Establishment of Cordillera Autonomous Region

Declaration of principles and autonomy

Section 1 states that CAR is an integral and inseparable part of the Republic of the Philippines and that Cordillerans uphold the Constitution and owe allegiance and fidelity to the Republic; governance and administration are in accordance with this Organic Act.
Section 2 recognizes autonomy to secure rights to ancestral domain, develop the economy, promote cultural heritage, and establish self-governance within the Constitution, national sovereignty, and territorial integrity.
Section 3 recognizes local indigenous customs, traditions, practices, and institutions wherever applicable and useful, without contravening morals and public policies, for availing parties.
Section 4 makes it the primary duty of the regional government to protect basic individual and collective rights and the general welfare of all people as enshrined in the Constitution and this Organic Act.
Section 5 requires that exploitation, exploration, development, enjoyment, and utilization of natural resources be consistent with ecological balance and be for the benefit and advantage of Cordillerans.
Sections 6 to 8 require the regional government to promote social justice, minimize disparities between rich and poor and rural and urban areas, and ensure equal access by all ethnic, social, and economic sectors without distinctions based on ethnic origin, sex, language, political conviction, economic or social status, or religious belief.
Section 9 guarantees Cordillerans the right, especially through voluntary organizations and movements, to participate and be equitably represented in decision-making and monitoring of implementation of local, regional, and national priorities, plans, programs, and projects.
Sections 19 and 28 establish policy that the regional government prohibits development, storage, use, or transport of nuclear, biological or chemical weapons within the region, and pursues reconciliation, peace, and demilitarization, subject to the Constitution and national policies.

Governance structure and President supervision

Section 1 provides that the Cordillera Autonomous Region is a territorial and political subdivision administered by the Regional Autonomous Government, consisting of the regional government and local government units, under the general supervision of the President.
Section 2 grants the regional government powers and functions necessary for proper governance and development of provinces, cities, municipalities, and barangays within the autonomous region, while requiring consistency with the constitutional policy on autonomy and decentralization and stating it cannot authorize diminution of existing powers and functions of local government units.
Section 3 requires the President to exercise general supervision over the regional autonomous government and local government units through the head of the regional autonomous government to ensure laws are faithfully executed.
Section 4 authorizes the autonomous region to exercise the power of eminent domain.
Section 5 makes the autonomous region a corporate entity with jurisdiction in all matters devolved to it by the Constitution and this Organic Act, enumerating powers over:
- Administrative organization;
- Creation of sources of revenues;
- Ancestral domain and natural resources;
- Personal, family and property relations;
- Regional urban and rural planning development;
- Economic, social and tourism development;
- Educational policies;
- Preservation and development of cultural heritage;
- Powers/functions of national government departments except foreign affairs, national defense and security, postal service, coinage and fiscal and monetary policies, administration of justice, quarantine, customs and tariff, citizenship, naturalization, immigration and deportation, general auditing, civil service and elections, and foreign trade;
- Patents, trademark, trade names, and copyrights and other matters for the general welfare of the region.
Section 6 provides that the City of Baguio and any city within CAR are governed primarily by their charter.

Regional legislative assembly rules

Section 1 vests regional legislative power in the Cordillera Assembly, except for what the Constitution and this Organic Act reserve for initiative and referendum.
Section 2 provides the first election structure unless provinces and Baguio are divided into election districts:
- Abra, Benguet, Ifugao, Mt. Province each elect two (2) members per district;
- Apayao and Kalinga and the City of Baguio elect four (4) members at large.
Section 2 also requires party-list representatives to constitute twenty per centum (20%) of total representatives, for three (3) consecutive terms after ratification, and provides filling rules where one-half (1/2) of party-list seats are filled as provided by law from other sectors except the religious sector.
Section 3(a) sets members’ term at three (3) years, beginning at noon on the thirtieth day of June next following election unless otherwise provided by law.
Section 3(b) limits members to not more than three (3) consecutive terms; voluntary renunciation of office for any length of time is not an interruption of continuity for the full term.
Section 4(a) sets regular election on the second Monday of May unless otherwise provided by law.
Section 4(b) provides for a special election if a vacancy occurs at least one (1) year before term expiration, with service only for the unexpired term.
Section 4(c) provides that if there is a permanent vacancy, the regional governor appoints the nominee of the political party of the vacating member, subject to qualifications and disqualifications and that the appointee comes from the same district represented by the vacating member.
Section 5 requires regular sessions to start on the first Monday of July, held at least once a week, with special sessions at any time by the regional governor; written notice must be sent at least twenty-four (24) hours before special sessions unless two-thirds (2/3) votes concur otherwise and quorum exists; only matters stated in the notice may be considered.
Section 6(a) defines quorum as a majority of all members, while smaller numbers may adjourn and compel attendance using penalties the assembly provides.
Section 6(b) requires adoption or update of rules of proceedings within ninety (90) days after election, including organization, election of officers, committees, rules on sessions, discipline, journals, quorum, voting thresholds, and recall proceedings in accordance with the Local Government Code.
Section 7 provides annual salary not lower than an assistant secretary in the national executive department unless otherwise provided by regional ordinance; any salary increase takes effect only after expiration of the approving members’ term.
Sections 8 to 9 impose incompatibility and disqualification rules: members cannot hold other government office/employment during their term without forfeiting seat; cannot be appointed to offices created or with increased emoluments during their term; cannot personally appear as counsel before any court, Electoral Commission, or quasi-judicial/admin bodies; cannot be financially interested in contracts or franchises/special privileges granted by national or regional government entities during the term; cannot intervene for pecuniary benefit.
Section 10 provides:
- A question hour as often as necessary as the assembly rules provide, inviting regional executive officials to answer questions and interpellations;
- Legislative inquiries in aid of legislation according to published rules, with respect for rights of those appearing or affected.
Section 11 requires:
- The regional governor to submit to the assembly a budget of expenditures and sources of funds within thirty (30) days from opening of every regular session as basis of the regional appropriations ordinance, using the form, content, and manner prescribed by law;
- Appropriations ordinances to embrace only provisions related specifically to appropriations therein and limit operations to the related appropriation;
- Assembly appropriations procedure to strictly follow the same procedure for appropriations of the regional executive department;
- Special appropriations ordinances to specify intended purpose and be supported by funds actually available certified by the regional treasurer;
- Prohibition on ordinances authorizing transfer of appropriations; however, governor and presiding officer may be authorized by ordinance to augment items in general appropriations from savings in other items for their respective departments;
- If the assembly fails to pass the general appropriation ordinance by end of fiscal year, the preceding year’s general appropriations ordinance is deemed reenacted and remains in force until the new one is passed.
Section 12 provides:
- No money paid out of treasury except in pursuance of an appropriation made by law;
- No money or property may be appropriated, applied, paid, or used for sect/church/denomination/sectarian institutions or for support of religious teachers or dignitaries as such, except when assigned to the regional police or government orphanage and rehabilitation centers or similar institutions.
Section 13 provides legislative mechanics:
- Bills must embrace only one (1) subject expressed in the title;
- No bill becomes law unless passed in three readings on separate days, with printed copies distributed to members three (3) days before passage, except when the governor certifies necessity for immediate enactment to meet a public calamity or emergency affecting the region or component LGUs;
- On last reading, no amendment allowed; vote taken immediately thereafter and yeas and nays entered in the Journal;
- After passage, bills presented to the regional governor: approval by signing; otherwise veto and return with objections for reconsideration; if after reconsideration two-thirds (2/3) of all members agree to pass, it becomes law;
- The regional governor must communicate veto within thirty (30) days after receipt, otherwise the bill becomes law as if signed;
- The regional governor may veto specific item(s) in appropriation or revenue without affecting non-objected items.
Section 14 requires the regional governor to submit within thirty (30) days from opening of every regular session the budget of expenditures and sources of financing, including receipts from existing and proposed revenue measures, with national government funding the difference when regional revenues are insufficient.

Regional executive power and officials

Section 1 vests executive power in a regional governor elected at large by direct vote of registered voters of CAR.
Section 2(a) sets governor qualifications: natural born citizen, at least thirty-five (35) years old on election day, able to read and write, registered voter in the region, and actual resident for not less than five (5) years immediately preceding election.
Section 2(b) provides that the governor is assisted by a Cabinet whose members, as far as practicable, come from various provinces and city/cities within CAR.
Section 3 creates a regional vice-governor elected in the same manner, with same qualifications and term, and serving as presiding chairman of the Legislative Assembly.
Section 4 sets governor and vice-governor terms of three (3) years, beginning at noon on the thirtieth (30th) day of June next following election and ending at noon of the same date three years thereafter; limits to not more than three (3) consecutive terms; provides election on the second (2nd) Monday of May.
Section 5 prescribes the oath/affirmation text for governor/vice-governor, including preserving and defending the Constitution and Organic Act, executing laws, doing justice to all, and consecrating to service of the Cordillera.
Section 6 provides that annual salary is equivalent to that of a department secretary and undersecretary respectively, not decreased during tenure; salary increases take effect only after expiration of the term of approving governor/vice-governor; no other emoluments from government or other source during tenure.
Section 7 requires the regional assembly to provide the governor an official residence.
Sections 8 to 9 provide succession rules through qualification failures, death, permanent disability, and permanent vacancies, defining permanent vacancy as situations including filling a higher vacant office, refusal to assume, failure to qualify, death, removal, voluntary resignation, or permanent incapacity; successors serve only the unexpired terms.
Section 10 bars the regional governor during tenure from holding other office/employment (except as in the Act), engaging in profession, or participating in contracts or franchises/special privileges granted by the regional government and its subdivisions or government-owned or controlled corporations; also bars the spouse and relatives within the fourth civil degree of consanguinity/affinity from being appointed officers/employees of the regional government except as members of their confidential staff.
Section 11 bars the vice-governor and cabinet members and their assistants during tenure from holding other office (except as in the Act), practicing profession, or participating in contracts or privileges granted by the regional government; also bars the spouse and relatives within the fourth civil degree from being appointed to the regional cabinet, chairmen of regional commissions, or heads of bureaus/offices, including government-owned/controlled corporations and their subsidiaries located in the autonomous region.
Section 12 provides that the governor appoints cabinet members serving at the pleasure of the appointing authority, with concurrence of Legislative Assembly members; the assembly may by law vest in cabinet members special courts and appointive powers for heads of agencies/commissions/boards and power to appoint subordinate officers.
Section 13 requires the governor to address the Legislative Assembly at opening of its regular session and allows appearance at any time; allows the Legislative Assembly to invite the President and other officials to address it.

Local government autonomy and supervision

Section 1 identifies the local government units within CAR as provinces, cities, municipalities, and barangays where applicable.
Section 2 affirms local government units enjoy autonomy and continue to exercise powers under the Local Government Code, and nothing diminishes powers already enjoyed by local government units.
Section 3 provides that subject to the President’s supervision over local governments, the regional government exercises general supervision over local governments within CAR.

Development, natural resources, and planning institutions

Section 1 directs the regional government to initiate, stimulate, facilitate, support and catalyze development in the region.
Section 2 requires the regional development plan to incorporate priority projects in integrated local development plans and consider differing environments in the region.
Section 3 requires development programs to address:
- Watersheds, public parks, and reservations declared by competent authorities as critical to community survival and making such areas inalienable;
- Respect for indigenous concepts, processes, and institutions as development bases;
- Strategies for disparities in natural resource endowments, including programs enhancing physical, economic, and social mobility;
- Cooperative organizations as instruments for democratizing ownership and management of public utilities;
- Urban land reform and socialized housing to minimize inadequate shelter and congestion;
- Appropriate technology based on indigenous conservation practices;
- Democratization of ownership of enterprises and equitable distribution of development benefits.
Section 4 provides that exploitation/exploration/development/enjoyment/utilization of natural resources found in CAR are under the control and supervision of the regional government upon due consultation, except uranium, coal and petroleum, which are under control and supervision of the national government.
Section 5 allows exploitation of natural resources (except those enumerated in Section 4) to all Filipinos and to private enterprises including corporations, cooperatives, and similar collective organizations.
Section 6 commands active and immediate pursuit of reforestation, prioritizing tree coverage of lands not devoted to agriculture, including land strips along river and stream edges and shorelines of lakes.
Section 7 requires measures to develop communities occupying lands with slope eighteen percent (18%) or over by providing necessary infrastructure and financial and technical support.
Section 8 creates the Regional Planning and Development Board as the Regional Development Council, chaired by the regional governor and composed of provincial governors, city mayor, two (2) assembly members designated by the regional vice governor, representatives of regional line agencies, and CAR congressmen or their authorized representatives; it prepares and submits a comprehensive regional medium-term and long-term development plan and annual work programs to the regional governor for implementation; the regional office of the National Economic and Development Authority serves as secretariat and technical arm.
Section 9 provides that small-scale mining receives support from and regulation by the autonomous region, considering ecological balance and community interests.
Section 10 authorizes creation and capitalization of a Regional Development Bank administering its own funds, supervised by the Bangko Sentral ng Pilipinas (BSP) and under general banking laws.
Section 11 requires coordination with the national government for a road system interconnecting regional areas to adjacent regions, and mandates establishment of a region-wide telecommunications system enabling municipalities to have telephone/telegraph/radio facilities.
Section 12 directs subject to ecological considerations adoption and implementation of a comprehensive urban land reform and land use program consistent with the Constitution and national laws to ensure just utilization within jurisdiction.

Sources of revenue and fiscal rules

Section 1 empowers CAR to create its own sources of revenues and levy fees and charges, but prohibits imposing taxes except under constitutional and statutory guidelines and limitations, consistent with local autonomy.
Section 2 requires all corporations, partnerships, and other entities directly engaged in business in the region to pay taxes, fees, and charges to the province, city, or municipality where they conduct operations.
Section 3 enumerates CAR revenue sources, including:
- Fees and charges imposed by the regional government;
- Appropriations and other budgetary aids from the national government;
- Share in proceeds from development and utilization of national wealth within the region;
- Share in revenues generated from operation of public utilities within the region as determined by law;
- Block grants derived from economic agreements or conventions authorized by the regional government, donations, endowments, foreign assistance, and other aid subject to the Constitution and national laws.
Section 4 requires that the regional government evolve systems of economic agreements or trade compacts to generate block grants and foreign loans for investments and improvements of regional economic structures, ratified by the assembly; it must assist LGUs and regional line agencies in projects requiring counterpart funds upon recommendation of the Regional Planning and Development Board.
Sections 5 and 6 provide full deductibility from taxable income for donors/grantors for donations or grants to the CAR for specified project areas, including health, education, culture, youth and sports development, human settlements, science and technology, and economic development; deductions apply in full for both regional projects and donations or grants exclusively for specified education/health/youth and sports/human settlement/science and culture/economic development areas.
Section 7 empowers the Cordillera Assembly to grant tax incentives or exemption on taxes CAR is empowered to impose, but requires concurrence of a majority of all members for a law granting tax exemption.
Section 8 allows foreign loans only in accordance with the Constitution and national laws, and allows the Cordillera governor to contract domestic loans subject to approval of the Cordillera Assembly.

Economic policies: agriculture, industry, tourism

Section 1 requires the regional government as basic policy to promote agriculture production for domestic or commercial needs.
Section 2 mandates priority for conservation, protection, and utilization of water resources for agricultural purposes.
Section 3 requires promotion and development of inland fishery production and establishment of fishery processing plants where viable.
Section 4 requires research, legislation enforcing floor prices on agricultural and industrial products and ceiling prices on agricultural inputs, and strengthening extension services to farmers free of charge.
Sections 5 to 7 require encouragement of micro-cottage, small and medium-scale industries and measures for their protection and financing; require proper utilization and disposal of industrial waste; and require measures to prevent flight of capital from the region.
Section 8 requires measures against monopolies in public utilities, development, trading and similar concerns, and authorizes establishment and operation of pioneering public utilities in interest of regional welfare and security; provides transfer of ownership to cooperatives or other collective organizations upon payment of just compensation.
Section 9 requires measures to prevent manufacture, importation, distribution, or sale of agricultural and industrial inputs found biologically or environmentally harmful.
Section 10 requires initiation, encouragement, and development of industrialization accounting for culture and capabilities, ecological needs, and resource conservation.
Section 11 mandates promotion of eco-tourism consistent with cultural heritage and protection of ecology, and requires the Cordillera Assembly to establish offices and facilities to implement tourism concerns.
Section 12 requires encouragement of economic zones, industrial and trade centers, and airports in strategic areas and growth centers with necessary support infrastructure consistent with land use and environmental considerations.
Section 13 requires coordination with LGUs to encourage foreign investments and exportation of indigenous products consistent with development goals and priorities.
Section 14 requires promotion and support of cooperatives as tools for economic development, social justice, and people empowerment.
Section 15 requires that within one (1) year from assembly organization, the Cordillera Assembly establish a Cooperative Development Commission and define its powers, functions, and implementation mechanism.

Education, science, language, arts, sports

Section 1 authorizes the regional government, consistent with the Constitution and national laws, to exercise legislative powers over regional educational policies and cultural matters including authority to establish educational institutions, colleges and universities, with regional colleges/universities subject to fiscal and administrative autonomy under regional laws.
Section 1 also allows promulgation of regional educational policies to include establishment of institutions and development of curricula relevant to cultural heritage and responsive to social, economic, political, and moral needs of the people in the region.
Section 2 protects and supports private educational institutions, colleges, and universities.
Section 3 requires a scholarship program for gifted or deserving students.
Section 4 guarantees the right of teachers, employees, students, and parents to organize and participate in school policy-making.
Section 5 requires teacher and personnel compensation and benefits at least equal to national standards.
Section 6 directs education in the autonomous region to develop consciousness and appreciation of ethnic identity, and understanding of cultural heritage for national unity and harmony.
Section 7 preserves fiscal and institutional autonomy for state colleges and universities within CAR under their charters; requires the regional official in charge of tertiary education to be a member of their governing boards.
Section 8 provides that University of the Philippines-Baguio remains with the University of the Philippines System.
Section 9 prioritizes advancement of scientific research and appropriate technology on all education levels in allocation of regional funds.
Section 10 requires incentives and safeguards for intellectual property rights and assistance in registration of patents and copyrights for creative artists, scientists, and inventors in the region.
Section 11 directs steps toward development of a common regional language based on various languages and dialects to enrich the national language.
Section 12 requires region-wide physical fitness and sports development programs as cooperative responsibility of school, community, and government.

Social justice, labor, health, and welfare

Section 1 commits CAR to social justice by:
- Creating social and economic opportunities so the less fortunate become self-reliant;
- Ensuring equal access to elective public service through mechanisms making elections inexpensive;
- Uplifting marginalized communities;
- Democratizing ownership of the means of production and benefits of development.
Section 2 promotes shared responsibilities between workers and employers in private and government sectors.
Section 3 requires full protection to labor and equality of employment opportunities, providing for:
- Periodic adjustments and rational standardization of compensation rates for a living wage;
- Profit-sharing schemes recognizing workers’ just share in profits and enterprise’s reasonable returns on investment;
- Protection against unhealthy and dangerous working conditions;
- Legislation benefiting the welfare of domestic workers.
Section 4 recognizes health as a basic human right and responsibility of the regional government, as an instrument and product of socioeconomic development, and requires:
- Effective health care delivery system using primary health care as comprehensive and integrated approach;
- Health care governed by service, social justice, and equity;
- Popularization of health knowledge and skills for personal health responsibility;
- Training and standards for health workers and professionals;
- Food and drug regulatory system adopting an essential drug list, encouraging generic medicines, and promoting herbal medicines and indigenous health resources;
- Research and compilation of traditional healing methods and cultural health practices;
- Financing schemes to lessen health care costs.
Section 5 requires promoting well-being and assistance for physically disabled and mentally handicapped persons, elderly, homeless, widows and orphans, retirees, veterans, calamity victims, abused children, and women in crisis situations.
Section 6 requires the Cordillera Assembly, within one (1) year from organization, to enact measures embodying reintegration programs responsive to rebel returnees and rejoinees.
Section 7 requires adoption of insurance and social security measures responsive to people’s needs to supplement existing privileges.
Section 8 requires promotion of housing programs with liberal credit terms using indigenous materials, architecture and technology, and encourages housing cooperatives to administer projects.
Section 9 requires promoting harmonious balance between women’s personal, family and work obligations and participation in public life, encouraging shared parenting and homemaking responsibilities between spouses.
Section 10 requires establishing and strengthening support systems and services for working women including maternal and child care services, day care centers, longer maternity leaves, paternity leaves for their spouses, and early retirement age.
Section 11 requires education and information programs to increase women’s awareness of rights and responsibilities and to correct customs and mental attitudes stereotyping women as commodities.
Section 12 requires promoting and supporting duly established peoples’ organizations and encouraging the formation of organizations of the underprivileged, and sets that guidelines and accreditation standards must be set without abridging the right to effective participation and representation.

Peace and order mechanisms

Section 1(a) requires the Cordillera Assembly to enact necessary measures to promote and maintain peace and order and public safety.
Section 1(b) allows the assembly, subject to the Constitution and existing laws, to create a Cordillera Regional Security Force, taking into consideration indigenous and nonindigenous structures.
Section 2 requires creation by law of a regional police force as part of the Philippine National Police under the National Police Commission, headed by a police commissioner with two (2) deputies who are inhabitants of the autonomous region; appointments are by the President