Municipalities recreated in Albay
- Section 1 recreates the municipality of Legaspi and the municipality of Daraga as municipalities in the Province of Albay.
- The recreation covers the municipalities as constituted before the creation of the City of Legaspi.
- Section 1 expressly treats the recreated local governments as municipal governments, not as a city reconstitution.
- The municipalities recreated under Section 1 operate under the provisions of Republic Act No. 993.
Division of city assets, funds, obligations
- Section 2 requires the equitable division of all funds and obligations and property of all kinds of the City of Legaspi between the municipality of Legaspi and the municipality of Daraga.
- The equitable division under Section 2 is to be done by the President of the Philippines.
- Section 2 further requires that the President’s action be made upon recommendation of the Auditor General.
- The division applies to the City of Legaspi and results in separate allocation to each recreated municipality.
Gratuity for separated officials and employees
- Section 3 provides that officials and employees of the City of Legaspi who may be separated from the service due to Republic Act No. 993 are entitled to a gratuity.
- The gratuity equals one month's salary for every year of service in the government of the said city.
- Section 3 directs that the gratuity is paid by the National Government.
- The gratuity entitlement applies only to those separated from the service as a consequence of the Act’s provisions.
Presidential appointment of first officials
- Section 4 requires that the first mayor, vice-mayor, and councilors of the recreated municipality of Legaspi and municipality of Daraga be appointed by the President of the Philippines.
- Section 4 provides that these first officials hold office until their successors are elected and have qualified.
- Section 4 ties the term ending to both election and qualification of successors.
Appropriation for gratuities
- Section 5 authorizes the appropriation of the sum of ten thousand pesos (or so much thereof as may be necessary).
- The appropriation under Section 5 is to be taken out of any funds in the National Government not otherwise appropriated.
- Section 5 limits the authorized use of the appropriation to paying the gratuity authorized under Section 3.
Repeal and governing transition
- Section 6 repeals Republic Act Numbered Three hundred six.
- Section 7 establishes that the Act takes effect upon approval.
- The Act’s provisions governing gratuity, asset division, and appointment of first officials serve as the legal transition from the City of Legaspi to the recreated municipalities of Legaspi and Daraga.