid from a deposit which the private party shall be
required to make before the performance of the special service is commenced, subject
to the limitations and requirements herein provided for travel expenses payable from
government funds.

No official or employee of the Government who remains temporarily at one

station for a period longer than one (1) month shall be paid per diems in excess of one
(1) month except upon the approval of the head of department and, in case his
temporary stay in any one place exceeds three (3) months, payment of per diems in
excess of three (3) months shall be made only upon the previous approval of the
Secretary.

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 SECTION 74. Transportation of Members of Family of an Employee
Transferred from One Station to Another. — Whenever, due to the exigencies of the
service and not at his own request, an official or employee is transferred from one
station to another, said official or employee and his spouse and children below
twenty-one years of age shall be entitled to transportation and freight for reasonable
and necessary baggage and household effects, at the expense of the Government, to
be paid from the appropriation for traveling expenses of the bureau or office
concerned.

SECTION 75. Purchase, Use, Operation and Maintenance of Motor

Transport Equipment. — No appropriation for equipment authorized in the General
Appropriations Act shall be used directly or indirectly for the purchase of
automobiles, jeeps, jitneys, station wagons, motorcycles, trucks, launches, speedboats,
airplanes, helicopters and other types of motor transport equipment unless otherwise
specifically authorized by the President.

All departments, bureaus, offices and agencies authorized to purchase motor

transport equipment including those acquired through donations, gifts or gratuitous
title are likewise authorized to use, operate and maintain them for purposes of
carrying out the official functions and activities of the agency. These motor vehicles
shall be used strictly for official business, bear government plates only, and after
office hours to be kept in garage provided therefor by the office or agency to which
they belong, except, when in use for official business outside office hours. The
President, however, may authorize exceptions from these provisions for officials of
government who work under extended hours or whose activities call for special
security arrangements. Any violation of the provisions of this section shall subject the
erring official or employee to administrative disciplinary action and he shall be
personally liable for any loss or damage caused to the government or third persons.

The Commission on Audit shall issue rules and regulations governing the use,
operation and maintenance of government motor transport equipment.

SECTION 76. Limitation of Rental of Motor Vehicles. — No

appropriations authorized in the General Appropriations Act shall be used for renting
motor transport equipment for a continuous period of more than fifteen days, except
as may be authorized by the Secretary.

SECTION 77. Limitation of Purchase of Supplies, Materials, and

Equipment Spare Parts. — Except as otherwise provided in the General
Appropriations Act, the stock on hand of supplies, materials and equipment spare
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 parts, acquired through ordinary and emergency purchase, shall at no time exceed
normal three-month requirements, subject to the pertinent rules and regulations issued
by competent authority: Provided, That department heads may approve the build-up
of stocks on hand of critical supplies and materials, in anticipation of cost increases or
requirements of a national emergency, and specifying maximum quantities of
individual items, but in no case shall these stocks exceed more than one year's supply,
unless otherwise approved by the President.

SECTION 78. Purchase of Locally Manufactured Products. — All

appropriations for the purchase of equipment, supplies and materials authorized in the
General Appropriations Act shall be available only for locally manufactured
equipment; parts, accessories, medicines and drugs, supplies and materials, except
when none is available in the market or when the price of the locally manufactured
article exceed those determined by the Flag Law.

SECTION 79. Availability of Appropriations for Rental of Building and

Grounds. — Any appropriation authorized in any Act for rental of buildings and
grounds for any department, bureau, office or agency shall be available for
expenditure only when authorized by the department head concerned. Such
appropriation may also be used for lease-purchase arrangements.

With the concurrence of the Secretary of Budget and Management and the
Secretary of Finance, the head of the department may contract with any government
financial institution for loans intended for the acquisition of land for the construction
of an office building for any of the agencies under the department. Annual
amortization of the loans shall be taken from the appropriation for rental authorized
under any Act for the department, bureau or office concerned.

SECTION 80. Misuse of Government Funds and Property. — Any public

official or employee who shall apply any government fund or property under his
administration or control to any use other than for which such fund or property is
appropriated by laws, shall suffer the penalty imposed under the appropriate penal
laws.

BOOK VII

Administrative Procedure

CHAPTER 1

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 General Provisions

SECTION 1. Scope. — This Book shall be applicable to all agencies as

defined in the next succeeding section, except the Congress, the Judiciary, the
Constitutional Commissions, military establishments in all matters relating
exclusively to Armed Forces personnel, the Board of Pardons and Parole, and state
universities and colleges.

SECTION 2. Definitions. — As used in this Book:

(1) "Agency" includes any department, bureau, office, commission,

authority or officer of the National Government authorized by law
or executive order to make rules, issue licenses, grant rights or
privileges, and adjudicate cases; research institutions with respect
to licensing functions; government corporations with respect to
functions regulating private right, privileges, occupation or
business; and officials in the exercise of disciplinary power as
provided by law.

(2) "Rule" means any agency statement of general applicability that

implements or interprets a law, fixes and describes the procedures
in, or practice requirements of, an agency, including its
regulations. The term includes memoranda or statements
concerning the internal administration or management of an
agency not affecting the rights of, or procedure available to, the
public.

(3) "Rate" means any charge to the public for a service open to all and
upon the same terms, including individual or joint rates, tolls,
classifications, or schedules thereof, as well as commutation,
mileage, kilometerage and other special rates which shall be
imposed by law or regulation to be observed and followed by any
person.

(4) "Rule making" means an agency process for the formulation,

amendment, or repeal of a rule.

(5) "Contested case" means any proceeding, including licensing, in

which the legal rights, duties or privileges asserted by specific
parties as required by the Constitution or by law are to be

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 determined after hearing.

(6) "Person" includes an individual, partnership, corporation,

association, public or private organization of any character other
than an agency.

(7) "Party" includes a person or agency named or admitted as a party,

or properly seeking and entitled as of right to be admitted as a
party, in any agency proceeding; but nothing herein shall be
construed to prevent an agency from admitting any person or
agency as a party for limited purposes.

(8) "Decision" means the whole or any part of the final disposition,
not of an interlocutory character, whether affirmative, negative, or
injunctive in form, of an agency in any matter, including licensing,
rate fixing and granting of rights and privileges.

(9) "Adjudication" means an agency process for the formulation of a

final order.

(10) "License" includes the whole or any part of any agency permit,
certificate, passport, clearance, approval, registration, charter,
membership, statutory exemption or other form of permission, or
regulation of the exercise of a right or privilege.

(11) "Licensing" includes agency process involving the grant, renewal,

denial, revocation, suspension, annulment, withdrawal, limitation,
amendment, modification or conditioning of a license.

(12) "Sanction" includes the whole or part of a prohibition, limitation or

other condition affecting the liberty of any person; the withholding
of relief; the imposition of penalty or fine; the destruction, taking,
seizure or withholding of property; the assessment of damages,
reimbursement, restitution, compensation, cost, charges or fees; the
revocation or suspension of license; or the taking of other
compulsory or restrictive action.

(13) "Relief" includes the whole or part of any grant of money,

assistance, license, authority, privilege, exemption, exception, or
remedy; recognition of any claim, right, immunity, privilege,
exemption or exception; or taking of any action upon the
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 application or petition of any person.

(14) "Agency proceeding" means any agency process with respect to

rule-making, adjudication and licensing.

(15) "Agency action" includes the whole or part of every agency rule,
order, license, sanction, relief or its equivalent or denial thereof.

CHAPTER 2

Rules and Regulations

SECTION 3. Filing. — (1) Every agency shall file with the University of
the Philippines Law Center three (3) certified copies of every rule adopted by it.
Rules in force on the date of effectivity of this Code which are not filed within three
(3) months from that date shall not thereafter be the basis of any sanction against any
party or persons.

(2) The records officer of the agency, or his equivalent functionary, shall
carry out the requirements of this section under pain of disciplinary action.

(3) A permanent register of all rules shall be kept by the issuing agency and
shall be open to public inspection.

SECTION 4. Effectivity. — In addition to other rule-making requirements

provided by law not inconsistent with this Book, each rule shall become effective
fifteen (15) days from the date of filing as above provided unless a different date is
fixed by law, or specified in the rule in cases of imminent danger to public health,
safety and welfare, the existence of which must be expressed in a statement
accompanying the rule. The agency shall take appropriate measures to make
emergency rules known to persons who may be affected by them.

SECTION 5. Publication and Recording. — The University of the

Philippines Law Center shall:

(1) Publish a quarterly bulletin setting forth the text of rules filed with
it during the preceding quarter; and

(2) Keep an up-to-date codification of all rules thus published and

remaining in effect, together with a complete index and
appropriate tables.

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 SECTION 6. Omission of Some Rules. — (1) The University of the
Philippines Law Center may omit from the bulletin or the codification any rule if its
publication would be unduly cumbersome, expensive or otherwise inexpedient, but
copies of that rule shall be made available on application to the agency which adopted
it, and the bulletin shall contain a notice stating the general subject matter of the
omitted rule and new copies thereof may be obtained.

(2) Every rule establishing an offense or defining an act which, pursuant to

law is punishable as a crime or subject to a penalty shall in all cases be published in
full text.

SECTION 7. Distribution of Bulletin and Codified Rules. — The

University of the Philippines Law Center shall furnish one (1) free copy each of every
issue of the bulletin and of the codified rules or supplements to the Office of the
President, Congress, all appellate courts and the National Library. The bulletin and
the codified rules shall be made available free of charge to such public officers or
agencies as the Congress may select, and to other persons at a price sufficient to cover
publication and mailing or distribution costs.

SECTION 8. Judicial Notice. — The court shall take judicial notice of

the certified copy of each rule duly filed or as published in the bulletin or the codified
rules.

SECTION 9. Public Participation. — (1) If not otherwise required by

law, an agency shall, as far as practicable, publish or circulate notices of proposed
rules and afford interested parties the opportunity to submit their views prior to the
adoption of any rule.

(2) In the fixing of rates, no rule or final order shall be valid unless the
proposed rates shall have been published in a newspaper of general circulation at least
two (2) weeks before the first hearing thereon.

(3) In case of opposition, the rules on contested cases shall be observed.

CHAPTER 3

Adjudication

SECTION 10. Compromise and Arbitration. — To expedite administrative

proceedings involving conflicting rights or claims and obviate expensive litigations,
every agency shall, in the public interest, encourage amicable settlement, compromise
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 and arbitration.

SECTION 11. Notice and Hearing in Contested Cases. — (1) In any

contested case all parties shall be entitled to notice and hearing. The notice shall be
served at least five (5) days before the date of the hearing and shall state the date, time
and place of the hearing.

(2) The parties shall be given opportunity to present evidence and argument
on all issues. If not precluded by law, informal disposition may be made of any
contested case by stipulation, agreed settlement or default.

(3) The agency shall keep an official record of its proceedings.

SECTION 12. Rules of Evidence. — In a contested case:

(1) The agency may admit and give probative value to evidence
commonly accepted by reasonably prudent men in the conduct of
their affairs.

(2) Documentary evidence may be received in the form of copies or

excerpts, if the original is not readily available. Upon request, the
parties shall be given opportunity to compare the copy with the
original. If the original is in the official custody of a public officer,
a certified copy thereof may be accepted.

(3) Every party shall have the right to cross-examine witnesses

presented against him and to submit rebuttal evidence.

(4) The agency may take notice of judicially cognizable facts and of
generally cognizable technical or scientific facts within its
specialized knowledge. The parties shall be notified and afforded
an opportunity to contest the facts so noticed.

SECTION 13. Subpoena. — In any contested case, the agency shall have
the power to require the attendance of witnesses or the production of books, papers,
documents and other pertinent data, upon request of any party before or during the
hearing upon showing of general relevance. Unless otherwise provided by law, the
agency may, in case of disobedience, invoke the aid of the Regional Trial Court
within whose jurisdiction the contested case being heard falls. The Court may punish
contumacy or refusal as contempt.

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 SECTION 14. Decision. — Every decision rendered by the agency in a
contested case shall be in writing and shall state clearly and distinctly the facts and
the law on which it is based. The agency shall decide each case within thirty (30) days
following its submission. The parties shall be notified of the decision personally or by
registered mail addressed to their counsel of record, if any, or to them.

SECTION 15. Finality of Order. — The decision of the agency shall

become final and executory fifteen (15) days after the receipt of a copy thereof by the
party adversely affected unless within that period an administrative appeal or judicial
review, if proper, has been perfected. One motion for reconsideration may be filed,
which shall suspend the running of the said period.

SECTION 16. Publication and Compilation of Decisions. — (1) Every

agency shall publish and make available for public inspection all decisions or final
orders in the adjudication of contested cases.

(2) It shall be the duty of the records officer of the agency or his equivalent
functionary to prepare a register or compilation of those decisions or final orders for
use by the public.

SECTION 17. Licensing Procedure. — (1) When the grant, renewal,

denial or cancellation of a license is required to be preceded by notice and hearing,
the provisions concerning contested cases shall apply insofar as practicable.

(2) Except in cases of willful violation of pertinent laws, rules and

regulations or when public security, health, or safety require otherwise, no license
may be withdrawn, suspended, revoked or annulled without notice and hearing.

SECTION 18. Non-expiration of License. — Where the licensee has made

timely and sufficient application for the renewal of a license with reference to any
activity of a continuing nature, the existing license shall not expire until the
application shall have been finally determined by the agency.

CHAPTER 4

Administrative Appeal in Contested Cases

SECTION 19. Appeal. — Unless otherwise provided by law or executive

order, an appeal from a final decision of the agency may be taken to the Department
head.

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 SECTION 20. Perfection of Administrative Appeals. — (1) Administrative
appeals under this Chapter shall be perfected within fifteen (15) days after receipt of a
copy of the decision complained of by the party adversely affected, by filing with the
agency which adjudicated the case a notice of appeal, serving copies thereof upon the
prevailing party and the appellate agency, and paying the required fees.

(2) If a motion for reconsideration is denied, the movant shall have the right
to perfect his appeal during the remainder of the period for appeal, reckoned from
receipt of the resolution of denial. If the decision is reversed on reconsideration, the
aggrieved party shall have fifteen (15) days from receipt of the resolution of reversal
within which to perfect his appeal.

(3) The agency shall, upon perfection of the appeal, transmit the records of
the case to the appellate agency.

SECTION 21. Effect of Appeal. — The appeal shall stay the decision
appealed from unless otherwise provided by law, or the appellate agency directs
execution pending appeal, as it may deem just, considering the nature and
circumstances of the case.

SECTION 22. Action on Appeal. — The appellate agency shall review the
records of the proceedings and may, on its own initiative or upon motion, receive
additional evidence.

SECTION 23. Finality of Decision of Appellate Agency. — In any

contested case, the decision of the appellate agency shall become final and executory
fifteen (15) days after the receipt by the parties of a copy thereof.

SECTION 24. Hearing Officers. — (1) Each agency shall have such
number of qualified and competent members of the base as hearing officers as may be
necessary for the hearing and adjudication of contested cases.

(2) No hearing officer shall engaged in the performance of prosecuting

functions in any contested case or any factually related case.

SECTION 25. Judicial Review. — (1) Agency decisions shall be subject to

judicial review in accordance with this chapter and applicable laws.

(2) Any party aggrieved or adversely affected by an agency decision may

seek judicial review.

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 (3) The action for judicial review may be brought against the agency, or its
officers, and all indispensable and necessary parties as defined in the Rules of Court.

(4) Appeal from an agency decision shall be perfected by filing with the
agency within fifteen (15) days from receipt of a copy thereof a notice of appeal, and
with the reviewing court a petition for review of the order. Copies of the petition shall
be served upon the agency and all parties of record. The petition shall contain a
concise statement of the issues involved and the grounds relied upon for the review,
and shall be accompanied with a true copy of the order appealed from, together with
copies of such material portions of the records as are referred to therein and other
supporting papers. The petition shall be under oath and shall show, by stating the
specific material dates, that it was filed within the period fixed in this chapter.

(5) The petition for review shall be perfected within fifteen (15) days from
receipt of the final administrative decision. One (1) motion for reconsideration may
be allowed. If the motion is denied, the movant shall perfect his appeal during the
remaining period for appeal reckoned from receipt of the resolution of denial. If the
decision is reversed on reconsideration, the appellant shall have fifteen (15) days from
receipt of the resolution to perfect his appeal.

(6) The review proceeding shall be filed in the court specified by statute or,
in the absence thereof, in any court of competent jurisdiction in accordance with the
provisions on venue of the Rules of Court.

(7) Review shall be made on the basis of the record taken as a whole. The
findings of fact of the agency when supported by substantial evidence shall be final
except when specifically provided otherwise by law.

SECTION 26. Transmittal of Record. — Within fifteen (15) days from the
service of the petition for review, the agency shall transmit to the court the original or
a certified copy of the entire records of the proceeding under review. The record to be
transmitted may be abridged by agreement of all parties to the proceedings. The court
may require or permit subsequent correction or additions to the record.

Final Provisions

SECTION 27. Repealing Clause. — All laws, decrees, orders, rules and
regulations, or portions thereof, inconsistent with this Code are hereby repealed or
modified accordingly.

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 SECTION 28. Separability Clause. — In the event that any of the
provisions of this Code is declared unconstitutional, the validity of the other
provisions shall not be affected by such declaration.

SECTION 29. Effectivity(1). — This Code shall take effect two years after
its publication in the Official Gazette.

DONE in the City of Manila, this 25th day of July, in the year of Our Lord,
Nineteen Hundred and Eighty-Seven.

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 Endnotes

1 (Popup - Popup)

The effectivity date of this Code has been declared as November 23, 1989 by Proc. No. 495,
November 23, 1989

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