Amendment on Local Calamity Fund Use

Section 324(d) requires that five percent (5%) of the estimated revenue from regular sources be set aside as annual lump sum appropriations.
The five percent (5%) allocation must be for relief, rehabilitation, reconstruction, and other works or services connected with calamities occurring during the budget year.
The calamity fund may be used only in the area, or a portion thereof, of the local government unit or other areas affected by a disaster or calamity, as determined and declared by the local sanggunian concerned.
The amended rule defines calamity as a state of extreme distress or misfortune produced by adverse circumstances or events, including great misfortune, causes of loss, or misery caused by natural forces.
In fire or conflagration, the calamity fund must be utilized only for relief operations.

The local calamity fund is restricted geographically to the affected area(s) determined and declared by the local sanggunian.
The fund’s permitted use is tied to disaster or calamity events that may occur during the budget year.
The local sanggunian’s determination and declaration controls the specific area(s) where the fund may be used.

When the event is fire or conflagration, the calamity fund may be used only for relief operations.
The relief operations limitation applies specifically to fire or conflagration cases within the calamity fund’s otherwise broader purposes.

Section 324(d) directs that the local development council shall monitor the use and disbursement of the local calamity fund.
Monitoring covers both the use and the disbursement of funds released under the calamity appropriation rule.

The Oversight Committee on the Local Government Code, in coordination with concerned agencies, shall prepare and issue implementing rules and regulations.
Implementing rules must be issued within thirty (30) days from the effectivity of Republic Act No. 8185.
Republic Act No. 8185 repeals, modifies, or amends portions of existing laws, decrees, issuances, rules, and regulations that are inconsistent with its amendments to Section 324(d).
The amended provisions operate through the modification of Section 324(d) of Republic Act No. 7160 rather than through a standalone funding scheme.