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EXECUTIVE ORDER NO. 292
 INSTITUTING THE "ADMINISTRATIVE CODE OF 1987"
July 25, 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 over-all 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published and later expressly repealed;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 the

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

INTRODUCTORY PROVISIONS

    Sec. 1. Title. - This Act shall be known as the "Administrative Code of 1987."

    Sec. 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:

(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 corporations, 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.

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(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 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 within 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
interests 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.

(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 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.
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BOOK I
 
SOVEREIGNTY AND GENERAL ADMINISTRATION
 
Chapter 1
THE NATIONAL TERRITORY
 
    Sec. 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.

    Sec. 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
 
    Sec. 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 elect
Philippine citizenship, unless by the act or omission they are deemed,
under the law, to have renounced it.

 
    Sec. 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.
 
    Sec. 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.
 
    Sec. 8. Loss or Reacquisition of Citizenship. - Philippine citizenship may be
lost or reacquired in the manner provided by law.
 
    Sec. 9. Dual Allegiance. - Dual allegiance is inimical to the national interest
and shall be dealt with by law.
 
Chapter 3
STATE IMMUNITY FROM SUIT
 
    Sec. 10. Non-suability of the State. - No suit shall lie against the State except
with its consent as provided by law.
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    Sec. 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
 
    Sec. 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
proper care and disposition of the flag shall be governed by appropriate rules and
regulations.

    Sec. 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.

    Sec. 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.

    Sec. 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
required by custom and usage. The President shall have custody of the Great
Seal.

    Sec. 16. Arms, Seals and Banners of Government Offices. - The various
offices of government may adopt appropriate coats-of-arms, seals and banners.

    Sec. 17. Official Languages. - Until otherwise provided by law, Pilipino and
English shall be the official languages.
 

Chapter 5
OPERATION AND EFFECT OF LAWS
 
    Sec. 18. When Laws Take Effect. - Laws shall take effect after fifteen (15)
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days following the completion of their publication in the Official Gazette or in a
newspaper of general circulation, unless it is otherwise provided.

    Sec. 19. Prospectivity. - Laws shall have prospective effect unless the contrary
is expressly provided.

    Sec. 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.

    Sec. 21. No Implied Revival of Repealed Law.- When a law which expressly
repeals a prior law itself repealed, the law first repealed shall not be thereby
revived unless expressly so provided.

    Sec. 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.

    Sec. 23. Ignorance of the Law. - Ignorance of the law excuses no one from
compliance therewith.
 

Chapter 6
OFFICIAL GAZETTE
 
    Sec. 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 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.

    Sec. 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.
 

Chapter 7
REGULAR HOLIDAYS AND NATIONWIDE SPECIAL DAYS
 
    Sec. 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 this country:
 
(A) Regular Holidays
 
New Year's Day - January 1
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Maundy Thursday - Movable date

Good Friday - Movable date

Araw ng Kagitingan (Bataan - April 9 and Corregidor Day)

Labor Day - May 1

Independence Day - June 12

National Heroes Day - Last Sunday of August

Bonifacio Day - November 30

Christmas Day - December 25

Rizal Day - December 30

 

(B) Nationwide Special Days

 
All Saints Day - November 1

Last Day of the Year - December 31

    (2) The terms "legal or regular holiday" and "special holiday", as used in laws,
orders, rules and regulations or other issuances shall be referred to as "regular
holiday" and "special day", respectively.

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

    Sec. 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
 
    Sec. 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.

    Sec. 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.

    Sec. 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
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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
GENERAL PRINCIPLES GOVERNING PUBLIC OFFICERS
 
    Sec. 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.

    Sec. 33. Policy on Change of Citizenship. - Public officers and employees owe
the Senate 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.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    (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.

    (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.

    Sec. 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
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under orders or instructions of his superiors.
 

Chapter 10
OFFICIAL OATHS
 
    Sec. 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.

    Sec. 41. Officers Authorized to Administer Oath. - (1) The following officers
have general authority to administer oath: Notaries public, members of the
judiciary, clerks of courts, the Secretary of the either House of the Congress of
the Philippines, of departments, bureau directors, registers of deeds, provincial
governors and lieutenant-governors, city mayors, municipal mayors and any
other officer in the service of the government of the Philippines whose
appointment is vested in the President.

    (2) Oaths may also be administered by any officer whose duties, as defined by
law or regulation, require presentation to him of any statement under oath..

    Sec. 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 official
business; 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
 
    Sec. 43. Annual Reports. - The heads of the several branches, subdivisions,
department and agencies or instrumentalities of the Government shall prepare
and submit annual reports to the President on or before the first day of July 1 of
each year.

    Sec. 44. Contents of Reports. - The contents of the annual reports shall be
prescribed by law or, in the absence thereof, by executive order.

    Sec. 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.

    Sec. 46. Deposit with Archives. - Official copies of annual reports shall be
deposited with the National Archives and shall be open to public inspection.
 
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Chapter 12
PUBLIC CONTRACTS AND CONVEYANCES
 
    Sec. 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.

    Sec. 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.

    (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.

    Sec. 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.

    Sec. 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.

    Sec. 51. Execution of Contracts. - (1) Contracts in behalf of the Republic of the
Philippines shall be executed by the President unless authority therefore 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
 
    Sec. 1. Guiding Principles and Policies in Government. - Governmental power
shall be exercised in accordance with the following basic principles and policies:
 
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(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
 
    Sec. 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.

    Sec. 3. Inhibitions Against Members of Congress. - (1) No Senator or Member

of the House of Representatives may 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, 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.

    Sec. 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.
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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.

    Sec. 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.

    Sec. 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 persons appearing in or affected by such inquiries shall be respected.

    Sec. 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.

    Sec. 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.

    Sec. 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
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thereafter. The Congress shall provide for the implementation of the exercise of
this right.

    Sec. 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.

    (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
 
    Sec. 11. Exercise of Executive Power. - The Executive power shall be vested
in the President.

    Sec. 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.

    Sec. 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.

    Sec. 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 the
Congress, voting separately.

    Sec. 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
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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
 
    Sec. 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's 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 jurisdiction 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.

    Sec. 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.

    Sec. 18. Jurisdiction and Powers of Supreme Court. - The 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.
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(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 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.

 
    Sec. 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.

    Sec. 20. Administrative Supervision.- The Supreme Court shall have
administrative supervision over all courts and the personnel thereof.

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

    Sec. 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.

    Sec. 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
 
    Sec. 24. Constitutional Commissions. - The Constitutional Commissions,
which shall be independent, are the Civil Service Commission, the Commission
on Elections, and the Commission on Audit.

    Sec. 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.

    Sec. 26. Fiscal Autonomy. - The Constitutional Commissions shall enjoy fiscal
autonomy. The approved annual appropriations shall be automatically and
regularly released.

    Sec. 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.

    Sec. 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
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(30) days from receipt of a copy thereof.
 

Chapter 6
OTHER BODIES
 
    Sec. 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
 
    Sec. 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
 
    Sec. 2. Executive Orders. - Acts of the President providing for rules of a
general or permanent character in implementation or execution of constitutional
or statutory powers shall be promulgated in executive orders.

    Sec. 3. Administrative Orders. - Acts of the President which relate to particular
aspect of governmental operations in pursuance of his duties as administrative
head shall be promulgated in administrative orders.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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.
 
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Chapter 3
POWER OVER ALIENS
 
    Sec. 8. Power to Deport. - The President shall have the power to deport aliens
subject to the requirements of due process.

    Sec. 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.

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

    Sec. 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
 
    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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 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
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interest of the people through orders of sequestration or freezing of assets or
accounts.
 

Chapter 5
POWER OF APPOINTMENT
 
    Sec. 16. Power of Appointment. - The President shall exercise the power to
appoint such officials as provided for in the Constitution and laws.

    Sec. 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
 
    Sec. 18. General Supervision Over Local Governments. - The President shall
exercise general supervision over local governments.
 
Chapter 7
OTHER POWERS
 
    Sec. 19. Powers Under the Constitution. - The President shall exercise such
other powers as are provided for in the Constitution.

    Sec. 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
 
    Sec. 21. Organization. - The Office of the President shall consist of the Office
of the President Proper and the agencies under it.
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    Sec. 22. Office for 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 President Special Assistants/Advisers System includes such special
assistants or advisers as may be needed by the President.

    Sec. 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 specific department.

Title III
FUNCTIONS
 
Chapter 9
FUNCTIONS OF THE DIFFERENT OFFICES
IN THE OFFICE OF THE PRESIDENT PROPER
 
A - PRIVATE OFFICE
 
    Sec. 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
 
    Sec. 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.

    Sec. 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.

    Sec. 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;

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(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

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 Proper;

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

 
C - COMMON STAFF SUPPORT SYSTEM
 
    Sec. 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:
 
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(1) The Cabinet Secretariat which shall assist the President in the
establishment of agenda topics for the Cabinet deliberation, 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
government 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
 
    Sec. 29. Functions of Presidential Assistants/Advisers Systems. - 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
determine.
 
Chapter 10
FUNCTIONS OF THE AGENCIES
UNDER THE OFFICE OF THE PRESIDENT
 
    Sec. 30. Function 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.

    Sec. 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
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(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
 
    Sec. 1. Purpose and Number of Departments. - The Executive Branch shall
have such Departments as are necessary for the functional distribution of the
work of the President and for the performance of their functions.

    Sec. 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.

    Sec. 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
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.

    Sec. 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 Chapter 7, 8, and 9 of this Book.

    Sec. 5. Assignment of Offices and Agencies. - The President shall, by

executive order, assign offices and agencies not otherwise assigned by law to
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any department, or indicate to which department a government corporation or
board may be attached.
 

Chapter 2
SECRETARIES, UNDERSECRETARIES,
AND ASSISTANT SECRETARIES
 
    Sec. 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.
 
    Sec. 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 governments;

(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
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.

Sec. 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.
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    Sec. 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.

    Sec. 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;

(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.

Sec. 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
 
Sec. 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.

    Sec. 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.
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    Sec. 14. Financial and Management Services. - The Financial and
Management Services shall advise and assist the Secretary on financial and
management matters and shall perform such other functions as may be provided
by law.

    Sec. 15. Administrative Service. - The Administrative Service shall provide the
Department with economical, efficient and effective services relating to
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.

    Sec. 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.

    Sec. 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
 
    Sec. 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.

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

    (2) The Director of a staff bureau shall:

 
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(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.

    Sec. 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 division 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
FIELD OFFICES
 
    Sec. 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.

    Sec. 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.

    Sec. 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.
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    Sec. 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.

    Sec. 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.

    Sec. 26. Functions of a Regional Office. - (1) A regional office shall:
 

(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.

    Sec. 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;
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(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 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.

    Sec. 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
POWERS AND DUTIES OF HEADS OF
BUREAUS OR OFFICES
 
    Sec. 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.
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    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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
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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 information 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.

    Sec. 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.

    (2) The report 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 RELATIONSHIP
 
    Sec. 38. Definition of Administrative Relationship. - 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
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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
under the Code, except 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 operation 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 and approval.
 

Chapter 8
SUPERVISION AND CONTROL
 
    Sec. 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:
 
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(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.

    Sec. 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.

    Sec. 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

    (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
RELATIONSHIP OR GOVERNMENT-OWNED OR CONTROLLED
CORPORATIONS AND REGULATORY AGENCIES TO THE DEPARTMENT
 
    Sec. 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.

    Sec. 43. Regulatory Agencies. - (1) A regulatory agency shall be subject to the
administrative supervision of the department under which they are placed, except
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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
 
    Sec. 44. Appointment of Secretaries. - The Secretaries of Departments shall
be appointed by the President with the consent of the Commission 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.

    Sec. 45. Qualifications of Secretaries. - The Secretaries shall be citizens of the
Philippines and not less than twenty-five years of age.

    Sec. 46. Appointments of Undersecretaries and Assistant Secretaries. - The

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

    Sec. 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.

    Sec. 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.

    Sec. 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.
 
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Chapter 11
ADMINISTRATIVE ISSUANCES
 
    Sec. 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.

    Sec. 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 of
each calendar year .

    Sec. 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.

    Sec. 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.
 

Chapter 12
MISCELLANEOUS RECEIPTS
 
    Sec. 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
affixed at cost or at such other reasonable rate in excess of cost by the boards or
councils concerned;
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    (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.

    Sec. 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.

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

    Sec. 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

                                                                                Public                     through
                                                                              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
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    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.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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 negotiations 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:
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    a. In times of emergencies arising from natural calamities where immediate
action is necessary to prevent imminent loss of life or 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 public
bidding.

    Sec. 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.

    Sec. 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 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.

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    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.

    Sec. 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.
 

Chapter 14
CONTROVERSIES AMONG GOVERNMENT
OFFICES AND CORPORATIONS
 
    Sec. 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.

    Sec. 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.

    Sec. 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).

    Sec. 69. Arbitration. - The determination of factual issues may be referred to
an arbitration panel composed of one representative each of the parties involved
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and presided over by a representative of the Secretary of Justice or the Solicitor
General, as the case may be.

    Sec. 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
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.

    Sec. 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
 
    Sec. 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.

    Sec. 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.

    Sec. 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;

(6) Promote trade, investments, tourism and other economic relations with other
countries in cooperation with other government agencies;

(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;

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(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.

    Sec. 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.
 

Chapter 2
DEPARTMENT PROPER
 
    Sec. 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.
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    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 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.

    Sec. 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.

    Sec. 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.

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

    Sec. 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
 
    Sec. 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.

    Sec. 11. Office of Coordination and Policy Planning. - The Office of
Coordination and Policy Planning shall be headed by the Chief Coordinator. The
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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
Secretary and perform coordinating and such other functions as may be
prescribed by the Secretary.

    Sec. 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;

    (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.

    Sec. 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.

    Sec. 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
 
    Sec. 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.

    Sec. 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
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consider and submit recommendation 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 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
 
     Sec. 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.

    Sec. 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
 
    Sec. 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-TC), 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
 
    Sec. 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 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.

    Sec. 21. Functions of Consular Establishments. - The consular establishments

shall:
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    (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
 
    Sec. 22. Attaches of the Department. - The Department Head shall designate
attaches of the Department from the ranks of Foreign Service Officers and
Foreign Service Staff Officers.

    Sec. 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.

    Sec. 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.
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    Sec. 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
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.

    Sec. 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 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.

    Sec. 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.

    Sec. 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
 
    Sec. 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.

    Sec. 30. Categories of officers and Employees. - The Service shall consist of
the following categories of officers and employees:
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    (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

    Sec. 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

    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.

    Sec. 32. Foreign Service Staff Officers. - There shall be three classes of
Foreign Service Staff Employees to provide the administrative and technical
services.

    Sec. 33. Foreign Service Staff Employees. - There shall be three classes of
Foreign Service Staff Employees to provide the clerical, custodial, messengerial
and similar services.
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    Sec. 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
 
    Sec. 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 Officers
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 Officers Class IV minimum.

    Sec. 36. Staff Officers and Employees. - The Secretary shall 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.

    Sec. 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.

    Sec. 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
 
    Sec. 39. Merit Promotion System. - The Board of the Foreign Service shall
establish a merit promotion system for all officers and employees of the
Department.

    Sec. 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;
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    (4) For promotion to Foreign Service Officer Class II, the candidate must have
served as 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
two years.

    Sec. 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.

    Sec. 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
Sec. 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.

    Sec. 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.

    Sec. 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;

    (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.

    Sec. 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 services 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
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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 chief 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.

    Sec. 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
 
    Sec. 48. Definition. - A Philippine passport is an official document of identity of
Philippine citizenship of the holder issued for travel purposes.

    Sec. 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.

    Sec. 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.

    Sec. 51. Period of Validity, Extension and Renewal. - The original 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.

    Sec. 52. Supplementary Regulation. - The Secretary may prescribe

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

    Sec. 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.

    Sec. 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
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    Sec. 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.

    Sec. 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 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
 
    Sec. 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.

    Sec. 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 the 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.

    Sec. 3. Powers and Functions. - To accomplish its goals, the Department
shall:
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    (1) Formulate long-range, medium-term and annual plans covering the
government's resources mobilization efforts, in coordination with other concerned
government agencies, and involving all public sector resources whether
generated by revenues and operations, foreign and domestic borrowing, sale or
privatization of corporations 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.

    Sec. 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 Service, the Operations Groups and their constituent
units, and the Regional Offices.
 

Chapter 2
DEPARTMENT PROPER
 
    Sec. 5. Office of the Secretary. - The Office of the Secretary shall consist of
the Secretary, his Undersecretary and their immediate staffs.

    Sec. 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.

    Sec. 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
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Secretary.
 

Chapter 3
DEPARTMENT SERVICES
 
    Sec. 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.

    Sec. 9. Planning and Policy Research Office. - The Planning and 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.

    Sec. 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.
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    Sec. 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 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.

    Sec. 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.

    Sec. 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; 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.

    Sec. 14. Legal Office. - The Legal Office shall have the following functions:
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    (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.

    Sec. 15. Regional Coordination Office. - The function of the Regional
Coordination Office is to coordinate the operations of the Regional Offices.
 

Chapter 4
BUREAUS
 
    Sec. 16. Operations Groups. - The Operation 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:

    (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.

    Sec. 17. Economic Intelligence and Investigation Bureau. - The Economic
Intelligence and Investigation Bureau, which shall be headed by and subject to
the supervision and control of the Commissioner, who shall in turn be appointed
by the President upon the recommendation of the Secretary, shall have the
following functions:

    (1) Receive, gather and evaluate intelligence reports and information and
evidence on the nature, modes and extent of illegal activities affecting the
national economy, such as, but not limited to, economic sabotage, smuggling, tax
evasion, and dollar-salting, to investigate the same and aid in the prosecution of
cases;
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    (2) Coordinate with external domestic or foreign agencies in monitoring the
financial and economic activities of persons or entities, which may adversely
affect national financial interest with the goal of regulating, controlling or
preventing said activities;

    (3) Provide all intelligence units of operating Bureau or Offices under the
Department with the general framework and guidelines for the proper conduct of
intelligence and investigation work;

    (4) Supervise, monitor and coordinate all the intelligence and investigation
operations of the operating Bureaus and Offices under the Department;

    (5) Investigate, hear and file, upon clearance by the Secretary, anti-graft and
corruption cases against personnel of the Department and its constituent units;
and

    (6) Perform such other appropriate functions as may be assigned by the
Secretary or his Undersecretaries.

    Sec. 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 regulation as may be
needed to delineate the authority and responsibility of the various groups and
services of the Bureau.

    Sec. 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 Commissioner.

    Sec. 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;
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    (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.

    Sec. 21. Appointment by the President. - The aforementioned

Undersecretaries shall be appointed by the President upon recommendation of
the Secretary.

    Sec. 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.

    Sec. 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;

    (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 provided by law.

    Sec. 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.
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    Sec. 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.

    Sec. 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;

    (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

    (d) Perform such other appropriate functions consistent with the assigned
tasks of the Group and others which may be given by the Commissioner.
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    Sec. 27. The Collection Districts. - (1) The Bureau shall have thirteen (13)
Collection Districts under the direct control and supervision of 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.

    Sec. 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 services.

    Sec. 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;
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    (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.

    Sec. 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;

    (b) Financial and Management Service;

    (c) Management Information and Data Systems Service;

    (d) Planning and Policy Reseach 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.

    Sec. 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.

    Sec. 32. Appointment by the President. - The aforementioned two (2) Assistant
National Treasurers shall be appointed by the President upon the
recommendation of the Secretary.

    Sec. 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 operations of local governments;

    (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.

    Sec. 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

    Sec. 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;
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    (b) Perform such other appropriate functions as may be assigned by the
Director.

    Sec. 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 government, 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 Deparment 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 the
Secretary, the Undersecretary for Domestic Operations or the Assistant
Secretary directly assisting the Undersecretary for Domestic Operations.

    Sec. 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.
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    Sec. 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 provision of government guarantees, and monitor compliance with
these policies;

    (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.

    Sec. 39. Administrative Staff . - The Undersecretary for International Finance
shall be directly assisted by a Finance Attache Division and Administrative Staff.
 

Chapter 5
REGIONAL OFFICES
 
    Sec. 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;

    (4) Coordinate with local government units; and

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

    Sec. 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.
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    The Regional Offices of each operating Bureau under the Department,
however, shall remain under the techical 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
 
    Sec. 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.

    Sec. 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.
 

Title III - JUSTICE

 
Chapter I
GENERAL PROVISIONS
 
    Sec. 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.

    Sec. 2. Mandate. - The Department shall carry out the policy declared in the
preceding section.

    Sec. 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;
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    (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;

    (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.

    Sec. 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;

    (5) Board of Pardons and Parole;

    (6) Parole and Probation Administration;

    (7) Bureau of Corrections;

    (8) Land Registration Authority;

    (9) Commission on the Settlement of Land Problems.

 

Chapter 2
DEPARTMENT PROPER
 
    Sec. 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.

    Sec. 6. Undersecretaries. - The Secretary shall be assisted by three (3)

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, further, that no Undersecretary shall be assigned
primarily administrative responsibilities. Within his functional area of
responsibility, an Undersecretary shall have the following functions:
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    (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 progrmas 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.

    Sec. 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 be hereby after be
provided by law or assigned by the Secretary.

    Sec. 8. Office of the Chief State Prosecutor. - The Office of the 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.

    Sec. 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
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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
 
    Sec. 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
off-springs and government acquired asset corporations and shall exercise
control and supervision over all legal departments or divisions maintained
separately 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 subsdiaries/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
 
    Sec. 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 center, 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.

    Sec. 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.
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    Sec. 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 assigned or allocated thereto.
 

Chapter 5
PUBLIC ATTORNEY'S OFFICE
 
    Sec. 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.

    Sec. 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;

    (2) Five (5) line divisions in the Central Office, namely: Administrative,
Financial and Management, Special and Appealed Cases, Legal Research and
Statistics, and Field Services Divisions; and

    (3) Regional and Provincial/District Offices.

    Sec. 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 Chief Public Attorney, Deputy Chief Public Attorneys, Regional Public
Attorneys and Assistant Regional Public Attorneys shall be appointed by the
President upon the recommendation of the Secretary.
 

Chapter 6
BOARD OF PARDONS AND PAROLE
 
    Sec. 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.

    Sec. 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.
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    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 his unexpired term or until the President shall have appointed a regular
member to fill the vacancy.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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
 
    Sec. 23. Parole and Probation Administration. - The Parole and Probation
Administration hereinafter referred to as the Administration shall have the
follolwing 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 functions as may hereafter be provided by law.

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    Sec. 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 Officer 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 allowance.

    Sec. 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
 
    Sec. 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.

    Sec. 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.
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    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
 
    Sec. 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.

    Sec. 29. Organizational Structure. - The Authortiy 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.

    Sec. 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 Pinas
and Paranaque 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.
 

Chaper 10
BUREAU OF IMMIGRATION
 
    Sec. 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.
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    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 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
Sec. 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.

    Sec. 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 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 regional and provincial offices thereat
which shall exercise such powers and perform such functions as may be
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assigned to to it by the Commission.
 

Chapter 12
OFFICE OF THE SOLICITOR GENERAL
 
    Sec. 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 Solicitor General, and such number of Solicitor 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.

    Sec. 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 lawyers. 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
lawyers. 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.
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    (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 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.

    Sec. 36. Appointments. - The Solicitor General shall be appointed by the
President and shall have the same qualifications 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.

    Sec. 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
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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
 
    Sec. 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.

    Sec. 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
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.

    Sec. 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 date requirements of the farmers as well as domestic
and foreign investors in agribusiness ventures;
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    (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;

    (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.

    Sec. 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
 
    Sec. 5. Office of the Secretary. - The Office of the Secretary shall consist of
the Secretary and his immediate staff as determined by him.

    Sec. 6. Assistant 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.

    Sec. 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.

    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;
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    (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.

    Sec. 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 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.

    Sec. 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;
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    (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);

    (3) 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 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
 
    Sec. 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 Bureau,
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.

    Sec. 11. Computer Service. - The Computer Service shall be responsible for
the development and maintenance of the electronic data processing
requirements of the Department.

    Sec. 12. Financial and Management Service. - The Financial and Management
Service shall provide services relating to budgeting, accounting and
management.

    Sec. 13. Administrative Service. - The Administrative Service shall be

responsible for providing personnel, records, information, training and other
general services.
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    Sec. 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.

    Sec. 15. Agribusiness Investment Information Service. - The Agribusiness

Investment Information Service shall conduct research, gather and collate data
related to agribusiness such as laws and regulations, taxation, production
technologies, market strategies, competition, foreign assistance, grants, credit,
and new venture considerations relating to agribusiness and shall package
information on agribusiness investment opportunities and provide sample
feasibility studies for different agricultural products and markets.

    Sec. 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.

    Sec. 17. Department Services Head. - Each of the Services of the Department
shall be headed by a Staff Director.
 

Chapter 4 - BUREAUS AND OFFICES

 
    Sec. 18. Bureau of Animal Industries. - 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;

    (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.

    Sec. 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
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    (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.

    Sec. 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 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.

    Sec. 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.

    Sec. 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;

    (2) Tap farmers, farmers' organizations, and research institutions, especially
the state colleges and universities, in the conduct of research for use of the
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Department and its clientele, particularly the farmers, fishermen and other rural
workers.

    Sec. 23. Bureau of Agricultural Cooperatives and Development. - The Bureau
of Agricultural Cooperatives and Development shall:

    (1) Formulate an integrated system for development and evaluation of

agricultural cooperatives;

    (2) Provide advice and assistance in the establishment of agricultural

cooperatives in the rural communities; and

    (3) Evolve a program to promote the economic viability of agricultural

cooperatives.

    The Bureau shall include in its area of responsibility non-agricultural

cooperatives.

    Sec. 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.

    Sec. 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
 
    Sec. 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 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;
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    (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.

    Sec. 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.

    Sec. 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 official of the Department who may be
authorized by the Secretary of Agriculture.

    Sec. 29. Plants, Plant Products, and Other Materials in Transit. - 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.

    Sec. 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.

    Sec. 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.

    Sec. 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
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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.

    Sec. 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.

    Sec. 34. Powers and Duties and 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 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.

    Sec. 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.

    Sec. 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.

    Sec. 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
clearance from the Plant Quarantine Officer thereat.
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    (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.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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 regulations promulgated in accordance with this Chapter.

    (2) The decisions of the Regional Directors 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.

    Sec. 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
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Central Bank of the Philippines, and the Importers' and Exporters' Confederation,
as members.

    Sec. 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.

    Sec. 45. Board Meeting. - The Board shall meet once every quarter or may call
special meetings when necessary, provided that such special meeting shall not
be held more than four times annually.

    Sec. 46. Quorum. - A majority of the members of the Board shall constitute a
quorum.
 

-Chapter 6 - ATTACHED AGENCIES

 
    Sec. 47. Attached Agencies. - The following units are hereby attached to the
Department:

    (1) Agricultural Credit Policy Council

    (2) National Agricultural and Fishery Council

    (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).
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    Sec. 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 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.

    Sec. 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
 
    Sec. 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 systems, 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 the fullest extent feasible.

    Sec. 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.
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    Sec. 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 water
resource development systems, and other public works;

    (9) Classify road 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.

    Sec. 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
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    (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
 
    Sec. 5. Office of the Secretary. - The Office of the Secretary shall be
composed of the Secretary and his immediate staff.

    Sec. 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.

    Sec. 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
 
    Sec. 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 and
operations audit;

    (2) Conduct management and operations performance audit of Department

activities and units and determine the degree of compliance with established
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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 costs) 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.

    Sec. 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;

    (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.

    Sec. 10. Planing 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:
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    (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 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 exercises 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.

    Sec. 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 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
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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.

    Sec. 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.

    Sec. 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:

    (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;

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    (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
Sec. 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.

    Sec. 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 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.
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    Sec. 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 of as may be required by law.

    Sec. 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.

    Sec. 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;
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    (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;

    (5) Perform such other related duties and responsibilities as may be assigned
or delegated by the Secretary or as may be required by law.

    Sec. 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
 
    Sec. 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 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;
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    (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.

    Sec. 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
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.

    Sec. 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;
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    (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

    (6) Perform such other related duties and responsibilities as may be assigned
or delegated by the Secretary or as may be required by law.

    Sec. 23. District Engineer. - The District Engineer of or within a province or city
shall 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.

    Sec. 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
 
    Sec. 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
GENERAL PROVISIONS
 
    Sec. 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:
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    (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.

    Sec. 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.

    Sec. 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:

    (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.

    Sec. 4. Organizational Structure. - The Department, aside from the

Department Proper, shall consist of Bureau and Regional Offices.
 

Chapter 2
DEPARTMENT PROPER
 
    Sec. 5. Office of the Secretary. - The Office of the Secretary shall be
composed of the Secretary and his immediate staff.

    Sec. 6. Undersecretaries. - The Secretary shall be assisted by five (5)

Undersecretaries, each of whom shall be responsible for the following:
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    (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
DEPARTMENT SERVICES
 
    Sec. 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 or equipment, collection,
disbursement, security and custodial work;

    (4) The Human Resources Development Service, shall:

    (a) Develop and administer a personnel 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
 
    Sec. 8. Organization. - The Board shall be composed of an 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
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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.

    Sec. 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.

    Sec. 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
 
    Sec. 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
 
    Sec. 12. Bureau of Elementary Education. - The Bureau of Elementary
Education shall have 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.

    Sec. 13. Bureau of Secondary Education. - The Bureau of Secondary

Education shall have the following functions:
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    (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.

    Sec. 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 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.

    Sec. 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.

    Sec. 16. Bureaus 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.
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    Sec. 17. Bureau of Physical Education and School Sports. - The Bureau of
Physical Education and School Sports shall have the following 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
 
    Sec. 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.

    Sec. 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

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

 

Chapter 8
ATTACHED AGENCIES
 
    Sec. 20. Attached Agencies. - The following agencies are hereby attached to
the Department:

    (1) National Museum;

    (2) National Library;

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    (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.

    Sec. 21. Supervised and Controlled Agencies. - The Department shall exercise
supervision and control over the following agencies:

    (1) Health and Nutrition Center; and

    (2) National Education Testing and Research Center.

    Sec. 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 by in this Code.
 

Chapter 9
MISCELLANEOUS PROVISIONS
 
    Sec. 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.

    Sec. 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.
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    (4) The dates established for the long school vacation shall not be changed
oftener than one every five (5) years without prior public hearing properly
advertised in a newspaper of general circulation or announced by the school
authorities concerned.

    Sec. 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.

    Sec. 26. School Sessions. - The regular daily sessions of all public 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.

    Sec. 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.

    Sec. 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 .

    Sec. 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
 
    Sec. 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.

    Sec. 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 protection for the rights of all
concerned parties.

    Sec. 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;
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    (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 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.

    Sec. 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
 
    Sec. 5. Office of the Secretary. - The Office of the Secretary shall consist of
the Secretary and his immediate staff.

    Sec. 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.

    Sec. 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.

    Sec. 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,
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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 - DEPARTMENT SERVICES

 
    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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 Ministries
Meeting, of which the Philippines is a member, and related international 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.

    Sec. 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
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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
 
    Sec. 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 schemes
and projects for the improvement of the standards of living of workers and their
families.

    Sec. 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;

    (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.

    Sec. 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;
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    (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) Act as the government's clearinghouse of all information relating to working
women and minors;

    (6) 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;

    (7) 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.

    (8) 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

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

    Sec. 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.

    Sec. 20. Bureau of Working Conditions. - The Bureau of Working Conditions
shall:

    (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,
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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.

    Sec. 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 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.

    Sec. 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
statisticals 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;
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    (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 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 of assigned by the
Secretary.

    Sec. 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-
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adversarial schemes, grievance handling, 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 and
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
 
    Sec. 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:

    (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
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    Sec. 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
 
Subtitle I
PRELIMINARY PROVISIONS
 
Chapter 1
NATIONAL DEFENSE POLICIES
 
    Sec. 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
 
    Sec. 2. Declaration of Policies. - (1) The formulation of integrated and
rationalized national, foreign, military, political, economic, social and educational
policies, programs, and procedures 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.

    Sec. 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.
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    Sec. 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.

    Sec. 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.

    Sec. 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.

    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.

    Sec. 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
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President. The National Security Director shall attend and participate in meetings
of the Cabinet and have the privileges of a member thereof.

    Sec. 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 by the President or the National Security Councils which have
implications on national security.
 

Chapter 3
NATIONAL INTELLIGENCE COORDINATING AGENCY
 
    Sec. 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.

    Sec. 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.

    Sec. 11. The Deputy-Director General. - The Deputy Director-General shall
assist the Director-General in the performance of official functions and, in his
absence, perform the functions of the Director-General.

    Sec. 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 building
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
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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.

    Sec. 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.

    Sec. 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
 
    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 18. Organizational Structure. - The Department shall be composed of the
Secretary, the Undersecretary and Assistant Secretaries and their immediate
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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
Sec. 19. Office of the Secretary. - The Office of the Secretary shall consist of the
Secretary and his immediate staff as determined by him.

    Sec. 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.

    Sec. 21. Executive Staff. - The Executive Staff shall be composed of the Staff
for Plans and Programs, Staff for Installation and Logistics, Staff for Public
Affairs, Staff for Strategic Assessment, Staff for Comptrollership, Staff for
Personnel, and the Legal Service.

    Sec. 22. The Service Staff. - The Service Staff shall be composed of the
Administrative Services Office, and Information Management Office.

    Sec. 23. Personal Staff. - There shall be a Personal Staff as may be
determined by the Secretary.
 

Chapter 3
GOVERNMENT ARSENAL
 
    Sec. 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.

    Sec. 25. Qualification. - The Director and Assistant Directors shall have the
expertise, training or experience in the field of munitions.
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    Sec. 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
 
    Sec. 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.

    Sec. 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
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 organization 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.

    Sec. 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.
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    Sec. 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.

    (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
 
    Sec. 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.

    Sec. 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 other retired military
personnel; and

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

 

Chapter 6
ARMED FORCES OF THE PHILIPPINES
 
    Sec. 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;
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    (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.

    Sec. 34. Compositions. - (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 the 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 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.

    Sec. 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 plans. No Major Service may be unfilled, inactivated or merged with
another Service, without the approval of the Congress.

    Sec. 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 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.
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    (5) Appointment of officers to the basic, technical and administrative by rules
and regulations prescribed by the Secretary of National Defense.

    Sec. 37. The Citizen Armed Forced. - (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
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.

    Sec. 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.

    Sec. 39. Organizational Principles. - The ogranizational 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 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
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    Sec. 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 operations 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 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.
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    Sec. 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.

    Sec. 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 staff, 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.

    Sec. 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.

    Sec. 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.

    Sec. 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 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
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provisions of this Chapter.
 

Chapter 8
MAJOR SERVICES
 
    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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;

    (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.

    Sec. 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.

    Sec. 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
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    (5) Perform such other functions as may be provided by law or assigned by
higher authorities.

    Sec. 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.

    Sec. 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 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 territory 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.

    Sec. 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.

    Sec. 55. The Philippine Constabulary. - Unless otherwise provided by law, the
Philippine Constabulary, as the national police force, shall be primarily
responsible for the preservation 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.

    Sec. 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, retain, 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

supplies essential to the accomplishment of its missions; and
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    (e) Perform such other functions as may be provided by law or assigned by
higher authorities.

    (2) In times or 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.

    Sec. 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
 
    Sec. 58. Organization. - (1) The Philippine Military Academy is the primary
training and educational institution of the AFP. It shall be the primary sources 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 (CC-AFP) 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.

    (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.

    Sec. 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 characters, the board 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
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    Sec. 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 this 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 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, instructor, 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.

    Sec. 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.

    Sec. 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.
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    (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
INTEGRATED NATIONAL POLICE
 
    Sec. 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 as Jail Management Services as
components, under the Department of National Defense.

    Sec. 64. Organizational Structures. - 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.

    Sec. 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.

    Sec. 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.

    Sec. 67. Authority of the President Over the Integrated National 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.
 
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Chapter 12
ATTACHED AGENCIES
 
    Sec. 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
 
    Sec. 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.

    Sec. 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.

    Sec. 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;

    (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
 
    Sec. 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
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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.

    Sec. 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.

    Sec. 3. Powers and Functions. - The Department shall: (1) Define the national
health policy and formulate and implement a 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.

    Sec. 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.
 

Chapter 2
DEPARTMENT PROPER
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    Sec. 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 Filed
Operations.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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 system to support planning and implementation of health
programs;
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    (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.

    Sec. 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 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
 
    Sec. 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;

    (3) Health Manpower Development and Training Service which shall formulate
plans, policies, standards and techniques for the effective and efficient
manpower development and training of Department personnel; provide
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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 Department use;
manufacture vaccines, sera, anti-iodins, 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
 
    Sec. 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, programs 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 supported by an Assistant Secretary, shall supervise the following:

    (1) Maternal and Child Health Services 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 control 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
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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 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 that the major causes or 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 Services 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-diseases, cancer, other non-communicable diseases, and
occupational health.

    Sec. 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;

    (2) Radiation Health Service which shall formulate and implement plans,
policies, programs, 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;
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    (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.

    Sec. 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:

    (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
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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
office 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 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
 
    Sec. 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.

    Sec. 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 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.
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    Sec. 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 adn 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 officers 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;

    (4) Coordinate with local government units; and

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

    Sec. 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.

    Sec. 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
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region, and their assignments shall be made by the Secretary on the
recommendation of the Regional Health Director.

    Sec. 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.

    Sec. 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.

    Sec. 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
 
    Sec. 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.

    Sec. 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.

    Sec. 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 Secretary
of Justice or his representative; the Secretary of National Defense or his
representative; the Secretary of Education or his representative; the Secretary of
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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
 
    Sec. 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.

    Sec. 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 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 liberation 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.

    Sec. 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;
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    (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;

    (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
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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

    (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.

    Sec. 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
 
    Sec. 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 adn 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 is
response to relevant environment changes; review the Department's
performance against standards and targets previously established; and provide
staff services related to the development, 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
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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 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.

    Sec. 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.
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    The Secretary may designate any Undersecretary to supervise the bureaus,
offices, and agencies, including the attached entities, consistent with the
mandate of the department.

    Sec. 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.

    Sec. 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.

    Sec. 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
Sec. 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, 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 Regulations 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 products features, product representation, and the
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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 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 with the International Organization for
Standardization, 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
 
    Sec. 11. Office of the Undersecretary for International Trade. - The Office of
the Undersecretary for International Trade shall include all the units involved in
policy formulation, standards development, program monitoring of the
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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 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.
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    (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
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
 
    Sec. 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 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.
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    (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
 
    Sec. 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
and regulations, and proper implementation of Department plans and programs
by the Regional Offices in their respective administrative jurisdictions.

    Sec. 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:

    (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
 
    Sec. 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:
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    (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
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 system 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 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.
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    (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
 
    Sec. 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.

    Sec. 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
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.

    Sec. 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;
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    (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 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 the 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 farming 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 and Agrarian Reform Coordinating Councils; and

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

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    Sec. 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
 
    Sec. 5. Office of the Secretary. - The Office of the Secretary shall consist of
the Secretary and his immediate staff.

    Sec. 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 on 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.

    Sec. 7. Assistant Secretary. - The Secretary shall be assisted by one Assistant
Secretary.
 

Chapter 3
DEPARTMENT SERVICES
 
    Sec. 8. Management and Executive Services. - The Management 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;
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    (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.

    Sec. 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 other administrative
issuances;

    (2) Prepare legal decisions and resolutions of administrative cases; and

    (3) Provide public assistance services.

    Sec. 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.
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    Sec. 11. Finance and Physical Assets Management Service. - The Finance
and Physical Assets Management Services shall have the following functions:

    (1) Prepare, execute and administer the Department's budget including
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.

    Sec. 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 logical support;

    (5) Engage in general canvassing and purchasing of supplies, materials and
equipment;

    (6) Implement guidelines with respect to procurement services; and

    (7) Perform such other functions as the Secretary may assign.
 

Chapter 4
BUREAUS
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    Sec. 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;

    (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.

    Sec. 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;
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    (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,

irrigations systems and other community facilities;

    (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.

    Sec. 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 public and 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, land-holdings, 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;
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    (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.

    Sec. 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 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;
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    (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.

    Sec. 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 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;

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

 

Chapter 5
REGIONAL AND DISTRICT OFFICES
AND ATTACHED AGENCIES
 
    Sec. 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:

    (1) Implement laws, policies, plans, rules and regulations of the Department in
the regional area;

    (2) Develop and implement a regional personnel management program;

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    (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;

    (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.

    Sec. 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:
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    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
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;

    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
recommend appropriate remedial measures for effective program
implementation; and

    (7) Perform such other functions as may be necessary in the service of the
clientele.

    Sec. 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
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identification, leasehold 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 priority

programs; and

    (12) Perform such other functions as may be assigned from time to time.

    Sec. 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
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GENERAL PROVISIONS
 
    Sec. 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.

    Sec. 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.

    Sec. 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;

    (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.

    Sec. 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

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    (7) Regional and Field Offices.
 

Chapter 2
DEPARTMENT PROPER
 
    Sec. 5. Office of the Secretary. - The Office of the Secretary shall consist of
the Secretary and his immediate staff.

    Sec. 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
 
    Sec. 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.

    Sec. 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.

    Sec. 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;

    Sec. 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,
disbursement, security and custodial work, and other kinds of services not
related to the other services above enumerated.

    Sec. 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
BUREAUS AND OFFICES
 
    Sec. 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:
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    (1) Advise and assist the Secretary in the exercise of the power of general
supervision of the President over 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.

    Sec. 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
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.

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    Sec. 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 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.

    Sec. 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.

    Sec. 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 barangay assemblies;
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    (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.

    Sec. 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 system and processes at the local level; and

    (3) Perform other functions as may be delegated by the Secretary or as

provided by law.
 

Chapter 5
REGIONAL AND FIELD OFFICES
 
    Sec. 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.
 
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Chapter 6
LEAGUES OF PROVINCES, CITIES
AND MUNICIPALITIES
 
    Sec. 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
GENERAL PROVISIONS
 
    Sec. 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 embued with greater pride in and
commitment to the nation.

    Sec. 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.

    Sec. 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
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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 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;

    (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.

    Sec. 4. Organizational Structure. - The Department shall consist of the

Department Proper, Department Services, Bureaus and Offices, Regional and
Foreign Offices.
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    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
 
    Sec. 5. Office of the Secretary. - The Office of the Secretary shall consist of
the Secretary and his immediate staff.

    Sec. 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
Promotion 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.
 

Chapter 3
DEPARTMENT SERVICES
 
    Sec. 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.
 
    Sec. 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.

    Sec. 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.

    Sec. 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
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    Sec. 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.

    Sec. 12. Bureau of Domestic Tourism Promotions and Information. - The
Bureau of Domestic Tourism Promotion 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 publicity as
tourist attractions in the Philippines; promote educational and cultural tours to
increase travel within in the country;

    (3) Plan promotional campaigns through advertising and publicity and
coordinate promotional efforts with the private sector through sales campaigns
and information dissemination; and

    (4) Organize special events for the promotion of local destinations.

    Sec. 13. Bureau of International Tourism Promotions. - The Bureau of

International Tourism promotions shall have the following functions:

    (1) Generate favorable publicity of 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.

    Sec. 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;

    (2) Cause the widest publicity of existing and forthcoming activities and
programs of the Department through a functional relationship with the media; and
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    (3) Organize and disseminate promotional and tourist information materials to
various tourist assistance centers.

    Sec. 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.

    Sec. 16. Office of Tourism Development Planning. - The 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 zones within the country;

    (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;
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    (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 zone;

    (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 tourisms; 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 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.

    Sec. 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.

    Sec. 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
FOREIGN AND REGIONAL OFFICES
 
    Sec. 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
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promotion of the Philippines as an international tourist destination, which shall
oversee and implement the marketing and promotional programs of the
Department.

    Sec. 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
 
    Sec. 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
 
Chapter 1
GENERAL PROVISIONS
 
    Sec. 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.

    Sec. 2. Mandate. - (1) The Department of Environment and Natural Resources
shall be primarily responsible for the implementation of the foregoing policy.
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    (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.

    Sec. 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 sectors of
the population; and

    (5) Conserve specific terrestial and marine areas representative of the
Philippine natural and cultural heritage for present and future generations.

    Sec. 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;

    (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
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measures with the end in view of promoting close collaboration between the
government and the private sector; the effective and efficient classification and
subclassification 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 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.

    Sec. 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
 
    Sec. 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.

    Sec. 7. Office of the Secretary. - The Office of the Secretary shall consist of
the Secretary and his immediate staff.

    Sec. 8. The Secretary. - The Secretary shall:

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    (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.

    Sec. 9. Undersecretaries. - The Secretary shall be assisted by five (5)

Undersecretaries upon the recommendation of the Secretary. The Secretary is
thereby 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;

    (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) Exercised 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.

    Sec. 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,
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and one (1) for Field Operations in Mindanao, one (1) for Legal Affairs, and one
(1) for Management Services.

    Sec. 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.

    Sec. 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.

    Sec. 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, 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
 
    Sec. 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;
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    (2) Advise the regional offices in the implementation of the above policies
and/or programs;

    (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.

    Sec. 15. Lands Management Bureau. - The Lands Management Bureau, to be
headed by 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 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;

    (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.

    Sec. 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
Reservation Development Board, and the Gold Mining 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:
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    (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 and non-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 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.

    Sec. 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 regulation 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;
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    (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
preparation of the State of the Philippine Environment Report and the National
Conservation Strategy;

    (9) Provide assistance to the Regional Office 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.

    Sec. 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 programs.

    The Ecosystems Research and Development Bureau shall directly manage
and 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.

    Sec. 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
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Program of the Bureau of Forest Development as well as the Calauit Game
Preserve and Wildlife Santuary, 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
Settlement 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 Philippine 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

    (5) Perform such other functions as may be provided by law or assigned by the
Secretary.
 

Chapter 4
THE DEPARTMENT FIELD OFFICES
  Sec. 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.

    Sec. 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, and rules and
regulations of the Department to promote the sustainability and productivity of
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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;

    (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.

    Sec. 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
 
    Sec. 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.
 

    Title XV
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TRANSPORTATION AND COMMUNICATIONS
 
Chapter 1
GENERAL PROVISIONS
 
    Sec. 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.

    Sec. 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.

    Sec. 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 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;
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    (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 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.

    Sec. 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
 
    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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 Information Service and the
Project Management Service.

    Sec. 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.
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    Sec. 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.

    Sec. 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.

    Sec. 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 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
 
    Sec. 13. Department Services. - The Department Services shall include the
following:

    (1) Administrative Service;

    (2) Legal Service;

    (3) Finance and Management Service;

    (4) Comptrollership Service;

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    (5) Planning Service;

    (6) Project Development Service;

    (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
 
    Sec. 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
 
    Sec. 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".

    Sec. 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
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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.

    Sec. 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.

    Sec. 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.

    Sec. 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;

    (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 injunctions, 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 to
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;
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    (8) Review motu propio 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 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;

    Sec. 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 propio review and decision or action of the Board before the
same becomes final.

    Sec. 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
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.

    Sec. 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.
 
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Chapter 6
ATTACHED AGENCIES
 
    Sec. 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.

    Sec. 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
 
    Sec. 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.

    Sec. 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.

    Sec. 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;
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    (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-government 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;

    (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 multi-lateral linkages for
technical cooperation, in coordination with the Department of Foreign Affairs;

    (10) Provide advisory services and develop and implement training standard
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 programs and
services for the disabled, the aging and other socially disadvantaged; and

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

    Sec. 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
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Bureaus, Regional Offices, Provincial/City Offices and Municipal/District Offices.
 

Chapter 2
DEPARTMENT PROPER
 
    Sec. 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.

    Sec. 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.

    Sec. 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 Disable Person's 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
DEPARTMENT SERVICES
 
    Sec. 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;
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    (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
 
    Sec. 9. Composition. - The Staff bureaus listed in Section 7 (2) 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.

    Sec. 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;
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    (10) Undertake studies and action researches on matters pertaining to client
welfare and development and propose relevant policies and amendments for
legislation;

    (11) Maintain linkages relative to welfare programs or projects for national,
regional and interregional cooperation.

    Sec. 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
 
    Sec. 12. Regional Office. - The Department is hereby authorized to establish,
operate and maintain a Regional Office in each of the administrative regions of
the country.

    Sec. 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;

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    (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.

    Sec. 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;

    (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.

    Sec. 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
 
    Sec. 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;
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    (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 education
program for the handicapped in the form and magnitude appropriate for the
needs of the province.

    Sec. 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
 
    Sec. 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
 
    Sec. 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 Person
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
 
    Sec. 20. Solicitation. - Any person, corporation, organization, or association
desiring to solicit or receive contribution for charitable or public welfare purposes
shall first secure a permit from the Regional Offices of the Department. 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.

    Sec. 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
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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 reports 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.

    Sec. 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
 
    Sec. 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.

    Sec. 24. Social Work Agency. - (1) No social work agency shall operate and
be accredited as such unless it is registered with the Department which 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 workers 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.

    Sec. 25. Child Welfare Agency. - (1) No person, natural or juridical, shall
establish any child welfare agency without first securing a license from the
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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:

    (a) That the agency is being used for immoral purposes;

    (b) That 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 commission 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.

    Sec. 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
 
Chapter 1
GENERAL PROVISIONS
 
    Sec. 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
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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.

    Sec. 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.

    Sec. 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 or organizational effectiveness and review
and evaluation of legislative proposals having budgetary or organizational
implications.
 

Chapter 2
DEPARTMENT PROPER
 
    Sec. 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.

    Sec. 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.

    Sec. 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
 
    Sec. 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
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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.

    Sec. 8. The Legislative, Administrative and Procurement Services 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.

    Sec. 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 monitoring systems.
 

Chapter 4
BUREAUS
 
    Sec. 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:
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    (1) National Government Budget Bureaus A and B which shall 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.

    Sec. 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 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.

    Sec. 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
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GENERAL PROVISIONS
 
    Sec. 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.

    Sec. 2. Mandate. - The Department shall provide central direction, leadership
and coordination of scientific and technological efforts and 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.

    Sec. 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;
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    (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 services
needed by agriculture, industry, transport and the general public;

    (7) Develop and maintain an information system and data-bank 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 discipline
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.

    Sec. 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
 
    Sec. 5. Office of the Secretary. - The Office of the Secretary shall consist of
the Secretary and his immediate staff.

    Sec. 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.

    Sec. 7. Assistant Secretaries. - The Secretary shall also be assisted by three
(3) Assistant Secretaries.
 

Chapter 3
SERVICES
 
    Sec. 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;
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    (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 collections, disbursement, security and
custodial work, and all legal matters.
 

    Chapter 4
BOARD, COUNCILS AND INSTITUTES
 
    Sec. 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.

    Sec. 10. Sectoral Planning Councils. - There shall be five (5) sectoral planning
councils as follows:

    (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.

    Sec. 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)
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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 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.

    Sec. 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.

    Sec. 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; 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.

    Sec. 12. Philippine Council for Aquatic and Marine Research and
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,
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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.

    Sec. 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.

    Sec. 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.

    Sec. 17. Industrial Techonology 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 other 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.

    Sec. 18. Philippine Nuclear Research Institute. - The Philippine Nuclear
Research Institute shall have the following functions:
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    (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 reactors and other radiation facilities;
and

    (3) License and regulate activities relative to production, transfer, and
utilization of nuclear and radioactive substances.

    Sec. 19. Food Nutrition Research Institute. - The Food Nutrition Research
Institute shall have the following functions:

    (1) Undertake research that defines the citizenrys' nutritional status, with
reference particularly to the malnutrition problem, its causes and effects, and
identify alternative solutions to them;

    (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.

    Sec. 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 or completed researches directly to the end-users or
via linkage units of other government agencies;

    (3) Undertake technical services and provide training programs.

    Sec. 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 for other government agencies; and

    (3) Undertake technical services and provide training programs.

    Sec. 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
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    (3) Complement the overall endeavor in the scientific field with intensive
activities in the computer and information technologies.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 26. Philippine Atmospheric, Geophysical and Astronomical 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;
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    (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.

    Sec. 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 detection,

forecast, and warning systems.
 

Chapter 5
REGIONAL OFFICES.
 
    Sec. 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.

    Sec. 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.
 
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Chapter 6
ATTACHED AGENCIES
 
    Sec. 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.

    Sec. 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:

    (1) To stimulate research in the mathematical, physical, biological and other
basic sciences and in the application of these sciences to engineering,
agriculture, 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.

    Sec. 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 institution;

    (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 work 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.

    Sec. 33. The National Academy of Science and Technology. - The 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.
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    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.

    Sec. 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 subject 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 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.

    Sec. 35. The Metal Industry and Research Development Center. - The Metals
Industry and Research Development Center shall be 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
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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 Metal 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
 
Chapter 1
GENERAL PROVISIONS
 
    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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
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governmental or proprietary function, or any 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 to 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
 
    Sec. 6. Scope of the Civil Service. - (1) The Civil Service 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.

    Sec. 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;
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    (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

    (7) Permanent laborers, whether skilled, semi-skilled, or unskilled.

    Sec. 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 occupation groups. A
candidate for promotion should, however, have previously passed the
examination for that level.

    Sec. 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
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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:

    (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
 
    Sec. 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.

    Sec. 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.

    Sec. 12. Powers and Functions. - The Commission shall 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;
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    (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;

    (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 investigation 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
when necessary;
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    (16) Delegate authority for the performance of any functions to departments,
agencies and offices where such functions may be effectively performed;

    (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.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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
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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 or 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 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 researches;
prepare opinions and rulings in the interpretation and application of the Civil
Service law, rules and regulations; prosecute violations of such law, 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, rules and regulations for the proper implementation
of the Commission's examination and placement programs.
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    (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 of
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 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.

    Sec. 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
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organization as the need arises.
 

Chapter 4
INTERDEPARTMENT RELATIONS
 
    Sec. 18. Civil Service Assistance to Department 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 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
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.

    Sec. 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 improvement of personnel
methods and to the solution of personnel problems confronting the various
departments and agencies of the government;
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    (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.

    Sec. 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
 
    Sec. 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 Service
as defined in Section 6, 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.
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    (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 reason 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

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 this 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 appointments to such
position.

    Sec. 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.
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    (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.

    Sec. 23. Release of Examination Results. - The results of any particular civil
service examination held in a number of places on the same date shall be
released simultaneously.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    (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.
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    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 appeals 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 delinquence 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 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.

    Sec. 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.

    Sec. 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.

    Sec. 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
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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.

    Sec. 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.

    Sec. 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.

    Sec. 32. Merit Promotion Plans. - Each department or agency shall establish
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.

    Sec. 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.

    Sec. 34. Responsibility for Training. - The Commission shall be 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
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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.

    Sec. 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.

    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.

    Sec. 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.

    Sec. 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
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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
 
    Sec. 38. Coverage. - (1) All government employees, including those in
government-owned or controlled corporations with original charters, can 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.

    Sec. 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 a highly
confidential nature shall not be eligible to join the organization of rank-and-file
government employees.

    Sec. 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.

    Sec. 41. Registration of Employees' Organization. - Government employees'

organizations shall register with the Civil Service Commission at 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.

    Sec. 42. Certificate of Registration. - Upon arrival of the application, a

registration certificate shall be issued to the organization recognizing it as a
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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 Commission and the Secretary of Labor and Employment.

    Sec. 43. Appropriate Organization Unit. - The appropriate organizational unit
shall be the employer's unit consisting of rank-and-file employees unless
circumstances otherwise require.

    Sec. 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.

    Sec. 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 administer the provisions of this Chapter. For this
purpose, the Council shall promulgate the necessary rules and regulations to
implement this Chapter.

    Sec. 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.

    (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;

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    (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
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 frequently unauthorized absence from duty during regular office hours;

    (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 or 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 and offices
without authority;
 
    (29) Promoting the sale of tickets in behalf of private enterprises that are not
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intended for charitable or public welfare purposes and even in the latter cases if
there is no prior 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 meeting 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.

    Sec. 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.

    (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.

    Sec. 48. Procedure 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
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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
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.

    Sec. 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
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decision rendered; (b) the decision is not supported by the evidence on record; or
(c) error 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.

    Sec. 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 recividist or has been repeatedly charged and
there is reasonable ground to believe that he is guilty of the 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.

    Sec. 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.

    Sec. 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.

    Sec. 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 7
PROHIBITIONS
 
    Sec. 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 controlled corporations or in any of its subsidiaries.
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    (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.

    Sec. 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.

    Sec. 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.

    Sec. 57. Limitations on Employment of Laborers. - Laborers, whether skilled,

semi-skilled or unskilled, shall not be assigned to perform clerical duties.

    Sec. 58. Prohibition on Detail or Reassignment. - No detail or reassignment

whatever shall be made within three (3) months before any election.

    Sec. 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.

    As used in this Section, the word "relative" and members of the family referred
to are those related within the third degree either or 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 are appointed in violation of these
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provisions.
 

Chapter 8
LEAVE OF ABSENCE
 
    Sec. 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 9
MISCELLANEOUS PROVISIONS
 
    Sec. 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 persons 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 diems for their services, to be paid out of the funds of,
and at a rate to be determined by, the Commission.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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.
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    Sec. 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 salary due an officer or employee any amount for contribution or
payment of obligations other than those due the government or its
instrumentalities.

    Sec. 67. Penal Provision. - Whoever makes any appointment or employs any
person in violation of any provision of this Title or the rules made 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
 
    Sec. 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.

    Sec. 2. Definition of Terms.- Unless the content 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 requisitions, 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 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,
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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
 
    Sec. 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.

    Sec. 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;

    (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.

    Sec. 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.

    Sec. 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.
 
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Chapter 3
OFFICES
 
    Sec. 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 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 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;

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    (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. 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;
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    (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:

    (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 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;
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    (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 its;

    (d) Formulate and develop plans, operating standards, methods and
techniques for the implementation of accounting and 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;
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    (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

    (h) Perform such other related functions as may be assigned from time to time
by the Chairman.

    Sec. 8. Auditing Units in Regional Offices: Structure and Functions. - The
Regional Offices in Region 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.

    Sec. 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
JURISDICTION, POWERS AND FUNCTIONS OF THE COMMISSION
 
    Sec. 10. Statement of Objectives. - In keeping with the constitutional mandate,
the Commission adheres to the following objectives:
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    (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.

    Sec. 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 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.

    Sec. 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.

    Sec. 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
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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.

    Sec. 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.

    Sec. 15. Fee for Audit and Other Services. - (1) The Commission 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.

    Sec. 16. Deputization of Private Licensed Professionals to Assist Government

Auditors. - (1) The Commission may, when the exigencies of the service also
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.

    Sec. 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
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    (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.

    Sec. 18. Settlement of Accounts Between Agencies. - The 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.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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
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
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    (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.

    Sec. 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 donation through the Government.

    Sec. 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 on any matter within the jurisdiction of the Commission.

    Sec. 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.

    Sec. 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
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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.

    Sec. 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.

    Sec. 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
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 the 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.

    Sec. 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.

    Sec. 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 the regulations of the
Commission.
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    Sec. 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 representatives;

    (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.
 
    Sec. 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 of 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
 
    Sec. 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 receipts of a copy thereof, appeal in
writing to the Commission.

    Sec. 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 office, 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.
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    Sec. 35. Appeal form 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 that agency.

    Sec. 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.

    Sec. 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
GOVERNMENT AUDITING AND ACCOUNTING
 
    Sec. 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.

    Sec. 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 a well as in the preparation of audit and
financial reports.

    Sec. 40. Definition of Government Accounting. - Government accounting

includes the process of analyzing, recording, classifying, summarizing and
communicating all transactions involving the receipt and dispositions of
government funds and property, and interpreting the results thereof.
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    Sec. 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
 
    Sec. 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 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.

    Sec. 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.

    Sec. 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
 
    Sec. 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 disbursement
of funds.
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    Sec. 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.

    Sec. 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 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.

    Sec. 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.

    Sec. 49. Countersigning of Warrants or Checks by Auditors. - No warrant or

check shall be paid by the Treasury 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 be prescribed from
time to time.
 

Chapter 9
ACCOUNTABILITY AND RESPONSIBILITY
FOR GOVERNMENT FUNDS AND PROPERTY
 
    Sec. 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.

    Sec. 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;
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    (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.

    Sec. 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.

    Sec. 53. Prohibition Against Pecuniary Interest. - No accountable or

responsible officer shall be pecuniary interested, directly or indirectly, in any
contract or transaction of the agency in which he is such an officer.
 

Chapter 10
MISCELLANEOUS PROVISIONS
 
    Sec. 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.

    Sec. 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
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. Repealed 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
 
    Sec. 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.

    Sec. 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;
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    (2) Fix other reasonable periods for certain pre-election requirements in order
that voters shall not be deprived of their rights 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 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 elections 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 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.
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    (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 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, instruction 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 shall notify the authorized
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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 purpose of ensuring free, orderly, honest, peaceful and
credible elections in any constituency. Such groups or organization shall
functions under the direct and immediate control and supervision of the
Commission;

    (19) Conduct hearings 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
warrant. Notwithstanding the pendency of any preproclamation 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.

    Sec. 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:
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    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
THE COMMISSION PROPER
 
    Sec. 4. Composition and Qualifications. - 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.

    Sec. 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.

    Sec. 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 commissioners 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.

    Sec. 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.

    Sec. 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 business of
the Commission; and

    (7) Perform such other duties as may be assigned by the Chairman.

    Sec. 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 the 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.

    Sec. 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.
 
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Chapter 3
THE FIELD OFFICES
 
    Sec. 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.

    Sec. 12. Qualifications of Heads of field Offices. - Only members of the
Philippines 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.

    Sec. 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 of 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
 
    Sec. 1. Composition and Qualification. - The Commission on Human Rights
shall be composed of a Chairman and four (4) Members who must be natural-
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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.

    Sec. 2. Powers and Functions. - The Commission on Human Rights shall:

    (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.

    Sec. 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 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.

    Sec. 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.
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    Sec. 5. Compensation. - The Chairman and the Members of the Commission
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.

    Sec. 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
 
    Sec. 1. Composition. - (1) The Office of the Ombudsman shall be headed by
the Ombudsman, to be known as the Tanod-bayan, 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.

    Sec. 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;

    (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.
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    Sec. 3. Action and Complaints. - The Ombudsman and his Deputies, as
protectors of the people, shall act promptly on complaint filed in any from 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.

    Sec. 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
 
    Sec. 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.

    Sec. 2. National Economic and Development Authority. - The National

Economic and Development Authority shall serve as an independent planning
agency of the government.

    Sec. 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 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;
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    (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.

    Sec. 4. Composition of the Authority. - The Authority shall be composed of two
separate and distinct entities: the Board and the Secretariat.
 

Chapter 2
NEDA BOARD
 
    Sec. 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 - do -

    Secretary of Trade & Industry - do -

    Secretary of Agriculture - do -

    Secretary of Environment & Natural

    Resources - do -

    Secretary of Public Works and Highways - do -

    Secretary of Budget and Management - do -

    Secretary of Labor & Employment - do -

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    Secretary of Local Government - do -

    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.

    Sec. 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.

    Sec. 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 Chairman 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.

    (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 President's 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 fiscal,
monetary and balance of payments implications of major national projects.
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    (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 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 or 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 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 Government 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.
 
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Chapter 3
NEDA SECRETARIAT
 
    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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;

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    (3) Trade, Industry and Utilities Staff;

    (4) Infrastructure Staff;

    (5) Social Development Staff; and

    (6) Public Investment Staff.

    Sec. 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.

    Sec. 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

    (5) Development Information Staff.

 

Chapter 4
ATTACHED AGENCIES
 
    Sec. 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:

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    (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 Region;

    (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.

BOOK VI
 
NATIONAL GOVERNMENT BUDGETING
 
Chapter 1
GENERAL PROVISIONS
 
    Sec. 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.
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    (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
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.

    Sec. 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 obligation 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

 
    Sec. 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 borrowings of all
levels of government 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.

    Sec. 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.

    Sec. 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
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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.

    Sec. 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.

    Sec. 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
assumed by government shall be specified in the budget process.

    Sec. 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.

    Sec. 9. Performance and Financial Review. - The analysis of agency operating
performance, the evaluation of 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.

    Sec. 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
 
    Sec. 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.
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    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 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.

    Sec. 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;

    (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
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    (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.

    Sec. 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.

    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.

    Sec. 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 shall 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;
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    (5) Financial sources, reflecting all revenues, proceeds of foreign and
domestic borrowings, and other sources, particularly those which accrue to the
General Funds;

    (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 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.

    Sec. 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.

    Sec. 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.

    Sec. 17. Foreign-Assisted Projects. - The budgetary implications of foreign-

assisted projects shall be explicitly considered at the time of project design 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
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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.

    Sec. 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.

    Sec. 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.

    Sec. 20. Tax and Duty Exemptions. - 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 considered as both revenue and expenditure of the
General Fund.

    Sec. 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 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.

    Sec. 22. Department Approval of Proposed Appropriations. - No legislative

proposal which, if enacted, would authorized 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
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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
 
    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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
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savings realized by an agency during 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.

    Sec. 29. Loan Proceeds. - Expenditures funded by foreign and 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.

    Sec. 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.

    Sec. 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
 
    Sec. 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.

    Sec. 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 of 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 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
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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 results 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 alloted 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 unliquidated obligations, actual balances on hand,
and the unencumbered balance of the allotments for each department or agency
of the Government.

    Sec. 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.

    Sec. 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.
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    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.

    Sec. 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, formal, 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.

    Sec. 37. Creation of Appropriation Reserves. - The Secretary may 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, official or agency concerned.

    Sec. 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.

    Sec. 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.

    Sec. 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 there is proper authority for its incurrence. Any certification for a non-
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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.

    Sec. 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.

    Sec. 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.

    Sec. 43. Liability for Illegal Expenditures. - Every expenditure or obligation
authorized or incurred in violation of the provisions of this Code or 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.

    Sec. 44. Accrual of Income to Unappropriated Surplus of the General Fund. -
Unless otherwise specifically provided by law, all income accruing to the
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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 business-type activities of government may be
separately recorded and disbursed in accordance with such rules and regulations
as may be determined by the Permanent Committee created under this Act.

    Sec. 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.

    Sec. 46. Service Fees and Honoraria. - Agencies are authorized to 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.

    Sec. 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.

    Sec. 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 saving resulting therefrom.

    Sec. 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 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;
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    (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 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.

    Sec. 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
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    Sec. 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.

    Sec. 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 recording 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.

    Sec. 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 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.

    Sec. 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.

    Sec. 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.

    Sec. 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,
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and generally for verifying the attainment of goals established in the budget
process.

    Sec. 57. Failure to Submit Reports. - Failure on the part of agency heads, chief
accountants, budget officers, cashiers, disbursing officers, administrative and
personnel officers, and 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.
 

Chapter 7
EXPENDITURE OF APPROPRIATED FUNDS
 
    Sec. 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.

    Sec. 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 she may prescribe. Such additional compensation shall be paid
from the appropriations of the office or agency benefitting from the concurrent
service.

    Sec. 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.

    Sec. 61. Merit Increases. - The budgets of national government agencies may
provided 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
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Department of Budget shall jointly issue the rules and regulations governing the
granting of such merit increases.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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
their basic salary.

    Sec. 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.

    Sec. 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
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from savings of the department concerned at such rates, terms and conditions as
the Secretary may prescribe.

    Sec. 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
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
appropriations for supplies and materials authorized in the General
Appropriations Act.

    Sec. 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.

    Sec. 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.

    Sec. 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
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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
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.

    Sec. 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.

    Sec. 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
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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.

    Sec. 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 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.

    Sec. 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.

    Sec. 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 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.

    Sec. 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.

    Sec. 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
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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.

    Sec. 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
GENERAL PROVISIONS
 
    Sec. 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.

    Sec. 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.
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    (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 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 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
 
    Sec. 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.
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    (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.

    Sec. 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.

    Sec. 5. Publication and Recording. - The University of the Philippines Law
Center shall:

    (1) Publish a quarter 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.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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.
 
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Chapter 3
ADJUDICATION
 
    Sec. 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, comprise and arbitration.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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.

    Sec. 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.
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    Sec. 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.

    Sec. 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.

    Sec. 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 INCONTESTED CASES
 
    Sec. 19. Appeal. - Unless otherwise provided by law or executive order, an
appeal form a final decision of the agency may be taken to the Department head.

    Sec. 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.

    Sec. 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 circumstance of
the case.

    Sec. 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.

    Sec. 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.
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    Sec. 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.

    Sec. 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.

    (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
how, 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. It 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.

    Sec. 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
 
    Sec. 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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    Sec. 28. Separability Clauses. - 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.

    Sec. 29. Effectivity. - This Code shall take effect one year 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