Provincial seat and legislative districts
- Section 2 sets the seat of government of Davao del Norte in the Municipality of Tagum.
- Section 2 sets the seat of government of Compostela Valley in the Municipality of Nabunturan.
- Section 3 provides that Davao del Norte is divided into two (2) legislative districts:
- District I: Tagum, Asuncion, Kapalong, Talaingod, and New Corella; and
- District II: Panabo, Carmen, Babak, Samal, Kaputian, and Sto. Tomas.
- Section 4 provides that Compostela Valley is divided into two (2) legislative districts:
- District I: Monkayo, Montevista, Maragusan, New Bataan, and Compostela; and
- District II: Laak, Mawab, Nabunturan, Maco, Mabini, and Pantukan.
Plebiscite requirement and effective date
- Section 5 provides that the creation of Compostela Valley becomes effective only upon approval by the majority of the votes cast in a plebiscite.
- Section 5 requires that the plebiscite be called for the purpose and be conducted and supervised by COMELEC.
- Section 5 sets a deadline: the plebiscite must be conducted within sixty (60) days from the date of the effectivity of the Act, covering the political units affected.
- Section 5 provides that the expenses for the plebiscite are charged to the Province of Davao del Norte.
Continuity of existing elective officials
- Section 6 requires that the elective provincial officials of Davao del Norte elected in the May 11, 1995 elections shall continue to serve in the province they choose.
- Section 6 provides that they shall continue receiving the salaries they are receiving at the time of approval of the Act until new salary readjustments in accordance with law.
- Section 6 provides that if a position in both provinces becomes vacant because of the creation of Compostela Valley, officials necessary to fill vacancies in elective positions for both provinces shall, for the time being, be appointed by the President of the Philippines.
- Section 6 provides that the President-appointed officials shall hold office until their successors are elected and qualified in the first local elections immediately following the approval of the Act.
Continuity of appointive personnel
- Section 7 requires that the present appointive officials and employees of Davao del Norte continue performing their duties in the same province.
- Section 7 provides that they shall continue receiving their current salaries at the time of approval of the Act until new salary readjustments in accordance with law.
- Section 7 requires that all positions for appointive officials and employees for Compostela Valley be open for application.
- Section 7 requires that Compostela Valley appointive positions must be filled within sixty (60) days from the date of ratification of the Act.
- Section 7 provides that opening and filling Compostela Valley appointive positions shall be done without prejudice to present Davao del Norte appointive officials who may wish to serve in Compostela Valley.
Representation in Congress and district effectivity
- Section 8 provides that the three (3) incumbent representatives of Davao del Norte continue to represent the three (3) existing legislative districts until the expiration of their terms of office.
- Section 8 provides that the proposed legislative districting under the Act takes effect in the next election for congressional representatives immediately following the approval of the Act.
Division of provincial obligations and properties
- Section 9 provides that upon the effectivity of the Act, the obligations, funds, assets, and other properties of Davao del Norte are divided proportionately between Davao del Norte and Compostela Valley.
- Section 9 assigns the division to the President of the Philippines, acting upon the recommendation of Commission on Audit.
Internal revenue allotments during first year
- Section 10 provides that during the first year of implementation, the internal revenue allotment allocated to Davao del Norte pursuant to Section 285 of the Local Government Code of 1991 is proportionately divided between Davao del Norte and Compostela Valley.
- Section 10 requires the division to be based on terms and conditions set in a resolution to be submitted to the Department of Budget and Management.
- Section 10 requires submission of the resolution by the incumbent Sangguniang Panlalawigan of Davao del Norte Province, in consultation with the incumbent representatives of Davao del Norte Province.
- Section 10 provides that after the first year, both provinces are entitled to an internal revenue allotment as authorized under the Local Government Code of 1991.
Effectivity and approval
- Section 11 provides that the Act takes effect upon its approval (January 30, 1998).
- Section 5 further conditions the effectiveness of the province creation on majority approval in a plebiscite conducted by COMELEC within sixty (60) days from the Act’s effectivity, with plebiscite expenses charged to Davao del Norte.