Republic Act No. 11054 [Article X- Article XVIII]

ARTICLE X

BANGSAMORO JUSTICE SYSTEM

Section 1. Justice System in the Bangsamoro. - The Bangsamoro justice system shall be administered in accordance with the unique cultural and historical heritage of the Bangsamoro.

The dispensation of justice in the Bangsamoro Autonomous Region shall be in consonance with the Constitution, Shari'ah, traditional or tribal laws, and other relevant laws.

Shari'ah or Islamic law forms part of the Islamic tradiction derived from religious precepts of Islam, particularly the Qur'an and Sunnah.

Shari'ah shall apply exclusively to cases involving Muslims. Where a case involves a non-Muslim , Shari'ah law may apply only if the non-Muslim voluntarily submits to the jurisdiction of the Shari'ah court.

The traditional or tribal laws shall be applicable to disputes of indigenous peoples within the Bangsamoro Autonomous Region.

The provisions of this Article shall not prejudice the rights of non-Muslims and nonindigenous peoples.

Section 2. Shari'ah Courts. - Shari'ah courts within the Bangsamoro territorial jurisdiction shall form part of the Philippine judicial system subject to the supervision of the Supreme Court. The regular courts within the Bangsamoro Autonomous Region shall continue to function under the supervision of the Supreme Court.

The Congress of the Philippines may create additional Shari'ah courts in the BangsamoroAutonomous Region upon the recommendation of the Supreme Court. It may also create Shari'ah courts outside the Bangsamoro Autonomous Region in areas considerable number of Muslims reside.

Section 3. Sources of Shari'ah. - The following are the sources of Shari'ah:

Principal Sources:

(a) Al-Qu'ran or the Koran;

(b) Al-Sunnah or the traditions of Prophet Muhammas SAW;

Secondary Sources:

(a) Al-Ijma or Consensus; and

(b) Al-Qiyas or Analogy.

Section 4. Powers of the Parliament to Enact Laws Pertaining to Shari'ah. - The Parliament shall have the power to enact laws on personal, family, and property law jurisdiction.

The Parliament has the power to enact laws governing commercial and other civil actions not provided for under Presidential Decree No. 1083, as amended, otherwise known as " Code of Muslim Personal Laws of the Philippines," and criminal jurisdiction on minor offenses punishable by arresto menor or ta'zir which must be equivalent to arresto menor or fines commensurate to the offense.

Section 5. Jurisdiction of the Shari'ah Circuit Courts. - The Shari'ah Circuit Courts in the Bansamoro Autonomous Region shall exercise exclusive original jurisdiction over the following cases where either or both parties are Muslims: Provided, That the non-Muslim party voluntarily submits to its jurisdiction:

(a) All cases involving offenses defined and punishable under Presidential Decree No. 1083, where the act or omission has been committed in the Bangsamoro Autonomous Region;

(b) All civil actions and proceedings between parties residing in the Bangsamoro Autonomous Region who are Muslims or have been married in accordance with Article 13 of Presidential Decree No. 1083, involving disputes relationg to:

(1) Marriage;

(2) Divorce;

(3) Betrothal or breach of contract to marry;

(4) Customary dower or mahr;

(5) Disposition and distribution of property upon devorce;

(6) Maintenance and support, and consolatory gifts; and

(7) Restitution of marital rights;

(c) All case involving disputes relative to communal properties;

(d) All cases involving ta'zir offenses defined and punishable under Shari'ah law enacted by the Parliament punishable by arresto menor or corresponding fine, or both;

(e) All civil actions under Shari'ah law enacted by the Parliament involving real property in the Bangsamoro Autonomous Region where assessed value of the property does not exceed Four hundred thousand pesos (₱400,000.00); and

(f) All civil actions, if they have not specified in an agreement which law shall govern their relations, where the demand or claim does not exceed Two hundred thousand pesos (₱200,000.00).

Section 6. Jurisdiction of the Shari'ah District Courts. - The Shari'ah District Courts in the Bangsamoro Autonomous Region shall exercise exclusive original jurisdiction over the following cases where either or both are Muslims: Provided, That the non-Muslim partry voluntarily submits to its jurisdiction:

(a) All cases involving custody, guardianship, legitimacy, and paternity and filiation arising under Presidential Decree No. 1083;

(b) All cases involving disposition, distribution, and settlement of the estate of deceased Muslims, probate of wills issuance of letters of administrators or executors regardless of the nature or the aggregate value of the property;

(c) Petitions for the declaration of absence and death, and for the cancellation or correction of entries in the Muslim Registries mentioned in Title VI of Book Two of Presidential Decree No. 1083;

(d) All actions arising form customary and Shari'ah compliant contracts in which the parties are Muslims, if they failed to specify the law governing their relations;

(e) All petitions for mandamus, prohibition, injunction, certiorari, habeas corpus, and all other auxiliary writs and processes, in aid of its appellate jurisdiction;

(f) Petition for the constitution of a family home, change of name, and commitment of an insane person to an asylum;

(g) All other personal and real actions not falling under the jurisdiction of the Shari'ah Circuit Courts wherein the parties involved are Muslims, except those for forcible entry and unlawful detainer, which shall fall under the exclusive original jurisdiction of the Municipal Trial Court;

(h) All special civil actions for interpleader or declaratory relief wherein th eparties are Muslims residing in the Bangsamoro Autonomous Region or the property involved belongs exclusive ly to Muslim and is located in the Bangsamoro Autonomous Region;

(i) All civil actions under Shari'ah law enacted by the Parliament involving real property in the Bangsamoro Autonomous Region where the assessed value of the property exceeds Four hundred thousand pesos (₱400,000.00); and

(j) All civil actions, if they have not specified in the agreement which law shall govern their relations where the demand or claim exceeds Two hundred thousand pesos (₱200,000.00).

The Shari'ah District Court in the Bangsamoro Autonomous Region shall exercise appellate jurisdiction over all cases decided upon the Shari'ah Circuit Courts in the Bagsamoro Autonomous Region within its territorial jurisdiction as provided under Article 144 of Presidential Decree No. 1083, as amended.

Section 7. Shari'ah High Court. - There is hereby created within the Bangsamoro territorial jurisdiction, as part of the Philippine judicial system, a Shari'ah High Court. It shall exercise exclusive original jurisdiction over the following cases where either or both parties are Muslims: Provided, That the non-Muslim party voluntarily submits to its jurisdiction:

(a) All petitions for mandamus, prohibition, injunction, certiorari, habeas corpus, and all other auxiliary writs and processes, in aid of its appellate jurisdiction; and

(b) All actions for annulment of judgements of Shari'ah District Courts within outside the Bangsamoro Autonomous Region.

The decisions of the Shari'ah High Court shall be final and executory except on questions of law which may be raised before the Supreme Court following the procedure for appeals from the Court of Appeals to the Supreme Court.

Nothing contained herein shall affect the original and appellate jurisdiction of the Supreme Court as provided in the Constitution.

Pending the complete organization of the Shari'ah High Court, the decisions of the Shari'ah Courts shall be appealable to the Court of Appeals.

Section 8. Qualifications of Shari'ah Judges. -

(a) Shari'ah Circuit Court - No person shall be appointed judge of the Shari'ah Circuit Court unless a citizen of the Philippines who is a Muslim, a regular member of the Philipine Bar, at least thirty (30) years of age, must have been engaged in the practice of law for five (5) years or more, and has completed at least two (2) years of Shari'ah or Islamic Jurisprudence.

(b) Shari'ah District Court - No person shall be appointed judge of the Shari'ah District Court unless a citizen of the Philippines who is a Muslim, a regular member of the Philipine Bar, at least thirty-five (35) years of age, must have been engaged in the practice of law for ten (10) years or more, and has completed at least two (2) years of Shari'ah or Islamic Jurisprudence.

(c) Shari'ah High Court - No person shall be appointed as justice of the Shari'ah High Court unless a natural-born citizen of the Philippines who is a Muslim, a regular member of the Philippine Bar, at least forty (40) years of age, must have been engaged in the practice of law for fifteen (15) years or more, and has completed at least two years of Shari'ah or Islamic Jurisprudence.

A Shari'ah Justice or Judge must be a person of competence, integrity, probity, and independence.

The Supreme Court may grant the incumbent Shari'ah District and Circuit Court judges who are not regular members of the Philippine Bar a reasonable period within which to qualify, pending which they shall allowed to continue discharging their duties.

Section 9. Composition of the Shari'ah High Court. The Shari'ah High Court shall be composed of five (5) Justices, including the Presiding Justice.

Section 10. Compensation, Benefits, Tenure, and Privileges. - Justices of the Shari'ah High Court shall have the same rank, prerogatives, salaries, allowances, benefits, tenure, and privileges as the Justices of the Court of Appeals.

Judges of the Shari'ah District Courts shall have he same rank, prerogatives, salaries, allowances, benefits, tenure, and privileges as judges of the Regional Trial Court.

Judges of the Shari'ah Circuit Courts shall have the same rank, preogatives, salaries, allowances, benefits, tenure, and privileges as judges of the Municipal Trial Court.

Section 11. Shari'ah Rules of Court. - The existing Special Rules of Procedure in Shari'ah courts shall continue to be in force and effect until the Supreme Court promulgates a new Shari'ah Rules of Court.

Section 12. Special Bar Examiniations for Shari'ah. - The Supreme Court shall administer Shari'ah Special Bar Examinations for admission of applicants to the Philippine Bar as special members thereof to practice law in Shari'ah courts. A successful examinee who has qualified for special membership in the Philippines Bar shall be duly conferred the title of counselor-at-law.

Section 13. Practice of Law Before Shari'ah Courts. - The following are eligible to practice before Shari'ah courts:

(a) A Shari'ah counselor-at-law; and

(b) A regular member of the Philippine Bar: Provided, That a Muslim, or non-Muslim who submits to the jurisdiction of the Shari'ah court, who acts on one's behalf as counsel, shall be allowed to appear as such before any Shari'ah court.

Section 14. Appointment and Discipline of Shari'ah Court Personnel. - The Supreme Court shall appoint the Shari'ah court personnel and shall have the power to discipline them.

Section 15. Bangsamoro Shari-ah Integrated Bar. - The Supreme Court may adopt the rules for the integration of the Shari'ah Bar under such conditions as it shall see fit in order to raise the standards of the profession and improve the administration of justice in the Bangsamoro Autonomous Region.

Section 16. Creation of New Offices. - The Parliament may create a Shari-ah public assistance office, a Shari'ah special prosection service, a Shari'ah academy, and the Office of the Jurisconsult of Islamic Law. Pending the creation of the Shari'ah special prosecution service, the existing national prosecution service of the Department of Justice shall prosecute criminal case before the Shari'ah courts.

Section 17. Traditional or Tribal Justice Systems. The Parliament shall enact laws to promote and support the traditional or tribal justice systems that are appropriate for the indigenous peoples.

The indigenous peoples shall have the right to use their own commonly sccepted justice systems, conflict resolution institutions, peace building processes or mechanisms, and order customary laws and practices within their respective communities and as may be compatible with the national legal system and with internationally recognized human rights.

The traditional justice systems are the mechanisms to determine, settle, and decide controversies and enforce decisions involving disputes between members of the indigenous peoples concerned in accordance with the customary laws of these communities.

Section 18. Office for Traditional or Tribal System. - There is hereby created an Office for Tribal Justice System that shall be responsible for overseeing the study, preservation, and development of the tribal justice system within the Bangsamoro Autonomous Region. The powers and functions of the Office for Tribal Justice System shall be defined by the Parliament.

The office for Tribal Justice System shall ensure the full participation of indigenous peoples in the formulation, implementation, and evaluation of policies, related to the strengthening of tribal justice systems: Provided, - That such system shall maintain their indigenous character in accordance with the respective practices of each tribe.

Section 19. Regular Courts. - Regular courts in the Bangsamoro Autonomous Region shall continue to exercise their judicial functions, as provided by national law.

Section 20. Alternative Dispute Resolution. The Bangsamoro Government shall adopt the principles of conciliation and mediation in settling disputes, with the Parliament enacting the necessary legislation to institute the mechanism for alternative dispute resolution. The Shari'ah courts and traditional or tribal adjudicatory tribunals may utilize this mode of settlement and resolution of cases.

ARTICLE XI

NATIONAL DEFENSE AND SECURITY, PUBLIC ORDER ANDSAFETY, AND COAST GUARD SERVICES

Section 1. National Defense and Security. - The defense and security of the Bangsamoro Autonomous Region shall be the National Government.

Section 2. Public Order and Safety. - The Philippine National Police shall create a Police Regional Office in the Bangsamoro Autonomous Region which shall be organized, maintained, supervised, and utilized for the primary purpose of law enforcement and maintainance of peace and order in the Bangsamoro in accordance with Republic Act No. 6975, otherwise known as the " Department of Interior and Local Government Act of 1990" as amended by Republic Act No. 8551, otherwise known as the " Philippine National Police Reform and Reorganization Act of 1998." The Police Regional Office in the Bangsamoro Autonomous Region shall be under the direct operational control and supervision of the Philippine National Police.

The Police Regional Office in the Bangsamoro Autonomous Region shall be headed by a Regional Director who shall, upon consultation with the Chief Minister, be appointed in accordance with Republic Act No. 6975, as amended.

To facilitate entry into the Philippine National Police of Moro Islamic Liberation Front and Moro National Liberation Front members from the Bangsamoro Autonomous Region, the age, height and educational attainment requirements may be waived by the National Police Commission, subject to existing rules and regulations: Provided, That such shall be aviled of within a period of five (5) years from ratification of this Organic Law: Provided, further, That the requirement of educational attaintment shall be complied within fifteen(15) years from their entry: Provided, finally, That their ranks and grades shall be subject to existing laws, rules and regulations governing the Philippine National Police.

Section 3. Regional Office of the National Police Commission. - The National Police Commission shall establish the National Police Commission Bangsamoro Regional Office under its direct control, supervision, and administration, in accordance with Republic Act No. 6975, as amended. The Secretary of the Interior and Local Government shall appoint Regional Director who shall head the National Police Commission Bangsamoro Regional Office.

The National Police Commission Bangsamoro Regional Office shall have the power to investigate complaints against members of the Police Regional Office in the Bangsamoro Autonomous Region. Appeals from the decisions of the National Police Commission Bangsamoro Regional Office shall be filed with the National Police Commission. Pending resolution of the appeal, the decision of the National Police Commission Bangsamoro Regional Office may be executed.

Section 4. Consultation with the Chief Minister on Police Matters Affecting the Police Regional Office in the Bangsamoro Autonomous Region. - The National Police Commission shall consult the Chief Minister on police matters affecting the Police Regional Office in the Bangsamoro Autonomous Region.

Section 5. Jail Management and Penology. - The Bureau of Jail Management and Penology shall establish a regional office in the Bangsamoro Autonomous Region under its direct operational and administrative control and supervision, in accordance with Republic Act No. 6975, as amended, and Republic Act No. 9263, otherwise known as the " Bureau of Fire Protection and Bureau of Jail Management and Penology Professionalization Act of 2004." The Bureau of Jail Management and Penology shall support the regional office in the establishment, maintainance, and improvement and procurement of jail facilities, the appropriation for the subsistence of detainees and prisoners, the establishment, maintenance, operation, and management of separate detention homes, and the designation of jail wardens.

Section 6. Fire Protection. - The Bureau of Fire Protection shall establish a regional office in the Bangsamoro Autonomous Region under its direct operational and administrative control and supervision, in accordance with Republic Act No. 6975, as amended and Republic Act No. 9263. The Bureau of Fire Protection shall support the regional office in the establishment maintenance, and improvement and procurement of fire protection and prevention facilities, the enforcement of Republic Act No. 9514, otherwise known as the " Fire Code of the Philippines of 2008," other existing laws on fire safety enforcement, protection and prevention.

Section 7. Coast Guard Services. - The Philippine Coast Guard shall establish a regional office in the Bangsamoro Autonomous Region which shall be organized, maintained, supervised, and utilized for the primary purpose of law enforcement over coast guard matters. It shall be under the direct operational and administrative control and supervision of the Philippine Coast Guard.

ARTICLE XII

FISCAL AUTONOMY

Section 1. Fiscal Autonomy. - The Bangsamoro Government shall enjoy fiscal autonomy with he end in view of attaining economic self-sufficiency and genuine development. The Bangsamoro Government is entitled to all funds sources enumerated herein, and shall have the power to create its sources of revenues as provided in this Organic Law, which shall be spent in a programmatic, transparent, performance-based, and phased manner. It shall prepare its budget and allocate funds in accordance with an annual appropriations law passed by the Parliament.

Section 2. Auditing. - Pursuant to the Constitution, the Commission on Audit shall be the exclusive auditor of Bangsamoro Government and its constituents local government units. The Bangsamoro Government shall established an auditing body which shall have internal auditing responsibility in accordance with Republic Act No. 3456, otherwise known as the " Internal Auditing Act of 1992,"as amended. The Bangsamoro Government shall implement transparency and accountability mechanism consistent with open government practices and generally accepted financial management principles.

Section 3. Local Government Finance. - There is hereby created a Bangsamoro Regional Office of the Bureau of Local Government Finance under the Department of Finance which shall have the authority to coordinate, assist, and monitor the treasury and assessments operations of constituent local government units within the Bangsamoro Autonomous Region in pursuance of good governance and local autonomy. The regional office shall be guided by the standards set by the Department of Finance-Bureau of Local Government Finance including the requirements set for the appointment of local treasurers.

Section 4. Bangsamoro Treasury Office. - There is hereby created a Bangsamoro Treasury Office whose primary function is to receive and safeguard all the revenues generated and collected by the Bangsamoro Government. The Office shall be headed by a Regional Treasury who shall be appointed byu the Chief Minister and whose term shall be determined by a law to be passed by the Parliament.

Section 5. National Government Assistance. - The National Government shall extend assistance to the Bangsamoro Government on tax administration and fiscal management, including capacity building and training programs, in accordance with the plans to be developed by the Bangsamoro Government in consultation with the National Government.

Sources of Revenues

Section 6. Sources of Revenues. - The Bangsamoro Government shall have the power to create its own sources of revenues and to levy taxes, fees, and charges, subject to the provisions of this Organic Law and consistent with the principles of equalization, equity, accountability, administrative simplicity harmonization and economic efficiency, and fiscal autonomy. Such taxes, fees, and charges shall accrue exclusively to the Bangsamoro Government.

The sources of revenues of the Bangsamoro Government include, among others, the following:

(a) Taxes, in accordance with the provisions of this Organic Law;

(b) Fees and cahrges;

(c) Annual block grant from the National Government;

(d) Revenues or shares in revenues from the exploration, development, and utilization of natural resources derived from land or water areas or territories within the Bangsamoro territorial jurisdiction;

(e) Share in the National Government taxes, fees, and charges collected in the Bangsamoro territorial jurisdiction;

(f) Dividends from Bangsamoro government-owned or controlled corporations and other corporations, and share from the dividends of national government-owned or controlled corporations and their subsidiaries in the Bangsamoro Autonomous Region as may be determined by the Intergovernmental Fiscal Policy Board;

(g) Grants from economic agreements or conventions entered into by the Bangsamoro Government to which the National Government is a party;

(h) Grants, endowments, donations, foreign assitance and other forms of aid;

(i) Loans and official development assistance;

(j) Shares and revenues generated for the operations of public utilities within the Bangsamoro territorial jurisdiction;

(k) Appropriations and other budgetary allocations from the National Government; and

(l) Tax of not more than ten percent (10%) of fair market value in the locality per cubic meter of ordinary stones, sand, gravel, earth, and other quarry resources, as defined in the National Internal Revenue Code, as amended, exttracted from public lands or from the beds of seas, lakes, rivers, streams, creeks, and other public waters within its territorial jurisdiction, the proceeds of which shall be distributed as follows:

(1) Thirty percente (30%) to the Bangsamoro Government; and

(2) Seventy percent (70%) to the local government units where the sand gravel, and other quarry resources are extracted as follows:

(i) Thirty percent (30%) to the province;

(ii) Thirty percent to the component city or municipality; and

(iii) Forty percent (40%) to the barangay.

The constituent local government units in the Bangsamoro Autonomous Region shall continue to exercise the taxing powers granted under Republic Act No. 7160, as amended.

Section 7. Uniform and Equitable Taxation; prohibition Against Confiscatory Taxes, Fees and Charges. - The Parliament shall exercise, subject to the provisions of the Constitution, the power to levy taxes, fees, and charges, which shall inure solely to the benefit of the Bangsamoro Autonomous Region; Provided, That the principles of the uniformity and equity in taxation shall be observed: Provided, further, That such shall not be unjust, excessive, oppressive, confiscatory, or contrary to public policy: Provided, furthermore, That their collection shall not be delegated to any private person.

The power to impose any tax under this Organic Law shall be exercise by the Parliament, through an appropriate legislation, which shall not be enacted without any prior public hearing conducted for the purpose. The Bangsamoro government shall evolve a progressive, responsive, and culture sensitive system of taxation which shall, among other things, provide for incentives for the prompt payment of taxes and penalize tax evasion and deliquency.

Nothing in this provision shall preclude any future legislation on national taxes nor allow both National Government and Bangsamoro Government to impose similar taxes on the same entity.

Section 8. Tax Incentives. - The Parliament may grant tax exemptions and incentives under this Organic Law upon a vote of majority of all its member: Provided, That these tax exemptions and incentives shall not diminish national revenues: Provided, further, That he grant of tax exemptions and incentives administer by the Regional Board of Investments of the Autonomous Region in Muslim Mindanao as provided for in Executive Order No. 458, Series of 1991, in relation to Executive Order No. 226, Series of 1987, otherwise known as the "Omnibus Investments Code," shall continue to apply.

Nothing in this Organic Law shall be construed to alter, diminish, or repeal the incentives already granted and administered by investment promotion agencies of the National Government to existing locators or registered business entities.

Section 9. Limitations on the Taxing Powers; Exceptions. - Unless otherwise provided herein, the taxing power of the Bangsamoro Government shall not extend to the following:

(a) Income tax, except when levied on banks and other financial institutions;

(b) Customs duties, registration fees of vessels and wharfage on wharves, tonnage dues, and all other kinds of customs fes owners with the Bangsamoro Government and wharfage on wharves construed and maintained by the Bangsamoro Government or its constituent local government units;

(c) Taxes, fees, or charges and other impositions upon goods carried into or out of, or passing through the territorial jurisdiction of the provinces, cities, municipalities, or barangays in the Bangsamoro Autonomous Region in the guise of charges for wharfage, tolls for bridges or otherwise, or other taxes, fees, or charges in any form whatsoever upon such goods or merchandise, except tolls on bridges or roads contructed and maintained by the Bangsamoro Government or its constituent provinces, cities, municipalities, or barangays concerned;

(d) Taxes, fees, or charges on agricultural and aquatic products when sold by marginal farmers or fisherfolk;

(e) Taxes on business enterprises certified by the Board of Investments or by the Parliament as pioneer or non-pioneer for a period of six (6) and four (4) years, respectively, from the date of registration.;

(f) Excise taxes on articles enumerated under the National Internal Revenue Code of 1997, as amended, and taxes, fees, or charges on petroleum products;

(g) Percentage or value-added tax on sales, barters, or exchanges or similar transactions on goods or services except as otherwise provided by national law;

(h) Taxes on the gross receipts of transportation contractors and person engaged in the transportation of passengers or freight by hire and common carriers by air, land or water except as provided in this Organic Law;

(i) Taxes on premiums paid by way of reinsurance or retrocession;

(j) Taxes, fees, or other charges on Philippine products actually exported, except as otherwise provided by law enacted by the Congress of the Philippines;

(k) Taxes, fees, or charges on countryside and barangay business enterprises and cooperatives duly registered under Republic Act No. 6810, otherwise known as the "Magna Carta for Countryside and Barangay Business Enterprises," and Republic Act No. 6938, otherwise known as the "Cooperative Code of the Philippines," as amended; and

(l) Taxes, fees, or charges of any kind on the National Government, its agencies and instrumentalities, and local government units except on government-owned or controlled corporations or entities that are primarily organized to do business.

However, where all taxable elements are within the Bangeamoro territorial jurisdiction, the Parliament may impose the following taxes to the exclusion of the Bureau of Internal Revenue of the National Government:

(1) Capital Gains Tax. - Tax imposed on the gains presumed to have been realized by the seller from the sale, exchange, or other disposition of real properties , classified as capital assets, including pacto de retro sales and other forms of conditional sale;

(2) Documentary Stamp Tax. - Tax on documents, instruments, loan agreements, and papers evidencing the acceptance, assignement, sale, or transfer of the obligation, right or property incident thereto;

(3) Donor's Tax - Tax on a donation or gift that is imposed on the gratuitous transfer of property between two (2) or more persons who are living at the time of the transfer. It shall apply whether the transfer is in trust or otherwise, whether the gift is direct or indirect, and whether the property is real or personal, tangible or intangible; and

(4) Estate Tax. - Tax on the right of the deceased person to transmit to the lawful heirs and beneficiaries of the deceased person at the time of death and on certain transfer, which are made by law as equivalent to testamentary disposition.

In case the Parliament does not impose the abovementioned taxes, the Bureau of Internal Revenue of the National Government shall continue to levy and collect said taxes; Provided, That if the Bangsamoro Government shall impose them, the tax rates shall be pursuant to the National Internal Revenue Code of 1997, as amended: Provided, further, That in no case shall the abovementioned taxes be imposed and collected by both the Bureau of Internal Revenue and the Bangsamoro Government.

The intergovernmental Fiscal Policy Board shall promulgate rules on the determination of taxable elements in relation to taxes (1) to (4) above, and the sharing of revenues from the collection of such taxes where the taxable elements are both situated within and outside of the Bangsamoro territorial jurisdiction. Any dispute between the National Government and the Bangsamoro Government arising from the imposition of the above taxes shall be resolved by the Intergovernmental Fiscal Policy Board.

Section 10. Sharing of Taxes Collected by the National Government. - National Government taxes, fees, and charges collected in the Bangsamoro Autonomous Region, other than tariff and customs duties, shall be shared as follows:

(a) Twety-five percent (25%) to the National Governent: Provided, That for the first ten (10) years following the effectivity of this Organic Law, this share shall accure to the Bangsamoro Government: Provided, further, That after this first ten (10)-year period, upon petition of the Bangsamoro Government, and the National Government may extend the period as it shall deem necessary; and

(b) Seventy-five percent (75%) to the Bangsamoro Government, inclusive of the shares of the constituent local government units.

The shares in taxes, fees, and charges provide under this section shall be separate and distinct from the annual block grant appropriated to the Bangsamoro Government under Section 15 of this Article.

Section 11. Assessment and Collection of Taxes; Bangsamoro Revenue Office. - The Parliament shall establish by law the Bangsamoro Revenue Office for the Assessment and collection of Bangsamoro taxes, as well as all other collectible taxes in the Bangsamoro Autonomous Region.

Until such time that the Bangsamoro Revenue Office is established, tax collection shall be undertaken by the Bureau of Internal Revenue. The share of the Bangsamoro Government shall be retained by the National Government collecting agencies and remitted to the Bangsamoro Government in lump sum without need of an appropriation law.

Upon its establishment, The Bangsamoro Revenue Office shall start collecting such taxes regularly: Provided, That it shall report promptly all its collections to, and remit the share of, the National Government through a duly accredited government depository bank: Provided, further, That the National Government and the Bangsamoro Government shall share the cost of administering the tax collection as provided herein.

Section 12. Payment of Taxes by Corporations, Partnerships or Firms. - Corporations, partnerships, or firms directly engaged in business in the Bangsamoro Autonomous Region shall pay their corresponding taxes, fees and charges in the province or city where the corporation, partnership, or firms is doing the business.

Corporations, partnerships, or firms whose central, main or head offices are located outside the Bangsamoro Autonomous Region but are doing business within its territorial jurisdiction, shall pay the income taxes for income derived from their business operations in the Bangsamoro Autonomous Region to the city or municipality where their branch office or business operations or activities are located. The Bureau of Internal Revenue and the Bangsamoro Revenue Office shall agree on modalities for the filing of income tax returns through the Intergovernmental Fiscal Policy Board.

The Intergovernmental Fiscal Policy Board shall promulgate rules to implement this provision, including the determination of covered entities and allocation of income for covered entities and the allocation of income for covered entities.

Section 13. Share of the Constituent Local Government Units in Taxes Within the Bangsamoro Autonomous Region. - The Parliament shall enact a law detailing the shares of constituent local government units in the seventy-five percent (75%) share of the Bangsamoro Government in the national taxes, fees, and charges collected in the Bangsamoro territorial jurisdiction.

Section 14. Bangsamoro Tax and Revenue Code. - The Parliament shall enact a Bangsamoro tax revenue code, which shall cover taxing powers of the Bangsamoro Government, in accordance with the Constitution and this Organic law.

Block Grant

Section 15. Annual Block Grant. - The National Government shall provide an annual block grant which shall be the share of the Bangsamoro Government in the national internal revenue tax collections of the Bureau of Internal Revenue and collections of the Bureau of Customs. The amount shall be sufficient for the exercise of the powers and functions of the Bangsamoro Government under this Organic Law and in no case shall be less than the last budget received by the Autonomous Region in Muslim Mindanao immediately before the establishment of the Bangsamoro Autonomous Region.

Section 16. Block Grant Amount. - For the budget year immediately following the year of the effectivity of this Organic Law, the amount of the block grant shall be equivalent to five percent (5%) of the net national internal revenue tax collection of the Bureau of Internal Revenue and the net collection of the Bureau of Customs from the third fiscal year immediately preceding the current fiscal year immediately preceding the current fiscal year.

For purpose of this section, the net national internal revenue tax collections of the Bureau of Internal Revenue is the sum of all internal revenue tax collections of the Bureau of Internal Revenue during the base year less the internal revenue allotment of local government units, the amount released during the same year for tax refunds, payments for informers' reward, and any portion of internal revenue tax collections which are presently set aside, or hereafter earmarked under special laws for payment to third persons.

Section 17. Automatic Appropriation. - The annual block grant shall be automatically appropriated in the General Appropriations Act of the Congress of the Philippines to the Bangsamoro Government.

Section 18. Regular Release. - The block grant shall be released without need of any further action, directly and comprehensively to Bangsamoro Government, and shall not be subject to any lien or holdback that may by imposed the National Government for whatever purpose.

Section 19. Allocation of the Block Grant. - The Parliament shall pass an annual apropriations law allocating the block grant to various agencies and programs according to the powers and functions of the Bangsamoro Government. The Parliament shall assign the highest budgetary priority to education, health, and social services as may be provided in its appropriations law. The Parliament shall not include the procurement of firearms, ammunition, armaments, and explosives in its annual appropriations law from the block grant. Copies of the development plans of the Bangsamoro Government shall be furnished the Department of the Interior and Local Government. In the allocation of the block grant, the national laws and the budgeting rules and regulations implemented by the Department of Budget and Management and Department of the Interior and Local Government applicable to local government units shall apply.

The Bangsamoro Government's annual appropriations law shall set performance standards and targets for each sector. Any unspent amount in the current year's block grant shall revert to the Bangsamoro Treasury under a Special Fund for reappropriation: Provided, however, That any subsequent appropriations thereof shall follow the same conditions as provided in this section.

Section 20. General Limitations. - The use of funds shall be subject to the following limitations:

(a) The total appropriations, whether annual or supplemental, for Personal Services of the Bangsamoro Government for one (1) fiscal year shall not exceed forty-five percent (45%) of the total revenue sources of the Bangsamoro Government as provided under Section 6 of this Article. The appropriations for salaries, wages, representation and transportation allowance of officials and employees of the public utilities and economic enterprises owned, operated, and maintained by the Bangsamoro Government shall not be included in the annual budget or in the computation of the minimum amount for Personal Services. The appropriations for Personal Services of such economic enterprises shall be charged against their respective budgets;

(b) No official or employee shall be entitled to a salary rate higher that the maximum fixed for the position or other positions of equivalent rank by applicable laws or rules and regulations issued thereunder;

(c) The Bangsamoro Government shall not appropriate funds to provide any salaries, wages or any form of emoluments to officials and employees of the National Government;

(d) In cases of abolition of positions and the creation of new ones resulting from the abolition of existing positions in the Bangsamoro Government, such abolition or creation shall be made in accordance with Section 10, Article XVI of this Organic Law. The provisions of civil service laws, rules, and regulations shall apply suppletorily;

(e) Positions in the official plantilla for career positions that are occupied bi incumbents holding permanent appointments shall be covered by adequate appropriations;

(f) No changes in designation or nomenclature of positions resulting in a promotion or demotion in rank or increase or decrease in compensation shall be allowed except when the position is actually vacant, and the filling of such positions shall be strictly made in accordance with civil service laws, rules, and regulations; and

(g) The creation of new positions and salary increase or adjustments shall not be made retroactive.

Section 21. Deductions from the Block Grant; Exceptions. Twenty (20) years from the operationalization of the Bangsamoro Government, the following shall be deducted from the block grant:

(a) Revenues from the following taxes imposed and collected in the Bangsamoro territorial jurisdiction by the Bangsamoro Government three (3) years prior:

(1) Capital Gains Tax;

(2) Documentary Stamp Tax;

(3) Donor's Tax; and

(4) Estate Tax; and

(b) Share of the Bangsamoro Government in the income derived from the exploration, development, and utilization of natural resources, as provided under Section 34, Article XII of this Organic Law, collected three (3) years prior.

The amount allocated for the operation of the Bangsamoro sustainable Development Board, as provided in Section 8, Article VI of this Organic Law, shall not be included in the amount herein to de deducted from the block grant. The abovementioned deduction shall not include the shares of constituent local government units and of indigenous communities in government income derived from the exploration, development, and utilization of natural resources under Sections 35 and 36 of this Article, respectively.

Section 22. Review of the Block Grant Formula. - The formula of the block grant, as provided above, shall be reviewed by the Intergovernmental Fiscal Policy Board five (5) years after its effectivity, and every five (5) years thereafter to consider, among others, the fiscal needs of the Bangsamoro Government and the actual revenuew it shall be able to generate and to ensure that all block grant expenditures are transparent and performance-based: Provide, That if the National Government shall no longer have any representative in the Intergovernmental Fiscal Policy Board, the review shall be undertaken by the Intergovernmental Relation Body.

Section 23. Development Programs and rojects. - Immediately after the ratification of this Organic Law, and for another five (5) years thereafter, the National Government shall provide for additional funds that will subsidize expenditures for development projects and infrastructure in the Bangsamoro Autonomous Region, including provincial and municipal roads in accordance with the development plan formulated by the Bangsamoro Government. The National Government and the Bangsamoro Government, through the Intergovernmental release of said amount to the Bangsamoro Government.

Loans

Section 24. Foreign and Domestic Loans; Bonds, Notes, and Obligtions. -

(a) Loans, Credits, and Other Forms of Indebtedness. - The Bangsamoro Government my contract loans, credits, and other forms of indebtedness to finance the construction, installation, improvement, expansion, operation or maintenance of public utilities, infrastructure facilities, housing projects, acquisition or real property, implementation of other capital investment projects, and for the development and welfare of the people of the Bangsamoro.

Subject to acceptable credit worthiness, and in compliance with the Constitution, relevant laws and regulations, such loans may be secured from domestic loans requiring sovereign guaranty, whether explicit or implicit, which would require the approval of the National Government.

The Parliament by a vote of the majority of all its members may authorize he Chief Minister to contract such domestic or foreign loans.

The National Government shall assist the Bangsamoro Government in complying with the requirements for a speedy issuance of the sovereign guaranty to finance local infrastructure and other socioeconomic development projects in accordance with the Bangsamoro Development Plan. Within thirty (30) days from the submission by the Bangsamoro Government of its application for sovereign guaranty, the National Government shall inform the Bangsamoro Government of the actions taken on the application.

(b) Bonds, Notes, Debentures, and Obligations. - The Bangsamoro Government shall have the authority to issue bonds, debentures, securities, collaterals, notes, obligations, and other debt papers or documents, as well as redeem or retire the same pursuant to a law enacted by the Parliament, to finance self-liquidating and income-producing development or livelihood projects pursuant to the priorities established in its development plan.

(c) Payment of Loans and Indebtedness. The Bangsamoro Government shall appropriate in its annual budget the amounts sufficient to pay its incurred loans and indebtedness: Provided, That the amount of appropriations for debt servicing shall not exceed twenty percent (20%) of the regular sources of revenue, excluding those coming from grants, endowments, donations, loans, foreign assistance and official development assitance of the Bangsamoro: Provided, further, That not more thant twenty percent (20%) of the block grant shall be utilize for the loan payments.

(d) Publication. - Any domestic or foreign-assisted loan and the purpose thereof shall be published once a week for two (2) consecutive weeks in at least one (1) newspaper of general circulation in the Bangsamoro Autonomous Region.

Section 25. Official Development Assistance. - The Bangsamoro Government may avail of official development assistance, upon review and approval of the National Government in accordance with Republic Act No. 8182, otherwise known as the " Official Development Assistance Act of 1996," as amended, to achieve inclusive growth and poverty reduction through the implementation of priority development projects.

Grants and Donations.

Section 26. Grants and Donations. - Departments, bureaus, offices and state universities and colleges of the Bangsamoro Government may accept donations, contributions, grants, bequests, or gifts, in cash or in kind, from domestic or foreign sources for purpose relevant to their functions.

In case of such grants or donations from governments of foreign countries, their agencies and instrumentalities or multilateral institutions or organizations, acceptance thereof shall be subject to the prior clearance and approval by the President or his authorized representative.

The Intergovernmental Fiscal Policy Board shall promulgate rules for the implementation of this section.

Economic Agreements and Conventions

Section 27. Economic Agreements. - Subject to the provision of the Constitution, the Bangsamoro Government shall evolve a system of economic agreements and trade compacts to generate block grants for regional investments and improvements of regional economic structures which shall be authorized by a law enacted by the Parliament. Pursuant to specific recommendations of regional economic and development planning body which shall be created by the Parliament, the Bangsamoro Government may assist its constituent local government units in their requirements for counterpart funds for foreign-assisted projects.

Section 28. Cultural Exchange, and Economic and Technical Cooperation. - The Bangsamoro Government may establish linkages for cultural exchange, economic and technical cooperation with countries having diplomatic relations with the Philippines upon review and approval of the National Government. The Bangsamoro Government may recommend to the National Government the assignment of qualified persons in Philippine Embassies and consulates, and their participation in international delegations.

Section 29. Benefits from Conventions. - The Bangsamoro Government shall be entitled to benefits resulting from conventions to which the National Government is a party. Such benefits shall be equitable, considering the available human and material resources and comparative advantage of the Bangsamoro Autonomous Region, as well as its socioeconomic conditions and needs.

Government-Owned or Controlled Corporations

Section 30. Government-Owned or Controlled Corporations. - Upon coordination with the National Government, the Parliament shall have the power to create government-owned or controlled corpoarations I compliance with the provisions of Republic Act No. 10149, otherwise known as the " GOCC Governance Act of 2011" by a grant of legislative charter or under Batas Pambansa Blg. 68, otherwise known as " The Corporation Code of the Philippines:" Provided, That those duly registered with the Securities Exchange Commission may likewiseoperate outside the Bangsamoro Autonomous Region.

The Parliament may create pioneer firms and other business entities to boost economic development in the Bangsamoro Autonomous Region.

Section 31. Existing Government-Owned or Controlled Corporations Operating Exclusively in the Bangsamoro Autonomous Region. - The Bangsamoro Government shall have the authority and control over existing government-owned or controlled corporations operating exclusively in the Bangsamoro Autonomous Region after determination by the Intergovernmental Fiscal Policy Board of their feasibility: Provide, That they shall have the option to transfer their operations outside of the Bangsamoro Autonomous Region, which shall be effected through the necessary changes in their governing boards.

Section 32. Existing Government-Onwed or Controlled Corporations in the Bangsamoro Autonomous Region. - The Bangsamoro Government shall be represented in the board of directors or in the policy-making bodies of government-owned or controlled corporations hat operate a substantial portion of their business directly or through their subsidiaries in the Bangsamoro Autonomous Region or where the Bangsamoro Government has a substantial interest.

The Intergovernmental Fiscal Policy Board shall determine the extent of the participation of the Bangsamoro Government as well as its shares from the results of the operations of these corporations and their subsidiaries based on a formula that it shall determine: Provided, That the Bangsamoro Government shall have at least one (1) seat in the governing boards of the said corporations

Section 33. Southern Philippines Development Authority and Al-Amanah Islamic Investment Bank. - Withtin six (6)months from the establishment of the Bangsamoro Transition Authority, the Intergovernmental Fiscal Policy Board shall determine the participation of the Bangsamoro Government in the Al-Amanah Islamic Investment Bank of the Philippines and the Southern Philippine Development Authority as provided in Presidential Decree No. 690, as amended. In the event of the transfer of Development Authority, the local government unit where the property is located shall have the preferential right to acquire the property.

Sharing in the Exploration, Development,and Utilization of Natural Resources

Section 24. Sharing in Exploration, Development and Utilization of Natural Resources. - Government revenues generated from the exploration, development, and utilization of all natural resources in the Bangsamoro Autonomous Region, including mines and minerals, shall pertain fully to the Bangsamoro Government. In the case of uranium and fossil fuels such as petroleum, natural gas, and coal, the same may be co-managed and the revenues shared equally between the National Government and Bangsamoro Government, subject to the limitations provided in the Constitution.

Section 35. Share of the Constituent Local Government Units. - The share of the Bangsamoro Government in the revenues referred to in the immediately preceding section shall be inclusive of those for its constituent local government units.

The share of the Bangsamoro Government is hereby apportioned as follows: thirty person (30%) to the Bangsamoro Government; and to all its constituent local government units, twenty percent (20%) to the provinces; fifteen percent (15%) to the cities; twenty percent (20%) to the municipalities and fifteen percent (15%) to the barangays .

Section 36. Share of the Indigenous Communities. - Indigenous peoples and communities shall have an equitable share of the revenues generated from the exploration, development, and utilization of natural resources that are found within the territories covered by a native, traditional, or customary title in their favor, which shall be provided by a law to be passed by the Parliament detailing the sharing mechanism and pecentages: Provided, That the rights and privileges granted to indigenous peoples by Republic Act No. 8371 and other laws pertaining to indigenous peoples shall not be diminished.

Intergovernmental Fiscal Policy Board

Section 37. Functions. - The Intergovernmental Fiscal Policy Board created under Section 4, Article VI of this Organic Law shall have the following functions:

(a) Recommend the necessary fiscal policy adjustments by undertaking periodic reviews of the taxing powers, tax base, rates, wealth sharing arrangements, and sources if revenues of the Bangsamoro Government vis-avis its development needs:

(b) Address disputes between the National Government and the Bangsamoro Government involving the collection of capital gains tax, documentary stamp tax, donor's tax, and estate tax;

(c) Determine the extent of the participation of the Bangsamoro Government in the board of directors or the policy-making bodies of government-owned or controlled corporations that operate a substantial portion of their businesses directly or through their subsidiaries in the Bangsamoro Autonomous Region or where the Bangsamoro Government has substantial interest;

(d) Determine the participation of the Bangsamoro Government in the operations of government-owned or controlled corporations and their subsidiaries operating in the Bangsamoro Autonomous Region, and its share from the results of said operations.

(e) Determine the participation of the Bangsamoro Government in the Al-Amanah Islamic Investment Bank of the Philippines, and the Southern Philippines Development Authority, subject to the provisions of Section 33 of this Article; and

(f) Define the modalities for the filing of income tax returns for corporations or firms whose central, main , or head offices are located outside the Bangsamoro Autonomous Region but are doing buisness within its territorial jurisdiction to determine the income realized from such operations in the Bangsamoro Autonomous Region, which shall be attributed as income derived therein and subject to the sharing scheme between the National Government and the Bangsamoro Government.

Section 38. Composition of the Intergovernmental Fiscal Policy Board. - The Intergovernmental Fiscal Policy Board shall be composed of the heads or representatives of the appropriate departments and agencies of the National Government and heads or representatives of the ministries and offices in the Bangsamoro Government: Provide, That the Secretary of Finance and the Minister of the appropriate ministry from the Bangsamoro Government shall be its co-chairpersons: Provided, further, That the Secretary of Trade and Industry, and the Director-General of the National Econnomic and Development Authority shall be members thereof.

Section 39. Meetings and Annual Report. - The Intergovernmental Fiscal Policy Board shall meet at least once every six (6) months or as often as necessary, and shall adopt its own rules of procedure for the conduct of its meetings.

An annual report shall be submitted by the Intergovernmental Fiscal Policy Board to the National Government and Bangsamoro Government, and shall be made available to the public.

Section 40. Full Disclosure Policy. - The Bangsamoro Government adopts a policy of full disclosure of its budget, finances, bids and public offerings, and shall provide protocols for the guidance of local authorities in the implementations of said policy which shall include, among the others, the posting of the Summary of Income and Expenditures, and the participation of representatives from civil society in the budget process. The same policy shall apply to its constituent local government code to be enacted by the Parliament.

Section 41. Additonal Fiscal Policy Powers. - The Intergovernmental Fiscal Policy Board mat recommend to the Congress of the Philippines or the appropriate agency of the National Government the grant of additional fiscal powers to the Bangsamoro Government.

ARTICLE XIII

REGIONAL ECONOMY AND PATRIMONY

Section 1. Social Justice and Economic System. - The Bangsamoro Government shall establish an economic system based on the principles and state policies declared in the Constitution. Pursuant to these principles, the Parliament shall enact laws pertaining to the Bangsamoro Autonomous Region economy and patrimony that are responsive to the needs of its people.

Sustainable Development

Section 2. Equitable and Sustainable Development. - In order to protect and improve the quality of life of its inhabitanats, te development in the Bangsamoro Autonomous Region shall be carefully planned taking into consideration the ecological balance and the natural resources that are available for its use and for the use of future generations.

The Bangsamoro Government shall promote the effective use of economic resources and endeavor to attain economic development that facilitates growth and full employment, human development, and social justice.

The Bangsamoro Government shall likewise provide equitable opportunities for the development of constituent local government units and shall strengthen governance systems to ensure people's participation.

Section 3. Comprehensive Framework for Sustainable Development. - The Bangsamoro Government shall develop a comprehensive framework for sustainable development through the proper conservation, utilization, and development through the proper conservation, utilization, and development of the natural resources, which shall guide it in adopting program and policy mechanisms that focus on the environment dimensions of social and economic interventions. It shall include measures for environmental justice and governance, as well as for the reduction of the vulnerability of women and marginalized groups to climate change and variability.

Section 4. Bangsamoro Economic and Developmet Council. - The Parliament shall establish the Bangsamor Economic and Development Council which shall serve as the planning, monitoring, and coordinating agency for all development plans, programs, and projects of the Bangsamoro Government. It shall evaluate and recommend short, medium, and long-term comprehensive development plans, programs, and projects for the Bangsamoro Autonomous Region for Approval by the Parliament. The development plans, programs, and projects shall take into account the development plans of the provinces, cities, municipalities, and barangays as approved by their respective local development councils.

Section 5. Gender and Development. - The Bangsamoro Government shall recognize the role of women in governance and ensure their fundamental equality before the law. It shall guarantee full and direct participation of women in governance and development process, ensuring that women shall benefit equally in the implementation of development programs and projects.

In the utilization of public funds, the Bangsamoro Government shall ensure that the needs of the Bangsamoro people, regardless of gender, are adequately addressed. For this purpose, at least five percent (5%) of the total budget appropriation of each ministry, office, and constituent local government unit of the Bangsamoro Autonomous Region shall be set aside for gender-responsive programs, in accordance with a gender and development plan. In the same manner, five percent (5%) to thirty percent (30%) of the official development assistance received by the Bangsamoro Government shall be set aside to complement the gender and development budget allocation.

The Bangsamoro Government shall establish a mechanism for consultation with women and local communities to further ensure the allocation and proper utilization of development funds. It shall identify and implement special development programs and laws for women.

Section 6. Participation in National Development Planning. - To ensure hat the Bangsamoro development plans are reflected in the national development plans, a respective of the Bangsamoro Government shall sit as member of a national development plan steering committee or its equivalent and shall participate in relevant planning activities of the National Economic and Development Authority.

Section 7. Disaster Risk Reduction and Management and Climate Change Adaptation. - The Bangsamoro Government recognizes the importance of disaster risk reduction and management and climate change adaptation.

There is hereby created a Bangsamoro Disaster Risk Reduction and Management Council headed by the Chief Minister, with powers and functions that shall be defined by the Parliament in a law providing for disaster preparedness and response:

Provided, That it shall formulate the Bangsamoro Disaster Risk Reduction and Management Plan, which shall complement that of the National Government: Provided, further, That through the Chief Minister , it shall recommend to the President the mobilization of resources of national defense in times of disaster in the Bangsamoro Autonomous Region.

The relevant agencies of the National Government and Bangsamoro Government shall cooperate and coordinate on disaster risk reduction and management.

The Bangsamoro Government, consistent with Republic Act No. 9729, otherwise known as the " Climate Change Act of 2009," shall ensure that its constituent local government units formulate their perspective local climate change action plans and for the proper and effective implementation thereof.

Natural Resouces

Section 8. Natural Resources, Nature Reserves, and Protected Areas. - Subject to the provisions of the Constitution, the Bangsamoro Government shall have the power, authority, and right to explore , develop, and utilize the natural resources, including surface and subsurface rights, inland waters, coastal waters, and renewable and nonrenewable resources in the Bangsamoro Autonomous Region.

The protection, conservation, rehabilitation, and development of forests, coastal, and marine resources, including the adoption of programs and projects, to ensure the maintenance of ecological balance and biodiversity shall be given priority.

The Bangsamoro Government shall also have the power to declare nature reserves and aquatic parks, forests, watershedreservations, and other protected areas in the Bangsamoro Autonomous Region.

The Parliament shall pas a law to establish protected areas, the procedure for the declaration and the management thereof, and the role of the Bangsamoro Government and other stakeholders in the process: Provided, That protected areas be declared within the ancestral domains shall be subject to the free, prior and informed consent of the non-Moro indigenous peoples.

Pending the enactment of such law, the declaration and management of protected areas shall be governed by existing laws rules and regulations. Existing nature reserves and protected areas shall remain as such. These, including those to be declared, shall be managed in accordance with sustainable development and biodiversity conservations and treaties to which the Philippines is a party.

Section 9. Transfer of Management of Existing Nature reserves and Protected Areas. - The management and protection of nature reserves ad aquatic parks, forests, watershed reservations, and other protected areas in the territorial jurisdiction of the Bangsamoro that have already been defined by under the authority of the National Government shall be transferred to the Bangsamoro Government.

Within three (3) months from the establishment of the Bangsamoro Transistion Authority, the Bangsamoro Government and the Department of Environment and Natural Resources, as well as other relevant government agencies, shall start the process of transferring the management of these areas to Bangsamoro Government, including the conduct of surveys of all affected areas and the planning and transition for each and every protected area. The transfer shall be completed within a period not exceeding two (2) years.

Section 10. Exploration, Development, and Utilization of Fossil Fuels and Uranium. - Subject to the provisions of the Constitution and national laws, the Bangsamoro Government and the National Government shall jointly exercise the power to grant rights, privileges, and concessions over the exploration, development, and utilization of uranium and fossil fuels such as petroleum, natural gas, and coal in the territorial jurisdiction of the Bangsamoro. The use of the renewable energy shall be promoted for power generation to achieve the sustainable development goals and promote low carbon energy generation policies as provided in Section 2 of this Article.

The National Government, through the Department of Energy, and the Bangsamoro Government shall adopt a competitive and transparent process for the grant of rights, privileges, and concessions in the exploration, development, and utilization of fossil fuels and uranium.

The Department of Energy and the Bangsamoro Government shall identify and select prospective contract areas to be offered for exploration and development. Qualified Filipino citizens who are bona fide residents of the Bangsamoro Autonomous Region shall be given a rating higher than other proponents during the evaluation process. The award of service contract shall be made jointly by the Department of Energy and the Bangsamoro Government.

Section 11. Preferential Rights of Bona Fide Residents of the Bangsamoro Autonomous Region. - Qualified citizens who are bona fide residents of the Bangsamoro Autonomous Region, all other conditions being equal, shall have preferential rights over the exploration, development, and utilization of natural resources, including uranium and fossil fuels such as petroleum, natural gas, and coal within the territorial jurisdiction of the Bangsamoro. Existing rights over the exploration, development and utilization of natural resources shall be respected until the expiration of the corresponding leases, permits, franchises, or concessions, unless legally terminated.

Section 12. Rights of Indigenous People to Natural Resources. - The Parliament shall enact a law recognizing the rights of indigenous peoples in the Bangsamoro Autonomous Region in relation to natural resources within the areas covered by a native title, including their share in revenues as provided in this Organic Law, and priority rights in the exploration, development, and utilization of such natural resources within their area.

The right of indigenous peoples to free, prior and informed consent in relation to development initiatives and exploration, development, and utilization of the natural resources within the ancestral domains covered by Certificate of Ancestral Domain Title shall be respected.

Section 13. Mines and Mineral Resources. - Subject to the provisions of the Constitution and national laws, the Bangsamoro Government shall have the authority and jurisdiction over the exploration, development , and utilization of mines and minerals in its territorial jurisdiction, taking into consideration environmental protection and ecological balance. The Bangsamoro Government shall have the power to grant permits, licenses, and contracts for this purpose.

Section 14. Financial and Technical Agreements. - The Bangsamoro Government may endorse to the President financial and technical agreements covering mineral resources in the Bangsamoro Autonomous Region, in accordance with the mining policy thal shall be adopted by the Parliament.

Section 15. Regulation of Small-Scale Mining. - Small-scale Mining shall be regulated by the Bangsamoro Government to the end that the ecological balance, safety and health, and the interests of the affected communities, the miners, the indigenous peoples, and the local government units of the place where such operations are conducted are duly protected and safeguarded. All gold produced by small-scale miners in any mineral area shall be sold to the Bangko Sentral ng Pilipinas, or its duly authorized representatives, which shall buy the same prices competitive with those prevailing in the world market, regardless of volume or weight.

Section 16. Bangsamoro Mining Policy. - Policies on mining and other extractive industries shall be established by the Parliament in accordance with a comprehensive sustainable development plan and overall medium-term and long-term Bangsamoro Development Plan.

Section 17. Cadastral Land Surveys; Land Classification and Urban Land Reform and Land Use Program. - The classification of public lands in the Bangsamoro into alienable and disposable lands shall be recommended by the Bangsamoro Government to the President for the timely implementation of Bangsamoro development plans and targets.

The Bangsamoro Government may, upon authority of the President, conduct cadastral surveys, lot surveys, and isolated and special surveys in the Bangsamoro: Provided, That it shall furnish the results of these surveys to, and coordinate with, the relevant national government agencies to effect inclusion into the National Cadastal Survey.

Subject to the provisions of the Constitution, the Parliament may enact an urban land reform and land use program for the region.

Section 18. Zones of Jointly Cooperation. Zones of Joint Cooperation in the Sulu Sea and the Moro Gulfare hereby created, the coordinates of which shall be defined by an ad hoc Joint Body composed of representatives from the Department of Environment and Natural Resources and the National Mapping and Resource Information Authority, and corresponding number of representatives from appropriate agencies of the Bangsamoro Government.

The joint Body shall be convened within thirty (30) days after the ratification of this Organic Law and shall cease to exist after it has established the coordinates of the Bangsamoro territorial jurisdiction, including Bangsamoro Waters and the Zones of Joint Cooperation.

Section 19. Join Body for the Zones of Joint Cooperation. - The Joint Body created for the Zones of Joint Cooperation provided in Section 5, Article VI of this Organic Law, shall establish the policies therein and shall be composed of the following:

(a) Secretary of Agriculture and Bangsamoro Minister as co-Chairpersons;

(b) Secretary of Environment and Natural Resources and a counterpart Minister of the Bangsamoro Government

(c) Secretary of Transportation and a counterpart Minister of the Bangsamoro Government;

(d) At least one (1) representative of a constituent local government unit of the Bangsamoro Autonomous Region adjacent to the Sulu Sea;

(e) At least one (1) representative of a constituent local government unit of Bangsamoro Government adjacent to the Moro Gulf;

(f) At least one (1) representative from an adjoining non-Bangsamoro local government unit adjacent to the Sulu Sea; and

(g) At least one (1) representative from an adjoining non-Bangsamoro local government unit adjacent to the Moro Gulf.

The Bangsamoro Government and the National Government shall ensure the free movement of vessels, goods, and people in these Zones of Joint Cooperation, working together to regulate the waters therein and formulating policies jointly for the following purposes:

(a) Protection of the traditional fishing grounds;

(b) Equitable sharing of the benefits from the resources therein; and

(c) Ensuring the interconnectivity of the islands and mainland areas comprising the Bangsamoro Autonomous Region to wards a cohesive Bangsamoro political entity.

Section 20. exploration, Development, and Utilization of Nonliving Resources in the Zones of Joint Cooperation. - Subject to the limitations provided in the Constitution, the Joint Body for the Zones of Joint Cooperation shall ensure cooperation and coordination between the National Government and the Bangsamoro Government on the exploration, development, and utilization of nonliving resources in the Zones of Joint Cooperation and determine the sharing of income and revenues derived therefrom.

Section 21. Transportation Routes in the Zones of Joint Cooperation. - Direct transportation routes connecting the islands in Sulu, Basilan, Tawi-Tawi, or the mainland parts of the Bangsamoro Autonomous Region and passing through the Zones of Joint Cooperation shall be considered intra-regional routes.

Section 22. Management of Inland Waters. - The Bangsamoro Government shall have exclusive powers over inland waters, including lakes, marshes, rivers, and tributaries within its territorial jurisdiction, except those that provide energy to power generating plants. The Parliamentary shall enact laws on the regulation, conservation, management, and protection of these resources, and may classify inland waters in the Bangsamoro Autonomous Region. It shall create a Bangsamoro Authority and offices for specific inland bodies of water that shall exercise management and regulatory powers over these bodies of water.

If any inland water is a source of energy for areas outside of the Bangsamoro Autonomous Region, the principle of co-management of fossil fuels under Section 10 of this Article and Section 34 of Article XII of this Organic Law shall apply.

The Bangsamoro Government shall ensure that the utilization of these waters shall be for the primary benefit of the people in the Bangsamoro Autonomous Region and shall give host communities their share from the revenues generated from such utilization.

The Bangsamoro Government shall coordinate and cooperate with the Philippine Coast Guard concerning inland waterways for navigation.

Section 23. Agriculture, Fisheries, and Aquatic Resources. - Consistent with the provisions of Republic Act No. 8550, otherwise known as " The Philippine Fisheries Code of 1998," as amended, and other relevant national laws, the policies and laws of the Bangsamoro Government on agriculture as a key development strategy, promote productivity measures, and provide support for small farmers, landholders, and marginal fisherfolk. The Bangsamoro people, indigenous peoples, and resident marginal fisherfolk shall enjoy preferential fishing rights in the Bangsamoro regional waters, without prejudice to the fishing rights in the Bangsamoro regional waters, without prejudice to the fishing rights of other citizens of the Philippines, whether residents or nonresidents of the Bangsamoro Autonomous Region.

Trade and Industry and Tourism

Section 24. Trade and Industry in the Bangsamoro Autonomous Region. - The Bangsamoro Government recognizes the private sector as a mover of trade, commerce, and industry. To achieve equity, social justice, and economic development, it shall encourage and support the building up of entrepreneurial capability in the Bangsamoro Autonomous Region and shall recognize, promote, protect, and support the development of cooperatives and other medium, shall, and micro enterprises. It shall adopt and implement cooperative development policies and programs through the enactment of a Bangsamoro cooperative code.

The Bangsamoro Government shall promote trade and industry in the Bangsamoro Autonomous Region by providing avenues through which other countries may learn about its unique industries, economic opportunities, and culture through participation in trade missions, trade fairs, and other promotional activities. It may also organize trade missions to other countries observing the necessary coordination with the relevant government agencies.

The Bangsamoro Government shall alos promote domestic trade preference for goods produced and materials sourced from within the Bangsamoro Autonomous Region and adopt measures to increase their competitiveness. The Bangsamoro Government shall also ensure that Bangsamoro products and services gain considerable access to the markets of its trading partners. Particular attention shall also be given to the markets of its trading partners who have historic and cultural ties to the Bangsamoro people.

Section 25. Registration of Business Names. - The Bangsamoro Government shall have the power to register business names which shall be listed in the Philippine Business Registry.

Section 26. Barter Trade and Countertrade. - The Bangsamoro Government shall regulate traditional barter trade with the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) Member States and countertrade with the Association of Southeast Asian Nations (ASEAN) Member States. The goods or items that are trade with the said countries shall not be sold elsewhere in the country without the payment of appropriate customs or import duties in accordance with existing national laws.

Countertrade with ASEAN Member States shall be in accordance with the spirit, intent, goals, processes, modalities, and arrangements in the ASEAN economic integration agreements.

Section 27. Cooperatives and Social Entrepreneurship. - The Bangsamoro Government shall recognize, protect, and promote the establishment of cooperative enterprises. It shall likewise encourage and promote social entrepreneurship as a means to engage the private sector to assist in the development, funding, and implementation of solutions to social, cultural, or environmental issues.

The Parliament shall pass laws to strengthen the growth and development of social enterprises in the Bangsamoro Autonomous Region to achieve social justice, social equity, and economic efficiency.

Section 28. Economic Zones, Industrial Estates, and Free Ports. - The Bangsamoro Government may establish economic zones, industrial estates, and free ports in the Bangsamoro Autonomous Region, including the establishment of a Bangsamoro Economic Zone Authority which shall have similar powers as those of the Philippine Economic Zone Authority. The Parliament may provide such additional powers and functions to the Bangsamoro Economic Zone Authority as may be necessary to meet the special circumstances of the Bangsamoro Autonomous Region.

Once the Bangsamoro Economic Zone Authority is created, the Philippine Economic Zone Authority shall no longer create any other economic zone within the Bangsamoro Autonomous Region. Any corporation, firm, or entity established within the Bangsamoro Autonomous Region by the Philippine Economic Zone Authority shall be placed under the jurisdiction of the Bangsamoro Economic Zone Authority, and shall continue to enjoy the benefits granted to it by the Philippine Economic Zone Authority.

Through the intergovernmental relations mechanism, the Bangsamoro Government and the National Government shall cooperate on customs, immigration, and quarantine services including the attendant international commitments thereto, in order to implement and make fully operational such economic zones, industrial estates, and free ports within one (1) year from their establishment. Business and other enterprises operating within the Bangsamoro economic zones, industrial estates, and free ports are entitled to the fiscal incentives and other benefits provided by the National Government to special economic zones. The Bangsamoro Government shall provide fiscal incentives and other benefits to investors in economic zones, industrial estates, and free ports: Provided, That, for goods consumed and services rendered outside the established economic zones, industrial estates, and free ports in the Bangsamor Autonomous Region, all relevant national taxes shall be imposed.

Bangsamoro free ports shall be contiguous or adjacent to a seaport or airport. The area of coverage of a free port may be so mush as may be necessary of that portion of the constituents local government units in the Bangsamoro Autonomous Region, subject to such criteria as the Parliament may provide in a law for that purpose. The admnistration of existing free ports in the Autonomous Region in Muslim Mindanao are hereby transferred to Bangsamoro Government.

Section 29. Prohibition Against Toxic or Hazardous Substances. - The Bangsamoro Government shall regulate, restrict or prohibit the use, importation, transit, transport, deposit, disposal, and dumping of toxic or hazardous substance within the Bangsamoro Autonomous Region. It shall, in the same manner, regulate activities that may adversely impact the environment and may be harmful to the health, safety and welfare of the Bangsamoro people.

Section 30. Halal Program. - The Bangsamoro Government shall have the power to accredit halal-certifying bodies in the Bangsamoro Autonomous Region. It shall promote awareness through the development and implementation of a halal campaign program.

The Parliament shall enact laws to further strengthen its policy and programs on halal development.

Section 31. Banks and Financial Institutions. The Bangsamoro Government shall encourage the establishment of:

(a) Bank and financial institutions and their branches including an Islamic window in domestic and foreign conventional banks; and

(b) Offshore banking units of foreign banks within the principles of the Islamic banking system.

Section 32. Islamic Banking and Finance. - The Bangsamoro Government, the Bangko Sentral ng Pilipinas, the Department of Finance, and the National Commission on Muslim Filipinos shall jointly promote the development of an Islamic banking and finance system, to include, among others, the establishment of Shari'ah Supervisory Board and the promotion and development of Shari'ah-compliant financial institution. The Bangko Sentral ng Pilipinas shall determine the type of organizational structure to be created and its composition.

To facilitate the establishment of an Islamic banking and finance system, the Bangsamoro Government and the National Government shall review existing market environment policies, adopt measures to enhance the competitiveness of Islamic finance products, and ensure that Islamic financial players are not inhibited from introducing Islamic finance products. It shall further promote investor awareness and acceptance in order to build a broader customer and asset base.

The operation of Islamic banks, Shari'ah-compliant financial institutions and other institutions performing similar functions shall be subject to the power of supervision of the Bangko Sentral ng Pilipinas.

The Parliament shall enact laws that promote the growth of Islamic finance such as those that promote tax incentives and ensure tax neutrality of Islamic finance transactions in the Bangsamoro Autonomous Region.

Section 33. Islamic Banking Unit in the Bangko Sentral ng Pilipinas. - An Islamic banking unit shall, as far as practicable, be established in the Bangko Sentral ng Pilipinas which shall be headed and staffed by qualified Islamic banking experts.

Section 34. Functions of the Shari-ah Supervisory Board and Qualifications of Its Members. - Without prejudice to the crafting of the Bangsamor Islamic banking and finance framework by the Parliament, the following are the functions and qualifications of the Shari-ah Supervisory Board:

(a) Functions, - The Shari-ah Supervisory Board shall be responsible for monitoring the compliance of Shari'ah rules in banking and finance transactions and issuance of Shari'ah products. Furthermore, as representative of the various Ulama, it shall have the authority to issue fatwas regarding the products and practices employed by banks and other institutions.

(b) Qualifications. Subject to other qualification that the Parliament mat enact, the members of the Board shall have the necessary knowledge of both Islamic jurisprudence and conventional banking and finance.

Section 35. Tourism. - The Bangsamoro Government shall promote tourism within the Bangsamoro Autonomous Region.

It may recommend the designation of tourism enterprise zones to the Tourism Infrastructure and Enterprise Zone Authority, in accordance with Republic Act No. 9593, otherwise known as " The Tourism Act of 2009."

Public Utilities and Infrastructure

Section 36. Energy and Power Generation. - The Bangsamoro Government shall promote investments in the energy and power generation sector, domestic and international, public and private, in the power sector industry in the Bangsamoro Autonomous Region: Provided, That is shall as practicable, promote low carbon sustainable power generation policies provided in the Organic Law: Provided, further, That the Bangsamoro Government shall notify the National Government insofar as power generation investments are concerned.

(a) Power Generation and Distribution Utilities Operating Exclusively in the Bangsamor Autonomous Region. The Bangsamoro Government shall have the authority to build power generation and distribution utilities operating exclusively in the Bangsamoro Autonomous Region through the Ministry of Energy it shall create: Provided, That the Bangsamoro Government shall divest its ownership of the utilities twenty-five (25) years after their creation. It shall promote investments, domestic and international, in the power sector industry in the Bangsamoro Autonomous Region.Consistent with sustainable development goals and low carbon sustainable power generation policies to reduce costs associated with transmission including line losses and network investment, distributed power generation shall be aggressively promoted as part of the Bangsamoro Government's power development plan. Power generation plants and distribution utilities operating exclusively in the Bangsamoro Autonomous Region shall be able to interconnect, sell, and buy power over the national transmission grid subject to limitations under Republic Act No. 9136, otherwise known as the "Electric Power Industry Reform Act of 2001." In the same way, transmission lines operating exclusively in the Bangsamoro Autonomous Region shall be able to connect to the national transmission grid. Such power plants and distribution networks may only sell power over the national transmission grid once the power supply needs its customer have been completely met. The Bangsamoro Government may assist electric cooperatives operating exclusively in the Bangsamoro Autonomous Region in accessing funds and technology to ensure their financial and operational viability. Assistance may be in the form of restructuring of debts, with rehabilitation and efficiency improvement measures based on a set of clear time-bound operational reform programs.

(b) Agus Hydropower Complex. - In the event of the privatization of the Agus Hydropower Complex, the Bangsamoro Government shall preferential rights to acquire the hydroelectric plants situated within its territorial jurisdiction. Nevertheless, the National Government and the Bangsamoro Government shall cooperate and coordinate through the Intergovernmental Energy Board insofar as the utilization of water from Lake Lanao for the Agus Hydropower Complex is concerned. This is without prejudice to the payment of the obligation of National Power Corporation or Power Sector Assets and Liabilities Management Corporation to the Autonomous Region in Muslim Mindanao which now accrues to the Bangsamoro Government.

Section 37. Public Works and Infrastructure. - The National Government shall fund and implement the construction and mintenance of the national roads, bridges, water supply and services, and flood control and irrigation systems and for the maintenance of the existing airports, seaports, and wharves in the Bangsamoro Autonomous Region: Provided, That with regard to water supply and services, flood control and irrigation systems that connect or from facilities outside the Bangsamoro Autonomous Region, there shall be cooperation abnd coordination between the Bangsamoro Government and the appropriate national or local government bodies. All national roads na dbridges in the Bangsamoro Autonomous Region shall be included in the National Road Network Information System. Nationally-funded infrastructure projects shall be implemented by the National Government.

The Bangsamoro Government shall submit proposals to the appropriate national government agency for the inclusion of the cost of such maintenance in the latters' budget that shall be submitted to the Congress of the Philippines for inclusion in the General Appropiriations Act. Funding for national roads, bridges, and irrigation systems shall be regularly released to the relevant departments of the National Government.

Transportation and Telecommunications

Section 38. Transportation. - the Bangsamoro Government shall have the authority to grant regional franchises, licenses, and permits to land, sea, and air transportation plying routes in the provinces or cities within the Bangsamoro Autonomous Region: Provided, That the National Government shall regulate the airside operations of all existing airports.

The Bangsamoro Government shall have the authority over the following:

(a) Regulation of transportation in the Zones of Joint Cooperation , subject to the provision in Second 19 of this Article;

(b) Registration of land, water, and air transportation operating exclusively within the Bangsamoro Autonomous Region; and

(c) Exercise of quasi-judicial powers over the operation of land and water transportation in the Bangsamoro Autonomous Region in accordance with the rules of procedure established by the Parliament.

Section 39. Telecommunications. - The Bangsamoro Government shall have the authority to grant regional franchises, licenses, and permits to telecommunication utilities whose frequencies are confined to and whose main offices are located within the Bangsamoro Autonomous Region; Provided, That nothing herein shall be contrued as limiting in any way the power of the Congress of the Philippines to grant national franchises in the Bangsamoro Autonomous Region.

The Bangsamoro Government shall have the authority over the following:

(a) Issuance of certificates of public convenience and necessity, special permits and provisional authority to operate telecommunication companies in the Bangsamoro Autonomous Region;

(b) Registration of telecommunication compnies in the Bangsamoro Autonomous Region; and

(c) Exercise of quasi-judicial powers over the operation of telecommunication companies in the Bangsamoro Autonomous Region in accordance with the rules of procedure established by the Parliament.

ARTICLE XIV

REHABILITATION AND DEVELOPMENT

Section 1. Rehabilitation and Developmen. - The Bangsamoro Government, with funding support from the National Government, shall intestify development efforts for the rehabilitation, reconstruction, and development of Bangsamoro Autonomous Region as part of the normalization process. It shall formulate and implement a program for rehabilitation and development that will address the needs of Moro-Islamic Liberation Front/Bangsamoro Islamic Armed Force members and its decommisioned women auxiliary force, Moro National Liberation Front/Bangsamoro Armed Forces members, and address the needs of internally displaced persons, widows and orphans, and poverty-stricken communities. It shall observe, promote, and ensure gender-responsiveness in all aspects of security and peace building, including the participation of women in decision-making.

Section 2. Special Development Fund. - The National Government shall provide a special development fund to the Bangsamoro Government for the rebuilding, rehabilitation, and development of its conflict-affected communities.

The amount equivalent to Fifty billion peos (₱50,000,000,000.00), at Five billion pesos (₱5,000,000,000.00) per year, for a period of ten (10) years from the ratification of this Organic Law, shall be allocated for this purpose.

The utilization of the fund shall be in accordance with the Bangsamoro Development Plan to be adopted by the Bangsamoro Government, as provided in Section 6, Article XIII of this Organic Law.

ARTICLE XV

PLEBISCITE

Section 1. Establishment of the Bangsamoro Autonomous Region. - The establishment of the Bangsamoro Autonomous Region and the determination of its territorial jurisdiction shall take effect upon ratification of this Organic Law by majority of the votes cast in a plebiscite in the following:

(a) The present geographical area known as the Autonomous Region in Muslim Mindanao created under Republic Act No. 6734, as amended by Republic Act No. 9054, which shall subsist as such until this Organic Law is ratified through a plebicite;

(b) The municipalities of Baloi, Munai, Nunungan, Pantar, Tagoloan, and Tangkal in the Province of Lanao del Norte that voted for inclusion in the Autonomous Region in Muslim Mindanao during the 2001 plebiscite.

(c) The following thirty-nine (39) barangays in the municipalities of Aleosan, Carmen, Kabacan, Midsayap, Pigkawayan and Pikit in the Province of North Cotabato hat voted for inclusion in the Autonomous Region in Muslim Mindanao during the 2001 plebiscite:

(1) Dunguan, Lower Mingading, and Tapodoc in the Municipality of Aleosan (3);

(2) Manarapan and Nasapian in the Municipality of Carmen (2);

(3) Nanga-an, Simbuhay, and Sanggadong in the Municipality of Kabacan (3)(4) Damatulan, Kadigasan, Kadingilan, Kapinpilan, Kudarangan, Central Labs, Malingao, Mudseng, Nabalawag, Olandang, Sambuwalan, and Tugal in the Municipality of Midsayap (12);

(5) Lower Baguer, Balacayon, Buricain, Datu Binasing, Kadingiln, Matilac, Patot, and Lower Pangangkalan in the Municipality of Pigkawayan (8);

(6) Bagoinged, Balatican, S. Balong, S. Balongis, Batuwalan, Buliok, Gokotan, Kabasalan, Lagunde, Macabual, and Macsendeg in the Municipality of Pikit (11);

(7) The City of Cotabato;(8) The City of Isabela in the Province of Basilan; and

(9) Those qualified for inclusion in the plebiscite, by way or resolution or petition.

Section 2. Period of Plebiscite. - The plebiscite herein mentioned shall be conducted not earlier than ninety (90) days nor later than one hundred fifty (150) days after the effectivity of this Organic Law.

For this purpose, the Commission on Elections shall undertake the necessary steps to enable the holding of plebiscite within the period.

Section 3. Results of the Plebiscite. -

(a) The Bangsamoro Autonomous Region shall be established and all provinces and cities of the Autonomous Region in Muslim Mindanao created under Republic Act No. 6734, as amended by Republic Act No . 9054, shall form part of the Bangsamoro Autonomous Region if the majority of the votes cast in the Autonomous Region in Muslim Mindanao shall be in favor of the approval of this Organic Law: Provided, That the provinces and cities of the present Autonomous Region in Muslim Mindanao shall vote as one geographical area.

(b) Any of the municipalities of Baloi, Munai, Nunungan, Pantar, Tagoloan, and Tangkal in the Province of Lanao del Norte that votes favorably for its inclusion in the Bangsamoro Autonomous Region shall form part of the Bangsamoro Autonomous Region: Provided, That the majority of the votes cast in the Province of Lanao del Norte shall be in favor of the inclusion of the municipality in the Bangsamoro Autonomous Region.

(c) Any of the barangays in the municipalities of Kabacan Carmen, Aleosan, Pigcawayan, Pikit, and Midsayap as enumerated in paragraph (c) Section 1 of this Article that votes favorable for its inclusion in the Bangsamoro Autonomous Region shall form part of the Bangsamoro Autonomous Region: Provided, That the majority of the votes cast in the municipality to which the barangay belongs shall be favor of the inclusion of the barangay in the Bangsamoro Autonomous Region.

(d) The City of Cotabato shall form part of the Bangsamoro Autonomous Region if the majority of the votes cast in the city shall be in favor of its inclusion.

(e) The City of Isabela in the Province of Basilan shall form part of the Bangsamoro Autonomous Region if the majority of the votes cast in the city shall be in favor of its inclusion in the Bangsamoro Autonomous Region: Provided, That the majority of the votes cast in the Province of Basilan shall be in favor of the inclusion of the City of Isabela in the Bangsamoro Autonomous Region.

(f) Any other contiguous area where there is a resolution of the local government unit or a petition of at least ten percent (10%) of the registered voters in the local government unit asking for its inclusion at least two (2) months prior to the conduct of the ratification of this Organic Law shall form part of the Bangsamoro Autonomous Region if the majority of the votes cast in the political units directly affectes shall be in favor of the inclusion of the petitioning local government unit in the Bangsamoro Autonomous Region.

Section 4. Reconstituion of Local Government Units. The Parliament may, by law, provide for the reconstitution of geographical areas in the Bangsamoro Autonomous Region into appropriate territorial or political subdivisions depending on the results of the plebiscite. Nothing herein shall be construed to allow the Parliament to create legislative districs.

Section 5. Plebiscite Questions. - The questions to be asked of the voters in the plebiscite shall be determined by the Commission on Elections.

Section 6. Plebiscite Monitoring. - The Commission on Elections shall provide for the accreditation of plebiscite monitors, including the international-domestic monitoring body created by the Government of the Republic of the Philippines in the Moro Islamic Liberation Front peace panels, in accordance with established international satandards on election monitoring. The monitoring body shall have access to all operations related to the conduct of the plebiscite and conduct regular and random checks. The reports of the international-domestic monitoring body shall be made available to the peace panels for their disposition.

Section 7. Qualified Voters. - All registered voters in the provinces, cites, municipalities, and barangays mentioned under Section 1 and 3 of this Article shall be qualified to participate in the plebsicite on the establishment of the Bangsamoro Autonomous Region.

Section 8. Special Registration. - The Commission on Elections shall conduct a special registration before the date of plebiscite.

Section 9. Promulgation of Rules for the Conduct of Plebiscite. - The Commission on Elections shall promulgate rules necessary for the conduct of plebiscite, including those for the accreditation of plebiscite monitors, voluntary inclusion in the plebiscite, and the special registration of voters as provided herein, within fifteen (15) days from the effectivity of this Organic Law, with the primary objective of optimizing the opportunity for participation in the plebiscite of qualified voters in the areas specified for the establishment of the Bangsamoro Autonomous Region.

Section 10. Information Campaigns. - The Commission on Election shall supervise the conduct of information campaigns for indigenous communities, women, youth, religious, professionals and public and private sector emp;loyees, in every barangay, municipality, city, and province where the plebiscite is to be conducted.

Public conferences, assemblies, or meetings on dates before the plebiscite day itself shall be held to inform the residents thereof regarding the significance and meaning of the plebiscite and to help them to cast their votes intelligently. Free, full, and constructive discussion and exchange of views on the issues shall be encouraged.

For this purpose, the Bangsamoro Transition Commission shall assist in the information dissemination campaign. Such campaign shall be without prejudice to other information dissemination and public advocacy initiatives by the other government or nongovernment group or individuals.

For the information campaigns and other public advocacy initiatives with indigenous communities, local leaders shall be engaged to lead discussions in their respective communities.

Public advocacy initiatives shall be conducted within the framework of solidarity, cooperation, and unity among Bangsamoro people, non-Moro indigenous peoples, settler communities. Consultation shall give due respect to the roles of non-Moro indigenous and Moro women, and encourage their active participation.

Section 11. Appropriations. - The amount necessary to provide for the requirements of the conduct of the plebiscite, including the monitoring, information campaign, and the registration of voters shall be charged against available funds in the current General Appropriations Act.

ARTICLE XVI

BANGSAMORO TRANSITION AUTHORITY

Section 1. Transition Period. - The transition period for the establishment of the Bangsamoro Autonomous Region shall commence upon the ratification of this Organic Law.

This Organic Law shall be deemed ratified when approved by a majority of the votes cast in a plebiscite as proclaimed by the Commission on Elections or its duly authorized officers.

The transition period shall end upon the dissolution of the Bangsamoro Transition Authority as provided in this Organic Law.

The transition period shall be without prejudice to the initiation or continuation of other measures that may be required by post-conflict transition and normalization even beyond the term of the Bangsamoro Transition Authority.

Section 2. Bangsamoro Transition Authority. - There is hereby created a Bangsamoro Transition Authority which shall be the interim government in the Bangsamoro Autonomous Region during the transition period. The Moro Islamic Liberation Front shall lead the Bangsamoro Transition Authority, without prejudice to the participation of the Moro National Liberation Front in its membership.

The compensation of the members of the Bangsamoro Transition Authority shall be subject to existing rules and regulations of the National Government.

The Bangsamoro Transition Authority shall be composed of eighty (80) members, who shall be appointed by the President: Provided, That, in addition, the elected officials of the Autonomous Regional Government in Muslim Mindanao shall automatically become members of the Bangsamoro Transition Authority and shall serve until noon of the 30th of June 2019: Provided, further, That non-Moro indigenous communities, youth, women, settler communities, traditional leaders, and other sectors shall have representatives in the Bangsamoro Transition Authority.

Section 3. Powers and Authorities. Legislative and executive powers in the Bangsamoro Autonomous Region during transition shall be vested in the Bangsamoro Transition Authority. During the transition period, executive authority shall be exercised by the interim Chief Minister who shall be appointed by the Presidnet as such, while legislative authority shall be exercised by the Bangsamoro Transition Authority.

All powers and functions of the Bangsamoro Government as provided in this Organic Law is vested in the Bangsamoro Transition Authority during the transition period.

For the purposes of mechanism for intergovernmental relations with the National Government and local government units in the Bangsamoro Autonomous Region, The Bangsamoro Transition Authority shall be deemed as the Bangsamoro Government for the duration of the transition period.

Section 4. Functions and Priorities. - The Bangsamoro Transition Authority shall ensure the accomplishment of the following prioritiesduring the transition period:

(a) Enactment of priority legislations such as the Bangsamoro Administrative Code, Bangsamoro Revenue Code, Bangsamoro Electoral Code, Bangsamoro Local Government Code, and Bangsamoro Educational Code consistent with powers and prerogatives vested in the Bangsamoro Government by this Organic Law: Provided, That until the abovementioned laws are enacted, the Muslim Mindanao Autonomy Act No. 25, otherwise known as the "Autonomous Region in Muslim Mindanao Local Government Code," and subsisting laws on elections and other electoral matters shall apply in the Bangsamoro Autonomous Region.The Bangsamoro Transition Authority may also enact a Bangsamoro Civil Service Code, as provided in this Organic Law, subject to the Constitutional mandate of the Civil Service Commission.The Bangsamoro Transition Authority shall enact law to recognize, protect , promote, and preserve the rights of indigenous peoples in the Bangsamoro Autonomous Region. Until the law enacted, subsisting regional laws on the indigenous peoples in the Bangsamoro shall be operational.

These rights shall be promoted, protected, and enforced by the Ministry of Indigenous People's Affairs as provided under Section 8 of this Article.

(b) Determination of parliamentary districts for the first regular election for the members of the Parliament subject to the standards set in Section 10, Article VII of this Organic Law;

(c) Organization of the bureaucracy of the Bangsamoro Government during transition, including the approval and implementation of a transition plan, and the institution of a placement process for hiring of personnel during transition. This also includes the setting up of office and other institutions necessary for the continued functioning of government and delivery of social services in the Bangsamoro Autonomous Region, as well as those necessary for the smooth operations of the first elected Bangsamoro Government in 2022;

(d) Full transfer of powers and properties of the Autonomous Regional Government in Muslim Mindanao to the Bangsamoro Government, except those properties, land, and structures located outside of the Autonomous Region in Muslim Mindanao. The land and permanent buildings or structures located outside the Autonomous Region in Muslim Mindanao, owned, controlled, administered, or in the possession of the Autonomous Region al Government in Muslim Mindanao, shall be purchase by the National Governmentat a price to be determined through the intergovernmental relations mechanism within one (1) year from the ratification of this Organic Law. Any dispute on the price may be appealed to the Office of the President which shall decide on the price with finality within three (3) months from the receipt of the appeal. The proceeds of the purchase shall be remitted to the Bangsamoro Government.

(e) The disposition of the personnel of the Autonomous Regional Government in Muslim Mindanao as provided in Section 10 of this Article.

(f) Transition from the Autonomous Regional Government in Muslim Mindanao to the Bangsamoro Government, as provided in this Organic Law; and

(g) Other matters that may be necessary for the protection and promotion of the general welfare of the constituents of the Bangsamoro Autonomous Region.

Section 5. Continuity of Government. - To foreclose any political interregnum in the governance of the region, the twenty-five incumbent elected officials of the Autonomous Region in Muslim Mindanao, and the Bangsamoro Transition Commission, an independent body created by Executive Order No. 120 Series of 2012, as amended by Executive Order No. 08. Series of 2016, shall enact as caretakers of the administration of the Bangsamoro Autonomous Region until the Bangsamoro Transition Authority is constituted.

Section 6. Transition Plan. - Within the first sixty (60) days of the transition period, the interim Chief Minister shall submit to the Bangsamoro Transition Authority a transitory plan that shall contain the proposed organizational plan, as well as, the schedule for implementation therefor. The Bangsamoro Transition Authority shall, by a majority vote of all its members, approve or otherwise act on the proposed transition plan within ten (10) days upon submission by the interim Chief Minister. If the transition plan is not is not acted upon within sixty (60) days, it shall be deemed approved. The transition plan shall be implemented within fifteen (15) days from its approval.

Section 7. Interim Officers. - The interim Chief Minister shall organize the interim Cabinet and shall appoint two (2) interim Deputy Chief Ministers, who shall also be members of the Bangsamoro Transition Authority. The interim Chief Minster shall also appoint such other ministers as may be necessary to perform the functions of government during the transition period, a majority of whom shall be from among the members of the Bangsamoro Transition Authority.

Members of the Bangsamoro Transition Authority who are appointed to cabinet positions shall serve their offices concurrently; Provided, That no member of the Bangsamoro Transition Authority may be appointed, electedor otherwise hold more than two (2) positions at the same time.

Section 8. Interim Cabinet. The Interim Cabinet shall be composed of fifteen (15) primary ministries with suboffices, namely:

(a) Finance, and Budget and Management;

(b) Social Services;

(c) Trade, Investments, and Tourism;

(d) Labor and Employment;

(e) Transportation and Communications;

(f) Basic, Higher and Technical Education;

(g) Indigenous Peoples' Affairs;

(h) Health;

(i) Public Works;

(j) Local Government;

(k) Environment, Natural Resources, and Energy;

(l) Human Settlement and Development;

(m) Science and Technology;

(n) Agriculture, Fisheries, and Agrarian Reform; and

(o) Public Order and Safety.

Other offices on youth, women settler, communities, disaster risk reduction and management, and planning and development, among others, may be created by the Bangsamoro Transition Authority.

The Attorney General's Office, under the Office of the Chief Minister, shall likewise be created by the Bangsamoro Transition Authority.

Section 9. Interim Bureaucracy. - The authority of the Bangsamoro Transition Authority to create offices and organize the bureaucracy during the transition period is without prejudice to the authority of the Bangsamoro Government to reorganize the bureaucracy upon its constitution, or any time thereafter. In the exercise of this authority, The Bangsamoro Transition Authority shall ensure the least possible disruption to the functioning of government and the delivery of services in the region.

All offices and institutions of the Autonomous Regional Government in Muslim Mindanao shall be subject to the phase-out plan that shall be adopted by the Bangsamoro Transition Authority.

Section 10. Transfer of Powers and Properties, and Disposition of Personnel. - All powers, functions, assets, capital, records, funds, receivables, equipment, and facilities of the Autonomous Regional Government in Muslim Mindanao at the time of ratification of this Organic Law shall be transferred to the Bangsamoro Government, except those properties, land, and structures which are located outside of the Autonomous Region in Muslim Mindanao ad subject to the conditions as provided in paragraph (d), Section 4 of this Article.

The Bangsamoro Transition Authority shall schedule the gradual phasing out of offices of the Autonomous Regional Government in Muslim Mindanao, which are deemed abolished upon the ratification of this Organic Law.

In consideration of public interest and the delivery of services, officials holding appointive positions shall continue to perform their functions in accordance with the phase-out schedule. Employees in the sectors of health, education, and social welfare shall be absorbed and transferred to the Bangsamoro Government. The Bangsamoro Transition Authority shall conduct a human resources audit and shall subject all transferred and new employees to qualification standards as provided in the laws, rules and regulations of the Civil Service Commission and those that may be set by the Bangsamoro Transition Authority.

The National Government shall provide the necessary funds for the benefits and entitlements of the affected employees of the Autonomous Regional Government in Muslim Mindanao during the transition period.

An inter-agency committee headed by the Office of the President, and composed of the Department of Budget and Management, Commission on Audit, and Civil Service Commission, shall conduct the requisite inventory to ensure that the liabilities of the Autonomous Regional Government in Muslim Mindanao under law, contracts, or obligations shall be assumed by the National Government prior to the transfer of powers. Functions, assets, capital, records, funds, receivables, equipment, and facilities of the Autonomous Regional Government in Muslim Mindanao to the Bangsamoro Transition Authority.

For this purpose, the Office of the Regional Governor of the Autonomous Regional Government in Muslim Mindanao as of the date of the ratification of this Organic Law, including information on the assets and liabilities of the Autonomous Regional Government in Muslim Mindanao.

The creation of the different offices and their respective staffing complement shall be consistent with existing budgeting organization, staffing, position classification and compensation policies, guidelines, and standards of the National Government.

The affected personnel who will not be absorbed in the positions of the new staffing pattern of the different offices in the Bangsamoro Government, whether hired on a permanent, temporary, casual or contractual basis and with appointments attested by the Civil Service Commission, shall be entitled to applicable retirement or separtion benefits as provided in this Organic Law.

The affected personnel who opt to retire or be separated shall be entitled to any of the following applicable incentives:

(a) One hundred percent (100%) of the monthly basic salary for every year of government service computed starting from the first year for those who have rendered one (1) year to less than five (5) years of service;

(b) One hundred fifty percent (150%) of the actual monthly basic salary for every year of government service computed starting from the first year for those who have rendered five (5) years of service but less than (10) years; or

(c) Two (2) months of actual monthly basic salary for every year of government service computed starting from first year for those who have rendered ten (10) years or more of service.

Affected personnel who are retired or are separated from the service shall not be re-employed in any agency of the Bangsamoro Government or the National Government, including government-owned or controlled corporations for a period of five (5) years. The retired or separated personnel who are re-employed during the prohibited period shall refund, on a prorated basis, the separation incentives they received under this section.

The Bangsamoro Transition Authority shall institute an independent, strictly merit-based, and credible placement and hiring process for all offices, agencies, and institutions in the Bangsamoro Government, and shall consider gender and ethnic balance.

Section 11. Disposition of Personnel and Assets of National Government Offices and Agencies. - The National Government shall provide for the disposition of personnel of the National Government or nationa government-owned or controlled corporations whose mandate and functions are transferred to or now vested in the Bangsamoro Government by virtue of this Organic Law. Properties and assets shall be transferred to the Bangsamoro Government withi three (3) months from the organization of the Bangsamoro Transition Authority, except those properties, land, and structures located outside of the Autonomous Region in Muslim Mindanao. The transfer of properties and assets is without prejudice to the power of the Bangsamoro Transition Authority to organize the bureaucracy during the transition period.

Section 12. Dissolution of the Bangsamoro Transition Authority. - Immediatley upon the election and qualification of the Chief Minister under the first Parliament, the Bangsamor Transition Authority shall be deemed dissolved.

Within sixty (60) days from the assumption into office of all members of the first Parliament, the Bangsamoro Transition Authority shall submit its final report and recommendations on the status of government during the transition period to the Parliament as well as to the House of Representatives the Senate of the Philippines, and the Office of the President.

Section 13. First Regular Election. - The first regular election for the Bangsamoro Government under this Organic Law shall be held and synchronized with the 2022 national elections. The Commission on elections, through the Bangsamoro Electoral Office, shall promulgate rules and regulations for the conduct of the elections, enforce and administer them pursuant to national laws, this Organic Law and the Bangsamoro Electoral Code.

Section 14. Initial Funding for Transition. - The amount necessary to carry out the requirements of transition, including the organizational activities of the Bangsamoro Transition Authority, organization, bureaucracy, hiring of personnel, and the exercise of functions and powers of the Bangsamoro Transition Authority as provided in this Organic Law, shall be charge against available funds in the current General Appropriations Act. In addition, the current year's appropriations for the Autonomous Region in Muslim Mindanao shall also be transferred to the Bangsamoro Transition Authority for this purpose.

The initial funding shall be without prejudice to any supplemental budget that may be appropriated by the Congress of the Philippines to support the transition.

Government functions falling within the reserved powers of the National Government in the Bangsamoro Autonomous Region shall continue to be financed by the National Government funds.

ARTICLE XVII

AMEDMENTS, REVISION, REPEAL

Section 1. Amendments and Revisions. - Any amendment to, revision, or repeal of this Organic Law shall be made by law enacted by the Congress of the Philippines.

ARTICLE XVIII

FINAL PROVISIONS

Section 1. Subsisting Regional Laws. - All subsisting laws enacted by the Autonomous Region in Muslim Mindanao Regional Legislative Assembly by virtue of authorities provided under Republic Act No. 6734, as amended by Republic Act No. 9054, shall be deemed valid and in effect, unless inconsistent with this Oragnic Law or repealed by laws passed by the Parliament.

Section 2. Existing Local Government Units. - Nothwithstanding the provisions of Republic Act No. 7160, as amended, the existing municipalities of Al-Barka, Hadji Mohammad Adjul, Akbar and Hadji Muhtamad in the Province of Basilan; and the municipalities of Datu Blah T. Sinsuat, Pandag, Mangudadatu, Northern Kabuntlan, Datu Anggal Midtimbang, Datu Hoffer, and Datu Salibo in the Province of Maguindanao are hereby converted into regular municipalities.

Section 3. Separability Clause. The provisions of this Oragnic Law are deemed separate. If, for any reason, any section or provision of this Organic Law is declared unconstitutional, other sections or provisions, which are not affected by such declaration, shall continue to be in full force and effect.

Section 4. Amendatory Clause. Upon the ratification of this Organic Law, the pertinent provisions of the following laws which are inconsistent with this Oragnic Law are hereby amended accordingly:

(a) Section 25, 129, 289, 290, 297, and 442 of Republic Act No. 7160, otherwise known as the " Local Government Code of 1991," as amended;

(b) Section 4 of Republic Act No. 6758, otherwise known as the "Compensation and Position Classification Act of 1989," as amended;

(c) Section 30 of Republic Act No. 8371, otherwise known as "The Indigenous Peoples Rights Act of 1997";

(d) Articles 140, 143, 152, 153, 154, 164, 165, 166, 167 and 168 of Presidential Decree No. 1083, otherwise known as the "Code of Muslim Personal Laws of the Philippines";

(e) Section 9 of Republic Act No. 9996, otherwise known as the "Mindanao Development Authority (MinDA) Act of 2010";

(f) Section 1 of Executive Order No. 115, Series of 1986, otherwise known as "Reorganizing the National Security Council and Defining Its Membership, Function, and Authority and Other Purposed";

(g) Section 5, Chapter 2, Subtitle (c), Title II, Book V of Executive Order No. 292, Series of 1987, otherwise known as the " Administrative Code of the Philippines";

(h) Section 8 of Republic Act No. 9997, otherwise known as the "National Commission on Muslim Filipinos Act of 2009";

(i) Section 7, 12-18, 19-23, 24-27, 37-45, and 46-48 of Republic Act No. 8651, otherwise known as the "Charter of the Adiong Memorial Polytechnic State College";

(j) Section 4 of Republic Act No. 1387, otherwise known as the "Charter of the Mindanao State University", as amended by Republic Act Nos. 1893, 3791 and 3868;

(k) Section 6 of Batas Pambansa Blg. 208, otherwise known as the "Charter of Sulu State College";

(l) Section 5 of Batas Pambansa Blg. 384, otherwise known as the "Charter of Tawi-tawi Regional Agricultural College";

(m) Section 6 of Presidential Decree No. 1943, otherwise known as the "Charter of Basilan State College";

(n) Sections 15 and 30 of Republic Act No. 6975, otherwise known as the "Department of the of the Interior and Local Government Act of 1990," as amended by Republic Act No. 8551;

(o) Section 3 of Republic Act No. 9263, otherwise known as the "Bureau of Fire Protection abd Bureau of Jail Management and Penology Professionalization Act of 2004";

(p) Section 5 of Republic Act No. 9514, otherwise known as the "Fire Code of the Philippines of 2008";

(q) Sections 6, 21, 23 and 119 of Republic Act No. 8424, otherwise known as the "Tax Reform Act of 1997," as amended by Republic Act No. 9337;

(r) Sections 59, 50, 61 and 62 of Republic Act No. 9593, otherwise known as "The Tourism Act of 2009"; and

(s) Sections 2, 6, and 37 of Republic Act No. 9136, otherwise known as the P"electric Power Industry Reform Act of 2001."

All other laws, decrees, orders, rules and regulations, and other issuances or parts thereof, which are inconsisitent with this Organic Law, are hereby repealed or modified accordingly.

Section 4. Repealing Clause. - Upon ratification of this Organic Law, Republic Act No. 6734, otherwise known as the "Organic Act for the Autonomous Region in Muslim Mindanao," as amended by Republic Act No. 9054 is hereby repealed.

Section 5. Effectivity. - This Organic Law shall take effect fifteen (15) days following its complete publication in the Official Gazette and in at least two (2) national newspaper of general circulation in the autonomous region.

Approved,

VICENTE C. SOTTO

President of the Senate

GLORIA MACAPAGAL-ARROYO

Speaker of the House of Representatives

This Act which is a consolidation of House Bill No. 6475 and Senate Bill No. 1717 was passed by the House of Representatives and the Senate on July 24, 2018 and July 23, 2018, respectively.

MYRA MARIE D. VILLARICA

Secretary of Senate

CESAR STRAIT PAREJA

Secretary General

House of Representatives

Approved: July 27, 2018

RODRIGO ROA DUTERTE

President of the Philippines