CHAPTER 1 The Departments

SECTION 1. Purpose and Number of Departments. — The Executive Branch shall have such Departments as are necessary for the functional distribution of the work of the President and for the performance of their functions.

SECTION 2. Declaration of Policy. — (1) The Departments shall be organized and maintained to insure their capacity to plan and implement programs in accordance with established national policies;

(2) Bureaus and offices shall be grouped primarily on the basis of major functions to achieve simplicity, economy and efficiency in government operations and minimize duplication and overlapping of activities; and

(3) The functions of the different Departments shall be decentralized in order to reduce red tape, free central officials from administrative details concerning field operations, and relieve them from unnecessary involvement in routine and local matters. Adequate authority shall be delegated to subordinate officials. Administrative decisions and actions shall, as much as feasible, be at the level closest to the public.

SECTION 3. Department Proper. — (1) Unless otherwise provided in this Code or by law, the Department proper shall include the Office of the Secretary and the staff units directly under it. The Office of the Secretary shall consist of the Secretary and the Undersecretary or Undersecretaries, together with the personnel in their immediate offices;

(2) Every Secretary shall be assisted by such number of Undersecretaries as may be provided for by this Code or by law;

The Undersecretary shall perform the functions as provided in Chapter 2 of this Book;

(3) Whenever necessary, Assistant Secretary position or positions may be created to form part of the Department proper; and

(4) In the absence of special provisions, the major staff units of each department shall be the services which shall include: the Planning Service, the Financial and Management Service, the Administrative Service, and when necessary, the Technical and Legal Services.

SECTION 4. Jurisdiction over Bureaus, Offices, Regulatory Agencies and Government Corporations. — Each Department shall have jurisdiction over bureaus, offices, regulatory agencies, and government-owned or controlled corporations assigned to it by law, in accordance with the applicable relationship as defined in Chapters 7, 8, and 9 of this Book.

SECTION 5. Assignment of Offices and Agencies. — The President shall, by executive order, assign offices and agencies not otherwise assigned by law to any department, or indicate to which department a government corporation or board may be attached.

CHAPTER 2 Secretaries, Undersecretaries, and Assistant Secretaries

SECTION 6. Authority and Responsibility of the Secretary. — The authority and responsibility for the exercise of the mandate of the Department and for the discharge of its powers and functions shall be vested in the Secretary, who shall have supervision and control of the Department.

SECTION 7. Powers and Functions of the Secretary. — The Secretary shall:

(1) Advise the President in issuing executive orders, regulations, proclamations and other issuances, the promulgation of which is expressly vested by law in the President relative to matters under the jurisdiction of the Department;

(2) Establish the policies and standards for the operation of the Department pursuant to the approved programs of government;

(3) Promulgate rules and regulations necessary to carry out department objectives, policies, functions, plans, programs and projects;

(4) Promulgate administrative issuances necessary for the efficient administration of the offices under the Secretary and for proper execution of the laws relative thereto. These issuances shall not prescribe penalties for their violation, except when expressly authorized by law;

(5) Exercise disciplinary powers over officers and employees under the Secretary in accordance with law, including their investigation and the designation of a committee or officer to conduct such investigation;

(6) Appoint all officers and employees of the Department except those whose appointments are vested in the President or in some other appointing authority; Provided, However, that where the Department is regionalized on a department-wide basis, the Secretary shall appoint employees to positions in the second level in the regional offices as defined in this Code;

(7) Exercise jurisdiction over all bureaus, offices, agencies and corporations under the Department as are provided by law, and in accordance with the applicable relationships as specified in Chapters 7, 8, and 9 of this Book;

(8) Delegate authority to officers and employees under the Secretary's direction in accordance with this Code; and

(9) Perform such other functions as may be provided by law.

SECTION 8. Submission of Performance Evaluation Reports. — The Secretary shall formulate and enforce a system of measuring and evaluating periodically and objectively the performance of the Department and submit the same annually to the President.

SECTION 9. Submission of Budget Estimates. — The Secretary shall prepare and submit to the President through the Department of Budget and Management an estimate of the necessary expenditures of the department during the next fiscal year, on the basis of the reports and estimates submitted by bureaus and officers under him.

SECTION 10. Powers and Duties of the Undersecretary. — The Undersecretary shall:

(1) Advise and assist the Secretary in the formulation and implementation of department objectives and policies;

(2) Oversee all the operational activities of the department for which he shall be responsible to the Secretary;

(3) Coordinate the programs and projects of the department and be responsible for its economical, efficient and effective administration;

(4) Serve as deputy to the Secretary in all matters relating to the operations of the department;

(5) Temporarily discharge the duties of the Secretary in the latter's absence or inability to discharge his duties for any cause or in case of vacancy of the said office, unless otherwise provided by law. Where there are more than one Undersecretary, the Secretary shall allocate the foregoing powers and duties among them. The President shall likewise make the temporary designation of Acting Secretary from among them; and

(6) Perform such other functions and duties as may be provided by law.

SECTION 11. Duties and Functions of the Assistant Secretary. — The Assistant Secretary shall perform such duties and functions as may be provided by law or assigned to him by the Secretary.

CHAPTER 3 Department Services

SECTION 12. Department Services. — Except as otherwise provided by law, each Department shall have Department Services which shall include the Planning Service, the Financial and Management Service, the Administrative Service, and whenever necessary the Technical and Legal Services.

SECTION 13. Planning Service. — The Planning Service shall provide the department with economical, efficient and effective services relating to planning, programming, and project development, and discharge such other functions as may be provided by law. Where the work of the department does not call for substantial planning and programming, the Planning Service shall be constituted as a single unit without subdivisions. Where substantial primary data-gathering is essential to the operations of the department, a statistical unit may be constituted as part of a technical service.

SECTION 14. Financial and Management Services. — The Financial and Management Services shall advise and assist the Secretary on budgetary, financial and management matters and shall perform such other functions as may be provided by law.

SECTION 15. Administrative Service. — The Administrative Service shall provide the Department with economical, efficient and effective services relating to personnel, legal assistance, information, records, delivery and receipt of correspondence, supplies, equipment, collections, disbursement, security and custodial work. It shall also perform such other functions as may be provided by law.

SECTION 16. Technical Service. — Whenever necessary, one or more technical services shall be established to take charge of technical staff activities essential to a department and which cannot be allocated to the three other services or to the bureaus.

SECTION 17. Legal Service. — A Legal Service shall be provided where the operations of the department involve substantial legal work, in which case the Administrative Service shall not have a Legal Division. The Legal Service shall provide legal advice to the department; interpret laws and rules affecting the operation of the department; prepare contracts and instruments to which the department is a party, and interpret provisions of contracts covering work performed for the Department by private entities; assist in the promulgation of rules governing the activities of the department; prepare comments on proposed legislation concerning the department; answer legal queries from the public; assist the Solicitor General in suits involving the Department or its officers, or employees or act as their principal counsel in all actions taken in their official capacity before judicial or administrative bodies; and perform such other functions as may be provided by law.

Where the workload of the department does not warrant a Legal Service or a Legal Division, there shall be one or more legal assistants in the Office of the Secretary.

CHAPTER 4 Bureaus

SECTION 18. Bureaus in General. — (1) A Bureau is any principal subdivision of the department performing a single major function or closely related functions. Bureaus are either staff or line.

(2) Each bureau shall be headed by a Director who may have one or more Assistant Directors as provided by law; and

(3) Each bureau may have as many divisions as are provided by law for the economical, efficient and effective performance of its functions.

SECTION 19. Staff Bureau. — (1) A staff bureau shall primarily perform policy, program development and advisory functions.

(2) The Director of a staff bureau shall:

(a) Advise and assist the Office of the Secretary on matters pertaining to the Bureau's area of specialization;

(b) Provide consultative and advisory services to the regional offices of the department;

(c) Develop plans, programs, operating standards, and administrative techniques for the attainment of the objectives and functions of the bureau; and

(d) Perform such other duties as may be provided by law.

(3) The staff bureau shall avail itself of the planning, financial and administrative services in the department proper. The bureau may have a separate administrative division, if circumstances so warrant.

SECTION 20. Line Bureau. — (1) A line bureau shall directly implement programs adopted pursuant to department policies and plans.

(2) The Director of a line bureau shall:

(a) Exercise supervision and control over all divisions and other units, including regional offices, under the bureau;

(b) Establish policies and standards for the operations of the bureau pursuant to the plans and programs of the department;

(c) Promulgate rules and regulations necessary to carry out bureau objectives, policies and functions; and

(d) Perform such other duties as may be provided by law.

(3) The line bureau may have staff units, as may be necessary, corresponding to the services of the department proper. If the bureau is small, only a single unit performing combined staff functions may be provided.

CHAPTER 5 Field Offices

SECTION 21. Regional Offices. — Regional Offices shall be established according to law defining field service areas. The administrative regions shall be composed of a National Capital Region and Regions I to XII. Provincial and district offices may be established only by law whenever necessary.

SECTION 22. Integration of Field Service. — Except as otherwise provided by law and when the needs of the service so require, the department or agency shall organize an integrated regional office on a department or agency-wide basis.

SECTION 23. Administration of Regional Office. — The regional office shall be headed by a Regional Director who may be assisted by one (1) Assistant Regional Director, except as may otherwise be provided by law. The Regional Director shall be responsible for department or agency functions performed in the region under his jurisdiction.

SECTION 24. Supervision of Regional Offices. — (1) Whenever the function or activity of a department or agency requires central or interregional action, the function may be performed by the regional offices under the supervision and control of the department proper or line bureau concerned.

(2) The staff bureau or division shall perform primarily advisory or auxiliary functions and exercise in behalf of the department or agency functional supervision over the regional offices. This shall include authority to develop and set down standards, policies and procedures to be implemented by operating units, and to evaluate continuously such implementation for the purpose of recommending or when authorized, taking corrective measures.

SECTION 25. Organization of Regional Offices. — Regional offices organized on a department-wide basis shall have units or personnel in which the functional areas of the staff bureaus and services in the department shall be represented. Regional offices of a line bureau may have units or personnel in which the functional areas of the primary units of the bureau are represented. Related functions of regional units shall be consolidated.

SECTION 26. Functions of a Regional Office. — (1) A regional office shall:

(a) Implement laws, policies, plans, programs, rules and regulations of the department or agency in the regional area;

(b) Provide economical, efficient and effective service to the people in the area;

(c) Coordinate with regional offices of other departments, bureaus and agencies in the area;

(d) Coordinate with local government units in the area; and

(e) Perform such other functions as may be provided by law.

(2) District offices may be established only in cases of clear necessity.

SECTION 27. Duties of a Regional Director. — The Regional Director shall:

(1) Implement laws, policies, rules and regulations within the responsibility of the agency;

(2) Implement agency programs in the region;

(3) Exercise the management functions of planning, organizing, directing and controlling;

(4) Appoint personnel to positions in the first level and casual and seasonal employees; and exercise disciplinary actions over them in accordance with the Civil Service Law;

(5) Approve sick, vacation and maternity leaves of absence with or without pay, for a period not beyond one year;

(6) Prepare and submit budget proposals for the region to the central office, administer the budget of the regional office, authorize disbursement of funds pursuant to approved financial and work programs, and administer the budget control machinery in the region;

(7) Approve requisition for supplies, materials and equipment, as well as books and periodicals, and other items for the region, in accordance with the approved supply procurement program;

(8) Negotiate and enter into contracts for services or furnishing supplies, materials and equipment to the regional office involving an amount not exceeding fifty thousand pesos (P50,000.00) within a given quarter, provided that authority in excess of fifty thousand pesos (P50,000.00) may be further authorized by the proper department or agency head;

(9) Approve claims for benefits under existing laws;

(10) Approve requests for overtime services;

(11) Promote coordination among the regional offices, and between his regional office and local government units in the region;

(12) Provide housekeeping services for the regional office;

(13) Approve application of personnel for permission to teach, exercise a profession, or engage in business outside of office hours in accordance with standards and guidelines of the Civil Service Commission;

(14) Issue travel vouchers authorizing employees to travel on official business within the region for a period not exceeding thirty days;

(15) Approve attendance of personnel in conferences, seminars, and non-degree training programs within the region;

(16) Authorize the allocation of funds to provincial/district offices; and

(17) Perform such other duties and functions as may be provided by law or further delegated by the head of agency or other proper authorities concerned.

SECTION 28. Review of Acts of Regional Director. — Nothing in the preceding Section shall be construed as a limitation on the power of the Secretary to review and modify, alter or reverse any action of the Regional Director, or to initiate promotions and transfers of personnel from one region to another.

CHAPTER 6 Powers and Duties of Heads of Bureaus or Offices

SECTION 29. Powers and Duties in General. — The head of bureau or office shall be its chief executive officer. He shall exercise overall authority in matters within the jurisdiction of the bureau, office or agency, including those relating to its operations, and enforce all laws and regulations pertaining to it.

SECTION 30. Authority to Appoint and Discipline. — The head of bureau or office shall appoint personnel to all positions in his bureau or office, in accordance with law. In the case of the line bureau or office, the head shall also appoint the second level personnel of the regional offices, unless such power has been delegated. He shall have the authority to discipline employees in accordance with the Civil Service Law.

SECTION 31. Duties of Assistant Heads and Subordinates. — (1) Assistant heads and other subordinates in every bureau or office shall perform such duties as may be required by law or regulations, or as may be specified by their superiors not otherwise inconsistent with law;

(2) The head of bureau or office may, in the interest of economy, designate the assistant head to act as chief of any division or unit within the organization, in addition to his duties, without additional compensation; and

(3) In the absence of special restriction prescribed by law, nothing shall prevent a subordinate officer or employee from being assigned additional duties by proper authority, when not inconsistent with the performance of the duties imposed by law.

SECTION 32. Acting Head of Bureau or Office. — In case of the absence or disability of the head of a bureau or office, his duties shall be performed by the assistant head. When there are two or more assistant heads, the Secretary shall make the designation. In the absence of an assistant head, the Secretary may designate any officer or employee of the bureau or office as acting head without additional compensation.

SECTION 33. Performance of Duties of Subordinate Officers Temporarily Absent. — In case of the temporary absence or disability of any subordinate officer or employee in any bureau or office, its head may, subject to existing laws, rules and regulations, designate any other subordinate officer or employee within the organization to perform temporarily the duties of the absent or disabled person.

SECTION 34. Filling of Vacancies. — Vacancies caused by death, resignation or removal of any officer or subordinate may be temporarily filled in the same manner as in the case of temporary absence or disability. The vacancies shall not be filled by permanent appointment until the expiration of any leave allowable to the predecessor, unless the exigencies of the service require that the appointment be made immediately.

SECTION 35. Power to Require Bonds. — (1) The head of each bureau or office shall, consistent with law, rules and regulations, prescribe the form and fix the amount of all bonds executed by private parties to the government under the laws pertaining to his bureau or office. He shall pass on the sufficiency of the security and retain possession of the bond.

(2) When it appears that any such bond is insufficient, the head may require additional security. He may withdraw the privilege secured by the bond upon failure of the party to give additional security within the period fixed in the notice, but such an action shall be without prejudice to the liability of any person or property already obligated.

SECTION 36. Authority to Prescribe Forms and Issue Regulations. — (1) The head of a bureau or office shall prescribe forms and issue circulars or orders to secure the harmonious and efficient administration of his bureau or office and to carry into full effect the laws relating to matters within his jurisdiction. Penalties shall not be prescribed in any circular or order for its violation, except as expressly allowed by law;

(2) Heads of bureaus or offices are authorized to issue orders regarding the administration of their internal affairs for the guidance of or compliance by their officers and employees;

(3) Regional directors are authorized to issue circulars of purely informational or implementing nature and orders relating to the administration of the internal affairs of regional offices and units within their supervision; and

(4) Issuances under paragraphs (2) and (3) hereof shall not require, for their effectivity, approval by the Secretary or other authority.

SECTION 37. Annual Reports. — (1) All heads of bureaus or offices of the national government shall render annual reports to their respective Secretaries on or before the last day of February of each year.

(2) The reports shall contain concise statements of accomplishments and assessment of the progress attained in terms of approved programs and projects, including pertinent financial statements on expenditures incurred in their implementation during the calendar year. Broad recommendations and plans for undertaking work during the ensuing period shall be included together with matters specifically required by law or regulation to be incorporated therein.

CHAPTER 7 Administrative Relationships

SECTION 38. Definition of Administrative Relationships. — Unless otherwise expressly stated in the Code or in other laws defining the special relationships of particular agencies, administrative relationships shall be categorized and defined as follows:

(1) Supervision and Control. — Supervision and control shall include authority to act directly whenever a specific function is entrusted by law or regulation to a subordinate; direct the performance of duty; restrain the commission of acts; review, approve, reverse or modify acts and decisions of subordinate officials or units; determine priorities in the execution of plans and programs; and prescribe standards, guidelines, plans and programs. Unless a different meaning is explicitly provided in the specific law governing the relationship of particular agencies, the word "control" shall encompass supervision and control as defined in this paragraph.

(2) Administrative Supervision. — (a) Administrative supervision which shall govern the administrative relationship between a department or its equivalent and regulatory agencies or other agencies as may be provided by law, shall be limited to the authority of the department or its equivalent to generally oversee the operations of such agencies and to insure that they are managed effectively, efficiently and economically but without interference with day-to-day activities; or require the submission of reports and cause the conduct of management audit, performance evaluation and inspection to determine compliance with policies, standards and guidelines of the department; to take such action as may be necessary for the proper performance of official functions, including rectification of violations, abuses and other forms of maladministration; and to review and pass upon budget proposals of such agencies but may not increase or add to them;

(b) Such authority shall not, however, extend to: (1) appointments and other personnel actions in accordance with the decentralization of personnel functions under the Code, except when appeal is made from an action of the appointing authority, in which case the appeal shall be initially sent to the department or its equivalent, subject to appeal in accordance with law; (2) contracts entered into by the agency in the pursuit of its objectives, the review of which and other procedures related thereto shall be governed by appropriate laws, rules and regulations; and (3) the power to review, reverse, revise, or modify the decisions of regulatory agencies in the exercise of their regulatory or quasi-judicial functions; and

(c) Unless a different meaning is explicitly provided in the specific law governing the relationship of particular agencies, the word "supervision" shall encompass administrative supervision as defined in this paragraph.

(3) Attachment. — (a) This refers to the lateral relationship between the department or its equivalent and the attached agency or corporation for purposes of policy and program coordination. The coordination may be accomplished by having the department represented in the governing board of the attached agency or corporation, either as chairman or as a member, with or without voting rights, if this is permitted by the charter; having the attached corporation or agency comply with a system of periodic reporting which shall reflect the progress of programs and projects; and having the department or its equivalent provide general policies through its representative in the board, which shall serve as the framework for the internal policies of the attached corporation or agency;

(b) Matters of day-to-day administration or all those pertaining to internal operations shall be left to the discretion or judgment of the executive officer of the agency or corporation. In the event that the Secretary and the head of the board or the attached agency or corporation strongly disagree on the interpretation and application of policies, and the Secretary is unable to resolve the disagreement, he shall bring the matter to the President for resolution and direction;

(c) Government-owned or controlled corporations attached to a department shall submit to the Secretary concerned their audited financial statements within sixty (60) days after the close of the fiscal year; and

(d) Pending submission of the required financial statements, the corporation shall continue to operate on the basis of the preceding year's budget until the financial statements shall have been submitted. Should any government-owned or controlled corporation incur an operating deficit at the close of its fiscal year, it shall be subject to administrative supervision of the department; and the corporation's operating and capital budget shall be subject to the department's examination, review, modification and approval.

CHAPTER 8 Supervision and Control

SECTION 39. Secretary's Authority. — (1) The Secretary shall have supervision and control over the bureaus, offices, and agencies under him, subject to the following guidelines:

(a) Initiative and freedom of action on the part of subordinate units shall be encouraged and promoted, rather than curtailed, and reasonable opportunity to act shall be afforded those units before control is exercised;

(b) With respect to functions involving discretion, experienced judgment or expertise vested by law upon a subordinate agency, control shall be exercised in accordance with said law; and

(c) With respect to any regulatory function of an agency subject to department control, the authority of the department shall be governed by the provisions of Chapter 9 of this book.

(2) This Chapter shall not apply to chartered institutions or government-owned or controlled corporations attached to the department.

SECTION 40. Delegation of Authority. — The Secretary or the head of an agency shall have authority over and responsibility for its operation. He shall delegate such authority to the bureau and regional directors as may be necessary for them to implement plans and programs adequately. Delegated authority shall be to the extent necessary for economical, efficient and effective implementation of national and local programs in accordance with policies and standards developed by each department or agency with the participation of the regional directors. The delegation shall be in writing; shall indicate to which officer or class of officers or employees the delegation is made; and shall vest sufficient authority to enable the delegate to discharge his assigned responsibility.

SECTION 41. Line Bureau Authority. — (1) Line bureaus of a department shall exercise supervision and control over their regional and other field offices. They shall be directly responsible for the development and implementation of plans and programs within their respective functional specializations; and

(2) The regional and other field offices shall constitute the operating arms of the bureau concerned for the direct implementation of the plans and programs drawn up in accordance with approved policies and standards. As counterparts of the bureau in the region, they shall undertake bureau operations within their respective jurisdictions, and be directly responsible to their bureau director.

CHAPTER 9 Relationships of Government-Owned or Controlled Corporations and Regulatory Agencies to the Department

SECTION 42. Government-Owned or Controlled Corporations. — Government-owned or controlled corporations shall be attached to the appropriate department with which they have allied functions, as hereinafter provided, or as may be provided by executive order, for policy and program coordination and for general supervision provided in pertinent provisions of this Code.

In order to fully protect the interests of the government in government-owned or controlled corporations, at least one-third (1/3) of the members of the Boards of such corporations should either be a Secretary, or Undersecretary, or Assistant Secretary.

SECTION 43. Regulatory Agencies. — (1) A regulatory agency shall be subject to the administrative supervision of the department under which they are placed, except when they are government corporations in which case they shall be governed by the provisions of the preceding section;

(2) The heads of regulatory agencies shall submit annually, for the approval of the Secretary concerned, their budgets and work plans which shall be the basis of their day-to-day operations; and

(3) The regulatory agencies may avail themselves of the common auxiliary and management services of the department as may be convenient and economical for their operations.

CHAPTER 10 Appointments and Qualifications

SECTION 44. Appointment of Secretaries. — The Secretaries of Departments shall be appointed by the President with the consent of the Commission on Appointments, at the beginning of his term of office, and shall hold office, unless sooner removed, until the expiration of his term of office, or until their successors shall have been appointed and qualified.

SECTION 45. Qualifications of Secretaries. — The Secretaries shall be citizens of the Philippines and not less than twenty-five years of age.

SECTION 46. Appointment of Undersecretaries and Assistant Secretaries. — The Undersecretaries and Assistant Secretaries of Department shall, upon the nomination of the Secretary of the Department concerned, be appointed by the President.

SECTION 47. Appointment to other Senior Positions and their Equivalents. — Directors and Assistant Directors of Bureaus, Regional and Assistant Regional Directors, Department Service Chiefs, and their Equivalents shall be appointed by the President in accordance with law, rules and regulations.

SECTION 48. Disqualification of the Spouse and Relatives of the President. — The spouse and relatives by consanguinity or affinity within the fourth civil degree of the President shall not during his tenure be appointed as Secretaries, Undersecretaries, Chairmen or heads of bureaus or offices including government-owned or controlled corporations and their subsidiaries.

SECTION 49. Inhibitions Against Holding More than Two Positions. — Even if allowed by law or by the primary functions of his position, a member of the Cabinet, undersecretary, assistant secretary or other appointive official of the Executive Department may, in addition to his primary position, hold not more than two positions in the government and government-owned corporations and receive the corresponding compensation therefor: Provided, that this limitation shall not apply to ad hoc bodies or committees, or to boards, councils or bodies of which the President is the Chairman.

If a Secretary, Undersecretary, Assistant Secretary or other appointive official of the Executive Department holds more positions than what is allowed in the preceding paragraph, he must relinquish the excess positions in favor of a subordinate official who is next in rank, but in no case shall any official hold more than two positions other than his primary position.

CHAPTER 11 Administrative Issuances

SECTION 50. General Classification of Issuances. — The administrative issuances of Secretaries and heads of bureaus, offices or agencies shall be in the form of circulars or orders.

(1) Circulars shall refer to issuances prescribing policies, rules and regulations, and procedures promulgated pursuant to law, applicable to individuals and organizations outside the Government and designed to supplement provisions of the law or to provide means for carrying them out, including information relating thereto; and

(2) Orders shall refer to issuances directed to particular offices, officials, or employees, concerning specific matters including assignments, detail and transfer of personnel, for observance or compliance by all concerned.

SECTION 51. Numbering System of Issuances. — Every circular or order issued pursuant to the preceding section shall properly be identified as such and chronologically numbered. Each class of issuance shall begin with number 1 for each calendar year.

SECTION 52. Official Logbook. — Each department, bureau, office or agency shall keep and preserve a logbook in which shall be recorded in chronological order, all final official acts, decisions, transactions or contracts, pertaining to the department, bureau, office or agency. Whenever the performance of an official act is in issue, the date and the time record in the logbook shall be controlling. The logbook shall be in the custody of the chief Administrative Officer concerned and shall be open to the public for inspection.

SECTION 53. Government-wide Application of the Classification of Issuances. — (1) The Records Management and Archives Office in the General Services Administration shall provide such assistance as may be necessary to effect general adherence to the foregoing classification of issuances, including the conduct of studies for developing sub-classifications and guidelines to meet peculiar needs; and

(2) All administrative issuances of a general or permanent character shall be compiled, indexed and published pursuant to the provisions of this Code.

CHAPTER 12 Miscellaneous Receipts

SECTION 54. Charges for Property Sold or Services Rendered; Refunds. — (1) For services required by law to be rendered for a fee, for supplies furnished, or articles of any kind sold to other divisions of the government or to any person, the head of bureau, office or agency may, upon approval of the Secretary, charge and collect the cost of the service, supplies, or articles or other rate in excess of cost prescribed by law or approved by the same authority. For local governments, the rate, except where otherwise prescribed by law, shall be fixed at cost or at such other reasonable rate in excess of cost by the boards or councils concerned;

(2) The officer authorized to fix the amount to be paid for service rendered and supplies or articles furnished or sold may recommend that the whole or part of any sum so paid be refunded, upon approval of the Commission on Audit.

SECTION 55. Disposition of Miscellaneous Bureau Receipts. — In the absence of special provision, money collected for property sold or service rendered, and all other receipts or earnings of bureaus, offices, and agencies not derived from taxation, shall accrue to the general unappropriated funds of the National Government.

SECTION 56. Printing of Studies and Researches. — With the approval of the Secretary, a bureau, office, or agency may print its studies, researches and similar materials for distribution at cost to the public. The Secretary may authorize the printing or reprinting of the said materials by private persons for sale to the public upon payment of such royalties as may be fixed by him, which shall accrue to the general fund.

CHAPTER 13 Contracts

SECTION 57. Conveyances and Contracts to which the Government is a Party. — Any deed, instrument or contract conveying the title to real estate or to any other property the value of which does not exceed fifty million pesos (P50,000,000) awarded through public bidding, and five million pesos (P5,000,000) awarded through negotiation, shall be executed and signed by the respective Secretary on behalf of the Government of the Philippines. Where the value of the property exceeds the aforesaid ceilings, such deed, instrument or contract shall be executed and signed by the President of the Philippines on behalf of the Government.

SECTION 58. Ceiling for Infrastructure Contracts. — The following shall be the ceilings for all civil works, construction and other contracts for infrastructure projects, including supply contracts for said projects, awarded through public bidding or through negotiation, which may be approved by the Secretaries of Public Works and Highways, Transportation and Communications, Local Government with respect to Rural Road Improvement Project, and governing boards of government-owned or controlled corporations:

Save as provided for above, the approval ceilings assigned to the departments/agencies involved in national infrastructure and construction projects shall remain at the levels provided in existing laws, rules and regulations.

SECTION 59. Contracts for Approval by the President. — Contracts for infrastructure projects, including contracts for the supply of materials and equipment to be used in said projects, which involve amounts above the ceilings provided in the preceding section shall be approved by the President: Provided, That the President may, when conditions so warrant, and upon recommendation of the National Economic and Development Authority, revise the aforesaid ceilings of approving authority.

SECTION 60. Approval of Consultancy Contracts. — All purely consultancy contracts relating to infrastructure projects, regardless of amount, shall be approved by the Secretaries concerned, in accordance with the Guidelines on the Hiring of Consultants to be promulgated by the National Economic and Development Authority: Provided, That the National Economic and Development Authority shall be furnished by the departments, agencies or government corporations concerned, copies of all consultancy contracts entered into by them involving an amount in excess of P1 million for monitoring purposes.

SECTION 61. Delegation of Authority to Governing Boards of Government Corporations. — The Secretaries are authorized to delegate to the governing boards of government-owned or controlled corporations which are attached to or are under the administrative supervision of their respective departments, the authority to approve contracts for infrastructure projects entered into by said corporations involving amounts which are beyond the ceiling provided for government corporations under Section 57 hereof but which are within the approving authority of the Secretaries under the said Section. In the case of government corporations which are attached to or under the Office of the President, the delegation shall be made by the Executive Secretary.

SECTION 62. Public Bidding of Contracts; Exceptions. — As a general rule, contracts for infrastructure projects shall be awarded after open public bidding to bidders who submit the lowest responsive/evaluated bids. Open Public Bidding shall be conducted among prequalified contractors in accordance with laws, rules and regulations not inconsistent with the provisions of this Chapter. The award of such contracts through negotiation shall only be allowed by the Secretary or Governing Board of the Corporation concerned within the limits as stated in Section 57 hereof in the following cases:

a. In times of emergencies arising from natural calamities where immediate action is necessary to prevent imminent loss of life or property, in which case, direct negotiation or simplified bidding may be undertaken;

b. Failure to award the contract after competitive public bidding for valid cause or causes, in which case, simplified bidding may be undertaken; and

c. Where the construction project covered by the contract is adjacent or contiguous to an on-going project and it could be economically prosecuted by the same contractor, in which case, direct negotiation may be undertaken with the said contractor at the same unit prices and contract conditions, less mobilization costs, provided that he has no negative slippage and has demonstrated a satisfactory performance. Otherwise, the contract shall be awarded through public bidding.

SECTION 63. Contracts for Community Employment and Development Program Projects. — Contracts covering projects under the Community Employment and Development Program of the government shall be awarded through open public bidding: Provided, That the invitation to bid for the said projects shall be advertised at least once within one week in a newspaper of local circulation within the province where the project is situated, through posting of notices in the premises of the municipal/provincial office, and through other forms of media, such as radio and television: Provided, further, That the deadline for submission of bids for projects costing not more than P1 million each may be shortened to one week after the date of such invitation, posting of notices or advertisement through other forms of media.

SECTION 64. Constitution of the Prequalification, Bids, and Awards Committee. — Each department, office or agency shall have in its head office or in its implementing offices a Prequalification, Bids and Awards Committee which shall be responsible for the conduct of prequalification of contractors, biddings, evaluation of bids and recommending awards of contracts. Each Prequalification, Bids and Awards Committee shall be composed of the following:

a. A Chairman (regular) who should at least be a third ranking official of the department/agency/implementing Office;

b. An Executive Officer and Secretary (regular) who is a Legal Officer of the department/office/implementing office;

c. A Technical Member (regular) to be designated by the Secretary or the head of the office/agency/implementing office;

d. Two members (provisional) with experience in the type of project to be bidded and in project management, duly designated by the Secretary or the head of the office/implementing office on a project-to-project basis; and

e. A representative from at least one of the following organizations who shall be a non-voting member:

1. Philippine Institute of Civil Engineers

2. Philippine Contractors Association

3. National Confederation of Contractors Associations of the Philippines, Inc.

4. Philippine Institute of Certified Public Accountants

The representation in the Prequalification, Bids and Awards Committee of the above-mentioned private organizations shall be made as follows:

1. During the prequalification stage, the representative to be invited shall come from the Philippine Institute of Certified Public Accountants; and

2. In the bidding, bid evaluation and award stages, a representative each from the Philippine Institute of Certified Public Accountants and from the Philippine Contractors Association or the National Confederation of Contractors Associations of the Philippines, Inc. shall be invited as non-voting members of the Prequalification, Bids and Awards Committee without prejudice to inviting another representative/s from any of the other organizations mentioned above.

SECTION 65. Approval of other types of Government Contracts. — All other types of government contracts which are not within the coverage of this Chapter shall, in the absence of a special provision, be executed with the approval of the Secretary or by the head of the bureau or office having control of the appropriation against which the contract would create a charge. Such contracts shall be processed and approved in accordance with existing laws, rules and regulations.

CHAPTER 14 Controversies Among Government Offices and Corporations

SECTION 66. How Settled. — All disputes, claims and controversies, solely between or among the departments, bureaus, offices, agencies and instrumentalities of the National Government, including government-owned or controlled corporations, such as those arising from the interpretation and application of statutes, contracts or agreements, shall be administratively settled or adjudicated in the manner provided in this Chapter. This Chapter shall, however, not apply to disputes involving the Congress, the Supreme Court, the Constitutional Commissions, and local governments.

SECTION 67. Disputes Involving Questions of Law. — All cases involving only questions of law shall be submitted to and settled or adjudicated by the Secretary of Justice as Attorney-General of the National Government and as ex officio legal adviser of all government-owned or controlled corporations. His ruling or decision thereon shall be conclusive and binding on all the parties concerned.

SECTION 68. Disputes Involving Questions of Fact and Law. — Cases involving mixed questions of law and of fact or only factual issues shall be submitted to and settled or adjudicated by:

(1) The Solicitor General, if the dispute, claim or controversy involves only departments, bureaus, offices and other agencies of the National Government as well as government-owned or controlled corporations or entities of whom he is the principal law officer or general counsel; and

(2) The Secretary of Justice, in all other cases not falling under paragraph (1).

SECTION 69. Arbitration. — The determination of factual issues may be referred to an arbitration panel composed of one representative each of the parties involved and presided over by a representative of the Secretary of Justice or the Solicitor General, as the case may be.

SECTION 70. Appeals. — The decision of the Secretary of Justice as well as that of the Solicitor General, when approved by the Secretary of Justice, shall be final and binding upon the parties involved. Appeals may, however, be taken to the President where the amount of the claim or the value of the property exceeds one million pesos. The decision of the President shall be final.

SECTION 71. Rules and Regulations. — The Secretary of Justice shall promulgate the rules and regulations necessary to carry out the provisions of this Chapter.

TITLE I Foreign Affairs

CHAPTER 1 General Provisions

SECTION 1. Declaration of Policy. — The State shall pursue an independent foreign policy. In its relations with other states the paramount consideration shall be national sovereignty, territorial integrity, national interest, and the right to self-determination.

SECTION 2. Mandate. — The Department shall be the lead agency that shall advise and assist the President in planning, organizing, directing, coordinating and evaluating the total national effort in the field of foreign relations.

SECTION 3. Powers and Functions. — To carry out its mandate and accomplish its mission, the Department shall:

(1) Conduct the country's foreign relations;

(2) Maintain and develop the country's representation with foreign governments;

(3) Conduct Philippine representation in the United Nations, the Association of Southeast Asian Nations (ASEAN), and other international and regional organizations;

(4) Serve as the channel for matters involving foreign relations, including official communications to and from the Republic of the Philippines;

(5) Negotiate treaties and other agreements pursuant to instructions of the President, and in coordination with other government agencies;

(6) Promote trade, investments, tourism and other economic relations with other countries in cooperation with other government agencies;

(7) Foster cultural relations with other countries and protect and enhance the Philippines' image abroad;

(8) Undertake efforts to inform the international community about the Philippines in cooperation with other government agencies;

(9) Protect and assist Philippine nationals abroad;

(10) Carry out legal documentation functions as provided for by law and regulations;

(11) Monitor and analyze events in other countries and report them, as appropriate, to the President and other government agencies;

(12) Initiate, formulate, integrate and submit to the President short, medium, and long-range foreign policy plans and programs in cooperation with other government agencies;

(13) Supervise and direct officials and employees assigned by the Department and other government agencies to Foreign Service establishments abroad in accordance with the pertinent laws, rules and inter-agency agreements;

(14) Recruit, maintain and develop a professional career foreign service based on merit; and

(15) Perform such other functions as may be provided by law.

SECTION 4. Organizational Structure. — The Department shall have the following units:

(1) The Department Proper which shall be composed of the Office of the Secretary, the Offices of the Undersecretaries, the Offices of the Assistant Secretaries, and the Home Offices;

(2) The Foreign Service Establishments which are the Philippine Embassies, Consulates, Legations and Permanent Missions.

CHAPTER 2 Department Proper

SECTION 5. Offices Under the Direct Supervision of the Secretary. — The Secretary shall exercise direct supervision over the following:

(1) Foreign Service Institute. — The Foreign Service Institute shall continue to operate under its charter, and shall have the following main objectives and responsibilities:

(a) Program, implement, and manage the Career Foreign Service Development Program (CFSDP) in all of its main components for the purpose of upgrading the professional Career Foreign Service Corps;

(b) Program, implement and manage complementary organizational development programs for the Department as well as other training and educational programs for both its career and non-career personnel, and personnel of other government agencies assigned to foreign missions;

(c) Program, implement and manage the necessary supportive plans and operating systems for the Career Foreign Service Development Programs and complementary programs;

(d) Develop its own policies, and rules, program of activities, core staff and consultants, administrative structure, operating systems and resources, in order to enable it to accomplish competently its activities.

It shall be revitalized as the training, research, and career development arm of the Department, in accordance with such rules as may be prescribed by the Secretary. The Institute shall be an integral participant in the planning review process in the Department.

(2) UNESCO National Commission of the Philippines. — The United Nations Educational Scientific and Cultural Organization (UNESCO) National Commission of the Philippines shall, in coordination with the Office of United Nations and other international organizations, advise the Philippine Government and the Philippine delegation to the UNESCO Conference, on matters relating to UNESCO, and shall function as a liaison agency on matters pertaining to the Commission.

(3) Technical Assistance Council. — The Technical Assistance Council shall continue to perform its present functions including the conduct and expansion of its programs.

SECTION 6. Undersecretaries. — The Secretary shall be assisted by two (2) Undersecretaries, who shall be appointed by the President, upon the recommendation of the Secretary. The Secretary shall determine and assign the respective functions and responsibilities of the Undersecretaries. The Secretary shall designate one of the Undersecretaries as Acting Secretary in his absence.

SECTION 7. Assistant Secretaries. — The Secretary shall be assisted by six (6) Assistant Secretaries who shall be appointed by the President upon recommendation by the Secretary. The Secretary shall delineate the respective areas of responsibility of each Assistant Secretary.

SECTION 8. Home Offices. — (1) Geographical Offices. — The following offices shall be responsible for providing staff support and policy guidance in the coordination, supervision, monitoring, integration, and reporting of the activities and operations of Philippine diplomatic missions and establishments within their geographic coverage:

(a) Office of Asian and Pacific Affairs: Japan and Northeast Asia, China, Central Asia, Southeast Asia, South Asia and Pacific countries;

(b) Office of Middle East and African Affairs: the Gulf States, Middle East and North Africa, West Africa, and East Africa;

(c) Office of American Affairs: United States of America, Canada, Mexico, the Central American and Caribbean countries, and South America;

(d) Office of European Affairs: Union of Soviet Socialist Republics, Western Europe, Eastern Europe and Central Europe.

(2) Office of ASEAN Affairs. — The Office of ASEAN Affairs shall be responsible for Philippine participation and negotiation, as well as providing staff support and policy guidance in the coordination, supervision, monitoring, integration, reporting and operations of the Philippine Government in the ASEAN.

(3) Office of the United Nations and Other International Organizations. — The Office of the United Nations and other International Organizations shall be responsible for Philippine participation and negotiation as well as providing staff support and policy guidance in the coordination, supervision, monitoring, integration, reporting and operations of the Philippine Government in the United Nations, its specialized agencies and other international organizations. It shall also serve as the secretariat of all Philippine National Commissions and Councils created pursuant to commitments in the United Nations and its specialized agencies.

(4) Office of International Economic Affairs and Development. — The Office of International Economic Affairs and Development shall be responsible for conducting programs and activities of the Department in the fields of international trade, finance and economics; coordinate with the regional offices and the Office of United Nations and International Organizations; and, in coordination with the Department of Trade and Industry, conduct trade and investment promotion activities of the Department.

(5) Office of Cultural Affairs and Public Information Services. — The Office of Cultural Affairs and Public Information Services shall be responsible for promoting the cultural and information program of the Government abroad and for the development and dissemination of information and the coordination of information activities on the Government's foreign and domestic policies.

(6) Office of Personnel and Administrative Services. — The Office of Personnel and Administrative Services shall be responsible for the efficient management of human resources and administrative support services, and shall make appropriate recommendations, including those concerning job classification, salary administration, benefits, retirement, and awards to deserving members of the Foreign Service.

(7) Office of Financial Management Services. — The Office of Financial Management Services shall be responsible for budgetary, financial and accounting services in the Department and the Foreign Service.

(8) Office of Consular Services. — The Office of Consular Services shall be responsible for the efficient and effective delivery of passport, visa and authentication services. It shall also extend assistance to Filipino nationals both here and abroad.

SECTION 9. Advisory Boards and Committees. — The Secretary may create such advisory boards and committees as he may deem necessary to assist and provide him with advice in the formulation of policies, as well as designate as special advisers such Chiefs of Mission who are on home assignment on specific areas of their expertise.

CHAPTER 3 Department Services

SECTION 10. Office of the Legal Adviser. — The Office of the Legal Adviser shall be headed by a Legal Adviser, who shall be a career Chief of Mission. However, the Legal Adviser may be appointed by the President, upon the recommendation of the Secretary, from outside the career service, in which case he shall have the assimilated rank of a Chief of Mission. His term shall be co-terminus with the tenure of the Secretary, unless sooner terminated, and he is not eligible for foreign assignment. The Legal Adviser shall provide legal advice and services to the Department.

SECTION 11. Office of Coordination and Policy Planning. — The Office of Coordination and Policy Planning shall be headed by the Chief Coordinator. The Office of Coordination and Policy Planning shall initiate, coordinate and integrate the planning of foreign policy. It shall provide staff support to the Office of the Secretary and perform coordinating and such other functions as may be prescribed by the Secretary.

SECTION 12. Office of Data Banking and Communication. — The Office of Data Banking and Communication shall establish and maintain a modern data and communication center in the Department. The Office shall:

(1) Assist the Secretary on all matters regarding data banking and information retrieval;

(2) Establish, develop and maintain a computerized foreign-relations data bank for the Department;

(3) Establish, develop and maintain both domestic and foreign service communications systems, including efficient flow systems for all correspondence between and among all Department units;

(4) Establish, develop and maintain the records system of the entire Department;

(5) Provide technical assistance to any service, office, or attached agency of the Department, on matters within its competence; and

(6) Perform such other functions as may be assigned by the Secretary.

SECTION 13. Office of Protocol, State and Official Visits. — The Office of Protocol, State and Official Visits shall coordinate preparations for state visits, the reception of Chiefs of State, heads of Government, the highest foreign dignitaries visiting the Philippines, as well as official visits of Philippine officials abroad, as may be determined by the President. It shall also be responsible for handling all activities of the Department concerning protocol, ceremonials and socials, the proper observance and enforcement of formalities, courtesies, facilities, immunities and privileges under the Vienna Convention on Diplomatic Relations and the Vienna Convention on Consular Relations, and other applicable conventions and agreements.

SECTION 14. Office of Intelligence and Security. — The Office of Intelligence and Security shall adopt a system of information gathering and analysis, act as liaison with the intelligence community, and provide security services in the Department. It shall also undertake the enforcement and monitoring of security procedures in the Department and Foreign Service establishments.

CHAPTER 4 Board of Foreign Service Administration

SECTION 15. Composition. — The Board of Foreign Service Administration shall be composed of nine (9) members: one (1) Undersecretary as Chairman; the other Undersecretary as Vice-Chairman; the six (6) Assistant Secretaries and the Legal Adviser, as members.

SECTION 16. Functions. — The Board shall be responsible for considering and recommending policies for the efficient and economical discharge of the Administrative operations of the Department and the Foreign Service. It shall also consider and submit recommendations on policy and other matters concerning personnel, including the appointment, promotion and assignment of Foreign Service Staff Officers and Employees, as well as recommend to the President through the Secretary the appointment and promotion of Foreign Service Officers, Counselors and Chiefs of Mission. It shall also act and submit recommendations on administrative cases involving personnel of the Department and the Foreign Service.

CHAPTER 5 Board of Foreign Service Examiners

SECTION 17. Composition. — The Board of Foreign Service Examiners shall be composed of one (1) Undersecretary as Chairman; and the Assistant Secretary for Personnel and Administrative Services and a Commissioner of the Civil Service Commission as members. The Board shall be under the administrative supervision of such Undersecretary.

SECTION 18. Functions. — The Board shall be responsible for planning and administering the Foreign Service Officers Examinations and the Foreign Service Staff Officers and Foreign Service Staff Employees Examinations.

CHAPTER 6 Attached Agencies

SECTION 19. Attached Agencies. — The Law of the Sea Secretariat, the Inter-Agency Technical Committee on Economic, Scientific and Technical Cooperation with Socialist Countries (SOCCOM), the Inter-Agency Technical Committee on Technical Cooperation Among Developing Countries (IATC-TCDC), the Permanent Inter-Agency Technical Committee on ESCAP Matters (PITCEM), and other agencies attached to the Department shall continue to operate and function in accordance with their respective charters or laws creating them, except as otherwise provided in this Code.

CHAPTER 7 The Foreign Service

SECTION 20. Functions of Diplomatic Missions. — The Diplomatic Missions shall:

(1) Represent the Philippines abroad and promote friendly relations with other countries in all fields;

(2) Protect national interests and the interests of Filipino nationals abroad;

(3) Ascertain and evaluate conditions and developments abroad and report thereon to the Department Head;

(4) Serve as channels of communication between the Government of the Philippines and foreign governments; and

(5) Perform such other functions provided by law.

SECTION 21. Functions of Consular Establishments. — The consular establishments shall:

(1) Protect national interests abroad and promote foreign relations in all fields, particularly in the economic and trade areas;

(2) Ascertain and evaluate conditions and developments abroad in the commercial, economic, cultural and scientific fields and report thereon to the Department Head;

(3) Issue passports and travel documents to Filipino nationals, and visas or appropriate documents to foreign nationals desiring to travel to the Philippines;

(4) Protect the interests of Filipino nationals abroad, provide necessary services and assistance, and perform notarial functions allowed by regulations;

(5) Transmit judicial and extra-judicial documents and execute letters rogatory or commissions to receive evidence abroad for Philippine courts;

(6) Supervise and inspect in accordance with laws and regulations of the Philippines, vessels and aircrafts and their crews; and

(7) Perform such other functions as may be provided by law.

CHAPTER 8 Attaches and Representatives

SECTION 22. Attaches of the Department. — The Department Head shall designate attaches of the Department from the ranks of Foreign Service Officers and Foreign Service Staff Officers.

SECTION 23. Attaches of Other Departments. — The assignment abroad of personnel in any Department, Bureau or office of the Philippine government as attaches or representatives shall have the prior clearance of the Secretary of Foreign Affairs. The clearance shall include such matters as the actual need for opening particular types of attache services, and the specific places where these services will be made available.

SECTION 24. Appointment and Accreditation of Attaches. — (1) The authority to appoint attaches shall be vested in the Head of the Department or agency maintaining the attache service, who shall consult with the Secretary of Foreign Affairs on such appointments.

(2) A Department or agency shall have only one attache accredited to it by the receiving government, except military attaches.

(3) The designation of attaches shall apply only to those serving in diplomatic missions. Those assigned to consular establishments shall be designated as representatives.

Except in extraordinary cases, each foreign service establishment shall have only military, labor, revenue, tourism, information and commercial attaches.

In the event of the actual need for more than one attache, as determined by the department or agency in consultation with the Department of Foreign Affairs, the succeeding attache shall be accredited as assistant attache.

SECTION 25. Relationships Between the Chief of Mission and Attaches. — The Chief of Mission shall be responsible for the conduct of affairs of government at the diplomatic posts. All attaches and representatives of other departments, shall during their tour of duty, be under the immediate control and administrative supervision of the Chief of Mission where they are assigned. They shall be required to submit their reports to their agencies through the Chief of Mission and the Department of Foreign Affairs, except when national security requires otherwise. They shall clear with the Chief of Mission all their public pronouncements at the diplomatic post, and all the documents and materials they send shall be transmitted through the diplomatic pouch.

The supremacy of the Chief of Mission for the conduct of foreign relations at the post is established. The Chief of Mission shall have the authority to discipline attaches within his Mission, including the authority to have them recalled, if necessary.

SECTION 26. Assimilated Ranks. — (1) Except as the President may appoint, no officer of the Philippine government stationed abroad, outside the Department of Foreign Affairs, shall be assigned assimilated ranks higher than Foreign Service Officer Class I.

(2) The assignment of assimilated rank to personnel of the Philippine government stationed abroad shall remain with the President who shall act on the basis of recommendations of the Department of Foreign Affairs and the Department of Budget and Management.

(3) The assimilated ranks are for purposes of compensation only and shall not confer diplomatic rank for purposes of protocol. Civil attaches shall always rank after the lowest ranking Foreign Service officer in the post.

SECTION 27. Relationship Between the Consul-General or the Principal Officer at the Consulate and the Representative. — The relationship of the Consul-General or the Principal Officer at the post and the Representatives assigned to the said post shall be the same as the relationship between the Chief of Mission and the attaches.

SECTION 28. Uniform Rules for Attache Services. — A uniform set of rules and regulations shall govern attache and representative services. This shall be drafted by an Inter-Department Committee to be composed of the Undersecretary of Foreign Affairs as Chairman, and the Undersecretaries, or equivalent officials, of the Departments or agencies with attaches or representatives abroad, as members.

CHAPTER 9 Personnel

SECTION 29. Policy. — To enable the Foreign Service to effectively serve abroad the interests of the Republic of the Philippines, it shall be the policy of the Department that only persons who are competent, of good moral character, and fully informed of the Philippine History and current trends in Filipino life shall be appointed to the service.

SECTION 30. Categories of Officers and Employees. — The Service shall consist of the following categories of officers and employees:

(1) Chiefs of Missions

(2) Counsellors

(3) Foreign Service Officers

(4) Foreign Service Staff Officers

(5) Foreign Service Staff Employees

(6) Honorary Consuls

(7) Alien Employees

SECTION 31. Foreign Service Officers. — There shall be a career service composed of foreign service officers. The Service shall consist of six classes of Foreign Service Officers including Chiefs of Missions and Counsellors.

(1) A Chief of Mission may be assigned as Ambassador Extraordinary and Plenipotentiary, Head of an Office in the Department, or Deputy Chief of Mission.

(2) A Counsellor may be assigned as Executive Officer of an Office in the Department, Counsellor in an Embassy, or Head of a Consular Post.

(3) The assignments of the other classes of Foreign Service Officers shall be as follows:

(4) In the home office, assignment to a position requiring a rank higher than the actual rank of the Foreign Service Officer shall be in an acting capacity.

(5) A Foreign Service Officer in any class may be designated as a special assistant to the Secretary or to an Undersecretary. A Foreign Service Officer below the rank of Class I may be designated as Principal Assistant to a Head of Office.

SECTION 32. Foreign Service Staff Officers. — There shall be three classes of Foreign Service Staff Officers to provide the administrative and technical services.

SECTION 33. Foreign Service Staff Employees. — There shall be three classes of Foreign Service Staff Employees to provide the clerical, custodial, messengerial and similar services.

SECTION 34. Honorary Consuls. — Honorary consuls shall be appointed from among qualified private persons to perform certain consular functions on a non-career basis.

CHAPTER 10 Appointments, Compensation and Benefits

SECTION 35. Foreign Service Officers. — (1) Foreign Service Officers shall be appointed by the President.

(2) No person shall be eligible for appointment as Foreign Service Officer unless he has passed the competitive examinations given by the Board of Foreign Service Examiners and successfully completed his probationary service.

(3) The Secretary shall, upon the recommendation of the Board of Foreign Service, submit to the President names of eligibles for appointment as Foreign Service Officers. The initial appointment of Foreign Service Officers shall only be to Foreign Service Officer Class IV minimum.

SECTION 36. Staff Officers and Employees. — The Secretary shall appoint, in accordance with the Civil Service Law, all Foreign Service Officers and Foreign Service Staff Employees who must be in the Philippines at the time of their original or initial appointment.

SECTION 37. Alien Employees. — The Secretary shall, upon the recommendation of the head of diplomatic or consular establishment and as much as possible in accordance with the Civil Service Law, appoint alien employees who shall be recruited at the post to supplement the regular staff of a foreign service establishment.

SECTION 38. Compensation and Benefits. — The salaries, allowances, travel expenses, insurance and other benefits of Foreign Service Officers, and Employees shall be as provided by law and regulations.

CHAPTER 11 Promotions

SECTION 39. Merit Promotion System. — The Board of the Foreign Service shall establish a merit promotion system for all officers and employees of the Department.

SECTION 40. Requirements for Promotion in the Career Service. — (1) For promotion to Chief of Mission Class I, the candidate must have served as a Chief of Mission Class II and rendered continuous service as Foreign Service Officer for at least twelve (12) years;

(2) For promotion to Chief of Mission Class II, the candidate must have served as a Foreign Service Officer Class I and rendered continuous service as Foreign Service Officer for at least ten years;

(3) For promotion to Foreign Service Officer Class I, the candidate must have served as a Foreign Service Officer Class II, and rendered continuous service as Foreign Service Officer for at least eight years;

(4) For promotion to Foreign Service Officer Class II, the candidate must have served as a Foreign Service Officer Class III, and rendered continuous service as Foreign Service Officer for at least six years;

(5) For promotion to Foreign Service Officer Class III, the candidate must have rendered continuous service as a Foreign Service Officer Class IV for at least two years.

SECTION 41. Promotion of Foreign Service Officers. — (1) Promotions of Foreign Service Officers from one class to the next higher class shall be made by the President upon the recommendation of the Secretary. All promotions shall be to the lowest grade of the class.

(2) Promotion in grade within the class shall be made by the Secretary upon the recommendation of the Board of Foreign Service Administration.

SECTION 42. Promotion of Foreign Service Staff Officers, Foreign Service Staff Employees and Alien Employees. — Promotions of foreign service staff officers and employees and alien employees shall be made by the Secretary, upon recommendation of the Board of the Foreign Service Administration in accordance with the promotion system.

CHAPTER 12 Assignments and Transfers

SECTION 43. Rotation Plan. — The Secretary shall establish a system of assignments and transfers to ensure that all qualified officers and employees, except the employees in the non-career service, shall serve in diplomatic and consular establishments in different regions of the world. The assignment and transfer of personnel shall follow a regular rotation plan. For purposes of assignments, the home office shall be considered a post. All personnel shall be available for assignment to any post.

SECTION 44. Initial Home Office Requirement. — No Foreign Service Officer, Staff Officer or Employee shall be assigned to any foreign service establishment unless he has rendered continuous and satisfactory service in the home office for at least three (3) years.

SECTION 45. Tour of Duty. — (1) The tour of duty of a Foreign Service Officer at any post shall be four (4) years commencing on the date of his arrival at the post, after which he shall be transferred to another post;

(2) The tour of duty of a Foreign Service Staff Officer or Employee at any post shall be for a period of six (6) years commencing on the date of his arrival at the post, after which he shall be transferred to another post;

(3) No Foreign Service Officer, Staff Officer or Employee shall serve more than two (2) consecutive tours of duty abroad;

(4) No Foreign Service Officer may serve more than four (4) consecutive years in the home office, except when designated as Secretary or Undersecretary.

SECTION 46. Retirement. — (1) Any Foreign Service Officer, Staff Officer or Employee who has reached the age of sixty-five (65) shall be compulsorily retired from the service unless his service is extended by the President in the interest of the service. Alien employees shall be allowed to retire from the service at the same age as that provided for employees of the governments of their respective countries, provided that retirement age shall not be beyond sixty-five (65) years.

(2) Foreign Service Officers reinstated to the service after retirement and who are assigned abroad as ambassadors or chiefs of mission, and persons who are appointed as ambassadors without previously serving as Career Foreign Service Officers shall be considered automatically separated from the Foreign Service upon termination of their assignment abroad as ambassadors or chief of missions.

SECTION 47. Resignation. — The Secretary shall have authority to accept the resignation of any Foreign Service Officer, Staff Employee, Honorary Consul and Alien Employee.

CHAPTER 13 Passport

SECTION 48. Definition. — A Philippine passport is an official document of identity of Philippine citizenship of the holder issued for travel purposes.

SECTION 49. Persons Entitled. — Only citizens of the Philippines may be issued passports. A minor may, upon his own application, be issued a passport, except when his natural or legal guardian requests that the application be denied.

SECTION 50. Authority to Issue, Restrict, Withdraw or Cancel. — The Secretary shall have authority to withhold the issuance or order the cancellation or restriction of passports upon lawful order of the court or when he deems it necessary in the interest of national security, public safety or public health, or in cases when a passport was secured through misrepresentation or fraud.

SECTION 51. Period of Validity, Extension and Renewal. — The original period of validity of a Philippine passport is two (2) years. It may be extended for another two (2) years provided that the application for extension is made before the expiration of four (4) years from the date of original issue of the passport. However, the validity of a passport may be limited for a certain period or for a definite purpose.

SECTION 52. Supplementary Regulation. — The Secretary may prescribe supplementary regulations for the issuance, extension or amendment of all kinds of passports.

SECTION 53. Amendments. — Upon application, an unexpired passport may be amended to reflect the new civil status or new name or surname of the holder, or to add more pages, or to modify a condition or restriction therein.

SECTION 54. Fees. — The Secretary shall prescribe uniform fees for the issuance, extension and amendment of passports, and such other services that may be rendered by the Department relating to passports. However, no fee shall be collected for the issuance of passports to government officials proceeding abroad in the discharge of their official duties attested by regular travel orders or for those issued to immediate members of their families on official travel.

CHAPTER 14 Miscellaneous Provisions

SECTION 55. Use of Savings. — The Secretary is authorized to use any savings in the appropriations for the Department for the payment of: (a) expenses for the evacuation or repatriation to the Philippines, when necessary due to an emergency, of members of the household of the personnel of any diplomatic or consular establishment as well as the transportation of their personal effects; (b) actual return passage by the most direct and economical means of transportation and the cost of shipment of the household effects to Manila of any officer or employee in the Foreign Service, including the immediate dependent members of his family, who resigns or is separated from the service for cause; (c) the cost of preparing and transporting the remains of an officer or employee who is a citizen of the Philippines and the immediate members of his family who may die abroad or while in travel status; or (d) contingent and unforeseen expenses that may arise in connection with the operation of the Foreign Service.

SECTION 56. Pool of Foreign Service Officers. — In all appropriation acts providing funds for the operation and maintenance of the Department, the positions of Foreign Service Officers, including those who may serve in the home office, shall be in a pool grouped according to their classes with their salaries and allowances indicated in one lump sum for each class, leaving to the head of office the discretion to assign or commission those officers whenever their services may be utilized to advantage, subject to the limitations provided by law.

TITLE II Finance

CHAPTER 1 General Provisions

SECTION 1. Declaration of Policy. — It is the policy of the State that the Department of Finance shall be primarily responsible for the sound and efficient management of the financial resources of the Government, its subdivisions, agencies and instrumentalities.

SECTION 2. Mandate. — The Department shall be responsible for the formulation, institutionalization and administration of fiscal policies in coordination with other concerned subdivisions, agencies and instrumentalities of government.

Moreover, the Department shall be responsible for the generation and management of the financial resources of government, ensuring that said resources are generated and managed judiciously and in a manner supportive of development objectives.

The Department shall be responsible for the supervision of the revenue operations of all local government units, with the objective of making these entities less dependent on funding from the national government.

Finally, the Department shall be responsible for the review, approval and management of all public sector debt, whether foreign or domestic, with the end in view of ensuring that all borrowed funds are effectively utilized and all such obligations are promptly serviced by the government.

SECTION 3. Powers and Functions. — To accomplish its goals, the Department shall:

(1) Formulate long-range, medium-term and annual plans covering the government's resource mobilization effort, in coordination with other concerned government agencies, and involving all public sector resources whether generated by revenues and operations, foreign and domestic borrowings, sale or privatization of corporation or assets, or from other sources, and supervise the implementation of such plans;

(2) Formulate, institutionalize and administer fiscal and tax policies;

(3) Supervise, direct and control the collection of government revenues;

(4) Act as custodian and manage all financial resources of the national government;

(5) Undertake and supervise activities related to the negotiation, servicing and restructuring of domestic and foreign debt incurred or guaranteed by the government and its instrumentalities, including taking part in activities which affect the country's capacity to service foreign debt;

(6) Review and coordinate the policies, plans and programs of government financial institutions and, thereafter, recommend to them courses of action consistent with national government fiscal policies, plans and programs;

(7) Ensure the implementation of necessary policies and measures on local revenue administration;

(8) Coordinate with other government agencies on matters concerning fiscal and monetary policies, credit, economic development, international finance, trade and investment; and

(9) Perform such other powers and functions as may be provided by law.

SECTION 4. Organizational Structure. — The Department shall consist of the Department proper comprising the Office of the Secretary, the Offices of the Undersecretary and Assistant Secretaries, the Economic Intelligence and Investigation Bureau, the Services, the Operations Groups and their constituent units, and the Regional Offices.

CHAPTER 2 Department Proper

SECTION 5. Office of the Secretary. — The Office of the Secretary shall consist of the Secretary, his Undersecretaries and their immediate staffs.

SECTION 6. Undersecretaries. — The Secretary shall be assisted by five (5) Undersecretaries appointed by the President upon the recommendation of the Secretary, each of whom shall head, respectively, the Policy Development and Management Services Group mentioned in Section 8 hereof and the four (4) Operations Groups mentioned in Section 9 hereof.

SECTION 7. Assistant Secretaries. — The Secretary shall also be assisted by five (5) Assistant Secretaries appointed by the President upon the recommendation of the Secretary. The respective assignments of the Assistant Secretaries and the reporting procedures to be followed by them shall be determined by the Secretary.

CHAPTER 3 Department Services

SECTION 8. Policy Development and Management Services Group. — The Policy Development and Management Services Group, which shall be headed by an Undersecretary, shall consist of the following:

(1) Planning and Policy Research Office;

(2) Central Management Information Office;

(3) Central Administration Office;

(4) Central Financial Management Office;

(5) Public Information and Assistance Office;

(6) Legal Office; and

(7) Regional Coordination Office.

SECTION 9. Planning and Policy Research Office. — The Planning and Policy Research Office shall have the following functions:

(1) Formulate long-range and annual projections of revenue needs, cash position and borrowing capacity of the Government as basis for policy decisions of the department;

(2) Supervise policy research and development on fiscal and tax measures undertaken by the operating bureaus and offices of the department;

(3) Coordinate with other government agencies on policy research and its impact on fiscal and tax measures; and

(4) Perform such other functions as may be assigned by the Secretary or his undersecretaries.

SECTION 10. Central Management Information Office. — The Central Management Information Office shall have the following functions:

(1) Establish a Management Information System and sub-systems for monitoring and evaluation of department-wide programs and projects, including those that are executed by operating Bureaus and Offices;

(2) Formulate policies, plans and procedures for data control and systems management;

(3) Act as the central repository of existing and future computer files; and

(4) Perform such other appropriate functions as may be assigned by the Secretary or his undersecretaries.

SECTION 11. Central Administration Office. — The Central Administration Office shall have the following functions:

(1) Supervise Department-wide services relating to internal cash management, personnel administration, property and supplies procurement and custody; and maintenance of central files, and corresponding reporting systems;

(2) Assist in the formulation of policies and guidelines on the management of human and physical resources and general housekeeping activities for uniformity and standardization;

(3) Serve as a center for the establishment and periodic evaluation of management operation systems, internal control and work outputs to determine Department-wide performance efficiency;

(4) Design and develop training policies and guidelines, administer and evaluate training programs and in coordination with external training institutions, screen and recommend to the Secretary the participation of Department personnel in training programs, seminars and conferences in the country or abroad;

(5) Ensure that Department-wide activities and efforts are focused towards a central direction as embodied in the national socio-economic development plans; and

(6) Perform such other appropriate functions as may be assigned by the Department or his Undersecretaries.

SECTION 12. Central Financial Management Office. — The Central Financial Management Office shall have the following functions:

(1) Supervise Department-wide activities relating to budget preparation and management, department accounting, and internal audit;

(2) Perform such other appropriate functions as may be assigned by the Department or his Secretary or his Undersecretaries.

SECTION 13. Public Information and Assistance Office. — The Public Information and Assistance Office shall have the following functions:

(1) Provide policy direction and guidance to the operating Bureaus and Offices of the Department for the proper dissemination of appropriate information or Department- wide programs, operations and activities;

(2) Provide the operating Bureaus and Offices with the general framework for rendering direct assistance to the general public;

(3) Receive complaints and grievances from the general public; prepare referrals to concerned Bureaus and Offices and monitor responses or actions taken; and

(4) Perform such other appropriate functions as may be assigned by the Secretary or Undersecretary for Policy Development and Management Service.

SECTION 14. Legal Office. — The Legal Office shall have the following functions:

(1) Prepare draft opinions or rulings for the signature of the Department Secretary or his Undersecretaries on matters elevated to it by the Bureaus and Offices of the Department;

(2) Conduct legal researches on all matters referred to it by the Secretary or his Undersecretaries; and

(3) Perform such other appropriate functions as may be assigned by the Secretary or his Undersecretaries.

SECTION 15. Regional Coordination Office. — The function of the Regional Coordination Office is to coordinate the operations of the Regional Offices.

CHAPTER 4 Bureaus

SECTION 16. Operations Groups. — The Operations Groups, each of which shall be headed by an Undersecretary, shall consist of the following:

(1) Revenue Operations Group, composed of the following:

(a) Bureau of Internal Revenue;

(b) Bureau of Customs;

(c) Revenue Service;

(d) Legal Service;

(2) Domestic Operations Group, composed of the following:

(a) Bureau of Treasury;

(b) Bureau of Local Government Finance;

(c) Financial and Fiscal Policy and Planning Office;

(3) International Finance Group, composed of the following:

(a) International Finance Policy Office;

(b) International Finance Operations Office.

SECTION 17. Economic Intelligence and Investigation Bureau. — The Economic Intelligence and Investigation Bureau, which shall be headed by and subject to the supervision and control of the Commissioner, who shall in turn be appointed by the President upon the recommendation of the Secretary, shall have the following functions:

(1) Receive, gather and evaluate intelligence reports and information and evidence on the nature, modes and extent of illegal activities affecting the national economy, such as, but not limited to, economic sabotage, smuggling, tax evasion, and dollar-salting, to investigate the same and aid in the prosecution of cases;

(2) Coordinate with external domestic or foreign agencies in monitoring the financial and economic activities of persons or entities, which may adversely affect national financial interest with the goal of regulating, controlling or preventing said activities;

(3) Provide all intelligence units of operating Bureaus or Offices under the Department with the general framework and guidelines for the proper conduct of intelligence and investigation work;

(4) Supervise, monitor and coordinate all the intelligence and investigation operations of the operating Bureaus and Offices under the Department;

(5) Investigate, hear and file, upon clearance by the Secretary, anti-graft and corruption cases against personnel of the Department and its constituent units; and

(6) Perform such other appropriate functions as may be assigned by the Secretary or his Undersecretaries.

SECTION 18. The Bureau of Internal Revenue. — The Bureau of Internal Revenue, which shall be headed by and subject to the supervision and control of the Commissioner of Internal Revenue, who shall be appointed by the President upon the recommendation of the Secretary shall have the following functions:

(1) Assess and collect all taxes, fees and charges and account for all revenues collected;

(2) Exercise duly delegated police powers for the proper performance of its functions and duties;

(3) Prevent and prosecute tax evasions and all other illegal economic activities;

(4) Exercise supervision and control over its constituent and subordinate units; and

(5) Perform such other functions as may be provided by law.

The Commissioner of Internal Revenue, with the approval of the Secretary of Finance, shall draft and prepare the necessary rules and regulations as may be needed to delineate the authority and responsibility of the various groups and services of the Bureau.

SECTION 19. Deputy Commissioners. — The Commissioner shall be assisted by two (2) Deputy Commissioners. Each Deputy Commissioner shall supervise one (1) of the groups defined in Sec. 20 below, to be assigned by the Commissioner.

SECTION 20. Composition of the Bureau of Internal Revenue. — The Bureau of Internal Revenue shall be composed of the following:

(1) Assessment and Collection Group, headed and supervised by a Deputy Commissioner and composed of the following services, each of which shall be headed by a Revenue Chief;

(2) Legal and Internal Administration Group, headed and supervised by a Deputy Commissioner and composed of the following services, each of which shall be headed by a Service Chief.

SECTION 21. Appointment by the President. — The aforementioned Undersecretaries shall be appointed by the President upon the recommendation of the Secretary.

SECTION 22. Management and Technical Staff . — The Commissioner and the two (2) Deputy Commissioners shall each have a Management and Technical Staff to render technical and secretarial support services.

SECTION 23. Bureau of Customs. — The Bureau of Customs which shall be headed and subject to the management and control of the Commissioner of Customs, who shall be appointed by the President upon the recommendation of the Secretary and hereinafter referred to as Commissioner, shall have the following functions:

(1) Collect customs duties, taxes and the corresponding fees, charges and penalties;

(2) Account for all customs revenues collected;

(3) Exercise police authority for the enforcement of tariff and customs laws;

(4) Prevent and suppress smuggling, pilferage and all other economic frauds within all ports of entry;

(5) Supervise and control exports, imports, foreign mails, and the clearance of vessels and aircrafts in all ports of entry;

(6) Administer all legal requirements that are appropriate;

(7) Prevent and prosecute smuggling and other illegal activities in all ports under its jurisdiction;

(8) Exercise supervision and control over its constituent units;

(9) Perform such other functions as may be provided by law.

SECTION 24. Composition. — The Bureau of Customs shall be composed of the following:

(1) Customs Revenue Collection Monitoring Group, headed and supervised by a Deputy Commissioner and composed of Legal, Financial and Collection Services, each of which shall be headed by a service chief;

(2) Customs Assessment and Operations Coordinating Group, headed and supervised by a Deputy Commissioner and composed of the Imports and Assessment and Ports Operations Services, each of which shall be headed by a Service Chief; and

(3) Intelligence and Enforcement Group, headed and supervised by a Deputy Commissioner and composed of the Intelligence and Investigation Service and the Enforcement and Security Service.

SECTION 25. Appointment by President. — The aforementioned Deputy and Assistant Commissioners shall be appointed by the President upon the recommendation of the Commissioner of Customs in keeping with the intent of Executive Order No. 9.

SECTION 26. Definition of Functions. — (1) Customs Revenue Collection Monitoring Group. The Customs Revenue Collection Monitoring Group shall have the following functions:

(a) Maintain an updated accounting for all Customs revenues collected;

(b) Administer legal requirements of the Bureau of Customs to include litigation and prosecution of cases;

(c) Provide the Commissioner of Customs with accurate and timely information and analysis of collection statistics;

(d) Conduct continuing audit of liquidated entries and outstanding bonds; and

(e) Perform such other appropriate functions consistent with the assigned tasks of the group and others which may be given by the Commissioner;

(2) Customs Assessment and Operations Coordinating Group. The Customs Assessment and Operations Coordinating Group shall have the following functions:

(a) Regularly gather and upon approval of the Commissioner, publish values of commodities imported into the Philippines, such values being the bases for the computation of customs duties and other revenues;

(b) Monitor for decision-making purposes the implementation of rules and regulations governing assessment, warehousing and support operations;

(c) Monitor auction and disposal activities together with port/airport operations related activities for decision-making purposes; and

(d) Perform other appropriate functions consistent with the assigned tasks of the Group which may be given by the Commissioner.

(3) Intelligence and Enforcement Group. The Intelligence and Enforcement Group shall have the following functions:

(a) Regularly and consistently gather intelligence information related to customs and economic activities for proper dissemination to the Customs offices concerned;

(b) Conduct internal inquiry and investigation which may serve as the basis for prosecution;

(c) Exercise police authority conferred by the Tariff and Customs Code or other laws which include the enforcement of seizures and forfeitures and the imposition of penalties and fines; and

(d) Perform such other appropriate functions consistent with the assigned tasks of the Group and others which may be given by the Commissioner.

SECTION 27. The Collection Districts. — (1) The Bureau shall have thirteen (13) Collection Districts under the direct control and supervision by the Commissioner. Each Collection District shall have as many subports as necessary to maximize revenue collection and the prevention of smuggling and fraud against customs. Each Collection District shall be headed and supervised by a District Collector while each subport will be headed by a Port Collector. The Collectors shall have the following functions:

(a) Collect duties, taxes, fees, charges, penalties and fines accruing to the Government under the Tariff and Customs Code and related laws;

(b) Exercise police powers conferred to him/her by the Tariff and Customs Code or other laws which include the enforcement of penalties and fines;

(c) Examine goods, assess duties, fees, charges, penalties and fines accruing to the Government under the Tariff and Customs Code and other related laws;

(d) Supervise the entrance and clearance of vessels and aircrafts engaged in foreign commerce;

(e) Supervise and control handling of foreign mails arriving in the Philippines; and

(f) Supervise all import and export cargoes landed and/or stored in piers, airports, terminal facilities, yards and freight stations;

(2) Perform such other appropriate functions consistent with the assigned task of the District/Port Collectors and those which may be given by the Commissioner.

SECTION 28. Management and Technical Staff . — The Commissioner and three (3) Deputy Commissioners, and the Assistant Commissioner shall each have a Management and Technical Staff, which shall be limited to a specific number of personnel as determined by the Secretary, to render technical and secretarial support services.

SECTION 29. Bureau of Treasury. — The Bureau of Treasury, which shall be headed by and subject to the supervision and control of the National Treasurer who shall be appointed by the President upon the recommendation of the Secretary, shall have the following functions:

(1) Act as the principal custodian of all national government funds;

(2) Assist in the formulation of, and execute, policies on financial management, public borrowings and capital market development;

(3) Formulate, in coordination with government agencies concerned, annual projections of revenue needs, cash position and borrowing capacity of the government;

(4) Maintain accounts of the financial transactions of all national secretaries, bureaus, agencies and instrumentalities;

(5) Manage the cash resources of the Government and perform banking functions in relation to receipts and disbursements of national funds;

(6) Manage, control and service public debts from domestic or foreign sources;

(7) Exercise line supervision over its Regional Offices/field units within Department Regional Administrative Coordination Offices; and

(8) Perform such other appropriate functions as may be assigned by the Secretary or Undersecretary for Domestic Operations.

SECTION 30. Composition. — The Bureau of Treasury shall be composed of the following:

(1) Internal Affairs Sub-Sector under the direct supervision and control of an Assistant National Treasurer and composed of the following:

(a) Administrative Service;

(b) Financial and Management Service;

(c) Management Information and Data Systems Service;

(d) Planning and Policy Research Division;

(e) Public Information and Assistance Division; and

(f) Legal Division.

(2) National Government Affairs Sub-Sector under the direct supervision and control of an Assistant National Treasurer and composed of the following:

(a) Public Debt Management Service;

(b) Debt Clearing Service;

(c) National Cash Accounts Service;

(d) Treasury Banking Service;

(e) Operations Planning Service;

(f) Regional Offices which shall have under their supervision all provincial offices and shall be under the direct control and supervision of the National Treasurer.

SECTION 31. Assistance to National Treasurer. — The National Treasurer shall be directly assisted by the:

(1) Management and Technical Staff, which shall perform the functions of rendering technical and secretarial support services;

(2) Intelligence and Investigation Office, which shall perform the following functions:

(a) Monitor, gather and evaluate reports on financial and economic activities of persons or entities, foreign and domestic, which may adversely affect national financial interests;

(b) Perform such other appropriate functions as may be assigned by the National Treasurer.

SECTION 32. Appointment by the President. — The aforementioned two (2) Assistant National Treasurers shall be appointed by the President upon the recommendation of the Secretary.

SECTION 33. Bureau of Local Government Finance. — The Bureau of Local Government Finance, which shall be headed by and subject to the supervision and control of an Executive Director who shall be appointed by the President and upon the recommendation of the Secretary, shall have the following functions:

(1) Assist in the formulation and implementation of policies on local government revenue administration and fund management;

(2) Exercise administrative and technical supervision and coordination over the treasury and assessment operations of local governments;

(3) Develop and promote plans and programs for the improvement of resource management systems, collection enforcement mechanisms, and credit utilization schemes at the local levels;

(4) Provide consultative services and technical assistance to the local governments and the general public on local taxation, real property assessment and other related matters;

(5) Exercise line supervision over its Regional Offices/field units within the Department Regional Administrative Coordination Office and the Local Treasury and Assessment Services; and

(6) Perform such other appropriate functions as may be assigned by the Secretary or Undersecretary for Domestic Operations.

SECTION 34. Composition. — The Bureau of Local Government Finance shall be composed of the following:

(1) Internal Administration Office;

(2) Policy Enforcement and Special Projects Group;

(3) Field Operations Examination Group.

SECTION 35. Assistance to the Executive Director. — The Executive Director shall be directly assisted by the:

(1) Management and Technical Staff, which shall perform the functions of rendering technical and secretarial support services;

(2) Intelligence and Investigation Office, which shall perform the following functions:

(a) Monitor, gather and evaluate reports on financial and economic activities of persons or entities, foreign and domestic, which may adversely affect national financial interests;

(b) Perform such other appropriate functions as may be assigned by the Director.

SECTION 36. Financial and Fiscal Policy Planning. — The Financial and Fiscal Policy and Planning Office, which shall be headed by a Director who shall be appointed by the President upon the recommendation of the Secretary, shall have the following functions:

(1) Coordinate, in consultation with the appropriate government agencies, the formulation of integrated financial and fiscal plans of the national Government and the local governments, consistent with the national development plan;

(2) Monitor and review the implementation of such financial and fiscal plans in relation to recent developments in the economy;

(3) Coordinate with other government agencies involved in financial, fiscal and economic planning and policy formulation;

(4) Undertake special studies and research projects on financial and fiscal policies;

(5) Coordinate the formulation and assessment of Department policies affecting domestic finance operations with the different bureaus and offices of the Department; and

(6) Perform such other appropriate functions as may be assigned by the Secretary, the Undersecretary for Domestic Operations or the Assistant Secretary directly assisting the Undersecretary for Domestic Operations.

SECTION 37. International Finance Policy Office. — The International Finance Policy Office, headed by a Director who shall be appointed by the President upon recommendation of the Secretary, shall have the following functions:

(1) Monitor and analyze international monetary, financial and trade developments and their implications for the Philippine economy and evolve proposals for appropriate response to said events;

(2) Provide inputs into the formulation of fiscal, monetary, financial, foreign trade and exchange rate policies as well as budgetary and balance of payments programming in line with domestic economic goals and the external financial and trade environment;

(3) Formulate and monitor a foreign financing program on the basis of domestic requirements and trends in development assistance and other capital flows;

(4) Interact with multilateral, regional and other international organizations and formulate in coordination with appropriate agencies Philippine positions on institutional and policy issues taken up in these bodies;

(5) Coordinate with other appropriate secretaries and government agencies in areas concerning international finance and foreign trade; and

(6) Perform such other appropriate functions as may be assigned by the Secretary or Undersecretary for International Finance.

SECTION 38. International Finance Operations Office. — The International Finance Operations Office, headed by a Director, shall have the following functions:

(1) Assist in the formulation of policies and guidelines for foreign borrowings including provisions of government guarantees and monitor compliance with these policies;

(2) Provide support work for international financial negotiations and participate in such negotiations with multilateral financial institutions, bilateral creditors and donors and commercial creditors. This includes negotiations for new assistance (grants and loans) as well as for debt rescheduling;

(3) Monitor implementation of projects funded by foreign assistance and credits, utilization of such external resources and compliance with commitments as well as debt repayment obligations;

(4) Assist in the structuring and conduct of international conferences and meetings of the Department's officers (the term "officer" as used in this Executive Order is intended to be within the meaning of the term "official" as used in the Freedom Constitution) with foreign dignitaries or organizations; and

(5) Perform such other appropriate functions as may be assigned by the Secretary or Undersecretary for International Finance.

SECTION 39. Administrative Staff . — The Undersecretary for International Finance shall be directly assisted by a Finance Attache Division andAdministrative Staff.

CHAPTER 5 Regional Offices

SECTION 40. Regional Offices. — There shall be a Regional Office in each region. Each Regional Office shall be headed by a Regional Director.

A Regional Office shall have, within its administrative region, the following functions:

(1) Implement laws, rules and regulations, policies, plans, programs and projects of the Department;

(2) Provide efficient and effective services to the people;

(3) Coordinate with regional offices of other departments, offices and agencies in the region;

(4) Coordinate with local government units; and

(5) Perform such other functions as may be provided by law.

SECTION 41. DOF-RACO. — For purposes of achieving maximum utilization of resources, management coordination and administrative integration at the regional levels, there is hereby created a Department of Finance Regional Administrative Coordination Office (DOF-RACO) in each of the administrative regions of the country, to be headed by a Regional Executive Director who shall report directly to the Undersecretary for Internal Administration. The Secretary shall define the appropriate functions to be delegated to the DOF-RACO.

The Regional Offices of each operating Bureau under the Department, however, shall remain under the technical supervision and control of the head of the Bureau to which they belong. For monitoring purposes, however, each Regional Office shall submit operational reports to the DOF-RACO as required.

CHAPTER 6 Attached Agencies

SECTION 42. Attached Agencies. — The following agencies are hereby attached to the Department:

(1) Philippine Crop Insurance Corporation;

(2) Philippine Export and Foreign Loan Guarantee Corporation;

(3) Insurance Commission;

(4) National Tax Research Center;

(5) Central Board of Assessment Appeals; and

(6) Fiscal Incentives Review Board.

SECTION 43. Functions of the Attached Agencies. — The agencies attached to the Department shall continue to operate and function in accordance with the respective charters, laws, or orders creating them, except as otherwise provided in this Code.

TITLE III Justice

CHAPTER 1 General Provisions

SECTION 1. Declaration of Policy. — It is the declared policy of the State to provide the government with a principal law agency which shall be both its legal counsel and prosecution arm; administer the criminal justice system in accordance with the accepted processes thereof consisting in the investigation of the crimes, prosecution of offenders and administration of the correctional system; implement the laws on the admission and stay of aliens, citizenship, land titling system, and settlement of land problems involving small landowners and members of indigenous cultural minorities; and provide free legal services to indigent members of the society.

SECTION 2. Mandate. — The Department shall carry out the policy declared in the preceding section.

SECTION 3. Powers and Functions. — To accomplish its mandate, the Department shall have the following powers and functions:

(1) Act as principal law agency of the government and as legal counsel and representative thereof, whenever so required;

(2) Investigate the commission of crimes, prosecute offenders and administer the probation and correction system;

(3) Extend free legal assistance/representation to indigents and poor litigants in criminal cases and non-commercial civil disputes;

(4) Preserve the integrity of land titles through proper registration;

(5) Investigate and arbitrate untitled land disputes involving small landowners and members of indigenous cultural communities;

(6) Provide immigration and naturalization regulatory services and implement the laws governing citizenship and the admission and stay of aliens;

(7) Provide legal services to the national government and its functionaries, including government-owned or controlled corporations and their subsidiaries; and

(8) Perform such other functions as may be provided by law.

SECTION 4. Organizational Structure. — The Department shall consist of the following constituent units:

(1) Department Proper;

(2) Office of the Government Corporate Counsel;

(4) Public Attorney's Office (as an attached agency);

(5) Board of Pardons and Parole;

(6) Parole and Probation Administration;

(7) Bureau of Corrections;

(8) Land Registration Authority;

(9) Bureau of Immigration; and

(10) Commission on the Settlement of Land Problems. (as amended by Republic Act No. 9406, [March 23, 2007])

CHAPTER 2 Department Proper

SECTION 5. The Department Proper. — The Department Proper shall be composed of the Office of the Secretary and the Undersecretaries, Technical and Administrative Service, Financial Management Service, Legal Staff and the Office of the Chief State Prosecutor.

SECTION 6. Undersecretaries. — The Secretary shall be assisted by three (3) Undersecretaries. The Secretary is hereby authorized to delineate and assign the respective functional areas of responsibility of the Undersecretaries, provided, that such responsibility shall be with respect to the mandate and objectives of the Department; and provided, further, that no Undersecretary shall be assigned primarily administrative responsibilities. Within his functional area of responsibility, an Undersecretary shall have the following functions:

(1) Advise and assist the Secretary in the formulation and implementation of the Department's policies, plans, programs and projects;

(2) Oversee the operational activities of the Department;

(3) Coordinate the programs and projects of the Department for efficient and effective administration;

(4) Serve as deputy for the Secretary;

(5) Perform, when so designated, the powers and functions of the Secretary, during the latter's absence or incapacity; and

(6) Perform such other functions as may be provided by law or assigned by the Secretary to promote efficiency and effectiveness in the delivery of frontline services.

SECTION 7. Legal Staff . — The Legal Staff shall have the following functions:

(1) Assist the Secretary in the performance of his duties as Attorney General of the Philippines and as ex-officio legal adviser of government-owned or controlled corporations or enterprises and their subsidiaries;

(2) Prepare and finally act for and in behalf of the Secretary on all queries and/or requests for legal advice or guidance coming from private parties, and minor officials and employees of the government;

(3) Maintain and supervise the operation of the Department Law Library as well as its personnel; and

(4) Perform such other functions as are now or may hereafter be provided by law or assigned by the Secretary.

SECTION 8. Office of the Chief State Prosecutor. — The Office of the Chief State Prosecutor shall have the following functions:

(1) Assist the Secretary in the performance of powers and functions of the Department relative to its role as the prosecution arm of the government;

(2) Implement the provisions of laws, executive orders and rules, and carry out the policies, plans, programs and projects of the Department relative to the investigation and prosecution of criminal cases;

(3) Assist the Secretary in exercising supervision and control over the National Prosecution Service as constituted under P.D. No. 1275 and/or otherwise hereinafter provided; and

(4) Perform such other functions as may be provided by law or assigned by the Secretary.

SECTION 9. Provincial/City Prosecution Offices. — The Provincial and City Fiscal's Office established in each of the provinces and cities pursuant to law, is retained and renamed Provincial/City Prosecution Office. It shall be headed by a Provincial Prosecutor or City Prosecutor, as the case may be, assisted by such number of Assistant Provincial/City Prosecutors as fixed and/or authorized by law. The position titles of Provincial and City Fiscal and of Assistant Provincial and City Fiscal are hereby abolished.

All provincial/city prosecution offices shall continue to discharge their functions under existing law.

All provincial and city prosecutors and their assistants shall be appointed by the President upon the recommendation of the Secretary.

CHAPTER 3 Office of the Government Corporate Counsel

SECTION 10. Office of the Government Corporate Counsel. — The Office of the Government Corporate Counsel (OGCC) shall act as the principal law office of all government-owned or controlled corporations, their subsidiaries, other corporate offsprings and government acquired asset corporations and shall exercise control and supervision over all legal departments or divisions maintained separately and such powers and functions as are now or may hereafter be provided by law. In the exercise of such control and supervision, the Government Corporate Counsel shall promulgate rules and regulations to effectively implement the objectives of the Office.

The OGCC is authorized to receive the attorney's fees adjudged in favor of their client government-owned or controlled corporations, their subsidiaries, other corporate offsprings and government acquired asset corporations. These attorney's fees shall accrue to a special fund of the OGCC, and shall be deposited in an authorized government depository as a trust liability and shall be made available for expenditure without the need for a Cash Disbursement Ceiling, for purposes of upgrading facilities and equipment, granting of employees' incentive pay and other benefits, and defraying such other incentive expenses not provided for in the General Appropriations Act as may be determined by the Government Corporate Counsel.

CHAPTER 4 National Bureau of Investigation

SECTION 11. National Bureau of Investigation. — The National Bureau of Investigation (NBI) with all its duly authorized constituent units including its regional and district offices and rehabilitation centers, shall continue to perform the powers and functions as are now vested in it under the existing law and such additional functions as may hereafter be provided by law.

SECTION 12. The NBI Director and Other Officials. — The NBI shall be headed by a Director assisted by an Assistant Director and five (5) Deputy Directors, for Intelligence, Investigation, Technical, Administrative and Comptroller Services, respectively.

The NBI is also authorized to continue the operation and maintenance of a Regional Office in each of the twelve (12) administrative regions of the country, to be headed by a Regional Director and assisted by an Assistant Regional Director.

SECTION 13. Internal Organization and Assignment of Personnel. — Subject to prior approval of the Secretary and to the limitations prescribed in the General Appropriations Act for personnel services expenditures in the NBI, the NBI director may be authorized to determine the internal organization of the constituent units of the Bureau including the composition and size thereof and the number, classes and level of positions (below the rank of presidential appointees) to be assigned or allocated thereto.

CHAPTER 5 Public Attorney's Office

SECTION 14. Public Attorney's Office (PAO). — The Citizen's Legal Assistance Office (CLAO) is renamed Public Attorney's Office (PAO). It shall exercise the powers and functions as are now provided by law for the Citizen's Legal Assistance Office or may hereafter be provided by law.

The PAO shall be an independent and autonomous office, but attached to the Department of Justice in accordance with Section 38(3), Chapter 7 of Book IV of this Code for purposes of policy and program coordination.

The PAO shall be the principal law office of the Government in extending free legal assistance to indigent persons in criminal, civil, labor, administrative and other quasi-judicial cases. (as amended by Republic Act No. 9406, [March 23, 2007])

SECTION 14-A. Powers and Functions. — The PAO shall independently discharge its mandate to render, free of charge, legal representation, assistance, and counselling to indigent persons in criminal, civil, labor, administrative and other quasi-judicial cases. In the exigency of the service, the PAO may be called upon by proper government authorities to render such service to other persons, subject to existing laws, rules and regulations. (as amended by Republic Act No. 9406, [March 23, 2007])

SECTION 15. Organizational Structure. — The PAO shall consist of the following constituent units:

(1) Office of the Chief Public Attorney and two (2) Deputy Chief Public Attorneys to serve as a 'Deputy Chief Public Attorney for Administration' and placed in charge of three divisions, namely: Administrative; Financial Planning and Management; and Executive Division, while the other to serve as 'Deputy Chief Public Attorney for Operations' and shall be responsible for special and appealed cases; legal research; and field services and statistics upon the designation by the Chief Public Attorney. One of the deputies shall be designated as Deputy Chief Public Attorney for Luzon and the other Deputy Chief Public Attorney for Visayas and Mindanao.

(2) Six (6) line divisions in the Central Office, namely: Administrative; Financial Planning and Management; Special and Appealed Cases; Legal Research and Statistics; Field Services and Statistics; and Executive Divisions.

(3) Regional, Provincial, City and Municipal District Offices. (as amended by Republic Act No. 9406, [March 23, 2007])

SECTION 16. The Chief Public Attorney and Other PAO Officials. — The PAO shall be headed by a Chief Public Attorney and shall be assisted by two (2) Deputy Chief Public Attorneys. Each PAO Regional Office established in each of the administrative regions of the country shall be headed by a Regional Public Attorney who shall be assisted by an Assistant Regional Public Attorney. The authority and responsibility for the exercise of the mandate of the PAO and for the discharge of its powers and functions shall be vested in the Chief Public Attorney.

The Office of the Chief Public Attorney shall include his/her immediate staff, the six (6) line divisions in the Central Office, the Deputy Chief Public Attorneys and the Regional, Provincial, City and Municipal District Offices.

The Chief Public Attorney shall have the same qualifications for appointment, rank, salaries, allowances, and retirement privileges as those of the Chief State Prosecutor of the National Prosecution Service. The Deputy Chief Public Attorneys shall have the same qualifications for appointment, rank, salaries, allowances, and retirement privileges as those of the Assistant Chief State Prosecutor of the National Prosecution Service.

The services herein created shall each be headed by a staff director who shall have the same qualifications for appointment, rank, salaries, allowances and privileges as those of staff director of the National Prosecution Service.

Each of the PAO Regional Offices shall be headed by a Regional Public Attorney who shall be assisted by an Assistant Regional Public Attorney. The regional offices shall have such provincial, city and municipal district offices as may be necessary.

The Regional Public Attorney and the Assistant Regional Public Attorney shall have the same qualifications for appointment, rank, salaries, allowances, and retirement privileges as those of a Regional State Prosecutor and the Assistant Regional State Prosecutor of the National Prosecution Service, respectively.

The Provincial Public Attorney, City Public Attorney and the Municipal District Public Attorney shall have the same qualifications for appointment, rank, salaries, allowances and retirement privileges as those of a Provincial Prosecutor and City Prosecutor as the case may be, of the National Prosecution Service, respectively.

The other administrative personnel in the PAO shall have the rank and salaries equivalent to their counterpart in the National Prosecution Service. (as amended by Republic Act No. 9406, [March 23, 2007])

SECTION 16-A. Appointment. — The Chief Public Attorney and the Deputy Chief Public Attorneys shall be appointed by the President. The Deputy Chief Public Attorneys and Regional Public Attorneys shall be appointed by the President upon the recommendation of the Chief Public Attorney. The Chief Public Attorney, Deputy Chief Public Attorneys and Regional Public Attorneys shall not be removed or suspended, except for cause provided by law: Provided, That the Deputy Chief Public Attorneys, the Regional Public Attorneys and the Assistant Regional Public Attorneys, the Provincial Public Attorneys, the City Public Attorneys, and the Municipal District Public Attorneys shall preferably have served as Public Attorneys for at least five (5) years immediately prior to their appointment as such. The administrative and support personnel and other lawyers in the Public Attorney's Office shall be appointed by the Chief Public Attorney, in accordance with civil service laws, rules and regulations.

SECTION 16-B. Vacancy of Office. — In case of death, permanent incapacity, removal or resignation of the incumbent Chief Public Attorney, Deputy Chief Public Attorneys or Regional Public Attorneys or vacancy thereof, the President shall appoint a new Chief, Deputy Chief or Regional Public Attorney or shall designate one, as the case may be, in an acting capacity until a new one shall have been appointed.

In case of temporary absence of the Chief Public Attorney, the latter may designate an Officer-in-Charge to be a caretaker of the Office.

SECTION 16-C. Incumbent Officials and Personnel. — The incumbent officials and personnel of the Public Attorney's Office shall continue holding his/her position without the need of new appointment.

SECTION 16-D. Exemption from Fees and Costs of the Suit. — The clients of the PAO shall be exempt from payment of docket and other fees incidental to instituting an action in court and other quasi-judicial bodies, as an original proceeding or on appeal.

The costs of the suit, attorney's fees and contingent fees imposed upon the adversary of the PAO clients after a successful litigation shall be deposited in the National Treasury as trust fund and shall be disbursed for special allowances of authorized officials and lawyers of the PAO.

SECTION 16-E. Local Government Support. — Local government units, subject to their capabilities, are authorized to extend financial and other support in the form of honoraria, free office space, equipment, furniture, stationery, and manpower to the PAO.

SECTION 16-F. Franking Privilege. — The PAO may transmit through ordinary mail and/or registered mail with return card, free of charge, all official communications and papers directly connected with the conduct of its duties, functions and/or its exercise of administrative supervision over its personnel.

The envelope or wrapper of the privileged mail matter shall bear on the left upper corner 'Public Attorney's Office' together with its address and on the right upper corner, the word 'Private or unauthorized use to avoid payment of postage is penalized by fine or imprisonment or both. (as created by Republic Act No. 9406, [March 23, 2007])

CHAPTER 6 Board of Pardons and Parole

SECTION 17. Board of Pardons and Parole. — The Board of Pardons and Parole shall continue to discharge the powers and functions as provided in existing law and such additional functions as may be provided by law.

SECTION 18. Board Composition. — The Board shall be composed of the Secretary as Chairman and six (6) members consisting of: The Administrator of the Parole and Probation Administration as ex-officio member, a sociologist, a clergyman, an educator, a person with training and experience in correction work, and a member of the Philippine Bar; Provided, that one of them is a woman. The members of the Board shall be appointed by the President upon the recommendation of the Secretary and shall hold office for a term of six (6) years, without prejudice to reappointment.

In case of vacancy by reason of death, incapacity, resignation or removal of any of the Board members, the Secretary shall have the authority to designate a temporary member possessing the qualifications of his predecessor and to serve out his unexpired term or until the President shall have appointed a regular member to fill the vacancy.

SECTION 19. Executive Director and Board Secretary; Support Staff . — In the performance of his duties as Chairman of the Board of Pardons and Parole, the Secretary shall be assisted by a staff headed by the Executive Director who is at the same time the Secretary of the Board. The Executive Director shall be appointed by the President upon the recommendation of the Secretary. The Executive Director shall receive a monthly salary of thirteen thousand five hundred pesos.

The Board Secretary shall prepare and keep the minutes of all the board sessions in a book of records kept for the purpose, as well as all the resolutions and recommendations of the Board on all actions involving parole, pardons and executive clemency to the President; authenticate and/or attest all minutes, resolutions and recommendations of the Board; prepare and serve all notices of board meetings or sessions to the members of the Board; prepare an annual report of all resolutions and recommendations for parole or executive clemency and other reports that the Department may require. He shall also perform such other functions as the Board may from time to time assign to him.

SECTION 20. Board Meetings. — The Board shall meet regularly every week, or as the Board may direct, or upon call by the Chairman/Secretary. The members shall act only as a Board, and every decision of the majority shall be valid as an act of the Board provided, that the Board may direct a Board member to prepare and submit a report involving any application for parole, pardon or any request for executive clemency for appropriate action by the Board.

SECTION 21. Board Rules and Regulations. — The Board is hereby authorized to establish and prescribe, subject to the approval of the Secretary, rules and regulations to govern the proceedings of the Board.

SECTION 22. Indeterminate Sentence Law. — The provisions of Act No. 4103, otherwise known as the Indeterminate Sentence Law, as amended, shall continue to apply except as otherwise amended, modified or repealed by this Code.

CHAPTER 7 Parole and Probation Administration

SECTION 23. Parole and Probation Administration. — The Parole and Probation Administration hereinafter referred to as the Administration shall have the following functions:

(1) Administer the parole and probation system;

(2) Exercise general supervision over all parolees, and probationers;

(3) Promote the correction and rehabilitation of offenders; and

(4) Such other function as may hereafter be provided by law.

SECTION 24. Structural and Personnel Organization. — (1) The Administration shall be headed by an Administrator who shall be immediately assisted by a Deputy Administrator. The Administrator and Deputy Administrator shall be appointed by the President upon the recommendation of the Secretary.

The appointees to the positions of Administrator and Deputy Administrator must be holders of a doctoral/masteral degree in public administration and/or lawyers with at least one year of supervisory experience in probation work.

(2) The Administration shall have a Technical Service under the Office of the Administrator which shall serve as the service arm of the Board of Pardons and Parole in the supervision of parolees and pardonees.

The Board and the Administration shall jointly determine the staff complement of the Technical Service.

(3) The Administration shall likewise continue to operate and maintain a Regional Office in each of the administrative regions including the National Capital Region and also a probation and parole office in every province and city of the country.

The Regional, Provincial and City Offices of the Administration shall each be headed by a Regional Probation and Parole Officer, Provincial/City Probation and Parole Officer, respectively, all of whom shall be appointed by the Secretary upon the recommendation of the Administrator.

The Provincial or City Probation and Parole Officers shall be assisted by such field assistants and subordinate personnel as may be necessary to enable them to carry out their duties and functions. For this purpose, the Administrator may appoint citizens of good repute and probity to act as Probation and Parole Aides who shall not receive any regular compensation for their services except reasonable travel allowance.

SECTION 25. Applicability of P.D. No. 968, as amended. — The Provisions of P.D. 968 otherwise known as the Probation Law of 1976 shall continue to govern the operation and management of the Administration including the enumeration of functions and qualifications for appointment of the Administrator, Deputy Administrators, Regional, Provincial and City Probation Officers and their assistants and other subordinate personnel not inconsistent with this title.

CHAPTER 8 Bureau of Corrections

SECTION 26. Bureau of Corrections. — The Bureau of Corrections shall have its principal task the rehabilitation of prisoners. The Bureau of Corrections shall exercise such powers and functions as are now provided for the Bureau of Prisons or may hereafter be provided by law.

SECTION 27. Structural and Personnel Organization. — The Bureau of Corrections shall be headed by a Director who shall be assisted by two (2) Assistant Directors, one for Administration and Rehabilitation and one for Prisons and Security. The Director and Assistant Directors of the Bureau shall be appointed by the President upon recommendation of the Secretary.

The Bureau shall carry out its functions through its divisions and its seven (7) Penal institutions namely — New Bilibid Prisons, Correctional Institution for Women, Iwahig, Davao, San Ramon and Sablayan Prisons and Penal Farms and the Leyte Regional Prisons.

CHAPTER 9 Land Registration Authority

SECTION 28. The Land Registration Authority. — The Land Registration Authority, hereinafter referred to as the Authority shall continue to exercise its powers and functions under existing law on the Land Titles and Deeds Registration Authority and those which may hereafter be provided by law.

SECTION 29. Organizational Structure. — The Authority shall be headed by an Administrator who shall be assisted by two (2) Deputy Administrators, all of whom shall be appointed by the President upon the recommendation of the Secretary.

SECTION 30. Reorganization of Registry Offices in the National Capital Region. — The Registries of Deeds in the National Capital Region is hereby reorganized as follows:

(1) The Registries of Deeds in the cities of Manila, Quezon, Pasay and Caloocan shall be maintained;

(2) There is hereby created Registries of Deeds in the Municipalities of Navotas, Malabon, Valenzuela, Mandaluyong, San Juan, Marikina, Las Piñas and Parañaque with jurisdiction over their respective municipalities;

(3) The Registry of Deeds of Pasig shall be maintained with jurisdiction over the Municipalities of Pasig, Taguig and Pateros; and

(4) The Registry of Deeds of Makati shall have jurisdiction over the municipalities of Makati and Muntinlupa.

CHAPTER 10 Bureau of Immigration

SECTION 31. Bureau of Immigration. — The Bureau of Immigration is principally responsible for the administration and enforcement of immigration, citizenship and alien admission and registration laws in accordance with the provisions of the Philippine Immigration Act of 1940, as amended (C.A. No. 613, as amended). The following units shall comprise the structural organization of the Bureau:

(1) Office of the Commissioner and Associate Commissioners;

(2) Board of Commissioners — composed of the Commissioner as Chairman and two (2) Associate Commissioners as members; and

(3) Boards of Special Inquiry which are authorized to be organized in the Commission pursuant to the provisions of the Immigration Act of 1940, as amended.

Subject to the provisions of existing law, the Secretary is hereby authorized to review, revise and/or promulgate new rules and regulations to govern the conduct of proceedings in the Board of Commissioners and the Boards of Special Inquiry, including the determination of the size and number of the support staff to be assigned thereat.

The Bureau shall be headed by a Commissioner assisted by two Associate Commissioners, all of whom shall be appointed by the President upon the recommendation of the Secretary.

The Commissioner and the two Associate Commissioners shall compose the Board of Commissioners, a collegial body hereby granted exclusive jurisdiction over all deportation cases. The Board shall also have appellate jurisdiction over decisions of the Boards of Special Inquiry and shall perform such other functions as may be provided by law.

Each Board of Special Inquiry shall be composed of a Chairman and two members who shall be appointed by the Secretary upon the recommendation of the Commissioner.

Likewise, the appointment of all the other personnel of the Bureau including the designation of Acting Immigration Officers shall be vested in the Secretary upon the recommendation of the Commissioner.

CHAPTER 11 Commission on the Settlement of Land Problems

SECTION 32. Commission on the Settlement of Land Problems. — The Commission on the Settlement of Land Problems shall be responsible for the settlement of land problems involving small landowners and members of cultural minorities. It shall also perform such other functions, as are now or may hereafter be provided by law.

SECTION 33. Structure and Personnel Organization. — The Commission, as a collegial body, shall be composed of the Commissioner and two Associate Commissioners. For administrative purposes, the Commissioner shall be the head of the Commission and the two Associate Commissioners shall be his immediate assistants.

The Commissioner and the two Associate Commissioners shall be appointed by the President upon the recommendation of the Secretary. They shall have the same qualifications for appointment and receive a salary, retirement benefits, longevity pay and other privileges equivalent to that of an Associate Justice of the Court of Appeals and a Judge of the Regional Trial Court, respectively, as provided in E.O. No. 561.

The Commission shall have a technical staff which shall be headed by an Executive Director and assisted by a Deputy Executive Director who shall both be appointed by the President upon the recommendation of the Secretary. All the other members of the technical staff shall be appointed by the Secretary upon the recommendation of the Commissioner.

When conditions in any province so warrant, the Commission may, subject to the approval of the Secretary, establish a regional and provincial offices thereat which shall exercise such powers and perform such functions as may be assigned to it by the Commission.

CHAPTER 12 Office of the Solicitor General

SECTION 34. Organizational Structure. — The Office of the Solicitor General shall be an independent and autonomous office attached to the Department of Justice.

The Office of the Solicitor General shall be headed by the Solicitor General, who is the principal law officer and legal defender of the Government. He shall have the authority and responsibility for the exercise of the Office's mandate and for the discharge of its duties and functions, and shall have supervision and control over the Office and its constituent units.

The Solicitor General shall be assisted by a Legal Staff composed of fifteen (15) Assistant Solicitors General, and such number of Solicitors and Trial Attorneys as may be necessary to operate the Office, which shall be divided into fifteen (15) divisions: Provided, That the Solicitor General may assign or transfer the Assistant Solicitors General, Solicitors or Trial Attorneys to any of the divisions.

SECTION 35. Powers and Functions. — The Office of the Solicitor General shall represent the Government of the Philippines, its agencies and instrumentalities and its officials and agents in any litigation, proceeding, investigation or matter requiring the services of a lawyer. When authorized by the President or head of the office concerned, it shall also represent government-owned or controlled corporations. The Office of the Solicitor General shall constitute the law office of the Government and, as such, shall discharge duties requiring the services of a lawyer. It shall have the following specific powers and functions:

(1) Represent the Government in the Supreme Court and the Court of Appeals in all criminal proceedings; represent the Government and its officers in the Supreme Court, the Court of Appeals, and all other courts or tribunals in all civil actions and special proceedings in which the Government or any officer thereof in his official capacity is a party.

(2) Investigate, initiate court action, or in any manner proceed against any person, corporation or firm for the enforcement of any contract, bond, guarantee, mortgage, pledge or other collateral executed in favor of the Government. Where proceedings are to be conducted outside of the Philippines the Solicitor General may employ counsel to assist in the discharge of the aforementioned responsibilities.

(3) Appear in any court in any action involving the validity of any treaty, law, executive order or proclamation, rule or regulation when in his judgment his intervention is necessary or when requested by the Court.

(4) Appear in all proceedings involving the acquisition or loss of Philippine citizenship.

(5) Represent the Government in all land registration and related proceedings. Institute actions for the reversion to the Government of lands of the public domain and improvements thereon as well as lands held in violation of the Constitution.

(6) Prepare, upon request of the President or other proper officer of the National Government, rules and guidelines for government entities governing the preparation of contracts, making of investments, undertaking of transactions, and drafting of forms or other writings needed for official use, with the end in view of facilitating their enforcement and insuring that they are entered into or prepared conformably with law and for the best interests of the public.

(7) Deputize, whenever in the opinion of the Solicitor General the public interest requires, any provincial or city fiscal to assist him in the performance of any function or discharge of any duty incumbent upon him, within the jurisdiction of the aforesaid provincial or city fiscal. When so deputized, the fiscal shall be under the control and supervision of the Solicitor General with regard to the conduct of the proceedings assigned to the fiscal, and he may be required to render reports or furnish information regarding the assignment.

(8) Deputize legal officers of government departments, bureaus, agencies and offices to assist the Solicitor General and appear or represent the Government in cases involving their respective offices, brought before the courts, and exercise supervision and control over such legal Officers with respect to such cases.

(9) Call on any department, bureau, office, agency or instrumentality of the Government for such service, assistance and cooperation as may be necessary in fulfilling its functions and responsibilities and for this purpose enlist the services of any government official or employee in the pursuit of his tasks.

Departments, bureaus, agencies, offices, instrumentalities and corporations to whom the Office of the Solicitor General renders legal services are authorized to disburse funds from their sundry operating and other funds for the latter Office. For this purpose, the Solicitor General and his staff are specifically authorized to receive allowances as may be provided by the Government offices, instrumentalities and corporations concerned, in addition to their regular compensation.

(10) Represent, upon the instructions of the President, the Republic of the Philippines in international litigations, negotiations or conferences where the legal position of the Republic must be defended or presented.

(11) Act and represent the Republic and/or the people before any court, tribunal, body or commission in any matter, action or proceeding which, in his opinion, affects the welfare of the people as the ends of justice may require; and

(12) Perform such other functions as may be provided by law.

SECTION 36. Appointments. — The Solicitor General shall be appointed by the President and shall have the same qualification for appointment, rank, prerogatives, and privileges as those of the Presiding Justice of the Court of Appeals.

The Assistant Solicitors General and the Solicitors shall be appointed by the President upon recommendation of the Solicitor General. The Trial Attorneys andadministrative personnel in the Office of the Solicitor General shall be appointed by the Solicitor General.

SECTION 37. Acting Solicitor General. — In case of absence or temporary incapacity of the Solicitor General, the President shall designate an Acting Solicitor General. In case of death, permanent incapacity, removal or resignation of the Solicitor General, or vacancy thereof, the President shall designate an Acting Solicitor General, who shall act as such until a new Solicitor General is appointed, or appoint a new Solicitor General.

TITLE IV Agriculture

CHAPTER 1 General Provisions

SECTION 1. Declaration of Policy. — The State shall promote the well-being of farmers, including share tenants, leaseholders, settlers, fishermen, and other rural workers by providing an environment in which they can increase their income, improve their living conditions, and maximize their contributions to the national economy. Toward this end, the State shall accelerate agricultural development and enhance the production of agricultural crops, fisheries, and livestock by optimizing the use of resources and by applying modern farming systems and technology in order to attain food security for domestic use and expand and diversify agricultural production for export. It shall also encourage private initiative in agri-business ventures both in the production and in the exportation and importation of food and other allied commodities.

SECTION 2. Mandate. — The Department is the government agency responsible for the promotion of agricultural development by providing the policy framework, public investments, and support services needed for domestic and export-oriented business enterprises.

In the fulfillment of this mandate, it shall be the primary concern of the Department to improve farm income and generate work opportunities for farmers, fishermen, and other rural workers. It shall encourage people's participation in agricultural development through sectoral representation in agricultural policy-making bodies so that the policies, plans, and programs of the Department are formulated and executed to satisfy their needs.

It shall ensure social justice, equity, productivity and sustainability in the use of agricultural resources.

SECTION 3. Powers and Functions. — The Department shall:

(1) Provide integrated services to farmers, fishermen, and other food producers on production, utilization, conservation, and disposition of agricultural and fishery resources;

(2) Be responsible for the planning, formulation, execution, regulation, and monitoring of programs and activities relating to agriculture, food production and supply;

(3) Promulgate and enforce all laws, rules and regulations governing the conservation and proper utilization of agricultural and fishery resources;

(4) Establish central and regional information systems to serve the production, marketing, and financing data requirements of the farmers as well as domestic and foreign investors in agri-business ventures;

(5) Provide comprehensive and effective extension services and training to farmers and other agricultural entrepreneurs on the production, marketing, and financing aspects of agricultural enterprises;

(6) Conduct, coordinate, and disseminate research studies on appropriate technologies for the improvement and development of agricultural crops, fisheries, and other allied commodities;

(7) Provide the mechanism for the participation of farmers, fishermen, and entrepreneurs at all levels of policy-making, planning and program formulation;

(8) Coordinate with and enlist other public and private agencies for cooperation and assistance on matters affecting the policies, plans and programs of the Department;

(9) Perform such other functions as may be provided by law.

SECTION 4. Organizational Structure. — The Department shall consist of the Department Proper, the Bureaus, and the Regional, Provincial, Municipal, and Barangay Offices.

The Department Proper shall consist of the Office of the Secretary, the Offices of the Undersecretaries and Assistant Secretaries and their immediate staffs as determined by them respectively, and the Department Services.

The Department Services and Bureaus shall be grouped as follows:

(1) Production Group;

(2) Research, Training and Extension Group;

(3) Agri-Business Group;

(4) Planning and Monitoring Group; and

(5) Support Group.

CHAPTER 2 Department Proper

SECTION 5. Office of the Secretary. — The Office of the Secretary shall consist of the Secretary and his immediate staff as determined by him.

SECTION 6. Assistants to the Secretary. — The Secretary shall be assisted by five (5) Undersecretaries, seven (7) Assistant Secretaries, and the heads of the National Food Authority and the Philippine Coconut Authority who shall have the rank of Undersecretaries.

SECTION 7. Undersecretaries. — The Undersecretaries shall assist the Secretary in the exercise of the mandate and in the discharge of the powers and functions of the Department.

The five (5) Undersecretaries shall be assigned the following functions:

(1) The Undersecretary assigned to Regional Operations shall oversee the implementation of the agricultural plans, policies, programs, and projects of the regional and field offices of the Department;

(2) The Undersecretary assigned to Staff Operations shall provide staff support services, particularly in administration and finance, production, research, training, and extension;

(3) The Undersecretary assigned to Policy and Planning shall provide policy and planning support services, particularly in policy-formulation, planning, and agri-business;

(4) The Undersecretary assigned to Attached Agencies shall exercise supervision over the attached agencies to ensure that their operations are in conformity with the approved plans and policies of the Department;

(5) The Undersecretary assigned to Special Concerns shall develop and implement agricultural policies and priority projects aimed at improving the quality of life of disadvantaged and cultural community groups living in lowland and upland areas. In addition, he shall handle other special projects as may be identified or directed by the Department Secretary.

SECTION 8. Functions of the Undersecretaries. — With respect to his area of responsibility, an Undersecretary shall have the following functions:

(1) Advise the Secretary in the promulgation of orders and other issuances, with respect to his area of responsibility;

(2) Exercise supervision and control over the offices, services, operating units, and officers and employees under his responsibility;

(3) Promulgate rules and regulations, consistent with the policies of the Department that will efficiently and effectively govern the activities of the units under his responsibility;

(4) Coordinate the functions and activities of the units under his responsibility with those of other units under the responsibility of the other Undersecretaries;

(5) Exercise delegated authority on matters related to the functions and activities of the units under his responsibility to the extent granted by the Secretary; and

(6) Perform such other functions as may be provided by law or assigned by the Secretary.

SECTION 9. Functions of the Assistant Secretaries. — Each of the seven (7) Assistant Secretaries shall head any of the following: Production Group, Agri-Business Group, Research, Training and Extension Group, Planning and Monitoring Group, Support Group, Foreign-Assisted Projects and the Regional Operations. In connection therewith, the Assistant Secretaries shall have the following functions:

(1) The Assistant Secretary assigned to the Production Group shall be responsible for providing services relating to planning, programming, and project development of agricultural production. This group shall consist of the Bureau of Animal Industry, Bureau of Plant Industry, Bureau of Fisheries and Aquatic Resources, and Bureau of Soils and Water Management;

(2) The Assistant Secretary assigned to the Agri-Business Group shall be responsible for assisting farmers and other agri-business ventures by providing marketing assistance and investment information. This group shall consist of the Marketing Assistance Services and the Agri-Business Investment Information Services;

(3) The Assistant Secretary assigned to the Research, Training and Extension Group shall be responsible for conducting research and training as well as providing assistance in the establishment of agricultural cooperatives. This group shall be composed of the Bureau of Agricultural Research (BAR), Agricultural Training Institute (ATI), and Bureau of Agricultural Cooperatives Development (BACOD);

(4) The Assistant Secretary assigned to the Planning and Monitoring Group shall take charge of developing, integrating, monitoring and evaluating all plans and programs of the Department and shall collect, monitor, and publish agricultural statistics for the Department and its clientele. This group shall be composed of the Planning and Monitoring Services, Computer Services, and Bureau of Agricultural Statistics;

(5) The Assistant Secretary assigned to the Support Group shall take charge of providing staff support services in finance, administration, and management. This shall be composed of the Financial and Management Services, the Legal Services, and the Administrative Services;

(6) The Assistant Secretary assigned to the Foreign-Assisted Projects shall be responsible for the negotiation and implementation of foreign-assisted projects of the Department;

(7) The Assistant Secretary assigned to Regional Operations shall assist the Undersecretary for Regional Operations in the supervision of regional offices including the coordination and implementation of Department plans, policies and programs.

The seven (7) Assistant Secretaries shall, in addition to the abovementioned duties, perform such other functions as may be assigned by the Secretary. They may also be assigned or placed under the supervision of the Undersecretaries at the discretion of the Secretary.

CHAPTER 3 Department Services

SECTION 10. Planning and Monitoring Service. — The Planning and Monitoring Service shall be responsible for the formulation and integration of plans and programs, emanating from all units of the Department, including the Bureaus, Regional Offices and Attached Agencies. It shall also be responsible for data analysis and monitoring of the implementation of said plans and programs through its management information system.

SECTION 11. Computer Service. — The Computer Service shall be responsible for the development and maintenance of the electronic data processing requirements of the Department.

SECTION 12. Financial and Management Service. — The Financial and Management Service shall provide services relating to budgeting, accounting, and management.

SECTION 13. Administrative Service. — The Administrative Service shall be responsible for providing personnel, records, information, training and other general services.

SECTION 14. Legal Service. — The Legal Service shall handle the legal requirements including those pertaining to the quasi-judicial and regulatory functions of the Department Proper and its Bureaus.

SECTION 15. Agri-business Investment Information Service. — The Agri-business Investment Information Service shall conduct research, gather and collate data related to agri-business such as laws and regulations, taxation, production technologies, market strategies, competition, foreign assistance, grants, credit, and new venture considerations relating to agri-business and shall package information on agri-business investment opportunities and provide sample feasibility studies for different agricultural products and markets.

SECTION 16. Marketing Assistance Service. — The Marketing Assistance Service shall be responsible for identifying markets for Philippine agricultural products and shall assist in the planning of market centers, marketing channels, and distribution networks.

SECTION 17. Department Services Head. — Each of the Services of the Department shall be headed by a Staff Director.

CHAPTER 4 Bureaus and Offices

SECTION 18. Bureau of Animal Industry. — The Bureau of Animal Industry shall:

(1) Formulate programs for the development and expansion of the livestock, poultry, and dairy industries to meet the requirements of the growing populace;

(2) Recommend the specific policies and procedures governing the flow of livestock products through the various stages of marketing, as well as the proper preservation and inspection of such products;

(3) Coordinate and monitor the activities and projects relating to livestock and allied industries;

(4) Prescribe standards for quality in the manufacture, importation, labelling, advertising, distribution, and sale of livestock, poultry, and allied industries; and

(5) For its own sector, recommend plans, programs, policies, rules and regulations to the Secretary and provide technical assistance in the implementation of the same.

SECTION 19. Bureau of Plant Industry. — The Bureau of Plant Industry shall:

(1) Be responsible for the production of improved planting materials, protection of agricultural crops from pests and diseases, and development and improvement of farm equipment and other structures related to the plant industry;

(2) Prepare a program for the selection, production and certification of improved planting materials as well as guidelines for its implementation;

(3) Recommend plant quarantine policies, and prescribe rules and regulations for the prevention, control, and eradication of pests, diseases, and injuries to plants and plant products; and

(4) For its own sector, recommend plans, programs, policies, rules and regulations to the Secretary and provide technical assistance in the implementation of the same.

SECTION 20. Bureau of Fisheries and Aquatic Resources. — The Bureau of Fisheries and Aquatic Resources shall:

(1) Formulate plans for the proper management, accelerated development, and proper utilization of the country's fishery and aquatic resources;

(2) Undertake studies on the economics of the various phases of the fishing industry, which studies shall form the bases for the formulation of policies and programs on fisheries and aquatic resources;

(3) Render technical assistance and advisory services in the proper procurement, construction and operation of the fishing vessels as well as determination and designation of fish landing points for all commercial fishing boats; and

(4) For its own sector, recommend plans, programs, policies, rules and regulations to the Secretary and provide technical assistance in the implementation of the same.

SECTION 21. Bureau of Soils and Water Management. — The Bureau of Soils and Water Management shall:

(1) Advise and render assistance on matters relative to the utilization and management of soils and water as vital agricultural resources;

(2) Formulate measures and guidelines for effective soil, land, and water resource utilization, as well as soil conservation in croplands and other agricultural areas;

(3) Undertake soil research programs;

(4) Coordinate with the relevant government agencies in resettlement areas and prepare the necessary plans for the provision of technical assistance in solving soil impounding and the prevention of soil erosion, fertility preservation, and other related matters;

(5) Engage in rainmaking projects for agricultural areas and watersheds to solve the problem of prolonged droughts and minimize their effects on standing agricultural crops; and

(6) For its own sector, recommend plans, programs, policies, rules and regulations to the Secretary and provide technical assistance in the implementation of the same.

SECTION 22. Bureau of Agricultural Research. — The Bureau of Agricultural Research shall:

(1) Ensure that all agricultural research is coordinated and undertaken for maximum utility to agriculture;

(2) Tap farmers, farmers' organizations, and research institutions, especially the state colleges and universities, in the conduct of research for use of the Department and its clientele, particularly the farmers, fishermen and other rural workers.

SECTION 23. Bureau of Agricultural Cooperatives and Development. — The Bureau of Agricultural Cooperatives and Development shall:

(1) Formulate an integrated system for development and evaluation of agricultural cooperatives;

(2) Provide advice and assistance in the establishment of agricultural cooperatives in the rural communities; and

(3) Evolve a program to promote the economic viability of agricultural cooperatives.

The Bureau shall include in its area of responsibility non-agricultural cooperatives.

SECTION 24. Bureau of Agricultural Statistics. — The Bureau of Agricultural Statistics shall:

(1) Be mainly responsible for the collection, compilation, and official release of agricultural statistics;

(2) Exercise technical supervision over data collection centers;

(3) Coordinate all agricultural statistics and economic research activities of all bureaus, corporations and offices under the Department.

SECTION 25. Agricultural Training Institute. — The Agricultural Training Institute shall:

(1) Be responsible for the training of all agricultural extension workers and their clientele, who are mostly farmers and other agricultural workers;

(2) Ensure that training programs address the real needs of the agricultural sectors; and

(3) Ensure that the research results are communicated to the farmers through the appropriate training and extension activities.

CHAPTER 5 Regional Offices

SECTION 26. Functions. — The Department of Agriculture is authorized to establish, operate, and maintain a Regional Office in each of the administrative regions of the country. Each Regional Office shall be headed by a Regional Director, to be assisted by three (3) Assistant Regional Directors, assigned to Operations, Research, and Support Services, respectively. Each Regional Office shall have, within its administrative regions, the following duties and responsibilities:

(1) Provide efficient and effective frontline services to the people;

(2) Implement and enforce in its area the laws and policies, plans, programs, projects, rules, and regulations issued by the Department including plant and animal quarantine laws, rules and regulations;

(3) Coordinate with regional offices of other departments, offices and agencies in the region;

(4) Coordinate with local government units; and

(5) Perform such other functions as may be provided by law or assigned appropriately by the Secretary.

At the provincial level, policies, plans, programs, projects, laws, rules, and regulations of the Department shall be implemented by the Provincial Agriculture and Fisheries Officer and, at the municipal and barangay levels, by the Municipal Agriculture and Fisheries Office.

SECTION 27. Importation of Plants and Plant Products. — Subject to such special quarantine orders, rules and regulations as may be promulgated by the Secretary of Agriculture upon recommendation of the Plant Quarantine Board, it is prohibited to import or introduce into the Philippines, plants, plant products, soil or packing materials of plants capable of harboring plant pests or being a source or medium of infection or infestation of plants by pests. For purposes of this Chapter, the term "plants" shall refer to living plants and any part thereof, while "plant products" shall mean products derived from plants either in their natural state or processed form.

SECTION 28. Importation of Potential Animal Pests. — The importation of certain species of animals which are liable to become agricultural crop pests and capable of causing injury to agricultural crops is hereby prohibited, except in limited quantities for justifiable purposes and upon written permission from the Regional Director concerned or other officials of the Department who may be authorized by the Secretary of Agriculture.

SECTION 29. Plants, Plant Products, and Other Materials in Transit. — Commodities mentioned under the next two preceding sections, including food provisions and ornaments on board carriers that are in transit, shall be required to get a clearance from the Plant Quarantine Officer assigned at the port concerned.

SECTION 30. Exportation of Plants and Plant Products. — The Regional Director concerned, the Plant Quarantine Officer or other officials of the Department who may be authorized by the Secretary of Agriculture shall cause the inspection and certification of all plants, plant products and other related materials for exportation, capable of harboring plant pests, if the importing country so requires.

SECTION 31. Inspection of Plants, Plant Products, Potential Animal Pests, and Other Materials. — The Regional Director concerned or other officials of the Department who may be authorized by the Secretary of Agriculture shall cause the appropriate inspection of the commodities mentioned in the next four preceding sections and apply the necessary plant quarantine measures in order to attain the objectives of this Chapter.

SECTION 32. Domestic Quarantine of Plants and Plant Products. — In order to prevent and arrest the spread to other areas of injurious plant pests existing in certain localities within the Philippines, the Regional Director concerned, the Plant Quarantine Officer or other officials of the Department who may be authorized by the Secretary of Agriculture shall cause the inspection, treatment and certification of plants and plant products involved in movement from one locality to another within the country.

SECTION 33. Appointment of Plant Quarantine Officers. — The Secretary shall, upon recommendation of the Regional Director concerned and in consultation with the Director of Plant Industry, appoint Plant Quarantine Officers to act as his representatives in implementing and enforcing the provisions of this Chapter.

SECTION 34. Powers and Duties of Plant Quarantine Officers. — The Plant Quarantine Officers shall have authority to:

(1) Inspect all carriers, passengers, crew, luggage and incoming mails to determine the presence of plants, plant products and other materials capable of harboring plant pests as well as potential animal pests;

(2) Enter into and inspect any and all areas where plants, plant products and other materials capable of harboring plant pests are landed, stored or grown;

(3) Examine imported plants, plant products, and other materials capable of harboring plant pests as well as potential animal pests and administer necessary measures to insure effective implementation of the provisions of this Chapter;

(4) Inspect, administer treatment and certify plants, plant products and other related materials intended for export, if the importing country so requires;

(5) Confiscate and destroy or refuse entry of plants, plant products and potential animal pests involved in prohibited importations and deny inspection, certification or clearance of the same; and

(6) Perform such other related duties as may be provided by law.

SECTION 35. Non-Liability Clause. — (1) All charges for storage, demurrage, cartage, labor and delays incident to inspection, cost of disinfection or disinfestation and other post-entry requirements shall be paid by the importer or exporter as the case may be.

(2) The Regional Director and the authorized officials of the Department shall not be held liable for damages to the commodity in the course of the implementation of the provisions of this Chapter.

SECTION 36. Duties of Importer and Exporter. — The importers, exporters, or their authorized representatives shall submit a declaration to the Regional Director concerned or other authorized officials of the Department, at or before the time of entry or embarkation, of plants and plant products for importation or exportation. Such declaration shall indicate the name and address of the consignor or consignee, the purpose, nature and quantity of plants and plant products, the country or locality where the same was grown, place and date of unloading or embarkation and the registered name of the carrier carrying the consignment.

SECTION 37. Entrance and Clearance of Carrier. — (1) The owner, operator, agent or master of carriers plying international or domestic routes are hereby required to serve notice of arrival and departure and to provide inward and outward cargo manifests and other declarations of said carriers to the Plant Quarantine Officer at the post. Prior to departure, the agent or master of said carrier must secure a clearance from the Plant Quarantine Officer thereat.

(2) The Collector of Customs or his authorized agents shall require the owner, agent or master of carrier to submit a copy of the certificate of plant quarantine clearance as a pre-requisite to the issuance of the customs clearance.

SECTION 38. Collection of Fees. — (1) The Regional Director concerned shall, with the approval of the Secretary of Agriculture, promulgate rules and regulations governing the collection of regulatory fees for inspection, certification, import permits, commodity treatment and others, on commodities described in this Chapter which shall constitute the revolving fund of the national plant quarantine service.

(2) Importations and exportations of all government departments or agencies and government-owned or controlled corporations, and donations to and for the account of any duly registered relief organization or any charitable institution certified by the Department of Social Services and Welfare, embassies of foreign governments, and those that may be declared by the President, upon the recommendation of the National Economic and Development Authority in the interest of economic development, are exempt from payment of the fees herein prescribed excluding, however, the expense incurred in commodity treatment.

SECTION 39. Overtime Services. — The services of Plant Quarantine Officers, fumigators and helpers performed outside office hours and reimbursement of meal, transportation, lodging and other incidental expenses shall be chargeable to the party or parties served at the rates to be prescribed by the Secretary of Agriculture upon recommendation of the Regional Director concerned.

SECTION 40. Cooperating Agencies. — The Secretary of Agriculture may call upon the other government agencies in the implementation of plant quarantine regulations, and dissemination of information to the general public.

SECTION 41. Special Quarantine Orders, Rules and Regulations. — Special quarantine orders, rules and regulations shall be promulgated by the Secretary of Agriculture upon recommendation of the Plant Quarantine Board to carry out and implement the provisions of this Chapter.

SECTION 42. Quasi-judicial Authority. — (1) The Regional Directors and the other officials of the Department who may be authorized by the Secretary of Agriculture, after proper hearing, are hereby empowered to impose administrative fines for the violation of and non-compliance with quarantine orders, rules and regulations promulgated in accordance with this Chapter.

(2) The decision of the Regional Director concerned and those of the other authorized officials of the Department under this section are appealable to the Secretary of Agriculture whose decision shall be final.

SECTION 43. Plant Quarantine Board. — For the purpose of carrying out the provisions of this Chapter, there shall be a Plant Quarantine Board which shall be composed of the Undersecretary of Agriculture for Regional Operations as Chairman; the Director of Plant Industry, as Vice-Chairman; and the following members: the Commissioner of Customs, the General Manager of the Philippine Ports Authority, the Director of Quarantine, the Director of Animal Industry, the Postmaster General, the Administrator of the Philippine Coconut Authority, the Director of Forest Development or their representatives, the Chief of the Department Legal Service, the Chief of the Plant Quarantine Section and the Chief of the Crop Protection Division of the Bureau of Plant Industry, and a representative each from the National Economic and Development Authority, the Central Bank of the Philippines, and the Importers' and Exporters' Confederation, as members.

SECTION 44. Duties of the Board. — The Plant Quarantine Board shall act as the advisory body to assist the Secretary in formulating orders, rules and regulations for the effective implementation of the provisions of this Chapter.

SECTION 45. Board Meeting. — The Board shall meet once every quarter or may call special meetings when necessary, provided that such special meetings shall not be held more than four times annually.

SECTION 46. Quorum. — A majority of the members of the Board shall constitute a quorum.

CHAPTER 6 Attached Agencies

SECTION 47. Attached Agencies. — The following units are hereby attached to the Department:

(1) Agricultural Credit Policy Council

(2) National Agricultural and Fishery Council

(3) Philippine Technical and Administrative Committee for SEAFDEC

(4) Livestock Development Council

(5) National Meat Inspection Commission

(6) Fertilizer and Pesticide Authority

(7) Fiber Industry Development Authority

(8) National Tobacco Administration

(9) Sugar Regulatory Administration

(10) National Food Authority and its subsidiaries

(11) Quedan Guarantee Fund Board

(12) Philippine Fisheries Development Authority

(13) Philippine Rice Research Institute

(14) Philippine Coconut Authority and its subsidiaries

(15) National Irrigation Administration

(16) Sacovia Development Authority; and

(17) Regional Cooperative Development Assistance Offices (Regions IX and XII).

SECTION 48. Specific Functions. — (1) The National Agricultural and Fishery Council shall act as an advisory and coordinative body of the Department. As such, it shall conduct and encourage consultative discussions among all agricultural sectors at the municipal, provincial, regional and national levels;

(2) The Philippine Technical and Administrative Committee for Southeast Asia Fisheries Development Center (SEAFDEC) shall be responsible for the administration and management of the SEAFDEC Aquaculture Department and shall monitor and assess the performance of research projects on fisheries and aquaculture in accordance with the policies or standards established by the SEAFDEC International Council and the Department;

(3) The Livestock Development Council shall be responsible for the formulation and establishment of comprehensive policy guidelines for the livestock industry, preparation of plans and programs and evaluation of livestock programs/projects;

(4) The National Meat Inspection Commission shall conduct actual ante mortem inspection on all animals presented for slaughter and post mortem inspection on all animals presented for slaughter and post mortem inspection on all carcasses intended for human consumption in all abattoirs in the country; render technical assistance in the construction of meat establishments (abattoirs, dressing plants, processing plants and meat markets) particularly on the selection of sites, and plant design preparation, equipment design and test runs; exercise overall supervision and control of management and operations of all abattoirs, dressing plants, meat processing plants and meat markets.

SECTION 49. Organization and Operation. — The agencies attached to the Department shall continue to operate and function in accordance with their respective charters, laws or orders creating them, except as otherwise provided in this Code. Any provision of law to the contrary notwithstanding, the Secretary shall serve as Chairman of the governing boards of all attached units or agencies.

TITLE V Public Works and Highways

CHAPTER 1 General Provisions

SECTION 1. Declaration of Policy. — The State shall maintain an engineering and construction arm and continuously develop its technology, for the purposes of ensuring the safety of all infrastructure facilities and securing for all public works and highways the highest efficiency and the most appropriate quality in construction. The planning, design, construction and maintenance of infrastructure facilities, especially national highways, flood control and water resources development system, and other public works in accordance with national development objectives, shall be the responsibility of such an engineering and construction arm. However, the exercise of this responsibility shall be decentralized to the fullest extent feasible.

SECTION 2. Mandate. — The Department of Public Works and Highways shall be the State's engineering and construction arm and is tasked to carry out the policy enunciated above.

SECTION 3. Powers and Functions. — The Department, in order to carry out its mandate, shall:

(1) Provide technical services for the planning, design, construction, maintenance, or operation of infrastructure facilities;

(2) Develop and implement effective codes, standards, and reasonable guidelines to ensure the safety of all public and private structures in the country and assure efficiency and proper quality in the construction of public works;

(3) Ascertain that all public works plans and project implementation designs are consistent with current standards and guidelines;

(4) Identify, plan, secure funding for, program, design, construct or undertake prequalification, bidding, and award of contracts of public works projects with the exception only of specialized projects undertaken by Government corporate entities with established technical capability and as directed by the President of the Philippines or as provided by law;

(5) Provide the works supervision function for all public works constructions and ensure that actual construction is done in accordance with approved government plans and specifications;

(6) Assist other agencies, including the local governments, in determining the most suitable entity to undertake the actual construction of public works projects;

(7) Maintain or cause to be maintained all highways, flood control, and other public works throughout the country except those that are the responsibility of other agencies as directed by the President of the Philippines or as provided by law;

(8) Provide an integrated planning for highways, flood control and water resource development systems, and other public works;

(9) Classify roads and highways into national, regional, provincial, city, municipal, and barangay roads and highways, based on objective criteria it shall adopt; provide or authorize the conversion of roads and highways from one category to another; and

(10) Delegate, to any agency it determines to have the adequate technical capability, any of the foregoing powers and functions; and

(11) Perform such other functions as may be provided by law.

SECTION 4. Organizational Structure. — The Department shall be composed of:

(1) The Department Proper consisting of the Office of the Secretary, the Offices of the Undersecretaries and Assistant Secretaries, the Internal Audit Service, Monitoring and Information Service, Planning Service, Comptrollership and Financial Management Service, Legal Service, and the Administrative and Manpower Management Service;

(2) The Bureau of Research and Standards, Bureau of Design, Bureau of Construction, Bureau of Maintenance, and Bureau of Equipment; and

(3) The Field Offices, consisting of fourteen (14) Regional Offices composed of Region I (Ilocos), Region II (Cagayan Valley), Region III (Central Luzon), National Capital Region, Region IV-A (Southern Tagalog Mainland Provinces), Region IV-B (Southern Tagalog Island Provinces), Region V (Bicol), Region VI (Western Visayas), Region VII (Central Visayas), Region VIII (Eastern Visayas), Region IX (Western Mindanao), Region X (Northeastern Mindanao), Region XI (Southern Mindanao), and Region XII (Central Mindanao), and their respective District Offices.

CHAPTER 2 Department Proper

SECTION 5. Office of the Secretary. — The Office of the Secretary shall be composed of the Secretary and his immediate staff.

SECTION 6. Undersecretaries. — The Secretary shall be assisted by not more than five (5) Undersecretaries who shall be appointed by the President upon the recommendation of the Secretary. The Secretary is hereby authorized to delineate and assign the respective functional areas of responsibility of the Undersecretaries. Such responsibility shall be with respect to the mandate and objectives of the Department and no Undersecretary shall be assigned primarily administrative responsibilities. Within his functional area of responsibility, an Undersecretary shall have the following functions:

(1) Advise and assist the Secretary in the formulation and implementation of Department policies, plans, programs and projects;

(2) Supervise all the operational activities of the units assigned to him, for which he is responsible to the Secretary; and

(3) Perform such other duties and responsibilities as may be assigned or delegated by the Secretary to promote efficiency and effectiveness in the delivery of public services or as may be required by law.

SECTION 7. Assistant Secretaries. — The Secretary shall also be assisted by six (6) Assistant Secretaries appointed by the President of the Philippines upon the recommendation of the Secretary; one (1) to be responsible for the Internal Audit Services; one (1) for the Monitoring and Information Service; one (1) for the Planning Service; one (1) for the Comptrollership and Financial Management Service; one (1) for the Legal Service; and one (1) for the Administrative and Manpower Management Service.

CHAPTER 3 Department Services

SECTION 8. Internal Audit Service. — The Internal Audit Service shall conduct comprehensive audit of various Department activities. Specifically, it shall have the following functions:

(1) Advice the Secretary on all matters relating to management control and operations audit;

(2) Conduct management and operations performance audit of Department activities and units and determine the degree of compliance with established objectives, policies, methods and procedures, government regulations, and contractual obligations of the Department;

(3) Review and appraise systems and procedures, organizational structure, assets management practices, accounting and other records, reports and performance standards (such as budgets and standard cost) of the Department Proper, Bureaus and Regional Offices;

(4) Analyze and evaluate management deficiencies and assist top management to solve the problems by recommending realistic courses of action; and

(5) Perform such other related duties and responsibilities as may be assigned or delegated by the Secretary or as may be required by law.

SECTION 9. Monitoring and Information Service. — The Monitoring and Information Service is hereby created to provide the Secretary timely reports on the status of various Department projects and activities; and develop and implement information programs for mass dissemination in coordination with the appropriate government agencies. The Monitoring and Information Service shall have the following functions:

(1) Advice the Secretary on all matters relating to monitoring and public information;

(2) Develop and maintain a system for retrieving and processing monitoring information on all projects and activities of concern to the Secretary;

(3) Provide accurate and timely status and exception reports to the Secretary;

(4) Generate monitoring reports for the President, the Cabinet, or for any other purpose as required by the Secretary;

(5) Develop and supervise the implementation of communications programs to have relevant policies, programs and plans of the Department understood by the public;

(6) Produce and supervise the dissemination of media materials in line with the national government public information programs;

(7) Coordinate with appropriate national government agencies tasked with public information affairs; and

(8) Perform such other related duties and responsibilities as may be assigned or delegated by the Secretary or as may be required by law.

The existing Infrastructure Computer Center shall be under the supervision of the Assistant Secretary for Monitoring Information. It shall establish and maintain a computerized data bank as a repository of statistics and information on infrastructure operations. It shall also provide computer service to the different offices of the Department.

SECTION 10. Planning Service. — The Planning Service shall provide the Department with the capability to undertake infrastructure development planning and programming. For this purpose, it shall have the following functions:

(1) Advice the Secretary on all matters relating to infrastructure planning;

(2) Formulate strategies and priorities for infrastructure development consistent with national development objectives; and initiate or undertake, coordinate and review area and sector surveys for development planning;

(3) Formulate long-range, medium-term and annual development plans and programs for infrastructure, especially highways, flood control and water resource development systems, and other public works projects, including phasing of implementation;

(4) Identify priority packages for infrastructure development, especially highways, flood control and water resource development systems, and other public works projects, undertake or supervise and evaluate the conduct of feasibility studies and project preparation thereof;

(5) Prioritize project implementation and the allocation of funds and other resources and package project proposals for funding and implementation;

(6) Evaluate and appraise all regional and interregional infrastructure development plans and programs as to their feasibility and consistency with approved strategies and long and medium-term plans;

(7) Initiate regular Department-wide planning exercise and act as the secretariat thereof;

(8) Gather, analyze and organize needed statistical data and information;

(9) Provide technical assistance related to its functions to the other Services, Bureaus and the Regional Offices as needed; and

(10) Perform such other related duties and responsibilities as may be assigned or delegated by the Secretary or as may be required by law.

SECTION 11. Comptrollership and Financial Management Service. — The Comptrollership and Financial Management Service shall provide the Department with coordinated services relating to financial systems and procedures, budget, cash, accounting, and all financial housekeeping matters. For such purposes, it shall have the following functions:

(1) Advise the Secretary on all matters relating to the accounting of government expenditures and receipts, budgeting and cash management, project finances, and financial systems and procedures;

(2) Prepare budget proposals and pursue formal budget authorizations; undertake budget execution, and prepare and submit all appropriate reports to the proper offices;

(3) Develop and maintain accounting, financial and assets management systems, procedures, and practices in the Department proper, Bureaus, and Regional Offices;

(4) Provide assistance in its area of specialization to any unit of the Department and, when requested, to government corporations and councils attached to the Department; and

(5) Perform such other related duties and responsibilities as may be assigned or delegated by the Secretary or as may be required by law.

SECTION 12. Legal Service. — The Legal Service provides the Department with services on such legal affairs as contract letting and litigation, legal and legislative research, complaints and investigation, legal counselling and other matters of law. For such purposes, it shall have the following functions:

(1) Advise the Secretary on all matters relating to legal affairs;

(2) Prepare Department contracts and legal instruments, review and interpret all contracts and agreements entered into by the Department; evaluate all legal proposals;

(3) Conduct administrative investigation as well as the review of administrative charges against officers and employees of the Department;

(4) Exercise functional jurisdiction over the legal staffs of Regional Offices;

(5) Provide legal assistance to the Department proper, the Bureaus and Regional Offices and, when requested, the attached corporations; and

(6) Perform such other related duties and responsibilities as may be assigned or delegated by the Secretary or as may be required by law.

SECTION 13. Administrative and Manpower Management Service. — The Administrative and Manpower Management Service provides the Department with services relating to human resources development, personnel, records, facilities maintenance, medical and dental, security and property and procurement services. For such purposes, it shall have the following functions:

(1) Advise the Secretary, on all matters relating to internal administration and human resources management;

(2) Prepare and implement an integrated personnel plan that shall include provisions on merit promotions, performance evaluation, job rotation, suggestions and incentive awards systems and health and welfare services;

(3) Provide services related to human resources training, education, and development, including manpower and career planning and forecasting and development of indigenous training materials;

(4) Develop, establish and maintain an efficient and cost-effective property procurement system and facilities and coordinate or otherwise interface with relevant agencies, whether government or private, for the purpose of developing or upgrading the system;

(5) Secure and maintain necessary Department facilities and develop, establish and maintain an efficient and effective security system covering, among others, personnel, physical installations, equipment, documents and materials, including the conduct of security investigations;

(6) Coordinate with the appropriate government agencies for a more efficient conduct of administrative processes;

(7) Develop, establish and maintain an efficient records system;

(8) Provide assistance in its area of specialization to the Department proper, Bureaus and Regional Offices and, when requested, the government agencies and corporations attached to the Department; and

(9) Perform such other related duties and responsibilities as may be assigned or delegated by the Secretary or as may be required by law.

CHAPTER 4 The Bureau

SECTION 14. Bureau Head. — Each Bureau shall be headed by a Bureau Director who shall be responsible for efficiently and effectively carrying out the functions of the Bureau.

SECTION 15. Bureau of Research and Standards. — The Bureau of Research and Standards shall develop and set effective standards and reasonable guidelines to ensure the safety of all infrastructure facilities in the country and to assure efficiency and proper quality in the construction of government public works. In pursuit of this task, the Bureau shall engage in research and development in all major areas pertinent to infrastructure development. For such purposes, it shall have the following functions:

(1) Study, on a continuing basis, and formulate and recommend guidelines, standards, criteria, and systems for the survey and design, construction, rehabilitation, maintenance and improvement of all public works and highways;

(2) Conduct or sponsor research on construction materials and formulate and recommend policies, standards and guidelines on materials and quality control;

(3) Undertake or cause to be undertaken specialized technical studies to advance the inhouse technology of the Department and secure the most complete information for project development and implementation purposes;

(4) Formulate technical training programs for Department technical personnel, including the identification of appropriate local and foreign training programs, and recommend the selection of Department personnel for such programs;

(5) Review and study, for the purpose of recognizing new technologies especially those utilizing indigenous resources, current national building and construction standards and procedures and make appropriate recommendations thereon;

(6) Promote, publish and disseminate technical publications;

(7) Provide technical assistance to the Department Proper, other Bureaus, Regional Offices and other agencies on matters within its competence, including technical assistance in the upgrading or updating of the Building Code, and other services;

(8) Cooperate or coordinate with other established research, development, and engineering centers in areas of common or national interests; and

(9) Perform such other duties and responsibilities as may be assigned or delegated by the Secretary or as may be required by law.

SECTION 16. Bureau of Design. — The Bureau of Design shall ascertain that all government infrastructure project implementation plans and designs are consistent with current standards and guidelines. For this purpose, it shall have the following duties and responsibilities:

(1) Conduct or initiate, supervise and review the results of field surveys for highways, flood control and water resource development systems, and other public works projects, including aerial, hydrologic, hydrographic, topographic, geotechnical and other investigations;

(2) Conduct or initiate, supervise and review the preparation of schemes, designs, specifications, estimates, tender and contract documents covering the architectural, structural, mechanical, electrical and other technical design aspects of highways, flood control and other projects of the Department or of other departments upon request or agreement;

(3) Review and evaluate the designs, specifications, estimates, tender and contract documents covering the architectural, structural, mechanical, electrical and other technical design aspects of public works projects of all agencies in accordance with current standards and guidelines;

(4) Provide technical assistance in the selection of firms or entities that shall undertake actual construction of public works projects via participation in the technical evaluation aspect of the bidding/award process; and

(5) Perform such other related duties and responsibilities as may be assigned or delegated by the Secretary or as may be required by law.

SECTION 17. Bureau of Construction. — The Bureau of Construction shall provide technical services on construction works for infrastructure projects and facilities. For this purpose, it shall have the following duties and responsibilities:

(1) Formulate policies relating to construction management and contract administration;

(2) Review and evaluate construction programs, estimates, tender and contract documents;

(3) Inspect, check and monitor construction and works supervision activities of field implementing offices for the purpose of ensuring that such activities are being conducted in accordance with the current standards and guidelines of the Department;

(4) Provide specialist support to implementing field offices on construction management and contract administration; and

(5) Perform such other related duties and responsibilities as may be assigned or delegated by the Secretary or as may be required by law.

SECTION 18. Bureau of Maintenance. — The Bureau of Maintenance provides technical services on the maintenance and repair of infrastructure projects and facilities. For this purpose, it shall have the following duties and responsibilities:

(1) Formulate policies relating to the maintenance of infrastructure projects and facilities;

(2) Review and evaluate maintenance programs, estimates, and tender and contract documents;

(3) Inspect, check, and monitor maintenance activities of implementing field offices for the purpose of ensuring that such activities are being conducted in accordance with the current standards and policies of the Department;

(4) Provide specialist support to implementing field offices on the maintenance of infrastructure projects and facilities;

(5) Perform such other related duties and responsibilities as may be assigned or delegated by the Secretary or as may be required by law.

SECTION 19. Bureau of Equipment. — The Bureau of Equipment provides technical services on the management of construction and maintenance equipment and ancillary facilities. For this purpose, it shall have the following duties and responsibilities:

(1) Formulate policies relating to the management of infrastructure equipment and ancillary facilities;

(2) Review and evaluate programs, estimates, tender and contract documents for equipment;

(3) Inspect, check and monitor the management of equipment by regional equipment services and area shops for the purpose of ensuring that such activities are being conducted in accordance with the current standards and policies of the Department;

(4) Provide specialist support to implementing field offices on equipment management; and

(5) Perform such other related duties and responsibilities as may be assigned or delegated by the Secretary or as may be required by law.

CHAPTER 5 Regional Offices

SECTION 20. Regional Offices. — Regional Offices shall be responsible for highways, flood control and water resource development systems, and other public works within the region, except those defined in Section 3, par. (4) hereof. For this purpose, their duties and responsibilities shall be as follows:

(1) Undertake and evaluate the planning, design, construction and works supervision functions of the Department for the above mentioned infrastructure within the region;

(2) Undertake the maintenance of the above mentioned infrastructure within the region and supervise the maintenance of such local road and other infrastructure receiving national government financial assistance as the Secretary may determine;

(3) Ensure the implementation of laws, policies, programs, rules and regulations regarding the above mentioned infrastructure as well as all public and private physical structures;

(4) Provide technical assistance related to their functions to other agencies within the region especially the local government;

(5) Coordinate with other departments, agencies, institutions and organizations, especially local government units within the region in the planning and implementation of infrastructure projects;

(6) Conduct continuing consultations with the local communities, take appropriate measures to make the services of the Department responsive to the needs of the general public, compile and submit such information to the central office, and recommend such appropriate actions as may be necessary; and

(7) Perform such other related duties and responsibilities as may be assigned or delegated by the Secretary or as may be required by law.

The Department shall retain and have such Project Management Offices as may be required which shall be under the supervision and control of the appropriate Regional Director, unless otherwise determined by the Secretary for reasons of supra-regional scope, magnitude, and multi-functional coverage.

SECTION 21. Regional Director. — The Regional Office shall be headed by a Regional Director who shall be responsible for efficiently and effectively carrying out the duties and responsibilities of the Regional Office. Towards this end, and in line with the policy of decentralization, he shall, within his defined powers, exercise functional and administrative supervision over District Offices within the region including the authority to commit their resources and personnel to integrated province or city-wide development thrusts.

He shall also perform such other related duties and responsibilities as may be assigned or delegated by the Secretary or as may be required by law.

The Regional Director shall be assisted by two (2) Assistant Regional Directors who shall exercise supervision, respectively over: (1) the construction, maintenance and works supervision functions in the region; and (2) the planning, project design, evaluation and technical assistance functions of the Regional Office.

SECTION 22. District Office. — There shall be a District Office in each of the provinces and cities throughout the country to be headed by a District Engineer appointed by the Secretary. A province or city may, however, be divided into two (2) or more engineering districts, upon determination and issuance of an administrative order by the Secretary. The District Office shall be responsible for all highways, flood control and water resource development systems, and other public works within the district, except those defined under Section 3, par. (4) hereof. For this purpose, it shall have the following duties and responsibilities:

(1) Undertake and evaluate the planning, design, construction, and works supervision functions of the Department for the above mentioned infrastructure in the district;

(2) Undertake the maintenance of the abovementioned infrastructure within the district and supervise the maintenance of such local roads and other infrastructure receiving national government financial assistance as the Secretary may determine;

(3) Coordinate with other departments, agencies, institutions, and organizations, especially local government units within the district in the planning and implementation of infrastructure projects;

(4) Provide technical assistance to other agencies at the local level on public works planning, design, construction, maintenance and other engineering matters including securing from the Regional Office or, through the same office, assistance from the Department Proper or Bureaus;

(5) Conduct continuing consultations with the local communities, take appropriate measures to make the services of the Department responsive to the needs of the general public, compile and submit such information to the Regional Office and recommend such appropriate actions as may be necessary; and

(6) Perform such other related duties and responsibilities as may be assigned or delegated by the Secretary or as may be required by law.

SECTION 23. District Engineer. — The District Engineer of or within a province or city shall be accountable for the efficient and effective conduct of the duties and responsibilities of the District Office of which he is the head. Within his defined powers, he shall exercise functional and administrative supervision over district operations including the authority to recommend that field resources and personnel be committed to integrated district-wide development thrusts. He shall also perform such other related duties and responsibilities as may be assigned or delegated by the Secretary or as may be required by law.

SECTION 24. Equipment Services. — The Regional Equipment Services, including regional depots and area shops are hereby reorganized to undertake the management, repair, maintenance and rehabilitation of construction and maintenance equipment. Each depot or shop shall be operated, to the extent practicable, as a profit center. The Regional Equipment Services shall be under the administrative supervision of the Regional Director and technical supervision of the Bureau of Equipment.

CHAPTER 6 Attached Agencies

SECTION 25. Attached Agencies and Corporations. — Agencies and corporations attached to the Department shall continue to operate and function in accordance with their respective charters/laws/executive orders creating them. Accordingly, the Metropolitan Waterworks and Sewerage System, the Local Water Utilities Administration, the National Irrigation Administration, and the National Water Resources Council, among others, shall continue to be attached to the Department; while the Metropolitan Manila Flood Control and Drainage Council, as reorganized, shall be attached to the Department.

TITLE VI Education, Culture and Sports

CHAPTER 1 General Provisions

SECTION 1. Declaration of Policy. — The State shall protect and promote the right of all citizens to quality education at all levels and shall take appropriate steps to make such education accessible to all. Pursuant to this, the State shall:

1) Establish, maintain and support a complete, adequate, and integrated system of education relevant to the needs of the people and society;

2) Establish and maintain a system of free public education in the elementary and high school levels. Without limiting the natural right of parents to rear their children, elementary education is compulsory for all children of school age;

3) Establish and maintain a system of scholarship grants, student loan programs, subsidies, and other incentives which shall be available to deserving students in both public and private schools, especially to the underprivileged;

4) Encourage non-formal, informal, and indigenous learning systems, as well as self-learning, independent, and out-of-school study programs particularly those that respond to community needs; and

5) Provide adult citizens, the disabled, and out-of-school youth with training in civics, vocational efficiency, and other skills.

SECTION 2. Mandate. — The Department shall be primarily responsible for the formulation, planning, implementation and coordination of the policies, plans, programs and projects in the areas of formal and non-formal education at all levels, supervise all educational institutions, both public and private, and provide for the establishment and maintenance of a complete, adequate and integrated system of education relevant to the goals of national development.

SECTION 3. Powers and Functions. — To accomplish its mandate and objectives, the Department shall have the powers and functions of formulating, planning, implementing and coordinating the policies, plans, programs and projects for the following:

(1) Elementary, secondary, physical and international education;

(2) Non-formal and vocational or technical education;

(3) Higher education;

(4) Development of culture;

(5) Foreign and locally assisted projects and other activities relative to Subsections (1), (2), (3) and (4); and

(6) Perform such other functions as may be provided by law.

SECTION 4. Organizational Structure. — The Department, aside from the Department Proper, shall consist of Bureau and Regional Offices.

CHAPTER 2 Department Proper

SECTION 5. Office of the Secretary. — The Office of the Secretary shall be composed of the Secretary and his immediate staff.

SECTION 6. Undersecretaries. — The Secretary shall be assisted by five (5) Undersecretaries, each of whom shall be responsible for the following:

(1) Elementary education, secondary education, physical education and international education programs and centers;

(2) Non-formal education, vocational/technical education, and youth organizations;

(3) Higher education, cultural agencies, and foreign-assisted projects;

(4) Internal administration and management, and regional coordination; and

(5) Legal and legislative affairs, and other attached agencies and centers.

CHAPTER 3 Department Services

SECTION 7. Functions of the Services. — The Services of the Department shall consist of the following:

(1) The Planning Service shall be responsible for providing the Department with economical, efficient, and effective services relating to planning, programming, and project development;

(2) The Financial and Management Service shall be responsible for providing the Department with staff advice and assistance on budgetary, financial, and management improvement matters;

(3) The Administrative Service shall be responsible for providing the Department with economical, efficient, and effective services relating to legal assistance, information, records, supplies, equipment, collection, disbursement, security and custodial work;

(4) The Human Resources Development Service shall:

(a) Develop and administer a personal program which shall include selection and placement, classification and pay, career and employment development, performance rating, employee relations and welfare services;

(b) Act on all matters concerning attendance, leaves of absences, appointments, promotions, and other personnel transactions; and

(c) Conduct training programs in the Department.

(5) The Technical Service, which includes the Office of the Head Executive Assistant and the Information and Publication Service shall take charge of technical staff activities which cannot be allocated to the four (4) other services.

CHAPTER 4 Board of Higher Education

SECTION 8. Organization. — The Board shall be composed of an Undersecretary of the Department of Education, Culture and Sports designated as Chairman and four other members to be appointed by the President of the Philippines upon nomination by the Secretary of Education, Culture and Sports for a term of four years. The four members shall have distinguished themselves in the field of higher education and development either in the public or private sector. The Director of the Bureau of Higher Education shall participate in the deliberation of the Board but without the right to vote.

SECTION 9. Functions. — The Board of Higher Education shall:

(1) Articulate the policy and support the framework for both public and private post-secondary education;

(2) Make policy recommendations regarding the planning and management of the integrated system of higher education and the continuing evaluation thereof;

(3) Recommend to the Secretary of Education, Culture and Sports steps to improve the governance of the various components of the higher education system at national and regional levels; and

(4) Assist the Secretary of Education, Culture and Sports in making recommendations relative to the generation of resources and their allocation for higher education.

SECTION 10. Staff Assistance. — The Bureau of Higher Education shall provide the Board with the necessary technical and staff support; Provided, That the Board may create technical panels of experts in the various disciplines as the need arises.

CHAPTER 5 State Colleges and Universities

SECTION 11. Governance. — By virtue of his chairmanship of their boards of trustees as provided in their respective charters, the Secretary, directly or through his Undersecretaries, shall continue to govern state colleges and universities.

CHAPTER 6 Bureaus and Offices

SECTION 12. Bureau of Elementary Education. — The Bureau of Elementary Education shall have the following functions:

(1) Conduct studies and formulate, develop, and evaluate programs and educational standards for elementary education;

(2) Undertake studies necessary for the preparation of prototype curricular designs, instructional materials and teacher training programs for elementary education;

(3) Formulate guidelines to improve elementary school physical plans and equipment, and general management of these schools; and

(4) Perform such other functions as may be provided by law.

SECTION 13. Bureau of Secondary Education. — The Bureau of Secondary Education shall have the following functions:

(1) Conduct studies and formulate, develop and evaluate programs and educational standards for secondary education;

(2) Develop curricular designs, prepare instructional materials, and prepare and evaluate programs to upgrade the quality of the teaching and non-teaching staff at the secondary level;

(3) Formulate guidelines to improve the secondary schools physical plants and equipment, and general management of these schools; and

(4) Perform such other functions as may be provided by law.

SECTION 14. Bureau of Technical and Vocational Education. — The Bureau of Technical and Vocational Education shall have the following functions:

(1) Collaborate with other agencies in the formulation of manpower plans;

(2) Conduct studies, formulate, develop and evaluate post-secondary vocational technical staff, and formulate guidelines to improve the physical plant and equipment of post-secondary vocational-technical schools; and

(3) Develop curricular designs and prepare instructional materials, prepare and evaluate programs to upgrade the quality of teaching and non-teaching staff, and formulate guidelines to improve the physical plant and equipment of post-secondary, vocational/technical schools.

SECTION 15. Bureau of Higher Education. — The Bureau of Higher Education shall have the following functions:

(1) Develop, formulate and evaluate programs, projects and educational standards for higher education;

(2) Provide staff assistance to the Board of Higher Education in its policy and advisory functions;

(3) Provide technical assistance to encourage institutional development programs and projects;

(4) Compile, analyze and evaluate data on higher education; and

(5) Perform other functions provided by law.

SECTION 16. Bureau of Non-Formal Education. — The Bureau of Non-Formal Education shall have the following functions:

(1) Serve as a means of meeting the learning needs of those unable to avail themselves of the educational services and programs of formal education;

(2) Coordinate with various agencies in providing opportunities for the acquisition of skills necessary to enhance and ensure continuing employability, efficiency, productivity, and competitiveness in the labor market; and

(3) Serve as a means for expanding access to educational opportunities to citizens of varied interests, demographic characteristics and socio-economic origins or status.

SECTION 17. Bureau of Physical Education and School Sports. — The Bureau of Physical Education and School Sports shall have the following functions:

(1) Develop human resources through mass-based sports education;

(2) Improve the general fitness of the citizenry;

(3) Promote social and cultural integration through the revival of indigenous games and sports;

(4) Identify and nurture sports talents and promote excellence in sports, traditional games and other physical activities; and

(5) Perform such other functions as may be provided by law.

CHAPTER 7 Regional Offices

SECTION 18. Organization. — The Department is hereby authorized to establish, operate and maintain a Regional Office in each of the administrative regions of the country. Each Regional Office shall be headed by a Regional Director who shall be assisted by an Assistant Regional Director. The Regional Director shall be responsible for the School Divisions and their Superintendents within his administrative region.

SECTION 19. Functions. — A Regional Office shall have, within its administrative region, the following functions:

(1) Formulate the regional plan of education based on the national plan of the Department taking into account the specific needs and special traditions of the region;

(2) Implement laws, rules, regulations, policies, plans, programs and projects of the Department;

(3) Provide economical, efficient and effective education service to the people;

(4) Coordinate with regional offices of other Departments, Offices and agencies in the region;

(5) Coordinate with local government units; and

(6) Perform such other functions as may be provided by law.

CHAPTER 8 Attached Agencies

SECTION 20. Attached Agencies. — The following agencies are hereby attached to the Department:

(1) National Museum;

(2) National Library;

(3) National Historical Institute;

(4) Institute of Philippine Languages;

(5) Instructional Materials Corporation;

(6) Instructional Materials Council;

(7) Educational Development Projects Implementing Task Force;

(8) Educational Assistance Policy Council;

(9) National Youth and Sports Development Board;

(10) National Social Action Council;

(11) National Board of Teachers;

(12) Boy Scouts of the Philippines;

(13) Girl Scouts of the Philippines; and

(14) Records Management and Archives Office.

SECTION 21. Supervised and Controlled Agencies. — The Department shall exercise supervision and control over the following agencies:

(1) Health and Nutrition Center; and

(2) National Education Testing and Research Center.

SECTION 22. Functions and Duties. — The agencies attached to as well as those under the supervision and control of the Department shall continue to operate and function in accordance with their respective charters or laws creating them except as otherwise provided in this Code.

CHAPTER 9 Miscellaneous Provisions

SECTION 23. Medium of Instruction. — The Department shall promulgate rules and the regulations on the medium of instruction for all schools in accordance with the policy declared in Section 7, Article XIV of the Constitution.

SECTION 24. School Year. — (1) The school year for public and private schools shall consist of not less than forty (40) weeks for the elementary and secondary levels, and thirty-six (36) weeks for the college level or eighteen (18) weeks a semester.

2) The opening date shall be fixed by the Secretary, but it shall not be earlier than the first day of June nor later than the last day of July of each year unless prevented by fortuitous events.

3) The long school vacation period shall likewise be fixed by the Secretary taking into consideration the convenience of the pupils and the special climatic conditions prevailing during the said period.

4) The dates established for the long school vacation shall not be changed oftener than once every five (5) years without prior public hearing properly advertised in a newspaper of general circulation or announced by the school authorities concerned.

SECTION 25. School Holidays. — All schools, whether public or private, shall not hold classes on public holidays, whether regular or special. On holidays especially proclaimed by the President, the schools in the municipality, city or province affected by the proclamation shall not hold classes. The Secretary may, by reason of public calamity or emergency, order the closure of any school, public or private, as may have been affected thereby for such period as necessity may demand.

SECTION 26. School Sessions. — The regular daily sessions of all public and private schools shall be held during the hours fixed by the Secretary or his duly authorized representatives. Except in college, no class sessions shall be held on Saturdays, Sundays, or holidays unless to offset class sessions suspended by competent authority.

SECTION 27. School Rituals. — (1) School rituals prepared and prescribed by the Secretary shall be observed in all public and private elementary and secondary schools in the Philippines.

2) The school rituals shall consist of solemn and patriotic mass singing of the Philippine National Anthem and the recitation of prescribed patriotic pledges.

3) The rituals shall be held in school premises as often as may be practicable under the direction of the respective school authorities.

SECTION 28. Flag Ceremony. — (1) All educational institutions shall observe a simple and dignified flag ceremony, including the playing or singing of the Philippine National Anthem.

2) The flag ceremony shall be conducted under the rules and regulations issued by the Secretary.

3) Failure or refusal to observe the flag ceremony in accordance with the rules and regulations issued by the Secretary shall, after proper notice and hearing, subject the educational institution concerned and its head to public censure as an administrative punishment, which shall be published at least once in a newspaper of general circulation.

4) Failure to observe for the second time the said flag ceremony shall, after notice and hearing, be a ground for the cancellation of the recognition or the permit of the private educational institution concerned.

5) Any teacher or student or pupil who refuses to join or participate in the flag ceremony may be dismissed after due investigation.

SECTION 29. Local School Boards. — In every province, city or municipality, there shall be established a Provincial School Board, City School Board and Municipal School Board, respectively, whose composition, powers, functions and duties shall be provided by law.

TITLE VII Labor and Employment

CHAPTER 1 General Provisions

SECTION 1. Declaration of Policy. — (1) The State shall afford full protection to labor and promote full employment and equality of employment opportunities for all.

It shall guarantee the rights of all workers to self-organization, collective bargaining negotiations, and peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure, humane conditions of work, and a living wage. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law.

(2) The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace.

(3) The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns on investments, and to expansion and growth.

SECTION 2. Mandate. — The Department shall be the primary policy-making, programming, coordinating and administrative entity of the Executive Branch of the government in the field of labor and employment. It shall assume primary responsibility for:

(1) The promotion of gainful employment opportunities and the optimization of the development and utilization of the country's manpower resources;

(2) The advancement of workers' welfare by providing for just and humane working conditions and terms of employment;

(3) The maintenance of industrial peace by promoting harmonious, equitable, and stable employment relations that assure equal protection for the rights of all concerned parties.

SECTION 3. Powers and Functions. — The Department of Labor and Employment shall:

(1) Enforce social and labor legislation to protect the working class and regulate the relations between the worker and his employer;

(2) Formulate and recommend policies, plans and programs for manpower development, training, allocation, and utilization;

(3) Recommend legislation to enhance the material, social and intellectual improvement of the nation's labor force;

(4) Protect and promote the interest of every citizen desiring to work locally or overseas by securing for him the most equitable terms and conditions of employment, and by providing social and welfare services;

(5) Regulate the employment of aliens, including the enforcement of a registration or work permit system for such aliens, as provided for by law;

(6) Formulate general guidelines concerning wage and income policy;

(7) Recommend necessary adjustments in wage structures with a view to developing a wage system that is consistent with national economic and social development plans;

(8) Provide for safe, decent, humane and improved working conditions and environment for all workers, particularly women and young workers;

(9) Maintain a harmonious, equitable and stable labor relations system that is supportive of the national economic policies and programs;

(10) Uphold the right of workers and employers to organize and promote free collective bargaining as the foundation of the labor relations system;

(11) Provide and ensure the fair and expeditious settlement and disposition of labor and industrial disputes through collective bargaining, grievance machinery, conciliation, mediation, voluntary arbitration, compulsory arbitration as may be provided by law, and other modes that may be voluntarily agreed upon by the parties concerned; and

(12) Perform such other functions as may be provided by law.

SECTION 4. Organizational Structure. — The Department shall consist of the Office of the Secretary, and Undersecretaries and Assistant Secretaries, the Services and Staff Bureaus, and the Regional Offices.

CHAPTER 2 Department Proper

SECTION 5. Office of the Secretary. — The Office of the Secretary shall consist of the Secretary and his immediate staff.

SECTION 6. Joint RP-US Labor Committee Staff . — There is hereby created in the Office of the Secretary a Joint RP-US Labor Committee Staff which shall provide technical and other necessary services to the Philippine panel in the Joint Labor Committee created under the RP-US Base Labor Agreement and for other special projects. The unit shall be headed by a Head Executive Assistant who shall be assisted by five (5) staff assistants.

SECTION 7. Undersecretary. — The Secretary shall be assisted by not more than four (4) Undersecretaries who shall be appointed by the President upon the recommendation of the Secretary. The Secretary is hereby authorized to delineate and assign the respective functional areas of responsibility of the Undersecretaries.

SECTION 8. Assistant Secretaries. — The Secretary shall likewise be assisted by not more than four (4) Assistant Secretaries who shall be appointed by the President upon the recommendation of the Secretary. The Secretary is hereby authorized to delineate and assign the respective areas of functional responsibility of the Assistant Secretaries. Within his functional area of responsibility, the Assistant Secretary shall assist the Secretary and Undersecretaries in the formulation, determination and implementation of laws, policies, plans, programs and projects on labor and shall oversee the day-to-day administration and supervision of the constituent units of the Department.

CHAPTER 3 Department Services

SECTION 9. Planning Service. — The Planning Service shall provide the Department with efficient, effective and economical services relating to planning, programming, project development and evaluation, and the development and implementation of a management information system.

SECTION 10. Administrative Service. — The Administrative Service shall provide the Department with efficient, effective and economical services relating to records, management, supplies, equipment, collections, disbursements, building administration and maintenance, security and custodial work.

SECTION 11. Human Resource Development Service. — The Human Resource Development Service shall provide the Department with a program and corresponding projects that shall make available training, education and development opportunities needed to upgrade the levels of competence and productivity of Department managers and personnel. It shall absorb the powers and functions of the Administrative Service in relation to the development and administration of personnel programs including selection and placement, development, performance evaluation, employee relations and welfare.

SECTION 12. Financial Management Service. — The Financial and Management Service shall be responsible for providing the Department with efficient, effective and economical services relating to budgetary, financial, management improvement and internal control matters.

SECTION 13. Legal Service. — The Legal Service shall provide legal advice and service to Department officers and employees; prepare informative or clarificatory opinions on labor laws, rules and regulations for uniform interpretation thereof; answer legal queries from the public; assist the Office of the Solicitor General in suits involving the Department or its officers or employees or act as their principal counsel in all actions taken in their official capacity or other causes before judicial or administrative bodies.

SECTION 14. International Labor Affairs Service. — The International Labor Affairs Service shall be responsible for monitoring the observance and implementation of all obligations, courtesies, and facilities required by international labor affairs, particularly the International Labor Organization, the Conference of Asian Pacific Labor Ministries, the Association of Southeast Asian Nations Labor Ministers Meeting of which the Philippines is a member, and related international labor standards and agreements reached in various international labor forums, treaties, and other multilateral, bilateral or multi-bilateral agreements in the area of labor and employment; provide staff support and policy guidelines to the Secretary in the supervision, monitoring and reporting of the activities of the Philippine overseas labor officers assigned in different countries; serve as the instrumentality of the Department for technical cooperation, programs and activities with other countries and international institutions.

SECTION 15. Information and Publication Service. — The Information and Publication Service shall be responsible for rapport and understanding between the Department and the public through the development of public relations programs and the dissemination of accurate and updated information on labor and employment, by means of publications and media coverages of special events and related matters on the Department's policies, plans, programs, and projects; likewise, it shall be responsible for providing answers to queries from the public regarding the Department's policies, rules, regulations, programs, activities and services.

CHAPTER 4 Bureaus

SECTION 16. Bureau of Labor Relations. — The Bureau of Labor Relations shall set policies, standards, and procedures on the registration and supervision of legitimate labor union activities including denial, cancellation and revocation of labor union permits. It shall also set policies, standards, and procedure relating to collective bargaining agreements, and the examination of financial records of accounts of labor organizations to determine compliance with relevant laws.

The Bureau shall also provide proper orientation to workers on their rights and privileges under existing laws and regulations, and develop schemes and projects for the improvement of the standards of living of workers and their families.

SECTION 17. Bureau of Local Employment. — The Bureau of Local Employment shall:

(1) Formulate policies, standards and procedures on productive manpower resources, development, utilization and allocation;

(2) Establish and administer a machinery for the effective allocation of manpower resources for maximum employment and placement;

(3) Develop and maintain a responsive vocational guidance and testing system in aid of proper human resources allocation;

(4) Regulate and supervise private sector participation in the recruitment and placement of workers locally under such rules and regulations as may be issued by the Secretary;

(5) Establish and maintain a registration or work permit system to regulate employment of aliens;

(6) Develop and maintain a labor market information system in aid of proper manpower and development planning;

(7) Formulate employment programs designed to benefit disadvantaged groups and communities; and

(8) Perform other functions as may be provided by law.

SECTION 18. Bureau of Women and Young Workers. — The Bureau of Women and Young Workers shall:

(1) Formulate policies and promulgate orders, rules and regulations implementing the provisions of the Labor Code affecting working women and minors;

(2) Set standards which shall protect the welfare of the working women and minors, improve their working conditions, increase their efficiency, secure opportunities for their profitable employment and find ways for their economic, educational, social and cultural advancement;

(3) Prepare and recommend to the Secretary of Labor and Employment the approval and issuance of such rules and regulations necessary in the interpretation of all laws relating to the employment of women and minors;

(4) Undertake studies and submit recommendations on the employment of women and minors in commercial, industrial and agricultural establishments and other places of labor;

(5) Provide legal and technical assistance on matters relating to working women and minors;

(6) Act as the government's clearinghouse of all information relating to working women and minors;

(7) Undertake development studies on the training needs of women and minors and develop programs and projects to enhance their productivity and effective participation in community development;

(8) Protect every child employed in the movie, television, radio and entertainment industries against exploitation, improper influences, hazards and other conditions or circumstances prejudicial to his physical, mental, emotional, social and moral development.

(9) Undertake projects and in-service training programs for working children to improve their potentials for employment and their capabilities and physical fitness, increase their efficiency, secure opportunities for their promotion, prepare them for more responsible positions, and provide for their social, educational and cultural advancement, in cooperation with labor and management; and

(10) Perform such other functions as may be provided by law.

SECTION 19. Bureau of Rural Workers. — The Bureau of Rural Workers shall:

(1) Assist rural workers, displaced farmers, and migratory workers in seeking gainful employment;

(2) Conduct studies and draw up programs for re-training of displaced agricultural workers;

(3) Coordinate with regional offices and local government units in preparing a census of rural workers seeking employment; and

(4) Perform such other functions as may be assigned by the Secretary.

SECTION 20. Bureau of Working Conditions. — The Bureau of Working Conditions shall:

(1) Develop and prescribe safety standards, measures and devices; promote safety consciousness and habits among workers; develop and evaluate occupational safety and health programs for workers;

(2) Develop plans, programs, standards and procedures for the enforcement of laws relating to labor standards, including the operation of boilers, pressure vessels, machinery, internal combustion engines, elevators, electrical equipment, wiring installations, and the construction, demolition, alteration and use of commercial and industrial buildings and other workplaces;

(3) Prepare rules and regulations, interpretative bulletins and legal opinions relating to the administration and enforcement of labor standards; and provide manuals and plan programs for the training of field personnel;

(4) Provide technical and legal assistance to the Labor Standards Commission; and

(5) Perform such other functions as may be provided by law.

SECTION 21. Institute for Labor Studies. — The Institute for Labor Studies shall be attached to the Department of Labor and Employment. For policy and program coordination and administrative supervision, the Institute shall absorb the research and publication functions of the Institute of Labor and Manpower Studies. The Institute, to be headed by an Executive Director, assisted by a Deputy Executive Director, shall have the following functions:

(1) Undertake research and studies in all areas of labor and manpower policy and administration;

(2) Review the rationale of existing legislation and regulations and analyze the costs involved in the implementation of such legislation against the benefits expected to be derived;

(3) Study and develop innovative and indigenous approaches towards the promotion of harmonious and productive labor-management and the improvement of workers' welfare services;

(4) Develop and undertake research programs and projects in collaboration with other national agencies to enhance the Department's capability to participate in national decision and policy making;

(5) Enter into agreements with international or bilateral agencies for the carrying out of the foregoing functions;

(6) Expand the scope of its research interests into other countries and regions;

(7) Publish its research studies for dissemination to government as well as to all concerned parties; and

(8) Perform such other functions as may be provided by law.

SECTION 22. Bureau of Labor and Employment Statistics. — The Bureau of Labor and Employment Statistics shall:

(1) Formulate, develop and implement plans and programs on the labor statistical system in order to provide the government with timely, accurate and reliable data on labor and employment;

(2) Conduct nationwide surveys and studies which will generate trends and structures on labor and employment;

(3) Develop and prescribe uniform statistical standards, nomenclatures and methodologies for the collection, processing, presentation and analysis of labor and employment data;

(4) Establish appropriate mechanisms for the coordination of all statistical activities in the Department and for collaboration with other government and private agencies including international research organizations in the conduct of surveys and studies in the area of labor and employment;

(5) Disseminate statistical information and provide statistical services or advice to the users by establishing a data bank and issuing the Bureau's statistical materials and research findings;

(6) Develop and undertake programs and projects geared toward enhancement of the technical competence of the Department on theories, techniques and methodologies for the improvement of the labor statistical system;

(7) Monitor and exercise technical supervision over the statistical units in the Department and its agencies; and

(8) Perform such other functions as may be provided by law or assigned by the Secretary.

SECTION 23. National Conciliation and Mediation Board. — The National Conciliation and Mediation Board, shall absorb the conciliation, mediation and voluntary arbitration functions of the Bureau of Labor Relations. The Board shall be composed of an Administrator and two (2) Deputy Administrators. It shall be an attached agency under the administrative supervision of the Secretary of Labor and Employment.

The Administrator and the Deputy Administrators shall be appointed by the President upon recommendation of the Secretary of Labor and Employment. There shall be as many Conciliators-Mediators as the needs of the public service require, who shall have at least three (3) years of experience in handling labor relations and who shall be appointed by the Secretary. The Board shall have its main office in Metropolitan Manila and its Administrator shall exercise supervision over Conciliators-Mediators and all its personnel. It shall establish as many branches as there are administrative regions in the country, with as many Conciliators-Mediators as shall be necessary for its effective operation. Each branch of the Board shall be headed by an Executive Conciliator-Mediator.

The Board shall have the following functions:

(1) Formulate policies, programs, standards, procedures, manuals of operation and guidelines pertaining to effective mediation and conciliation of labor disputes;

(2) Perform preventive mediation and conciliation functions;

(3) Coordinate and maintain linkages with other sectors or institutions, and other government authorities concerned with matters relative to the prevention and settlement of labor disputes;

(4) Formulate policies, plans, programs, standards, procedures, manuals of operation and guidelines pertaining to the promotion of cooperative and non-adversarial schemes, grievance handling, voluntary arbitration and other voluntary modes of dispute settlement;

(5) Administer the voluntary arbitration program; maintain or update a list of voluntary arbitrations; compile arbitration awards and decisions;

(6) Provide counselling and preventive mediation assistance particularly in the administration of collective agreements;

(7) Monitor and exercise technical supervision over the Board programs being implemented in the regional offices; and

(8) Perform such other functions as may be provided by law or assigned by the Secretary.

The Tripartite Voluntary Arbitration Advisory Council, which is attached to the National Conciliation and Mediation Board, shall advise the National Conciliation and Mediation Board on matters pertaining to the promotion of voluntary arbitration as the preferred mode of dispute settlement.

The Tripartite Voluntary Arbitration Advisory Council shall consist of the Administrator of the National Conciliation and Mediation Board as Chairman, one other member from the government, two (2) members representing labor, and two (2) other members representing management. The members shall be appointed by the President to serve for a term of three (3) years. The Chairman and Members shall serve without compensation.

CHAPTER 5 Regional Offices

SECTION 24. Regional Offices, District Offices and Provincial Extension Units. — The Department is hereby authorized to establish, operate and maintain such Department-wide Regional Offices, District Offices and Provincial Extension Units in each of the administrative regions of the country, insofar as necessary to promote economy and efficiency in the delivery of its services. Its Regional Office shall be headed by a Regional Director who shall have supervision and control thereof. The Regional Director, whenever necessary, shall be assisted by an Assistant Regional Director. A Regional Office shall have, within its regional areas, the following functions:

(1) Implement laws, policies, plans, programs, projects, rules and regulations of the Department;

(2) Provide economical, efficient and effective service to the people;

(3) Coordinate with regional offices of other departments and agencies;

(4) Coordinate with local government units; and

(5) Perform such other functions as may be provided by law or assigned by the Secretary.

CHAPTER 6 Attached Agencies

SECTION 25. Attached Agencies. — The following agencies are attached to the Department for policy and program coordination and administrative supervision:

(1) National Wages Council;

(2) Philippine Overseas Employment Administration;

(3) Employees' Compensation Commission (ECC) which shall include the Executive Director of the ECC as an ex officio member of the Commission;

(4) The National Manpower and Youth Council;

(5) The National Labor Relations Commission;

(6) Overseas Workers' Welfare Administration;

(7) Maritime Training Council; and

(8) National Maritime Polytechnic.

TITLE VIII National Defense

SUBTITLE I Preliminary Provisions

CHAPTER 1 National Defense Policies

SECTION 1. Declaration of Policies. — (1) The prime duty of the Government is to serve and protect the people. Government may call upon the people to defend the State and, in fulfillment thereof, all citizens may be required, under conditions provided by law, to render personal military or civil service.

(2) Civilian authority is, at all times, supreme over the military. The Armed Forces of the Philippines is the protector of the people and the State. Its goal is to secure the sovereignty of the State and the integrity of the national territory.

CHAPTER 2 National Security Council

SECTION 2. Declaration of Policies. — (1) The formulation of integrated and rationalized national, foreign, military, political, economic, social and educational policies, programs, and procedures is vital to the security of the state.

(2) The national interest requires that an agency exist to formulate and adopt policies, programs, and procedures on all matters pertaining to or affecting the national security so that judgments and actions thereon by the President may rest on sound advice and accurate information.

SECTION 3. Mandate. — The National Security Council shall serve as the lead agency of the government for coordinating the formulation of policies, relating to or with implications on the national security.

SECTION 4. Composition. — The National Security Council, hereinafter referred to as Council, shall be composed of the President as Chairman, the Vice-President, the Secretary of Foreign Affairs, the Executive Secretary, the Secretary of National Defense, the Secretary of Justice, the Secretary of Labor and Employment, the Secretary of Local Governments, the National Security Director, the Chief of Staff of the Armed Forces of the Philippines (AFP), and such other government officials and private individuals as the President may appoint.

SECTION 5. Powers and Functions. — In addition to such specific duties and responsibilities as the President may direct, the Council shall:

(1) Advise the President with respect to the integration of domestic, foreign, military, political, economic, social, and educational policies relating to the national security so as to enable all concerned departments and agencies of the government to meet more effectively, problems and matters involving the national security;

(2) Evaluate and analyze all information, events, and incidents in terms of the risks they pose or implications upon or threats to the overall security and stability of the nation, for the purpose of recommending to the President appropriate action thereon;

(3) Formulate and coordinate the implementation of policies on matters of common interest to the various departments, and agencies of the government concerned with the national security, and make recommendations to the President in connection therewith;

(4) Insure that policies adopted by the Council on national security are effectively and efficiently implemented; and

(5) Make such recommendations or render such other reports as the President may from time to time require.

SECTION 6. Executive Committee. — The Council shall have an Executive Committee composed of the President as Chairman, and the Vice-President and Secretary of Foreign Affairs, the Executive Secretary, the Secretary of National Defense, the National Security Director, the Chief of Staff of the Armed Forces of the Philippines and such other members or advisers as the President may appoint from time to time.

The Executive Committee shall review national security and defense problems and formulate positions or solutions for consideration by the Council. It shall determine the agenda and order of business of the Council, and shall ensure that decisions of the Council are clearly communicated to the agencies involved. It shall advise the President on the implementation of decisions.

To carry out the functions of the Executive Committee, the Chairman shall utilize the facilities and expertise of any of the government agencies and instrumentalities and shall promulgate rules and regulations to govern the operations of the Executive Committee.

SECTION 7. Secretariat. — The Council shall have a permanent Secretariat which shall be under the supervision and control of the National Security Director. The National Security Director shall be assisted by a Deputy who, like the National Security Director, shall be appointed by, and serve at the pleasure of, the President. The National Security Director shall attend and participate in meetings of the Cabinet and have the privileges of a member thereof.

SECTION 8. Duties of Director. — Among other duties, the National Security Director shall advise the President on matters pertaining to national security and, whenever directed by the President, see to the implementation of decisions and policies adopted by the President or the National Security Council which have implications on national security.

CHAPTER 3 National Intelligence Coordinating Agency

SECTION 9. Functions. — The National Intelligence Coordinating Agency, hereinafter referred to as the Agency, shall:

(1) Serve as the focal point for coordination and integration of government activities involving national intelligence;

(2) Prepare intelligence estimates of local and foreign situations for the formulation of national policies by the President; and

(3) Provide support and assistance to the National Security Council.

SECTION 10. The Director-General. — The Agency shall be headed by a Director-General who shall be assisted by a Deputy Director-General. Both officials shall be appointed by the President and shall hold office at the pleasure of the President.

SECTION 11. The Deputy-Director General. — The Deputy Director-General shall assist the Director-General in the performance of official functions and, in his absence, perform the functions of the Director-General.

SECTION 12. Organizational Structure. — The organization of the Agency shall consist of the following:

(1) The Office of the Director-General which shall undertake the overall management and operation of the various components of the agency, provide executive staff support, public relations, legal service, and internal audit for the Agency;

(2) The Directorate for Operations, headed by the Assistant Director-General for Operations, which shall be responsible for the collection of information;

(3) The Directorate for Production, headed by the Assistant Director-General for Production, which shall be responsible for the preparation of intelligence estimates and other reports, and the maintenance of automated data processing for the Agency;

(4) The Directorate for Administration, headed by the Assistant Director-General for Administration, which shall be responsible for personnel and training, transportation and communications, supplies and materials, grounds and buildings maintenance, security, and other support services;

(5) The Management and Planning Office which shall formulate plans, policies and programs on the direction, integration and coordination of national intelligence activities and on the operation and management improvement of the Agency;

(6) The Office of the Comptroller which shall provide financial management and control for the Agency; and

(7) As many Field Stations as may be determined by the Director-General which shall undertake intelligence collection activities and provide reports necessary for the preparation of assessments and estimates.

The organization and staffing pattern of the Agency shall be recommended by the Director-General for approval of the President.

SECTION 13. Administrative Supervision By the National Security Council. — The Agency shall be under the administrative supervision of, and give support services to, the National Security Council; however, the agency may report directly to the President, as the President may require.

SECTION 14. National Intelligence Board. — (1) The National Intelligence Board shall serve as an advisory body to the Director of the Agency, on matters pertaining to the integration and coordination of intelligence activities, and shall make recommendations on such matters as the Director may from time to time submit to it for consideration.

(2) The members of the National Intelligence Board shall be appointed by the President. The National Security Director may sit in all meetings of the Board.

SUBTITLE II Department of National Defense

CHAPTER 1 General Provisions

SECTION 15. Declaration of Policy. — The defense establishment shall be maintained to maximize its effectiveness for guarding against external and internal threats to national peace and security, and provide support for social and economic development.

SECTION 16. General Military Council. — The General Military Council shall advise and assist the Secretary in the formulation of military policies and shall consider and report on such other matters as the Secretary may direct. The Council shall be composed of the Secretary as Chairman; and the Undersecretary of National Defense, the Chief of Staff, the Vice-Chief of Staff, the Assistant Chief of Staff of the Armed Forces of the Philippines, and the Commanders of the Major Services, as members. The Deputy Chief of Staff of the Armed Forces of the Philippines shall be the Secretary of the Council.

SECTION 17. Prohibition on Detail of AFP Personnel. — No member of the armed forces in the active service shall, at any time, be appointed or designated in any capacity to a civilian position in the Government including government-owned or controlled corporations or any of their subsidiaries.

SECTION 18. Organizational Structure. — The Department shall be composed of the Secretary, the Undersecretary and Assistant Secretaries and their immediate staffs as determined by them respectively, and such other bodies as are provided by law.

The Government Arsenal, Office of Civil Defense, Philippine Veterans Affairs Office, Armed Forces of the Philippines, National Defense College of the Philippines and the Integrated National Police shall be under the supervision and control of the Department, except as may be provided by special laws.

CHAPTER 2 Department Proper

SECTION 19. Office of the Secretary. — The Office of the Secretary shall consist of the Secretary and his immediate staff as determined by him.

SECTION 20. Office of the Undersecretary. — The functions of the Undersecretary shall be as follows:

(1) Advise and assist the Secretary in the formulation and implementation of Department's objectives and policies;

(2) Oversee all the operational activities of the Department for which he shall be responsible to the Secretary;

(3) Coordinate the programs and projects of the Department, and be responsible for its economical, efficient, and effective administration;

(4) Serve as deputy to the Secretary, in all matters relating to the operations of the Department; and

(5) Perform such other functions as may be provided by law.

When the Secretary is unable to perform his duties owing to illness, absence, or other cause, as in case of vacancy in the Office, the Undersecretary shall temporarily perform the functions of said Office.

SECTION 21. Executive Staff . — The Executive Staff shall be composed of the Staff for Plans and Programs, Staff for Installation and Logistics, Staff for Public Affairs, Staff for Strategic Assessment, Staff for Comptrollership, Staff for Personnel, and the Legal Service.

SECTION 22. The Service Staff . — The Service Staff shall be composed of the Administrative Services Office, and Information Management Office.

SECTION 23. Personal Staff . — There shall be a Personal Staff as may be determined by the Secretary.

CHAPTER 3 Government Arsenal

SECTION 24. Organization. — The Government Arsenal shall be headed by a Director who shall be assisted by one or more Assistant Directors. It shall have staff and operating units provided by law.

SECTION 25. Qualification. — The Director and Assistant Directors shall have the expertise, training or experience in the field of munitions.

SECTION 26. Functions. — (1) The Arsenal shall:

(1) Establish, operate, and maintain government arsenal;

(2) Formulate plans and programs to achieve self-sufficiency in arms, mortars and other weapons and munitions;

(3) Design, develop, manufacture, procure, stockpile, and allocate arms, mortars and other weapons and munitions without the necessity of obtaining any permits or licenses, and devise ways and means for the efficient mobilization of civilian industry to augment the production of the Arsenal in times of emergency; and

(4) Perform such other functions as may be provided by law.

CHAPTER 4 Office of Civil Defense

SECTION 27. Organization. — The Office of Civil Defense shall be headed by an Administrator who shall be assisted by a Deputy Administrator. The Office shall have staff and operating units as may be provided by law.

SECTION 28. Functions. — The Office shall:

(1) In times of war and other national emergencies of equally grave character, coordinate the activities and functions of various government agencies and instrumentalities, as well as of private institutions and civic organization devoted to public welfare to maximize the utilization of the facilities and resources of the entire nation for the protection and preservation of the civilian population and property;

(2) Establish and administer a comprehensive national civil defense and assistance program to include the estimation of the total material, manpower and fiscal requirements for carrying out the said program and coordinate the allocation to local government units such aid in facilities, materials and funds as may be made available by the national government;

(3) Furnish guidance and coordinate the activities of the national government, local governments, private institutions and civic organizations for civil preparedness;

(4) Develop and coordinate a program for informing, educating and training the public on civil defense measures and activities; and

(5) Perform such other functions as may be provided by law.

SECTION 29. Operating Services. — The Administrator shall, subject to the approval of the Secretary of National Defense, prescribe the organization, functions, duties and responsibilities of civil defense units on the national and local government levels, in connection with the various operating units for civil defense. Civil defense operating units shall be established for the national and local government defense organizations. The local units shall operate under the supervision and control of the respective heads of the local government civil defense organizations to which they appertain.

SECTION 30. Basic, Technical and Administrative Services. —

(1) The basic services of the AFP shall be composed of the Major Services. Enlisted personnel of the standing force and the reserve force must belong to one of the basic services.

(2) The technical services of the AFP shall be composed of the Medical Corps, Dental Service, Nurse Corps, Veterinary Corps and the Judge Advocate General Service.

(3) The administrative services shall consist of the Chaplain Service, Women Auxiliary Corps, Medical Administrative Corps and the Corps of Professors.

(4) Appropriate military occupational specialties may be prescribed by the Chief of Staff for each of the basic, technical and administrative services.

(5) Appointment of officers to the basic, technical and administrative services, and enlistment in the basic service shall be governed by rules and regulations prescribed by the Secretary of National Defense.

CHAPTER 5 Philippine Veterans Affairs Office

SECTION 31. Organization. — The Philippine Veterans Affairs Office shall be headed by an Administrator who may be assisted by one Deputy Administrator. It shall have staff and operating units provided by law.

SECTION 32. Functions. — The Office shall:

(1) Formulate and promulgate, subject to the approval of the Secretary of National Defense, policies, rules and regulations governing the adjudication and administration of veterans claims and benefit;

(2) Adjudicate and administer benefits, pensions and other privileges granted to veterans, their heirs and beneficiaries;

(3) Provide medical care and treatment to veterans pursuant to existing law;

(4) Administer, develop, and maintain military shrines;

(5) Formulate policies concerning the affairs, placement and training of ex-servicemen, and assist their widows and dependents, and other retired military personnel; and

(6) Perform such other functions as may be provided by law.

CHAPTER 6 Armed Forces of the Philippines

SECTION 33. Functions. — The Armed Forces of the Philippines (AFP) shall:

(1) Uphold the sovereignty, support the Constitution, and defend the territory of the Republic of the Philippines against all enemies, foreign and domestic;

(2) Promote and advance the national aims, goals, interests and policies;

(3) Plan, organize, maintain, develop and deploy its regular and citizen reserve forces for national security; and

(4) Perform such other functions as may be provided by law or assigned by higher authorities.

SECTION 34. Composition. — (1) The AFP shall be composed of a citizen armed force which shall undergo military training and serve, as may be provided by law. It shall be organized and maintained in a manner that shall render it capable of rapid expansion from a peacetime organization to a wartime or emergency organization. The AFP shall keep a regular force necessary for the security of the State. The officers and men of the regular force shall be recruited proportionately from all provinces and cities as far as practicable.

(2) The Standing Force shall be composed of regular officers and enlisted personnel; reservists called to active duty; draftees; trainees and government-sponsored Filipino cadets enrolled in local or foreign military schools. In time of peace, the size and composition of the Standing Force shall be prescribed by the Secretary of National Defense, upon recommendation of the Chief of Staff.

(3) The Citizen Armed Force shall be composed of all reservists, and officers and enlisted men on inactive status. All able-bodied citizens shall undergo military training, after which they shall become reservists with appropriate ranks. All reservists in a particular locality shall be organized into reserve geographical units subject to call and mobilization as the need arises, individually or as a unit. The Secretary of National Defense shall prescribe and implement a continuing program of recruitment and training for the Citizen Armed Force to enable it to respond to all types of threats to national security.

SECTION 35. Organizational Structure. — The AFP shall consist of the General Headquarters; the Major Services namely: the Philippine Army, the Philippine Air Force, the Philippine Navy and, until otherwise provided by law, the Philippine Constabulary; and other existing units, services and commands of the AFP. The Secretary of National Defense may, in accordance with the policies or directives of the President, create additional units, services and commands, or reorganize the AFP in response to any situation or in pursuance of operational or contingency plans. No Major Service may be unfilled, inactivated or merged with another Major Service, without the approval of the Congress.

SECTION 36. Basic, Technical and Administrative Service. — (1) The basic services of the AFP shall be composed of the major services. Enlisted personnel of the standing force and the reserve force must belong to one of the basic services.

(2) The technical services of the AFP shall be composed of Medical Corps, Dental Service, Nurse Corps, Veterinary Corps and the Judge Advocate General Service.

(3) The administrative service shall consist of the Chaplain Service, Women Auxiliary Corps, Medical Administrative Corps and the Corps of Professors.

(4) Appropriate military occupational specialties may be prescribed by the Chief of Staff for each of the basic, technical and administrative services.

(5) Appointment of officers to the basic, technical and administrative services, and enlisted in the basic service shall be governed by rules and regulations prescribed by the Secretary of National Defense.

SECTION 37. The Citizen Armed Force. — (1) The Secretary of National Defense shall cause the organization of the Citizen Armed Force into Geographical Units throughout the country. The Citizen Armed Force Geographical Units shall consist of cadre of officers and men in the Standing Force and all qualified reservists residing in a particular locality. The cadre may, however, be assigned to another unit in the active force while the Geographical Units to which they are assigned are on inactive status.

(2) Whenever dictated by military necessity, and upon the recommendation of the Secretary of National Defense and approved by the President, the Citizen Armed Force may be called or mobilized to complement the operations of the regular force of the AFP or to support the regular force formations or units. For this purpose, Active Auxiliary Units which shall be part of the Citizen Armed Force Geographical Units, may be utilized, to be constituted out of volunteers to be screened in consultations with the local executives and civic business leaders. The status of Active Auxiliary Units shall be of a degree of activation of military reservists short of full active duty status. They shall not be vested with law-enforcement or police functions.

(3) All members of the Citizen Armed Force on training or service shall be subject to military law and the Articles of War.

SECTION 38. Tactical and Territorial Organization. — Unless otherwise prescribed by law, the major services and other units of the AFP may be organized into such commands, forces and organizations as may be prescribed by the Secretary of National Defense. For this purpose, the territory of the Philippines may be divided into such tactical and geographical areas and zones or regions and districts as the Secretary of National Defense may direct.

SECTION 39. Organizational Principles. — The organizational structure of the AFP shall provide for:

(1) Centralized direction and control of General Headquarters to insure unity and coordination of efforts throughout the military establishment;

(2) Decentralized execution of operations to the Major Services and other separate units to achieve maximum operational efficiency within the military establishment;

(3) Common doctrine, standardized procedures and techniques throughout the military establishment to assure common understanding among all its forces and elements, facilitating thereby the attainment of maximum operational efficiency and effectiveness;

(4) Development of self-reliance concepts for each Major Service to insure national defense and security and maximum utilization of resources; and

(5) Development of the capability to participate in the infrastructure projects of the government.

CHAPTER 7 General Headquarters

SECTION 40. Functions. — The General Headquarters, AFP, shall:

(1) Serve as military advisor and staff to the Secretary of National Defense;

(2) Prepare strategic plans and provide for the strategic direction of the AFP, including the direction of operations of unified or specified commands;

(3) Prepare integrated logistic responsibilities in accordance with those plans;

(4) Prepare integrated plans for military mobilization;

(5) Provide adequate, timely and reliable joint intelligence for use within the Department;

(6) Review major personnel, material and logistic requirements of the AFP in relation to strategic and logistic plans;

(7) Review plans and programs of the Major Services and separate units to determine their adequacy, feasibility and suitability for the performance of their respective detailed plans;

(8) Participate in the preparation of combined plans or military action in conjunction with the armed forces of other nations;

(9) Recommend to the Secretary of National Defense the establishment and force structure of unified or specified commands;

(10) Determine the headquarters support, such as facilities, personnel and communications required by unified or specified commands, and assign the responsibility of providing that support to appropriate Major Services;

(11) Prepare and submit to the Secretary of National Defense for his consideration in the preparation of budgets and statements of military requirements based upon strategic war plans, tasks, priority of tasks, force requirements, and general strategic guidance for the development of military force;

(12) Advise and assist the Secretary of National Defense on research and engineering matters by submitting periodic reports on board strategic guidance, overall military requirements, and relative military importance of development activities to meet the needs of the AFP;

(13) Prepare and submit to the Secretary of National Defense recommendations to appropriate agencies concerning general strategic guidance for the development of industrial mobilization programs;

(14) Formulate policies and guidelines on the organization of the Major Services and other elements of the military establishment, the training of military forces, the employment of forces in the prosecution of tasks required by law, and the employment of forces to assist government agencies in the implementation of laws and regulations when so directed by higher authorities; and

(15) Perform such other functions as may be provided by law or assigned by higher authorities.

SECTION 41. Composition. — The General Headquarters shall be the command and control element of the AFP. It shall be composed of the Office of the Chief of Staff, Office of the Vice-Chief of Staff, the AFP General Staff, and other staff offices and units necessary for effective command and control of the AFP.

SECTION 42. The Chief of Staff . — (1) The Chief of Staff, under the authority and direction of the President and the Secretary of National Defense shall be responsible for the development and execution of the national defense programs and armed forces mission; and prescribe, in accordance with policies of the Secretary of National Defense, the organization, powers, functions and duties of the various staffs, services, installations and other units of the AFP.

(2) The President shall nominate and with the consent of the Commission on Appointments, appoint the Chief of Staff from among the general and flag officers of the basic services. He shall hold the grade of general (Four-Star) and shall if eligible be retired in such a grade, upon relief from his assignment.

(3) The tour of duty of the Chief of Staff shall not exceed three (3) years. However, in times of war or other national emergency declared by the Congress, the President may extend such tour of duty.

SECTION 43. Vice-Chief of Staff . — The Vice-Chief of Staff shall be the principal assistant of the Chief of Staff and shall perform the functions of the Chief of Staff during the latter's absence or disability. He shall be appointed in the same manner as the Chief of Staff and shall hold the grade of Lieutenant General (Three-Star). He shall be retired in that grade if eligible for retirement after his relief from his assignment, unless appointed as Chief of Staff.

SECTION 44. The AFP General Staff . — The AFP General Staff shall advise and assist the Chief of Staff in the performance of his functions and in the accomplishment of the tasks of the General Headquarters. It shall be headed by the Deputy Chief of Staff, who shall be appointed by the Chief of Staff. The AFP General Staff shall be a joint staff. The various General Staff Offices shall each be headed by a Deputy Chief of Staff whose appointment and tenure shall be determined by the Chief of Staff. The organization, functions and duties of the General Staff shall be prescribed by the Chief of Staff.

SECTION 45. Authority to Reorganize the General Headquarters. — (1) The Secretary of National Defense, upon recommendation of the Chief of Staff in the interest of efficiency and economy, may:

(a) Establish and organize staffs, offices and units in the General Headquarters in addition to the Armed Forces General Staff, and prescribe the titles, functions and duties of their members;

(b) Abolish existing staffs, offices and units in the General Headquarters not specifically provided in this Chapter or by any other provision of law, or transfer or consolidate their functions and duties with other staffs, offices or units; and

(c) Abolish the position of any Deputy Chief of Staff or any general staff office and transfer or consolidate its functions and duties with those of another Deputy Chief of Staff or General Staff Office.

(2) If the President does not prescribe otherwise, the organization, functions, and duties of various staffs, offices and units in the General Headquarters shall continue as provided under existing laws and regulations not in conflict with provisions of this Chapter.

CHAPTER 8 Major Services

SECTION 46. Organization.— The Major Services shall be organized by the Chief of Staff in accordance with the policies laid down by the Secretary of National Defense. The commanders of the Major Services shall hold such grade as provided by law, and shall be appointed by the President upon the recommendation of the Secretary of National Defense.

SECTION 47. General Provisions. — The Secretary of National Defense, upon recommendation of the Chief of Staff, AFP, shall assign to the Major Services specific functions in support of the overall responsibilities of the AFP and the Department.

SECTION 48. The Philippine Army. — The Philippine Army shall be responsible for the conduct of operations on land, in coordination with the other Major Services. It shall be organized as prescribed by the Secretary of National Defense, upon recommendation of the Chief of Staff.

SECTION 49. Functions. — The Philippine Army shall:

(1) Organize, train and equip forces for the conduct of prompt and sustained operations on land;

(2) Prepare such units as may be necessary for the effective prosecution of the national defense plans and programs and armed forces missions, including the expansion of the peacetime army component to meet any emergency;

(3) Develop, in coordination with the other Major Services, tactics, techniques and equipment of interest to the army for field operations;

(4) Organize, train and equip all army reserve units; and

(5) Perform such other functions as may be provided by law or assigned by higher authorities.

SECTION 50. The Philippine Air Force. — The Philippine Air Force shall be responsible for the air defense of the Philippines. It shall be organized as prescribed by the Secretary of National Defense, upon recommendation of the Chief of Staff.

SECTION 51. Functions. — The Philippine Air Force shall:

(1) Organize, train, and equip forces for prompt and sustained air operations for the defense of the Philippines;

(2) Organize, train, and equip for airlift, airborne and tactical air operations unilaterally or in coordination with surface forces;

(3) Formulate and develop doctrines, concepts, systems, policies, procedures, strategies, tactics and techniques for operations peculiar to the Air Force;

(4) Organize, train, and equip all air force reserve units; and

(5) Perform such other functions as may be provided by law or assigned by higher authorities.

SECTION 52. The Philippine Navy. — The Philippine Navy shall be responsible for the naval defense of the Philippines. It shall be organized as prescribed by the Secretary of National Defense, upon recommendation of the Chief of Staff.

SECTION 53. Functions. — The Philippine Navy shall:

(1) Organize, train and equip forces for prompt and sustained naval operations;

(2) Prepare the necessary naval units for the effective enforcement of all applicable laws upon the Philippine seas and waters, the prosecution of national defense plans and programs and armed forces missions, including the expansion of a peacetime navy component to meet any emergency;

(3) Formulate and develop doctrines, concepts, systems, policies, procedures, strategies, tactics and techniques for operations peculiar to the Navy;

(4) Enforce laws and regulations pertaining to navigation safety of life at sea, immigration, customs revenues, narcotics, quarantine, fishing and neutrality of the territorial contiguous waters of the Philippines;

(5) Organize, train and equip all naval reserve units; and

(6) Perform such other functions as may be provided by law of assigned by higher authorities.

SECTION 54. The Philippine Coast Guard. — The Philippine Coast Guard shall remain as a major subordinate unit of the Philippine Navy and assigned functions pertaining to safety of life at sea as vested in it by law.

SECTION 55. The Philippine Constabulary. — Unless otherwise provided by law, the Philippine Constabulary, as the national police force, shall be primarily responsible for the preservation of peace and order and the enforcement of laws throughout the Philippines. It shall be organized, trained and equipped primarily as a law enforcement agency. It shall be organized as prescribed by the Secretary of National Defense upon recommendation of the Chief of Staff.

SECTION 56. Functions. — (1) The Philippine Constabulary shall:

(a) Prevent and suppress lawless violence, rebellion, insurrection, riots, brigandage, breaches of the peace and other disturbances, and see to it that perpetrators of those offenses are brought to justice;

(b) Organize, train, equip and prepare its forces for effective law enforcement operations and police duties;

(c) Organize, train and equip constabulary draftees, reservists and reserve units;

(d) Develop tactics, techniques, organization, weapons, equipment and supplies essential to the accomplishment of its missions; and

(e) Perform such other functions as may be provided by law or assigned by higher authorities.

(2) In times of war or national emergency, the Philippine Constabulary or any of its subordinate units may be employed jointly with, or in support of the operations of, the other Major Services, as the President may direct.

SECTION 57. Authority of Constabulary Officers and Enlisted Personnel. — (1) Commissioned officers and enlisted personnel of the Philippine Constabulary, as peace officers, shall execute lawful warrants and orders of arrest issued against any person for any violation of law.

(2) The Philippine Constabulary shall have police jurisdiction throughout the Philippines.

(3) When the constabulary forces in any area are unable to cope effectively with violations of law, the Secretary of National Defense in accordance with the policies or directives of the President, may assign or detail commissioned officers and enlisted personnel of the Army, Air Force, or Navy, to the Philippine Constabulary or any of its subordinate units. The officers and enlisted personnel so assigned or detailed shall have the authority and duties of peace officers and shall be governed by the provisions of this section for the duration of their assignment or detail.

CHAPTER 9 Philippine Military Academy

SECTION 58. Organization. — (1) The Philippine Military Academy is the primary training and educational institution of the AFP. It shall be the primary source of regular officers of the Standing Force.

(2) The Academy shall be organized as prescribed by the Secretary of National Defense, upon recommendation of the Chief of Staff, AFP.

(3) The student body of the Academy shall be known as the Cadet Corps of the Armed Forces of the Philippines (CCAFP) and shall have such strength as the Secretary of National Defense shall determine upon the recommendation of the Chief of Staff, and within the strength limited by the annual Appropriation Act.

(4) There shall be an Academic Board organized by the Chief of Staff, which shall be composed of not more than fifteen (15) members selected from the officers of the Academy upon recommendation of the Superintendent. The Board shall, in accordance with the rules and regulations prescribed by the Chief of Staff, have the power to confer baccalaureate degrees upon the cadets who satisfactorily complete the approved course of study.

SECTION 59. Functions. — The Academy shall prepare the candidates for commission in the regular force of the AFP and shall instruct, train and develop cadets so that each graduate shall possess the character, the broad and basic military skills and the education essential to the successful pursuit of a progressive military career.

CHAPTER 10 National Defense College of the Philippines

SECTION 60. Organization and Administration. — (1) The National Defense College of the Philippines, hereafter referred to as the College, shall be under the direction, supervision and control of the Secretary of National Defense.

(2) The College shall be headed by a President who shall administer the affairs of the College with the assistance of an Executive Vice-President, a Vice-President for Academic Affairs, a Vice-President for Administrative Affairs and a Vice-President for Research and Special Studies. The Executive Vice-President shall act for the President in his absence and shall perform such other functions as may be assigned to him by the President.

(3) The Vice-President for Academic Affairs shall be responsible for the development, implementation, supervision and evaluation of academic programs; the Vice-President for Administrative Affairs, for the overall administrative support to all the activities of the College; and the Vice-President for Research and Special Studies, on the conduct of research work and special studies.

(4) The College shall have an Academic Board to assist the President discharge the following functions:

(a) Supervise the academic affairs of the College;

(b) Recommend academic consultants, professors, lecturers, instructors, research assistants and other resource persons of the College; and

(c) Recommend the courses of studies to be conducted by the College to accomplish its objectives.

The Board shall be composed of the Vice-President for Academic Affairs as Chairman, and the Heads of the various academic disciplines as members, who shall be designated by the President subject to the approval of the Secretary of National Defense.

(5) All resource persons of the College including but not limited to academic consultants, professors, lecturers, instructors, thesis advisers, members of examining and evaluating panels, examiners, correctors, and technicians who are regularly employed in the Government shall, in addition to their salaries, be entitled to receive honoraria, fees and other emoluments fixed by the Secretary of National Defense.

SECTION 61. Powers and Functions. — (1) The College shall train and develop the skills and competence of potential national defense leaders, civilian officials of the different agencies and instrumentalities of the Government, and selected executives from the private sector in the formulation and implementation of national security policies, and for high command and staff duty.

(2) The College shall have the power to confer the degree of Master in National Security Administration (MNSA) upon all its students who have satisfactorily completed the prescribed course of study.

SECTION 62. Graduates of the Regular Course of the College. — (1) Graduates of the College will receive for purposes of promotion to key and sensitive positions in the military and civilian offices, preferential consideration and/or credit points in the grade or class of their respective positions.

(2) All civilian graduates who are holders of the degree of Master in National Security Administration shall qualify for appointment to the initial rank of Lieutenant Colonel in the reserve force of the Armed Forces of the Philippines.

(3) Authority to use with honor the abbreviation MNSA after their names is hereby given to all graduates of the regular course of the College.

CHAPTER 11 Integrated National Police

SECTION 63. Composition. — Unless otherwise provided by law, the Integrated National Police shall be composed of the Philippine Constabulary as the nucleus, and the Integrated Police Force, Fire Services and Jail Management Services as components, under the Department of National Defense.

SECTION 64. Organizational Structure. — The Chief of Constabulary shall prescribe, subject to the approval of the Secretary of National Defense, the table of organization and equipment, ranks and position titles, functions, duties and powers of the various staffs, services, installations and other units of the Integrated National Police. The different headquarters of the Philippine Constabulary in the national, zone or regional and provincial levels shall be the nuclei of the corresponding headquarters of the Integrated National Police. The appropriate offices in the different headquarters levels may be jointly staffed by the constabulary, police, jail and fire service officers and personnel so that an integrated police and public safety services would be effectively discharged.

SECTION 65. Head of the Integrated National Police. — The Chief of Constabulary to be known as Director-General shall be the head of the Integrated National Police. He shall have command of all elements thereof. He may issue from time to time instructions regarding personnel, funds, records, property, correspondence and such other matters to carry out the provisions of this Chapter. As Director-General, the Chief of Constabulary shall be assisted by the Deputy Chiefs of Constabulary, the general staff and the special, administrative and technical staffs of the Philippine Constabulary.

SECTION 66. Functions. — The Integrated National Police shall:

(1) Enforce law and maintain peace and order;

(2) Insure public safety;

(3) Prevent and control fires;

(4) Administer city and municipal jails; and

(5) Perform such other functions provided by law or assigned by higher authorities.

SECTION 67. Authority of the President Over the Integrated National Police. — In the exercise of its power to maintain peace, law, order, and public safety, the Integrated National Police shall be subject to the command and supervision and control of the President and shall function directly under the Secretary of National Defense.

CHAPTER 12 Attached Agencies

SECTION 68. Attached Agencies. — Agencies which are attached to the Department shall operate in accordance with their respective organizational structures and perform the functions and duties assigned to them by law, subject to the requirements of economy, efficiency, and effectiveness.

SUBTITLE III The National Police Commission

SECTION 69. Declaration of Policy. — (1) The State shall establish and maintain one police force which shall be national in scope and civilian in character, to be administered and controlled by a national police commission and shall provide, by law, the authority of local executives over the police units in their jurisdiction.

(2) The maintenance of peace and order, the protection of life, liberty, and property, and the promotion of the general welfare are essential for the enjoyment by all the people of the blessings of democracy.

SECTION 70. The National Police Commission. — Unless otherwise provided by law, the National Police Commission shall be under the control and supervision of the Office of the President and shall continue to operate in accordance with its present organizational structure and perform the functions and duties assigned to it by law.

SECTION 71. Powers and Functions. — As provided by law, the Commission shall exercise the following functions:

(1) Investigate, decide, and review administrative cases against members of the Integrated National Police;

(2) Adjudicate death and permanent disability benefit claims of members of the Integrated National Police;

(3) Administer appropriate examinations for the police, fire and jail services;

(4) Attest appointments of members of the Integrated National Police;

(5) Inspect and audit the performance of the Integrated National Police;

(6) Prepare a National Crime Prevention Program and coordinate its implementation upon approval by the President; and

(7) Perform other duties provided by law or assigned by higher authorities.

TITLE IX Health

CHAPTER 1 General Provisions

SECTION 1. Declaration of Policy. — The State shall protect and promote the right to health of the people and instill health consciousness among them; adopt an integrated and comprehensive approach to health development, with priority for the underprivileged sick, elderly, disabled, women, and children; endeavor to make essential goods, health and other social services available to all the people at affordable cost; establish and maintain an effective food and drug regulatory system; and undertake appropriate health manpower development and research, responsive to the country's health needs and problems.

SECTION 2. Mandate. — The Department shall be primarily responsible for the formulation, planning, implementation, and coordination of policies and programs in the field of health. The primary function of the Department is the promotion, protection, preservation or restoration of the health of the people through the provision and delivery of health services and through the regulation and encouragement of providers of health goods and services.

SECTION 3. Powers and Functions. — The Department shall:

(1) Define the national health policy and formulate and implement a national health plan within the framework of the government's general policies and plans, and present proposals to appropriate authorities on national issues which have health implications;

(2) Provide for health programs, services, facilities and other requirements as may be needed, subject to availability of funds and administrative rules and regulations;

(3) Coordinate or collaborate with, and assist local communities, agencies and interested groups including international organizations in activities related to health;

(4) Administer all laws, rules and regulations in the field of health, including quarantine laws and food and drug safety laws;

(5) Collect, analyze and disseminate statistical and other relevant information on the country's health situation, and require the reporting of such information from appropriate sources;

(6) Propagate health information and educate the population on important health, medical and environmental matters which have health implications;

(7) Undertake health and medical research and conduct training in support of its priorities, programs and activities;

(8) Regulate the operation of and issue licenses and permits to government and private hospitals, clinics and dispensaries, laboratories, blood banks, drugstores and such other establishments which by the nature of their functions are required to be regulated by the Department;

(9) Issue orders and regulations concerning the implementation of established health policies; and

(10) Perform such other functions as may be provided by law.

SECTION 4. Organizational Structure. — The Department shall consist of the Department Proper, National Health Facilities, Regional Offices, Provincial Health Offices, District Health Offices and Local Health Agencies.

CHAPTER 2 Department Proper

SECTION 5. Department Proper. — The Department Proper shall be composed of the Office of the Secretary, the Office for Management Services, the Office for Public Health Services, the Office for Hospital and Facilities Services, the Office for Standards and Regulations, and the Executive Committee for National Field Operations.

SECTION 6. Office of the Secretary. — The Office of the Secretary shall be composed of the Secretary of Health and his immediate staff; the Undersecretary acting as Chief of Staff in the Office of the Secretary; the Assistant Secretary for Legal Affairs; the Assistant Secretary for Financial, Operations and Front Line Services Audit; and the Staff Services for the Secretary.

SECTION 7. Duties of the Undersecretary Acting as Chief of Staff . — The Undersecretary acting as Chief of Staff in the Office of the Secretary, shall supervise the Assistant Secretary for Legal Affairs, the Assistant Secretary for Financial Operations, and Front Line Services Audit, and the Staff Support Services to the Secretary; and head the secretariat of the Executive Committee for National Field Operations.

SECTION 8. Duties of the Assistant Secretary for Legal Affairs. — The Assistant Secretary for Legal Affairs shall head the office that shall provide the Secretary with legal advice on all policy, program and operational matters of the Department; act as Counsel for the Department in cases in which it is a party; handle administrative cases against Department personnel and submit recommendations pertaining thereto; and review legislative proposals.

SECTION 9. Duties of the Assistant Secretary for Financial Operation. — The Assistant Secretary for Financial Operations, and Front Line Services Audit shall head the office that shall monitor the Department's financial affairs, internal operations, and the delivery of frontline services with a view to assuring the integrity of the Department's financial operations and the requirements of the Commission on Audit; optimizing the internal operating efficiency of the Department and its field offices; and ensuring that the Department's constituencies are provided front line services from the Department with the adequacy, quality, and efficiency that they are entitled to.

SECTION 10. The Staff Support Services. — The following Staff Support Services shall undertake such staff services intended to assist the Secretary in performing his functions;

(1) Community Health Service which shall provide services related to formulating and implementing plans and programs for coordinating with local governments and non-government organizations in health related activities, programs and projects;

(2) Public Information and Health Education Service which shall provide services related to formulating and implementing plans, programs, and projects for public education on health and for the timely and accurate public communication of Department policy on health issues;

(3) Health Intelligence Service which shall provide services related to the formulation of disease intelligence, assessment of the state of health of the country and development and maintenance of effective and comprehensive health information systems to support planning and implementation of health programs;

(4) Internal Planning Service which shall provide the Department with necessary services related to planning, programming and project development;

(5) Foreign Assistance Coordination Service which shall provide staff services related to the development, coordination, monitoring, reporting and assessment of foreign-assisted projects of the Department.

SECTION 11. Undersecretaries. — The Secretary shall be assisted by five (5) Undersecretaries who shall exercise the following functions;

(1) Advise the Secretary in the promulgation of Department orders, administrative orders and other issuances;

(2) Exercise supervision and control over the offices, services, operating units and individuals under their authority and responsibility;

(3) Recommend the promulgation of rules and regulations, consistent with Department policies, that will effectively implement the activities of operating units under their authority and responsibility;

(4) Coordinate the functions and activities of the units under their authority with that of the Undersecretaries and regional health directors;

(5) Exercise delegated authority on substantive and administrative matters related to the functions and activities of agencies under their office to the extent granted by the Secretary through administrative issuances;

(6) Perform such other functions as may be provided by law or appropriately assigned by the Secretary.

CHAPTER 3 Department Services

SECTION 12. Office for Management Services. — The Office for Management Services, headed by an Undersecretary who shall be supported by an Assistant Secretary, shall include six (6) staff services involved in providing support services to the Department Proper, field offices and attached agencies, which are as follows:

(1) Financial Services which shall provide the Department with staff advice and assistance on accounting, budget and financial matters; supervise the coordinated preparation and implementation of annual and long term financial and work plan and budget estimates; conduct periodic department-wide performance and financial reviews; and design and implement improvements in financial management systems, procedures and practices;

(2) Management Advisory Service which shall provide staff advice and assistance on internal control and management system improvement, including management information systems; supervise the establishment of a management accounting system, control procedures and management information systems for improved decision-making;

(3) Health Manpower Development and Training Service which shall formulate plans, policies, programs, standards and techniques for the effective and efficient manpower development and training of Department personnel; provide consultative, training and advisory services to implementing agencies; conduct studies and research related to health manpower development and training; and develop plans and programs for improved recruitment, deployment, development, and maintenance of personnel;

(4) Procurement and Logistics Service which shall undertake the central procurement of the health care products and supplies needed by the Department and its field offices which are not produced by or beyond the production capacity of its in-house production facilities; and ensure the proper, adequate and timely flow of health products and services to the Department's field offices;

(5) Biological Production Services which shall formulate plans, policies, programs, standards and techniques for the processing, manufacture, standardization, and improvement of biological products for Departmental use; manufacture vaccines, sera, anti-toxins, and other biologicals; provide consultative, training and advisory services to implementing agencies; and conduct studies and research related to biological production, distribution and use;

(6) Administrative Service which shall provide the Department with efficient and effective services relating to personnel, records, collections, disbursements, security, custodial work, and other general services not covered by the preceding Services.

CHAPTER 4 Offices and Bureaus

SECTION 13. Office for Public Health Services. — The Office for Public Health Services, headed by an Undersecretary, shall include ten (10) staff services involved in policy formulation, standards development, program development, and program monitoring of disease control and service delivery programs implemented by the field offices. The Undersecretary for Public Health Services, who shall be supported by an Assistant Secretary, shall supervise the following:

(1) Maternal and Child Health Service which shall formulate plans, policies, programs, standards and techniques relative to maternal and child health; provide consultative training and advisory services to implementing agencies; and conduct studies and research related to health services for mothers and children;

(2) Tuberculosis Control Service which shall formulate plans, policies, programs, standards and techniques relative to the control of morbidity and mortality from tuberculosis; provide consultative, training and advisory services to implementing agencies; and conduct studies and research related to tuberculosis;

(3) Family Planning Service which shall formulate plans, policies, programs, standards and techniques relative to family planning in the context of health and family welfare; provide consultative, training and advisory services to implementing agencies; and conduct studies and research related to family planning;

(4) Environmental Health Service which shall formulate plans, policies, programs, standards and techniques relative to environmental health and sanitation; provide consultative, training and advisory services to implementing agencies; and conduct studies and research related to environmental health;

(5) Nutrition Service which shall formulate plans, policies, programs, standards and techniques relative to nutrition services in the context of primary health care, provide consultative, training and advisory services to implementing agencies; and conduct studies and research related to nutrition;

(6) Dental Health Service which shall formulate plans, policies, programs, standards and techniques relative to dental health services; provide consultative, training and advisory services to implementing agencies; and conduct studies and research related to dental services;

(7) Malaria Control Service which shall formulate plans, policies, programs, standards and techniques relative to the control of malaria; provide consultative, training and advisory services to implementing agencies; and conduct studies and research to malaria and its control;

(8) Schistosomiasis Control Service which shall formulate plans, policies, programs, standards and techniques relative to the control of schistosomiasis; provide consultative, training and advisory services to implementing agencies; and conduct studies and research related to schistosomiasis and its control;

(9) Communicable Disease Control Service which shall formulate plans, policies, programs, standards and techniques relative to the control of communicable diseases, other than the major causes of mortality and morbidity, such as leprosy, sexually transmitted diseases, filariasis and others; provide consultative, training and advisory services to implementing agencies; and conduct studies and research related to these other communicable diseases;

(10) Non-communicable Disease Control Service which shall formulate plans, policies, programs, standards and techniques relative to the control of non-communicable diseases; provide consultative, training and advisory services to implementing agencies; and conduct studies and research related to mental illness, cardiovascular-disease, cancer, other non-communicable diseases, and occupational health.

SECTION 14. Office for Hospital and Facilities Services. — The Office for Hospital and Facilities Services, headed by an Undersecretary who shall be supported by an Assistant Secretary, shall include four (4) staff services involved in policy formulation, standards development, program monitoring and provision of specialized assistance in the operations of hospitals and the management of facilities, which are as follows:

(1) Hospital Operations and Management Service which shall formulate and implement plans, programs, policies, standards and techniques related to management improvement and quality control of hospital operations; provide consultative, training and advisory services to field offices in relation to the supervision and management of hospital components; and conduct studies and research related to hospital operations and management;

(2) Radiation Health Service which shall formulate and implement plans, programs, policies, standards and techniques to ensure radiation health safety; provide consultative, monitoring, training and advisory services to private and government facilities with radiation-emitting apparatus; and conduct studies and research related to radiation health;

(3) Hospital Maintenance Service which shall formulate and implement plans, programs, policies, standards and techniques related to assuring the proper maintenance of Department equipment; provide consultative, training and advisory services to implementing agencies in relation to preservation, repair and maintenance of medical and non-medical equipment of the Department; and conduct studies and research related to equipment and facility maintenance;

(4) Health Infrastructure Service which shall formulate and implement plans, policies, programs, standards and techniques related to development and preservation of health infrastructure; provide consultative, training and advisory services to implementing agencies in relation to infrastructure projects to assure economical and efficient implementation; and conduct studies and research related to infrastructure development and utilization.

SECTION 15. Office for Standards and Regulations. — The Office for Standards and Regulations, headed by an Undersecretary and supported by an Assistant Secretary, shall include three (3) bureaus and one (1) national office that shall be responsible for the formulation of regulatory policies and standards over the various areas of concern in the health sector, whose implementation shall be the general responsibility of the Department's regional field offices. The same bureaus shall also be responsible for those areas of activity covered by regulatory policy to provide the Secretary with current information on the status of these regulated areas of activity and to provide the Secretary with a basis for preliminary evaluation of the efficiency of the Department's field offices in performing their regulatory functions. The same bureaus shall conduct studies and research pertinent to their areas of responsibility . In certain instances the bureaus may also perform consultative, training and advisory services to the practitioners and institutions in the area of regulated activity. The same bureaus and national office are the following:

(1) Bureau of Research and Laboratories which shall develop and formulate plans, standards and policies, for the establishment and accreditation and licensing of laboratories; blood banks and entities handling biological products; provide consultative, training and advisory services to public and private laboratories; and conduct studies and research related to laboratory procedures and operations;

(2) Bureau of Food and Drugs which shall act as the policy formulation and sector monitoring arm of the Secretary on matters pertaining to foods, drugs, traditional medicines, cosmetics and household products containing hazardous substances, and the formulation of rules, regulations and standards in accordance with Republic Act 3720 (1963), as amended by Executive Order No. 175, s. 1987, and other pertinent laws for their proper enforcement; prescribe general standards and guidelines with respect to the veracity of nutritional and medicinal claims in the advertisement of food, drugs and cosmetics in the various media, to monitor such advertisements; advise the Department's field offices to call upon any erring manufacturer, distributor, or advertiser to desist from such inaccurate or misleading nutritional or medicinal claims in their advertising; should such manufacturer, distributor, or advertiser refuse or fail to obey the desistance order issued by the Bureau, he shall be subject to the applicable penalties as may be prescribed by law and regulations; the Bureau shall provide consultative, training and advisory services to all agencies and organizations involved in food and drug manufacturing and distribution with respect to assuring safety and efficacy of food and drugs; conduct studies and research related to food and drug safety; maintain a corps of specially trained food and drugs inspectors for assignment to the various field offices of the Department; while these inspectors shall be under the technical supervision and guidance of the Bureau, they shall be under the Administrative supervision of the head of the field offices to which they shall be assigned, the latter being responsible for regulatory program implementation within the geographic area of his jurisdiction;

(3) Bureau of Licensing and Regulation which shall formulate policies and establish the standards for the licensing and regulation of hospitals, clinics and other health facilities; establish standards that shall be the basis of inspections and licensure procedures of the Department's field offices; and provide consultative, training and advisory services to field offices on the conduct of licensing and regulatory functions over hospitals, clinics and other health facilities.

(4) National Quarantine Office which shall formulate and implement quarantine laws and regulations and, through its field offices, exercise supervision over rat-proof zones in designated international ports and airports and over medical examination of aliens for immigration purposes.

CHAPTER 5 Field Offices

SECTION 16. Office for National Field Operations. — The Office for National Field Operations, through an Executive Committee, shall supervise the operations of the various Regional Field Offices and the National Health Facilities, as enumerated in Section 17(3) and further described in Sections 18, 19 and 20 hereof.

SECTION 17. Department Field Offices. — The Department field offices, under the supervision and control of the Executive Committee for National Field Operations, shall be composed of the following:

(1) Regional Health Offices (other than the National Capital Region) and subordinate units that include regional medical centers, regional hospitals, provincial health offices including component hospitals and district health offices, city health offices;

(2) Regional Health Office for the National Capital Region: Municipal Health Offices of Makati, Mandaluyong, Pasig, Marikina, Las Piñas, Muntinlupa, San Juan, Valenzuela, Navotas, Malabon, Parañaque, Taguig, Pateros;

(3) National Health Facilities which are health facilities classified as National Health Resources because their services and activities accrue to the whole country's health care and infrastructure. These facilities are of two classifications: National Medical Centers and the Special Research Centers and Hospitals, which are attached to the Department:

(a) National Medical Centers: San Lazaro Hospital, Tondo Medical Center, Jose Fabella Memorial Hospital, Quirino Memorial Hospital, Rizal Medical Center, National Children's Hospital, Jose Reyes Memorial Medical Center, and the East Avenue Medical Center.

(b) Special Research Centers and Hospitals: Philippine Heart Center, Lung Center of the Philippines, National Orthopedic Hospital, National Center for Mental Health, Research Institute for Tropical Medicine, National Kidney Institute, and the Philippine Children's Medical Center.

SECTION 18. Regional Health Offices. — The Department is authorized to establish, operate, and maintain a Department-wide Regional Office, in each of the administrative regions of the country, under the supervision of an Executive Committee chaired by the Secretary. Each Regional Office shall be headed by a Regional Director to be appointed by the President, and supported by an Assistant Regional Director. The appointment of the Regional Director and Assistant Regional Director shall be to the Department-at-large and assignment shall be by administrative issuances of the Secretary. The Regional Health Office shall be responsible for the field operations of the Department in its administrative region and for providing the region with efficient and effective health and medical services. It shall supervise all Department agencies in its administrative region including whatever medical centers, regional hospitals, sanitaria, provincial health offices and city health offices are located in the region except those placed under the Department Proper.

In addition to the foregoing, a Regional Office shall have within its administrative region, the following functions:

(1) Implement laws and rules, regulations, policies, plans, programs and projects of the Department in the region;

(2) Provide efficient and effective health and medical services to the people;

(3) Coordinate with regional offices of other departments, offices, and agencies in the region;

(4) Coordinate with local government units; and

(5) Perform such other functions as may be provided by law.

SECTION 19. Provincial Health Office. — The Provincial Health Office shall be the Department agency in the province. It shall exercise supervision and control over district health offices and other field units of the department in the province, except those otherwise placed under the Department Proper or directly under the Regional Health Office.

The Provincial Health Office shall be headed by a Provincial Health Officer. Depending on the size, population, and health facilities of the province as well as budgetary provisions, a province may have one Assistant Provincial Health Officer assisting the Provincial Health Officers, or two Assistant Provincial Health Officers, one assisting the Provincial Health Officer in public health activities and the other assisting in hospital operations. The Provincial Health Officers and Assistant Provincial Health Officers shall be appointed by the Secretary to a region, and their assignment to a province shall be made by the Secretary on recommendation of the Regional Health Director.

SECTION 20. District Health Office. — The District Health Office shall exercise supervision and control over district hospitals, municipal hospitals, rural health units, barangay health stations and all other Department units in the health district, except those otherwise placed directly under the Provincial Health Office, or Regional Health Office, or the Department Proper.

The District Health Office shall be headed by a District Health Officer who shall also serve as the Chief of the district hospital as well as the head of all field units in the district. District Health Officers shall be appointed by the Secretary to a region, and their assignments shall be made by the Secretary on the recommendation of the Regional Health Director.

SECTION 21. Local Health Agencies. — The Department shall review and monitor the establishment, operation and maintenance of health agencies funded by local governments. Proposals for integrating locally funded health agencies under the supervision and control of the Department without regard to the sourcing of funds shall be made by the Department for the appropriate local government's approval. Any such agreement shall be allowed and, whenever possible, funding from national sources may be extended to achieve a nationally integrated government health service under the Department.

SECTION 22. City Health Officers. — The City Health Officers and Assistant City Health Officers shall be appointed by the Secretary. Their compensation shall be paid out of national funds.

SECTION 23. Delegation of Power by Secretary. — The Secretary shall have the authority to delegate such substantive and administrative powers and authority as may be necessary to the heads of the Regional Health Offices, in addition to such administrative authority as have been mandated for delegation for all Departments by the President. The Secretary shall also delegate such powers and authority to the heads of the Provincial Health Offices and those of other subordinate units of the Regional Health Offices as in his sound judgment would make for a more efficient and effective administration of health and medical services.

CHAPTER 6 Attached Agencies

SECTION 24. Attached Entities. — The Philippine Medical Care Commission and the Dangerous Drugs Board shall be attached to the Department and shall continue to operate and function in accordance with the law creating them, except as otherwise provided in this Code.

SECTION 25. The Philippine Medical Care Commission. — The Philippine Medical Care Commission shall be composed of the Secretary of Health as Chairman, an Undersecretary of Health designated by the Secretary as Vice-Chairman, and the following members: the Administrator of the Social Security System, the President and General Manager of the Government Service Insurance System, the Secretary of Finance, the Secretary of Local Government, the Secretary of Labor and Employment, and four (4) other members representing the beneficiaries, the private employers, the physicians and the hospitals. The four other members shall be appointed by the President of the Philippines for a term of six (6) years.

The ex officio members may designate their representatives who shall exercise the plenary powers of their principals as well as enjoy the benefits available to the latter.

SECTION 26. The Dangerous Drugs Board. — The Dangerous Drugs Board shall be composed of the Secretary of Health, who shall be ex officio chairman, an Undersecretary of Health designated by the Secretary, who shall be ex officio Vice-Chairman, an Executive Director and the following members: the Secretary of Justice or his representative; the Secretary of National Defense or his representative; the Secretary of Education or his representative; the Secretary of Finance or his representative; and the Secretary of the Department of Social Welfare and Development or his representative. The Director of the National Bureau of Investigation shall be the permanent consultant of the Board.

TITLE X Trade and Industry

CHAPTER 1 General Provisions

SECTION 1. Declaration of Policy. — The State shall develop a self-reliant and independent national economy effectively controlled by Filipinos. It recognizes the indispensable role of the private sector, encourages private enterprise, and provides incentives to needed investments.

The State shall promote industrialization and full employment based on sound agricultural development and agrarian reform, through industries that make full and efficient use of human and natural resources, and which are competitive in both domestic and foreign markets. It shall protect Filipino enterprises against unfair foreign competition and trade practices.

In pursuit of these goals, all sectors of the economy and all regions of the country shall be given optimum opportunity to develop. Private enterprises, including corporations, cooperatives, and similar collective organizations shall be encouraged to broaden the base of their ownership.

The State shall pursue a trade policy that serves the general welfare and utilizes all forms and arrangements of exchange on the basis of equality and reciprocity.

The State shall regulate or prohibit monopolies when the public interest so requires. No combinations in restraint of trade or unfair competition shall be allowed. The state shall protect consumers from trade malpractices and from substandard or hazardous products.

SECTION 2. Mandate. — The Department of Trade and Industry shall be the primary coordinative, promotive, facilitative and regulatory arm of the Executive Branch of government in the area of trade, industry and investments. It shall promote and develop an industrialization program effectively controlled by Filipinos and shall act as catalyst for intensified private sector activity in order to accelerate and sustain economic growth through: (a) comprehensive industrial growth strategy, (b) a progressive and socially responsible liberalization program, (c) policies designed for the expansion and diversification of trade, and (d) policies to protect Filipino enterprises against unfair foreign competition and trade practices.

SECTION 3. Powers and Functions. — The Department of Trade and Industry shall:

(1) Formulate and implement policies, plans and programs relative to the development, expansion, promotion and regulation of trade, industry, and investments;

(2) Consolidate and coordinate all functions and efforts pertaining to the promotion of exports, diversification and decentralization of industries, and development of foreign trade;

(3) Encourage and promote the growth and expansion of industries which make full use of human and natural resources and which are competitive in domestic and foreign markets;

(4) Adopt and implement measures to protect Filipino enterprises against unfair foreign competition and trade practices;

(5) Provide incentives to broaden the base of ownership of large-scale industrial enterprises and accelerate the formulation and growth of small and medium-scale enterprises;

(6) Regulate the importation of essential consumer and producer items to maintain their fair and competitive prices to end-users;

(7) Protect consumers from trade malpractices and from substandard or hazardous products;

(8) Adopt and implement measures to prohibit combinations in restraint of trade and unfair competition;

(9) Develop the capabilities of industry to increase the domestic content of its products and upgrade the quality of products according to competitive international standards;

(10) Encourage and support the formation of People's Economic Councils at regional, provincial and municipal levels as well as other trade, industry and consumer protection institutions or associations;

(11) Upgrade and develop the manufacture of local capital goods and precision machinery components;

(12) Formulate the appropriate mechanics to guide and manage the transfer of appropriate industrial technology in the country;

(13) Formulate country and product export strategies which will guide the export promotion and development thrusts of the government; and implement programs and activities geared towards the overseas promotion of Philippine exports in overseas markets;

(14) Take the primary role in negotiating and reviewing existing international trade agreements, particularly those affecting commodity quotas limiting existing exports of Philippine products to determine programs for renegotiations of more favorable terms;

(15) Administratively adjudicate and impose reasonable fines and penalties for violation of existing trade and industry laws;

(16) Prepare, for consideration of the Monetary Board, proposed programs in the commercial banking sector for directing commercial lending facilities towards priority areas of commercial and industrial development, as well as coordinate government direct funding and financial guarantee programs to achieve trade and industry growth;

(17) Issue subpoena and subpoena duces tecum to compel the attendance of witnesses and the production of the necessary information, papers and documents which it may deem necessary in the exercise of its powers and functions;

(18) Prescribe and enforce compliance with such rules and regulations as may be necessary to implement the intent and provisions of this Code, which rules and regulations shall take effect fifteen (15) days following their publication in the Official Gazette; and

(19) Perform such other functions as may be necessary or incidental in carrying into effect the provisions of this Code and as may be provided by law.

SECTION 4. Organizational Structure. — The department shall consist of the offices of the secretary, undersecretaries and assistant secretaries, national service centers, regional offices, and line corporate agencies and government entities.

CHAPTER 2 Department Proper

SECTION 5. Office of the Secretary. — The Office of the Secretary shall consist of the Secretary, his immediate staff, the Undersecretary for Policy Planning and Support Services, and the Offices and Services directly supportive of the Office of the Secretary. The functions of the foregoing shall be as follows:

(1) The Undersecretary for Policy Planning and Support Services shall supervise the Office of Policy Research, the Office of Operational Planning, the Office of Legal Affairs, the Human Resource Development Service, the General Administrative Service, the Management Information Service, the Financial Management Service and the Public Relations Office;

(2) The Office of Policy Research shall coordinate and help formulate general trade and industry policies for the Department; evaluate the effectiveness of trade and industry programs as such, as their implementation by the Department's Line Operating Units; and research on trade and industry issues for policy analysis and formulation;

(3) The Office of Operational Planning shall develop operating plans, programs and projects of the Department as such; supervise the Annual Trade and Industry Development Planning Conferences between government and the private sector; evaluate the cost-effectiveness of various projects and activities of the Department; coordinate the updating of the Department's operating plans in response to relevant environment changes; review the Department's performance against standards and targets previously established; and provide staff services related to the development, monitoring, reporting and assessment of foreign-assisted projects of the Department;

(4) The Office of Legal Affairs shall provide the Secretary with legal advise on all policies, programs, and operational matters of the Department; serve as Counsel for the Department in cases in which it is a party; handle administrative cases against Department personnel and submit recommendations pertaining thereto; and review legislative proposals;

(5) The Human Resource Development Service shall design and implement human resource development plans and programs for the personnel of the Department; provide for present and future manpower needs of the organization; and maintain high morale and favorable employee attitudes towards the organization through the continuing design and implementation of employee development programs;

(6) The Financial Management Service shall formulate and manage a financial program to ensure availability and proper utilization of funds; and provide for an effective monitoring system of the financial operations of the Department;

(7) The General Administrative Service shall provide services relative to procurement and allocation of supplies and equipment, transportation, messengerial work, cashiering, payment of salaries and other Department obligations, office maintenance, property safety and security, and other utility services; and comply with government regulatory requirements in the areas of performance appraisal, compensation and benefits, employment records and reports;

(8) The Management Information Service shall design and implement a comprehensive management information system, both computerized and manual, for the Department; provide technical assistance to the various information generating units within the Department; and establish data exchange linkages with public and private agencies whenever feasible;

(9) The Public Relations Office shall perform the Department's public relations function; provide a two-way flow of information between the Department and its constituencies; and coordinate the Secretary's regular press conferences and the Department's relations with the mass media;

(10) The Trade and Investment Information Center shall, as the primary information arm of the Department, design and operate a computerized system of collection, documentation, storage, retrieval, and timely dissemination of comprehensive and relevant information on trade, industry, and investment for use by other government agencies and the business sector; coordinate and monitor the information campaigns on the Department's services, programs, and projects; develop a communications programs to promote Philippine investment opportunities and the country's export products which shall be directed at foreign audiences; and provide creative services to other units of the Department in support of their own information programs;

(11) The National Industrial Manpower Training Council shall act as the umbrella agency to coordinate and operate the Cottage Industry Technology Center, the Construction Manpower Development Foundation, and the Construction Manpower Development Center and perform other functions such as initiating specialized industrial training centers and identifying supply-demand factors and industrial skills subject to the direction formulated by the National Manpower and Youth Council; and

(12) There is hereby created in the Office of the Secretary the Office of Special Concerns to attend to matters that require special attention, whether involving a matter that crosses several functional areas, demands urgent action, or otherwise necessitates, in the Secretary's opinion, attention by a special group.

SECTION 6. Undersecretaries. — The Secretary shall be assisted by five (5) Undersecretaries. They shall exercise supervision over the offices, services, operating units and individuals under their authority and responsibility.

The Secretary may designate any Undersecretary to supervise the bureaus, offices, and agencies, including the attached entities, consistent with the mandate of the Department.

SECTION 7. Assistant Secretaries. — The Secretary shall also be assisted by five (5) Assistant Secretaries who shall be appointed by the President upon the recommendation of the Secretary. The Secretary is hereby authorized to delineate and assign the respective areas of functional responsibility of the Assistant Secretaries. Within his functional area of responsibility, an Assistant Secretary shall assist the Secretary and the Undersecretaries in the formulation, determination and implementation of laws, policies, plans, programs and projects on trade and industry and shall oversee the day-to-day administration of the constituent units of the Department.

SECTION 8. Staff Bureaus and Services. — The Bureaus and Service Units shall be responsible for research, formulation of policy, development of standards, framing of rules and regulations, program formulation and program monitoring, related to the concerns covered by the Department's mandate, powers, and functions. Implementation of such policies, standards, rules and regulations, and programs shall be the responsibility of the Department's Line Operating Units.

SECTION 9. Department Line Operating Units. — The Department Line Operating Units shall be composed of the following:

(1) Regional Offices. These are offices which shall be located in the National Capital Region and each of the twelve (12) other administrative regions of the country. They shall be operated and maintained on a Department-wide basis, acting as implementing arms in the regions under their jurisdiction, of the Department's policies, programs, rules and regulations as well as those laws which the Department is mandated to enforce.

(2) Line Corporate Agencies and Government Entities. These are the government entities and the government-owned or controlled corporations under the administrative supervision of the Department which are deemed to be integral parts of the Department structure notwithstanding their organizational form, and which perform a focal and implemental role in the Department's programs for the development of trade, industry and investments.

CHAPTER 3 Office of the Undersecretary for Domestic Trade

SECTION 10. Office of the Undersecretary for Domestic Trade. — The Office of the Undersecretary for Domestic Trade shall include all the staff bureaus and services involved in policy formulation, standards development, programs development, and program monitoring of the development, regulatory, and service delivery programs pertinent to domestic trade and commerce being implemented by the Department's line operating units. The Undersecretary for Domestic Trade shall supervise the following:

(1) Bureau of Trade Regulation and Consumer Protection. This Bureau shall formulate and monitor the implementation of programs for the effective enforcement of laws, correct interpretation and adoption of policies on monopolies and restraint of trade, mislabelling, product misrepresentation and other unfair trade practices; monitor the registration of business names and the licensing and accreditation of establishments and practitioners; protect and safeguard the interest of consumers and the public, particularly the health and safety implications of intrinsic product features, product representation, and the like; and establish the basis for evaluating consumer complaints and product utility failures.

(2) Bureau of Domestic Trade Promotion. This Bureau shall prepare and monitor the implementation of plans and programs directed at the promotion and development of domestic trade, particularly in the area of efficiency, fairness and balance in the distribution of essential products and services and in the strengthening of the domestic base for export activities; conceptualize, monitor, and evaluate programs, plans and projects intended to create awareness of domestic marketing opportunities for new projects, new technologies and investments.

(3) Bureau of Patents, Trademarks, and Technology Transfer. This Bureau shall examine applications for grant of letters, patent for inventions, utility models and industrial designs, and the subsequent grant or refusal of the same; register trademarks, tradenames, service marks and other marks of ownership; hear and adjudicate contested proceedings affecting rights to patents and trademarks; receive, process for registration and evaluate technology transfer arrangements as to their appropriateness and need for the technology or industrial property rights, reasonableness of the technology payment, and for the prohibition of restrictive business clauses, and comply with all its statutory publication requirements by publishing the same in a newspaper of general circulation or in the Official Gazette.

(4) Bureau of Product Standards. This Bureau shall review the products contained in the critical imports list in accordance with established national standards or relevant international standards and buyer-seller specifications; promulgate rules and regulations necessary for the country's shift to the international system of units; study and carry out research on the various reference materials to be used as basis for the start of whatever analysis or evaluation is demanded by the products under examination or investigation; establish standards for all products of the Philippines for which no standards have as yet been fixed by law, executive order, rules and regulations and which products are not covered by the standardization activities of other government agencies; participate actively in international activities on standardization, quality control and metrology; ensure the manufacture, production, and distribution of quality products for the protection of consumers; test and analyze standardized and unstandardized products for purposes of product standard formulation and certification; extend technical assistance to producers to improve the quality of their products; check length, mass and volume measuring instruments; and maintain consultative liaison with the International Organization for Standardization, Pacific Area Standards Congress, and other international standards organizations.

(5) Video Regulatory Board. This Board shall regulate videogram establishments; prevent unfair practices, unfair competition, pirating of legitimately produced video products, and other deceptive, unfair and unconscionable acts and practices to protect the viewing public and the general public.

CHAPTER 4 Office of the Undersecretary for International Trade

SECTION 11. Office of the Undersecretary for International Trade. — The Office of the Undersecretary for International Trade shall include all the units involved in policy formulation, standards development, program development, and program monitoring of the development, regulatory, and service delivery programs of the Department pertinent to international trade and commerce being implemented by the Department's line operating units. The Undersecretary for International Trade shall supervise the following:

(1) Bureau of International Trade Relations. This Bureau shall be the primary agent responsible for all matters pertaining to foreign trade relations, whether bilateral, regional or multilateral, especially market access and market access related matters; formulate positions and strategies for trade negotiations, consultations and conferences as well as supervise trade negotiations, consultations and conferences; coordinate with other Departments and agencies of the Philippine government with the view of assuring consistency in the government's positions in trade negotiations and on other activities pertaining to foreign trade relations; consult with industry groups and provide technical advice and information on the above matters and activities; identify tariff and non-tariff barriers affecting products of export interest to the Philippines, and negotiate measures for liberalizing them at bilateral, regional and multilateral form; and evaluate and submit recommendations on existing and proposed commercial policies of the Philippines.

(2) Bureau of Export Trade Promotion. This Bureau shall formulate and monitor programs, plans, and projects pertinent to the development, promotion, and expansion of the foreign trade of the Philippines; formulate country and product export strategies; conduct research on new product development and adaptation opportunities in the export markets, as well as identify the domestic supply base for such products, prepare situation reports on all export production; prepare and update country and regional market profiles; maintain an integrated information system on all aspects of the products and commodities relevant to export marketing; formulate, plan, supervise, coordinate and monitor the implementation of both private and official incoming and outgoing missions, and review the results of such; promote and coordinate international subcontracting arrangements between and among foreign and Philippine investors whereby production operations and facilities may be located in the Philippines; formulate and monitor the implementation of policies and guidelines for the registration and certification of bona fide exporters eligible for the various export incentive programs of the Philippines; and review and identify appropriate measures to minimize or deregulate export-import procedures and other foreign trade laws necessary to stimulate the international marketing of Philippine products.

(3) Foreign Trade Service Corps. This Corps shall assist Philippine businessmen, producers, and exporters with marketing information, project development support, and liaison with foreign government agencies; develop marketing and commercial intelligence for dissemination to Philippine businessmen through the Trade and Investment Information Center; provide direct support to the Department's overseas promotional programs; assist Philippine businessmen handle trade complaints against foreign firms and governments; support Department units in import and export administration, monitoring of trade agreements, and investments promotion; and be accountable for establishment of foreign investment and export targets for their respective areas of responsibility.

In addition to the existing Foreign Trade Service Corps, the President may appoint Trade Commissioners with the rank of Assistant Secretary to coordinate trade and investment matters in the various continents to which they are assigned for the purpose of increasing trade and investments.

(4) Bonded Export Marketing Board. This Board shall promote the establishment of bonded manufacturing and trading facilities for the re-export of those products where a clear net value added may be generated based on the emerging comparative advantage of the Philippine export industry; study and analyze the international market for specific products where the Philippines has or can develop a comparative advantage; recommend to the Bureau of Customs the licensing of bonded manufacturing facilities and monitor all bonded manufacturing sites, with the objective of ensuring operational efficiency; identify and designate sites where export bonded manufacturing sites shall be located with a view of dispersal to the regions; and initiate studies on the development and maintenance of the country's competitive advantage in export products.

(5) Philippine Shippers' Council. This Council shall represent Philippine shippers in international liner conferences and negotiate in their behalf, for more favorable freight and shipping rates; evaluate and issue waivers to the use of Philippine flag carriers; and provide assistance and information to Philippine shippers, specially exporters, in matters related to shipping.

(6) Philippine Trade Training Center. This Center shall develop training modules on export and import techniques and procedures; raise the level of awareness of Philippine businessmen of export opportunities and the availability of alternative sources of import products or diversified markets for exports; offer specialized courses for specific industry groups directed at overcoming barriers to overseas market penetration; and conduct training programs in international trade practices, inspection techniques and exhibitions mounting.

(7) Product Development and Design Center of the Philippines. This Center shall provide product identification, research, and development services to the private sector; conduct seminars and workshops on product design and development; set up design exhibitions; publish product design related materials; and conduct continuing research on product and product packaging design trends and processing technologies.

CHAPTER 5 Office of the Undersecretary for Industry and Investments

SECTION 12. Office of the Undersecretary for Industry and Investments. — The Office of the Undersecretary for Industry and Investments shall supervise all agencies involved in the formulation and implementation of programs and projects pertinent to the development of domestic industries and the promotion of investments in activities or enterprises critical to the Department's trade and industry development program.

(1) Bureau of Small and Medium Business Development. This Bureau shall formulate and monitor development programs for private institutions involved in assisting the trade and industry sector, delivery mechanisms and linkages for marketing, financial and subcontracting services, and development programs for livelihood and micro, small and medium enterprises.

(2) Board of Investments, whose functions are defined below.

(3) Export Processing Zone Authority, whose functions are defined below.

(4) Bureau of Import Services. This Bureau shall monitor import levels and prices, particularly liberalized items; analyze and forecast import levels; analyze and publish import return statistics; perform annual reviews of the substantive components of the Philippine Tariff System and submit recommendations thereon; perform such other functions on import transactions as the President or the Central Bank of the Philippines shall delegate or authorize; and ensure that the Department's views on goods under the jurisdiction of other Departments are taken into consideration.

(5) Iron and Steel Authority.

(6) Construction Industry Authority of the Philippines.

CHAPTER 6 Office of the Undersecretary for Regional Operations

SECTION 13. Office of the Undersecretary for Regional Operations. — The Office of the Undersecretary for Regional Operations shall exercise supervision and control over the Department's Regional Offices, described in Section 9, par. 1 hereof. It shall be responsible for the field operations of the Department, ensuring full compliance with Department policies, rigorous implementation of Department rules and regulations, and proper implementation of Department plans and programs by the Regional Offices in their respective administrative jurisdictions.

SECTION 14. Regional Offices. — The Department is hereby authorized to establish, operate and maintain a Department-wide regional office in each of the country's administrative regions. Each Regional Office shall be headed by a Regional Director who shall be assisted by an Assistant Regional Director. A Regional Office shall have, within its administrative region, the following functions:

(1) Implement pertinent laws, and the rules, regulations, policies, plans, programs and projects of the Department;

(2) Provide efficient and effective service to the people;

(3) Coordinate with the regional offices of other departments, offices and agencies in the region;

(4) Coordinate with the local government units; and

(5) Perform such other functions as may be provided by law or appropriately assigned by the Secretary.

CHAPTER 7 Attached Agencies

SECTION 15. Line Corporate Agencies and Government Entities. — The following are the Line Corporate Agencies and Government Entities that will perform their specific regulatory functions, particular developmental responsibilities, and specialized business activities in a manner consonant with the Departments' mandate, objectives, policies, plans, and programs:

(1) National Development Company. This Company shall promote investments in or establish enterprises for the express purposes of encouraging the private sector to follow suit by proving the financial viability of such enterprises; or of filling critical gaps in the input-output structure of Philippine commerce and industry when the private sector is unwilling or unable to engage in such enterprises because of the magnitude of investments required or the risk complexion of the undertaking.

(2) Garments and Textile Export Board. This Board, which shall be supervised by the Undersecretary for International Trade, shall oversee the implementation of the garment and textile agreements between the Philippines and other countries, particularly garments and textiles quotas; approve quota allocations and export authorizations; issue export licenses and adopt appropriate measures to expedite their processing; provide the necessary information and statistics relating to the administration of garments and textiles export quotas and the flow of garments and textiles exports for monitoring purposes and for negotiations with other countries; implement rules and regulations for the administration of all international textile agreements entered into between the Philippines and importing countries; and fix and collect reasonable fees for the issuance of export quotas, export authorizations, export licenses, and other related services, in accordance with the Department policies, rules and regulations.

(3) International Coffee Organization-Certifying Agency. This Agency, which shall be supervised by the Undersecretary for International Trade, shall oversee the implementation of the coffee agreements between the Philippines and other countries, particularly coffee quotas.

(4) Philippine International Trading Corporation. This Corporation, which shall be supervised by the Undersecretary for International Trade, shall only engage in both export and import trading on new or non-traditional products and markets not normally pursued by the private business sector; provide a wide range of export oriented auxiliary services to the private sector; arrange for or establish comprehensive systems and physical facilities for handling the collection, processing, and distribution of cargoes and other commodities; monitor or coordinate risk insurance services for existing institutions; promote or organize, whenever warranted, production enterprises and industrial establishments and collaborate or associate in joint venture with any person, association, company, or entity, whether domestic or foreign, in the fields of production, marketing, procurement, and other related businesses; and provide technical, advisory, investigatory, consultancy, and management services with respect to any and all of the functions, activities, and operations of the corporation.

(5) Board of Investments. This Board, which shall be supervised by the Undersecretary for Industry and Investments shall be responsible for coordinating the formulation and implementation of short, medium and long term industrial plans as well as promoting investments in the Philippines in accordance with national policies and priorities; register, monitor, and grant investment incentives to individual enterprises; formulate policies and guidelines aimed at creating an environment conducive to the expansion of existing investments or attracting prospective investments in the Philippines, Provided, That the Board shall place primary emphasis on its promotive functions.

(6) Export Processing Zone Authority. This Authority which shall be supervised by the Undersecretary for Industry and Investments, shall develop and manage export processing zones, in consonance with Department policies and programs.

(7) The Center for International Trade Expositions and Missions, Inc. is hereby merged with the Philippine Trade Exhibition Center. The latter shall be the surviving entity and is hereby renamed "Center for International Trade Expositions and Missions."

TITLE XI Agrarian Reform

CHAPTER 1 General Provisions

SECTION 1. Declaration of Policy. — The State shall undertake an agrarian reform program founded on the right of farmers and regular farmworkers who are landless to own directly or collectively the lands they till or, in the case of other farmworkers, to receive a just share of the fruits thereof.

The State shall recognize the right of farmers, farmworkers, and landowners, as well as cooperatives, and other independent farmers' organizations to participate in the planning, organization and management of the land reform program, and shall provide support to agriculture through appropriate technology and research, and through adequate financial, production, marketing, and other support services.

The State shall provide incentives for voluntary land-sharing. It may resettle landless farmers and farmworkers in its own agricultural estates which shall be distributed to them in the manner provided by law.

SECTION 2. Mandate. — The Department shall provide central direction and coordination to the national agrarian reform program extended to transform farm lessees and farm tenants into owner-cultivators of economic family-size farms to improve their living conditions.

The Department shall formulate and implement policies, plans and programs for the distribution and cultivation of all agricultural lands, including sugar and coconut lands, with the participation of farmers, farmworkers, landowners, cooperatives, and other independent farmers' organizations. It shall provide leadership in developing support services to tenant-owners, farm managers, and other cultivators through appropriate research and development programs, and shall render adequate assistance in finance, marketing, production and other aspects of farm management.

SECTION 3. Powers and Functions. — To accomplish its mandate, the Department shall:

(1) Implement laws, programs and policies for the acquisition and distribution of all agricultural lands as provided by laws;

(2) Resettle landless farmers and farmworkers in government-owned agricultural estates which shall be distributed to them as provided by law;

(3) Recommend and provide incentives for voluntary sharing of lands by owners of agricultural lands;

(4) Acquire, determine the value, subdivide into family-size farms, develop and distribute to qualified tillers, actual occupants and displaced urban poor, private agricultural lands regardless of area and crops planted;

(5) Administer and dispose of, under a settlement scheme, all portions of the public domain declared as alienable and disposable lands for speedy distribution to and development by deserving and qualified persons who do not own any land and under such terms and conditions as the Department may prescribe, giving priority to qualified and deserving farmers in the province where such lands are located;

(6) Provide free legal assistance to farmers covered by agrarian reform and expedite the resolution of agrarian conflicts and land tenure problems either through conciliatory or adversary proceedings;

(7) Provide creative, responsive and effective information, education and communication programs and projects both for the tenant beneficiaries, landowners, the government and private sectors and the general public, thereby generating a broad spectrum of support and understanding of the new agrarian reform program;

(8) Strengthen agrarian reform beneficiaries organizations to a degree of national viability that would enable them to share in the shaping of government policies and institutionalize farmers' participation in agrarian reform policy formulation, program implementation and evaluation;

(9) Promote the organization and development of cooperatives of agrarian reform beneficiaries and register the same;

(10) Implement all agrarian reform laws and for this purpose issue subpoena, subpoena duces tecum, and writs of execution of its orders, and decisions and other legal processes to ensure compliance from all parties concerned for successful and expeditious program implementation;

(11) Undertake land surveys on lands covered by agrarian reform, and issue patents to farmers covered by agrarian reform, both on private and public lands;

(12) Develop, implement and undertake alternative and innovative land development schemes and land tenure systems such as, but not limited to land consolidation, land forming, cooperative farming and agro-industrial estates;

(13) Approve or disapprove conversion of agricultural lands to non-agricultural uses such as residential and industrial conversions in accordance with the existing provisions of law;

(14) Undertake land use management studies;

(15) Compensate the landowners covered by agrarian reform;

(16) Integrate and synchronize program implementation of the Land Bank of the Philippines and other relevant civilian and military government and private entities involved and mandated to support the agrarian reform program through Inter-Agency Committees and Agrarian Reform Coordinating Councils; and

(17) Perform such other functions as may be provided by law.

SECTION 4. Organizational Structure. — The Department shall consist of the Office of the Secretary, the Undersecretary, the Assistant Secretary, the Services and Staff Bureaus, the Regional Offices, the Provincial Offices, and the Team Offices.

CHAPTER 2 Department Proper

SECTION 5. Office of the Secretary. — The Office of the Secretary shall consist of the Secretary and his immediate staff.

SECTION 6. Undersecretary. — The Secretary shall be assisted by one (1) Undersecretary who shall perform the following functions:

(1) Oversee the operational activities of the Department delegated to him by and for which he shall be responsible to the Secretary;

(2) Coordinate programs and projects within the DAR and with other government agencies and farmer organizations when so delegated by the Secretary;

(3) Assist the Secretary in matters relating to the operations of the Department;

(4) Assist the Secretary in the preparation of reports; and

(5) Perform such other duties and functions as may be provided by law or assigned by the Secretary.

SECTION 7. Assistant Secretary. — The Secretary shall be assisted by one Assistant Secretary.

CHAPTER 3 Department Services

SECTION 8. Management and Executive Services. — The Management and Executive Services shall have the following functions:

(1) Recommend the implementation of appropriate systems and procedures as it relates to the overall monitoring and feedback mechanisms required by the Office of the Secretary;

(2) Gather, consolidate, appraise, prepare and submit regular top management reports pertaining to the Department and overall administration, financial, programs and projects implementation status for decision making purposes;

(3) Design and maintain a program/project display center(s) that will showcase the Department's various plans, programs and accomplishments;

(4) Prepare and review office orders, memoranda and other communications;

(5) Provide secretariat support during meetings and conferences including international conferences and seminars relative to agrarian reform;

(6) Supervise the implementation of department-wide records management and disposal system;

(7) Develop alternative management systems which will increase efficiency in the delivery of services, attain better means of control, maximize use of available human and physical resources;

(8) Conduct periodic systems and procedures audit of the various units of the Department;

(9) Prepare news items on agrarian reform accomplishments and handle press and media relations work for the Secretary; and

(10) Perform such other functions as may be assigned by the Secretary.

SECTION 9. Legal and Public Assistance Service. — The Legal and Public Assistance Service shall have the following functions:

(1) Prepare legal decisions and resolutions of administrative cases and render legal opinions, interpretation of contracts, laws, rules and other administrative issuances;

(2) Prepare legal decisions and resolutions of administrative cases; and

(3) Provide public assistance services.

SECTION 10. Research and Strategic Planning Service. — The Research and Strategic Planning Service shall have the following functions:

(1) Review, analyze and integrate submitted plans and programs and special project proposals by Bureaus, services, and field offices and determine if plans and programs are in accordance with priorities set for budgetary support;

(2) Review, coordinate and integrate all recommendations for reprogramming and revision of work programs of the Department to support fund releases or requests;

(3) Initiate, integrate, or prioritize research studies and recommend for funding in coordination with units concerned and review and interpret research findings for policy applicability;

(4) Conduct researches or case studies for policy recommendations and application;

(5) Coordinate, integrate and assist in the assessment of programs and projects against plans, costs and resources, standards and performance targets;

(6) Coordinate, integrate and analyze periodic accomplishment reports of the Department as may be required or necessary;

(7) Maintain liaison with public and private development and planning bodies, public and private; and

(8) Perform such other functions as may be provided by law or assigned by the Secretary.

SECTION 11. Finance and Physical Assets Management Service. — The Finance and Physical Assets Management Service shall have the following functions:

(1) Prepare, execute and administer the Department's budget including standards and guidelines;

(2) Monitor and evaluate the implementation of the Central and Regional budget;

(3) Process all money claims related to all types of Department expenditures including personal services, maintenance and other operating expenses and capital outlays;

(4) Prepare financial reports and maintain books of accounts;

(5) Prepare, release and control check disbursements and index or monitor check payments;

(6) Implement proper internal control mechanisms;

(7) Formulate and implement policies and systems on the disposition of supplies, materials and equipment requirements of all operating units for their effective functioning;

(8) Undertake repair and maintenance of all equipment furniture, building facilities and grounds of the Department; and

(9) Manage and maintain an inventory of physical assets in the Department's Central and Regional Offices.

SECTION 12. Administrative and Personnel Service. — The Administrative and Personnel Service shall exercise the following functions:

(1) Formulate and implement policies and guidelines on personnel placement, appraisal and action;

(2) Formulate and implement policies and guidelines on employee services, employee relations management and staff development;

(3) Service the reproduction, utility and messengerial requirements of all Departmental groups and offices;

(4) Provide the major operating units of the Department with basic equipment, supplies and materials including logistical support;

(5) Engage in general canvassing and purchasing of supplies, materials and equipment;

(6) Implement guidelines with respect to procurement services; and

(7) Perform such other functions as the Secretary may assign.

CHAPTER 4 Bureaus

SECTION 13. Bureau of Agrarian Legal Assistance. — The Bureau of Agrarian Legal Assistance shall have the following functions:

(1) Formulate guidelines, plans and programs for the effective delivery of legal assistance to the clientele;

(2) Adopt the process of mediation and conciliation to judiciously settle agrarian problems;

(3) Investigate cases, review recommendations, and prepare orders, decisions and resolutions on matters involving agrarian dispute;

(4) Maintain a docket of cases on claims and conflicts and issue clearance in relation thereto;

(5) Provide legal information and prepare materials for publication;

(6) Conduct and compile legal research and studies on agrarian reform and maintain a law library;

(7) Prepare legal opinions on matters pertaining to agrarian reform program implementation;

(8) Represent agrarian reform beneficiaries or members of their immediate farm households before all courts and quasi-judicial and administrative bodies, in civil, criminal or administrative cases instituted by or against them, arising from or are connected with, an agrarian dispute;

(9) Develop, maintain and coordinate para-legal services for agrarian reform clientele;

(10) Advise and assist the Office of the Secretary and field offices in agrarian legal matters;

(11) Conduct a continuing follow-up and evaluation of the handling and disposition of judicial cases, claims and conflicts adjudication, legal information and para-legal services of the Department; and

(12) Perform such other functions and duties as may be provided by law.

SECTION 14. Bureau of Land Development. — The Bureau shall have the following functions:

(1) Draw up plans and programs of land surveys and determine which land survey projects can be done by administration or by contract;

(2) Develop and prescribe procedures and techniques on land surveys in accordance with approved standards;

(3) Develop plans and programs, guidelines, procedures and techniques for soil surveys and classification and for complete aerial photogrammetry;

(4) Analyze and compile soil data and survey reports essential for the production of soil maps and identify particular areas for soil research;

(5) Develop land use patterns, procedures and compile adequate maps for proper land use;

(6) Draw up plans, programs and designs for agricultural development under the scheme of land consolidation;

(7) Formulate policies, guidelines and procedures for the regulation of conversion of private agricultural lands to non-agricultural use, in accordance with the provisions of existing laws, as amended, and other related issuances;

(8) Establish a schedule of priorities in the construction of houses, waterworks, irrigation systems and other community facilities;

(9) Formulate policies and guidelines in the procurement, maintenance or rehabilitation of agricultural machinery and equipment, and review, and evaluate plans, programs, specifications, and cost estimates of land development projects;

(10) Provide functional and technical assistance on the implementation of land development;

(11) Monitor and evaluate activities of field offices on land development; and

(12) Perform such other functions as may be provided by law.

SECTION 15. Bureau of Land Tenure Development. — The Bureau shall have the following functions:

(1) Develop policies, plans and programs, and standard operating procedures in the acquisition and distribution of public and private agricultural lands, including measures to ensure that the lands distributed by the government to the beneficiaries of the agrarian reform program shall be subsequently transferred or sold only to qualified tenant-tillers, agricultural workers and other landless citizens;

(2) Design socio-economic survey plans and prescribe standards, guidelines and procedures in the conduct of such surveys in areas sought to be acquired or administered by the Department of Agrarian Reform;

(3) Develop standards for the valuation of lands placed under the agrarian reform program and formulate appropriate land compensation schemes for affected landowners;

(4) Formulate general policies and guidelines in the identification of tillers and agricultural lands to be purchased or expropriated, subject of petitions or applications for the exercise of the right of pre-emption or redemption, or voluntarily offered for coverage under the agrarian reform program, and portions of the public domain which may be opened for settlement;

(5) Maintain a current inventory of tillers, landowners, landholdings, including crops and production thereon and other related records;

(6) Streamline procedures governing the titling of lands transferred to the beneficiaries of agrarian reform and the documentation of leasehold and other tenurial arrangements;

(7) Develop alternative tenurial or working arrangements or relationships in agrarian reform areas aimed at ensuring security of tenure and equitable distribution of income;

(8) Formulate policies, guidelines, standards, procedures and programs in the development and conduct of land tenure research;

(9) Identify areas of research relevant to land tenure, determine priority needs, and prepare land tenure research designs/proposals;

(10) Undertake operational research and evaluation studies on land tenure programs and projects;

(11) Monitor research findings on land tenure and other related studies by various research agencies;

(12) Review and evaluate documents for the generation, registration, and issuance of Emancipation Patents/Title, land valuation, and landowners compensation claims as to its completeness, accuracy and validity;

(13) Initiate verification and/or investigation of questionable or inconsistent documents as well as data or information critical for expeditious disposition of land transactions by authorities concerned; and

(14) Perform such other functions as may be provided by law.

SECTION 16. Bureau of Agrarian Reform Information Education. — The Bureau shall have the following functions:

(1) Provide policy guidance and develop plans and programs for effective and continuing information, education and promotional activities of the Department;

(2) Develop, conduct, assist and coordinate training and education programs to increase farmer, DAR and other governmental personnel participation in program implementation;

(3) Coordinate or implement linkage training or education programs and projects;

(4) Integrate agrarian reform concepts into all levels of the national education system;

(5) Develop appropriate communication materials or aids to support agrarian reform promotion and training;

(6) Produce and disseminate media materials to implement the information programs of the Department;

(7) Maintain and update a library of materials on agrarian reform;

(8) Provide for the establishment of a center for agrarian reform studies;

(9) Provide functional and technical assistance on farmer education and public information;

(10) Coordinate and evaluate training programs and activities undertaken by the regional offices and other units of the Department; and

(11) Perform such other functions as may be provided by law.

SECTION 17. Bureau of Agrarian Reform Beneficiaries Development. — The Bureau shall have the following functions:

(1) Formulate plans, programs, policies and guidelines for the development of agrarian reform areas into viable agro-industrial estates, the promotion of cooperative systems of production, processing, marketing, distribution, credit and services;

(2) Formulate policies, programs and guidelines for the development and management of resettlement areas and landed estates;

(3) Promote the organization and participation of agrarian reform beneficiaries to enhance the dignity and welfare of the beneficiaries and to serve as sources of development information inputs and feedback as basis for policy formulation;

(4) Serve as liaison between the DAR and the legitimate organizations of agrarian reform beneficiaries and serve as receiving zone for request and proposals from legitimately organized agrarian reform beneficiaries associations for appropriate action by any of the Bureaus or Services;

(5) Develop and undertake research and pilot studies of alternative land tenure systems such as agro-industrial estates, cooperative farming and other cooperative-cultivatorship schemes;

(6) Develop project models such as but not limited to compact farms, and other income generating projects, and undertake research and pilot studies on these models and other innovative schemes in coordination with field offices;

(7) Establish linkages with concerned agencies for farm support services and to ensure immediate and effective project implementation;

(8) Provide functional and technical assistance on development and management of resettlement areas and landed estates, organization of agrarian reform beneficiaries and implementation of economic projects;

(9) Monitor and evaluate the activities of field offices on the development and management of resettlement areas and landed estates, and agrarian reform beneficiaries development; and

(10) Perform such other functions as may be provided by law.

CHAPTER 5 Regional and District Offices and Attached Agencies

SECTION 18. Regional Office. — The Regional Office shall be responsible for supporting the field units and supervising program implementation of the Department within the region. It shall:

(1) Implement laws, policies, plans, rules and regulations of the Department in the regional area;

(2) Develop and implement a regional personnel management program;

(3) Prepare, submit, execute and control the budget for the region;

(4) Prepare and properly maintain books of accounts;

(5) Pay salaries and wages and other approved vouchers;

(6) Provide administrative services to the regional and provincial offices;

(7) Prepare and submit plans and programs for the region on:

a. land tenure development

b. information and education

c. land use management and land development

d. legal services

e. agrarian reform beneficiaries development

(8) Provide technical assistance to the provincial offices and agrarian reform teams in the implementation of approved plans and programs;

(9) Extend effective legal assistance, advice or service to agrarian reform beneficiaries;

(10) Conduct operations research and evaluation of agrarian reform program implementation within the region;

(11) Coordinate with other government and private agencies and farmer organizations at the Regional level through the Agrarian Reform Coordinating Council, to carry out programs/projects for the general welfare of the agrarian reform beneficiaries;

(12) Coordinate para-legal services;

(13) Maintain a data-based information system in coordination with the established monitoring system;

(14) Review documents submitted by the Provincial and Team Offices or by the clientele;

(15) Submit periodic feedback and recommend policy changes and/or modification of procedures on program implementation; and

(16) Perform such other functions as may be necessary in the service of the clientele.

SECTION 19. Provincial Offices. — The Agrarian Reform Provincial Office is responsible for the direction and coordination of the operation and activities of the Agrarian Reform Teams operating within the province and has the following functions:

(1) Set priorities, specific targets, schedules and deadlines for the execution of approved plans, programs and projects on:

a. land acquisition, distribution, transfer of land ownership to actual tillers, including land tiller-landowners identification, tenurial security and leasehold arrangements, land surveys, land valuation and landowners compensation;

b. continuing information and education programs on agrarian reform;

c. organization and development of Agrarian Reform Beneficiaries Cooperatives and institutionalizing farmers-government partnership in agrarian reform policy formulation and program implementation;

d. landowner's compensation and diversion of landowner's capital to industrial development;

e. development and implementation of alternative land tenure systems such as cooperative farming, agro-industrial estates and cooperative-cultivatorship schemes;

f. land use management;

g. compact farming, land consolidation, land reclamation, integrated farming systems, sloping agricultural land technology, and other land conservation measures in agrarian reform covered areas;

h. legal services to farmers covered by agrarian reform and resolution of agrarian conflicts and land tenure problems;

(2) Provide administrative services to the Agrarian Reform Teams within the province;

(3) Provide legal services to agrarian reform beneficiaries in cases arising from or are connected with agrarian disputes, handling of expropriation proceedings, registering cooperatives organized by Agrarian Reform Teams and reviewing and acting on all matters initially investigated and elevated by Agrarian Reform Teams;

(4) Provide technical assistance to the Agrarian Reform Teams in the implementation of approved plans and programs;

(5) Coordinate with government, private agencies and farmer organizations at the provincial level to carry out programs;

(6) Conduct periodic performance audit surveys in collaboration with the regional office, and monitor agrarian reform program accomplishments of Agrarian Reform Teams including operational problems and constraints and recommended appropriate remedial measures for effective program implementation; and

(7) Perform such other functions as may be necessary in the service of the clientele.

SECTION 20. Team Offices. — The Agrarian Reform Team shall be responsible for directly implementing the agrarian reform programs and delivering expected results. It shall:

(1) Implement policies and programs on land acquisition, and distribution, and transfer of land ownership to actual tillers, including farmer-landowner's identification, leasehold arrangements, land valuation and landowners compensation and transfer actions;

(2) Undertake continuing information and education programs on agrarian reform among the beneficiaries;

(3) Promote the organization and development of agrarian reform beneficiaries and assist in the registration of organized cooperatives;

(4) Institutionalize farmers participation in agrarian reform policy formulation and program implementation;

(5) Organize and establish compact farms, land consolidation, integrated farm systems, sloping agricultural land technology and other cooperative-cultivatorship schemes;

(6) Provide assistance in agrarian reform research;

(7) Provide assistance to various legal services, including legal information and legal counselling, documentation and preliminary processing of applications for free patent and applications to purchase lots, preliminary investigation of conflicting claims on lot boundaries and appraisal of properties, and mediation of different problems arising from tenancy relationship, execution and registration of lease contracts, initial investigation of administrative cases, and other legal services;

(8) Provide assistance on project identification, formulation and development that would uplift the socio-economic status of the beneficiaries including projects that would divert landlord capital to industrial development;

(9) Coordinate with other government and private agencies and farmer organizations within the area of coverage for effective program/project implementation;

(10) Submit periodic reports on program/project accomplishments including problems identified and recommended solutions thereto;

(11) Implement DAR commitment programs supportive of national priority programs; and

(12) Perform such other functions as may be assigned from time to time.

SECTION 21. Attached Agencies. — The following agencies are attached to the Department for administrative supervision and policy coordination:

(1) Land Bank of the Philippines

(2) Agricultural Credit Administration

(3) Agrarian Reform Coordinating Council

TITLE XII Local Government

CHAPTER 1 General Provisions

SECTION 1. Declaration of Policy. — The State shall ensure the autonomy of local governments. For this purpose, it shall provide for a more responsive and accountable local government structure instituted through a system of decentralization. The allocation of powers and resources to local government units shall be promoted, and inter-local government grouping, consolidation and coordination of resources shall be encouraged. The State shall guarantee the local government units their just share in national taxes and their equitable share in proceeds from the use of natural resources, and afford them a wider latitude for resources generation.

SECTION 2. Mandate. — The Department shall assist the President in the exercise of general supervision over local governments and in ensuring autonomy, decentralization and community empowerment.

SECTION 3. Powers and Functions. — To accomplish its mandate, the Department shall:

(1) Advise the President on the promulgation of policies, rules, regulations and other issuances relative to the general supervision of local government units;

(2) Establish and prescribe rules, regulations and other issuances and implementing laws on the general supervision of local government units and on the promotion of local autonomy and monitor compliance thereof by said units;

(3) Provide assistance in the preparation of national legislation affecting local government units;

(4) Establish and prescribe plans, policies, programs and projects to strengthen the administrative, technical and fiscal capabilities of local government offices and personnel;

(5) Formulate and implement policies, plans, programs and projects to meet national and local emergencies arising from natural and man-made disasters; and

(6) Perform such other functions as may be provided by law.

SECTION 4. Organizational Structure. — The Department, shall be composed of the Office of the Secretary, and the staff and line offices which shall consist of the following:

(1) Bureau of Local Government Supervision;

(2) Bureau of Local Government Development;

(3) National Barangay Operations Office;

(4) Project Development Services;

(5) Department Services;

(6) Office of Public Affairs; and

(7) Regional and Field Offices.

CHAPTER 2 Department Proper

SECTION 5. Office of the Secretary. — The Office of the Secretary shall consist of the Secretary and his immediate staff.

SECTION 6. Undersecretaries and Assistant Secretaries. — The Secretary shall be assisted by not more than three (3) Undersecretaries and three (3) Assistant Secretaries who shall be appointed by the President upon the recommendation of the Secretary. The Secretary is hereby authorized to delineate and assign the respective functional areas of responsibility of the Undersecretaries and Assistant Secretaries.

CHAPTER 3 Department Services

SECTION 7. Planning Service. — The Planning Service shall be responsible for providing the Department with efficient and effective services relating to planning, programming, research and statistics.

SECTION 8. Financial and Management Service. — The Financial and Management Service shall be responsible for providing the Department with efficient and effective staff advise and assistance on budgetary, financial and management improvement matters.

SECTION 9. Legal Service. — The Legal Service shall be responsible for providing the Department with efficient and effective legal counselling services, assistance to the Secretary in the review or determination of subordinate bodies or agencies, collaboration with Solicitor General in handling cases affecting the Department, and investigation of administrative cases involving Department personnel and local officials;

SECTION 10. Administrative Service. — The Administrative Service shall be responsible for providing the Department with efficient and effective services relative to personnel, information, records, supplies, equipment, collection, disbursements, security and custodial work, and other kinds of services not related to the other services above enumerated.

SECTION 11. Electronic Data Processing Service. — The Electronic Data Processing Service shall be responsible for providing adequate and up-to-date data and management information inputs, including monitoring of all field operations, to serve as basis for effective planning, management and control, policy formulation and decision-making.

CHAPTER 4 Bureaus and Offices

SECTION 12. Bureau of Local Government Supervision. — The Bureau of Local Government Supervision, to be headed by a Bureau Director appointed by the President upon the recommendation of the Secretary, shall have the following functions:

(1) Advise and assist the Secretary in the exercise of the power of general supervision of the President over the local government units, particularly in the formulation and implementation of national laws, policies, and standards concerning local government operations and their personnel;

(2) Establish and prescribe guidelines for the administration of the Katarungang Pambarangay Laws;

(3) Monitor compliance with national laws and policies by local government units;

(4) Provide assistance in the preparation of national legislation affecting local government units and in the promotion of local autonomy;

(5) Extend consultation service and advice to local government units involved in promoting local autonomy; and

(6) Provide assistance to local governments in the promotion of citizens participation in local government activities;

(7) Provide technical and financial assistance, as well as secretariat services to the Leagues of Provinces, Cities, and Municipalities; and

(8) Perform such other functions as may be provided by law.

SECTION 13. Bureau of Local Government Development. — The Bureau of Local Government Development, to be headed by a Bureau Director appointed by the President upon the recommendation of the Secretary, shall have the following functions:

(1) Establish and prescribe plans, policies, programs, and projects to strengthen the administrative and technical capabilities of local government offices and personnel;

(2) Provide technical assistance to enhance the administrative, fiscal and technical capabilities of local government officers and personnel;

(3) Formulate, prescribe and periodically evaluate local development policies, plans, programs and projects designed to enhance the participation of local government units in planning and implementation;

(4) Establish a system of incentives and grants to local governments and prescribe policies, procedures and guidelines in the implementation of self-help assistance projects;

(5) Formulate and develop models, standards and technical materials on local government development;

(6) Extend consultation service and advice to local government units involved in development programs;

(7) Establish a viable system of strategies and approaches for local governments anchored on citizen participation within a wholistic and integrated framework for the development of communities; and

(8) Perform such other functions as may be provided by law.

SECTION 14. Office of Public Affairs. — The Office of Public Affairs shall have the following functions:

(1) Provide technical assistance in the modernization and maintenance of a Department-wide micro-telecommunications systems;

(2) Provide mechanisms for the operationalization of the intent of the provisions of public information, coverages and documentation of the activities of the Department;

(3) Perform functional supervision over regional information centers in providing the citizenry with relevant information on the program of the Department and the Government's thrust towards the participation of the citizens in the democratic processes;

(4) Formulate plans and programs to implement the administrative and technical capabilities of public officers and personnel both on the central and regional levels;

(5) Establish and prescribe guidelines in the administration of Information and Public Assistance Services;

(6) Extend consultation services and advice in the implementation of Regional Information Services;

(7) Assess information needs of the people through opinion polls and surveys;

(8) Provide assistance on various public programs of the Department;

(9) Establish and implement policies, plans, programs and projects to meet local emergencies arising from natural and man-made disasters; and

(10) Perform such other duties and responsibilities and projects assigned or delegated by the Secretary in the effective delivery of public services or as may be required by law.

SECTION 15. Local Government Academy. — The Local Government Academy shall be responsible for human resource development and training of local government officials and Department personnel. The Academy shall be under the direct supervision of a Board of Trustees composed of the Secretary of Local Government as Chairman and four (4) other members to be appointed by the President upon recommendation of the Secretary. The structure and staffing pattern of the Local Government Academy shall be prescribed and approved by the Secretary.

SECTION 16. National Barangay Operations Office. — The National Barangay Operations Office which shall be headed by a Director to be appointed by the President upon the recommendation of the Secretary, shall have the following functions:

(1) Formulate policies, plans and programs that will promote community and citizen participation in the political development of the barangay through the mobilization and participation of barangay assemblies;

(2) Initiate projects on innovative barangay development strategies and approaches in close coordination with the Bureau of Local Government Development;

(3) Provide secretariat services to the Association of Barangay Councils and serve as a clearing house on matters affecting barangay officials' insurance, hospitalization, educational and other benefits as provided by law;

(4) Provide continuing information dissemination to barangay units on national development efforts and issues in order for barangay assembly members to participate meaningfully in national development;

(5) Establish and maintain masterlists of barangays, barangay officials and barangay socio-economic profiles;

(6) Provide situational and political analysis for the Secretary on barangay affairs; and

(7) Perform other functions as may be delegated by the Secretary or as provided for by law.

SECTION 17. Office of Project Development Services. — The Office of Project Development Services shall have the following functions:

(1) Formulate innovative approaches and strategies designed to promote technical capabilities of local governments;

(2) Assist in the development of program components for the implementation of tested and appropriate systems and processes at the local levels; and

(3) Perform other functions as may be delegated by the Secretary or as provided by law.

CHAPTER 5 Regional and Field Offices

SECTION 18. Regional and Field Offices. — The Secretary is authorized to establish, operate and maintain one Regional Office in each of the administrative regions established by law. A Regional Office shall have, within its administrative region, the following functions:

(1) Implement laws, rules, and regulations, other issuances, policies, plans, programs and projects of the Department;

(2) Provide efficient and effective service to local government;

(3) Coordinate with regional offices of other departments, offices and agencies affecting local administration and development;

(4) Assist local government units in developing their capabilities for local government administration and development; and

(5) Perform such other functions as may be delegated by the Secretary or as provided by law.

CHAPTER 6 Leagues of Provinces, Cities and Municipalities

SECTION 19. Leagues of Provinces, Cities and Municipalities. — There is hereby created the Leagues of Provinces, Cities and Municipalities.

The functions, budget and records of the Katipunan ng mga Sanggunian National Secretariat and the Pambansang Katipunan ng mga Punong Bayan sa Pilipinas, shall be transferred to the Leagues of Provinces, Cities and Municipalities. The Leagues shall be under the supervision of the Bureau of Local Government Supervision.

The Secretary is hereby authorized to promulgate the necessary implementing rules that will activate these Leagues.

TITLE XIII Tourism

CHAPTER 1 General Provisions

SECTION 1. Declaration of Policy. — The State shall promote, encourage and develop tourism as a major national activity in which private sector investment, effort and initiative are fostered and supported, and through which socio-economic development may be accelerated, foreign exchange earned, international visitors offered the opportunity to travel to the Philippines and appreciate its natural beauty, history and culture, and Filipinos themselves enabled to see more of their country and imbued with greater pride in and commitment to the nation.

SECTION 2. Mandate. — The Department of Tourism shall be the primary government agency charge with the responsibility to encourage, promote and develop tourism as a major socio-economic activity to generate foreign currency and employment and to spread the benefits of tourism to a wider segment of the population with the support, assistance and cooperation of both the private and public sectors, and to assure the safe, convenient, enjoyable stay and travel of the foreign and local tourists in the country.

SECTION 3. Powers and Functions. — The Department shall have the following powers and functions:

(1) Formulate policies, plans, programs and projects for the development of the tourism industry;

(2) Administer, coordinate and supervise all activities of the Government concerning tourism;

(3) Advise the President on the promulgation of laws relative to the policy, plans, programs and projects designed to promote and develop the tourism industry;

(4) Effect the removal of unnecessary barriers to travel, the integration and simplification of travel regulations as well as their efficient, fair and courteous enforcement to assure expeditious and hospitable reception of all tourists and travelers;

(5) Represent the government in all such conferences and meetings concerning tourism and travel and discharge such responsibilities of the government as may arise from treaties, agreements and other commitments on tourism and travel to which it is signatory;

(6) Formulate standards for tourism-oriented establishments that will prescribe minimum levels of operating quality and efficiency in order to ensure that facilities, personnel and services are maintained in accordance with acceptable local and international norms in the operations of tourism-oriented establishments;

(7) Approve the construction standards of accredited tourism-oriented establishments including hotels, resorts, inns, motels and other related facilities and services and prescribe information reporting on the purchase, sale or lease of the said establishments and facilities;

(8) Provide the protection, maintenance and preservation of historical, cultural and natural assets which are tourist attractions with the appropriate government agencies or with the private sector or with the owners of said assets or attractions;

(9) Undertake research studies and surveys for the continuing analysis of economic conditions and trends relating to tourism and maintain a statistical data bank on the tourism industry;

(10) Design programs to encourage private-sector investment and participation in tourism activities and projects;

(11) Set up and organize foreign field offices for the purpose of overseeing all marketing and promotional activities and implementing programs of the Department;

(12) Arrange, whenever deemed appropriate, for the reclamation of any land adjacent to or adjoining a tourist zone in coordination with appropriate government agencies;

(13) Delegate any specific powers and functions in favor of the regional offices to promote efficiency and effectiveness in the delivery of public service;

(14) Enlist the aid, assistance and support of any and all government agencies, civil or military, in the implementation of the provisions of laws pertaining to the Department or of its rules and regulations;

(15) Exercise such powers and functions as may be necessary, proper, or incidental to the attainment of its mandate;

(16) Perform such other functions as may be provided by law.

SECTION 4. Organizational Structure. — The Department shall consist of the Department Proper, Department Services, Bureaus and Offices, Regional Offices and Foreign Field Offices.

The Department Proper shall consist of the Offices of the Secretary and Undersecretaries which shall be responsible for the preparation and development of policies, plans, programs and projects of the Department.

CHAPTER 2 Department Proper

SECTION 5. Office of the Secretary. — The Office of the Secretary shall consist of the Secretary and his immediate staff.

SECTION 6. Undersecretaries. — The Secretary shall be assisted by four (4) Undersecretaries, namely:

(1) Undersecretary for Planning, Product Development and Coordination, who shall be responsible for the Office of Tourism Development Planning, Office of Product Development and Office of Tourism Coordination;

(2) Undersecretary for Tourism Services and Regional Offices, who shall be responsible for the Office of Tourism Standards and all Regional Offices;

(3) Undersecretary for Tourism Promotions, who shall be responsible for the Bureau of International Tourism Promotion, Bureau of Domestic Tourism Promotions and Office of Tourism Information; and

(4) Undersecretary for Internal Services, who shall be responsible for the Financial and Management Service, Administrative Service and Legal Service.

CHAPTER 3 Department Services

SECTION 7. Department Service Character and Head. — The Department Services shall be essentially staff in character, each of which shall be headed by a Service Chief. [(1987), Sec. 14]

SECTION 8. Financial and Management Service. — The Financial and Management Service shall provide the Department with staff advice and assistance on budgetary, financial and management matters and shall perform such other related functions as may be assigned or delegated to it by the Secretary.

SECTION 9. Administrative Service. — The Administrative Service shall provide the Department with staff advice and assistance on personnel information, records, communications, supplies, equipment, collection, disbursements, security, other custodial work and such other related duties and responsibilities as may be assigned or delegated to it by the Secretary.

SECTION 10. Legal Service. — The Legal Service shall provide the Department with staff advice and assistance on all legal matters affecting the Department and perform such other related functions as may be assigned or delegated to it by the Secretary.

CHAPTER 4 Bureaus and Offices

SECTION 11. Bureau and Office Character and Head. — The Bureaus and Offices shall be essentially staff in character, each of which shall be headed by a Staff Director.

SECTION 12. Bureau of Domestic Tourism Promotions and Information. — The Bureau of Domestic Tourism Promotions and Information shall have the following functions:

(1) Organize and coordinate programs of public relations, promotions, and publicity; encourage domestic tourism and encourage overseas visitors to travel throughout the Philippines;

(2) Design and provide support for dissemination of materials for publicity as tourist attractions in the Philippines; promote educational and cultural tours to increase travel within the country;

(3) Promote, organize and provide support for tourist councils;

(4) Plan promotional campaigns through advertising and publicity and coordinate promotional efforts with the private sector through sales campaigns and information dissemination; and

(5) Organize special events for the promotion of local destinations.

SECTION 13. Bureau of International Tourism Promotions. — The Bureau of International Tourism promotions shall have the following functions:

(1) Generate favorable publicity on the Philippines;

(2) Disseminate current information on the country and its tourist products;

(3) Provide support for the private sector in the promotional campaign;

(4) Organize special events to promote the country as a tourist destination;

(5) Gather market intelligence and research information on tourist markets through the Foreign Field Offices;

(6) Monitor trends and developments in international tourism through the Foreign Field Offices;

(7) Organize, set up and participate in international meetings, conferences and conventions on tourism; and

(8) Supervise foreign field offices charged with coordinating and assisting in the marketing and promotional activities and programs of the Department.

SECTION 14. Office of Tourism Information. — The Office of Tourism Information shall have the following functions:

(1) Promote a continuing wholesome and informative relationship between the Department and the travelling public;

(2) Cause the widest publicity of existing and forthcoming activities and programs of the Department through a functional relationship with the media; and

(3) Organize and disseminate promotional and tourist information materials to various tourist assistance centers.

SECTION 15. Office of Tourism Standards. — The Office of Tourism Standards shall have the following functions:

(1) Approve the construction standards of tourism-oriented establishments including hotels, resorts, inns, motels, and other related facilities and services, prescribe information reporting on purchase, sale or lease of accredited tourism-oriented facilities and ensure a harmonious, positive and constructive development of the tourism industry;

(2) Formulate operating standards for tourism-oriented establishments including hotels and resorts, restaurants, inns, motels, and other related facilities and services, that will prescribe minimum levels of operating quality and efficiency in order to ensure that facilities, personnel and services are maintained in accordance with acceptable local and international norms in the operations of tourism-oriented establishments;

(3) Regulate and issue licenses to qualified travel agencies in accordance with the rules and regulations promulgated by the Secretary;

(4) Encourage formation of industry associations for accreditations by the Department;

(5) Assist in auditioning Filipino entertainers in order to project properly and enhance the Filipino image in the entertainment field and thereby gain better international respect and reputation; and

(6) Coordinate with all agencies concerned on the enforcement of rules and regulations promulgated by the Department.

SECTION 16. Office of Tourism Development Planning. — The Office of Tourism Development Planning shall have the following functions:

(1) Formulate plans and policies for the development of the tourism industry, including but not limited to national tourism plans and the identification of master physical plans for tourism zones within the country;

(2) Monitor and evaluate plans, programs and projects of the Department to ensure their effective implementation;

(3) Undertake research studies and surveys for the continuing analysis of the tourism industry;

(4) Compile and integrate statistical data on the tourism industry and publish the same;

(5) Coordinate and assist in the implementation of tourism-oriented projects, plans or operations of local governments, governmental agencies, public corporations, and where clearly necessary and feasible, those of private entities so as to make possible the accelerated and balanced growth and development of tourism in the Philippines which is responsible to the needs of targeted travel markets, domestic and foreign, and beneficial to a greater number of Filipino communities;

(6) Analyze specific geographical areas with potential tourism value leading to the preparation of a national tourism development plan which will establish the order of priority for the development plan of tourist zones;

(7) Formulate a government plan for each zone in coordination with other government agencies and local government units exercising political jurisdiction over the area, provided, that the plan of the zone to be developed shall cover specifically those aspects pertaining to tourism; provided further, that the tourism development plan is fully coordinated and integrated with other sectoral plans for the area; and

(8) Coordinate with appropriate local government units and other government agencies to assist in formulating and implementing zone regulations, including building codes, hotel standards and such other restrictions as may be necessary within a tourist zone to control its orderly development; preserve such historical, cultural or natural assets or relics giving the zone its tourism value and significance; and assure adherence to approved zone development plans;

(9) Ensure through proper coordination with appropriate government agencies and local private agencies the social growth of the community within a tourist zone; carefully control possible negative social impact brought about by tourism development.

SECTION 17. Office of Product Development. — The Office of Product Development shall have the following functions:

(1) Develop and conceptualize new products which can lead to the enhancement of tourist sites and facilities;

(2) Undertake pilot tests for testing the viability and acceptability of new tourism-related products and programs; and

(3) Encourage and promote joint undertakings with the private sector of new tourism-related products and programs.

SECTION 18. Office of Tourism Coordination. — The Office of Tourism Coordination shall have the following functions:

(1) Initiate and coordinate with all sectors, both government and private, the development of the national tourism plans and policies;

(2) Coordinate priority activities and projects of the Department, and other government agencies, and the private sector;

(3) Enlist the assistance and support of any or all of the government agencies in the implementation of the policies of the Department; and

(4) Provide support to all tourism-related activities of the private sector needing government assistance.

CHAPTER 5 Foreign and Regional Offices

SECTION 19. Foreign Field Offices. — Subject to the approval of the President, the Department shall have foreign offices as may be necessary in the marketing and promotion of the Philippines as an international tourist destination, which shall oversee and implement the marketing and promotional programs of the Department.

SECTION 20. Regional Office. — The Department is authorized to establish, operate and maintain a Regional Office in each of the administrative regions of the country, under the immediate supervision of the Assistant Secretary for Tourism Services and Regional Offices. A Regional Office shall be headed by a Regional Director and shall, within its administrative region, have the following functions:

(1) Implement laws, policies, plans, programs, rules and regulations of the Department;

(2) Provide economical, efficient and effective service to the people;

(3) Coordinate with regional offices of other departments, bureaus and agencies;

(4) Coordinate with local government units; and

(5) Perform such other functions as may be provided by law.

CHAPTER 6 Attached Agencies

SECTION 21. Attached Agencies. — The Philippine Tourism Authority, and Philippine Convention Bureau, Intramuros Administration, and National Parks Development Committee are hereby attached to the Department and shall continue to operate and function in accordance with the respective charters/laws/orders provided in this Code.

TITLE XIV Environment and Natural Resources

CHAPTER 1 General Provisions

SECTION 1. Declaration of Policy. — (1) The State shall ensure, for the benefit of the Filipino people, the full exploration and development as well as the judicious disposition, utilization, management, renewal and conservation of the country's forest, mineral, land, waters, fisheries, wildlife, offshore areas and other natural resources, consistent with the necessity of maintaining a sound ecological balance and protecting and enhancing the quality of the environment and the objective of making the exploration, development and utilization of such natural resources equitably accessible to the different segments of the present as well as future generations.

(2) The State shall likewise recognize and apply a true value system that takes into account social and environmental cost implications relative to the utilization, development and conservation of our natural resources.

SECTION 2. Mandate. — (1) The Department of Environment and Natural Resources shall be primarily responsible for the implementation of the foregoing policy.

(2) It shall, subject to law and higher authority, be in charge of carrying out the State's constitutional mandate to control and supervise the exploration, development, utilization, and conservation of the country's natural resources.

SECTION 3. Guidelines for Implementation. — In the discharge of its responsibility the Department shall be guided by the following objectives:

(1) Assure the availability and sustainability of the country's natural resources through judicious use and systematic restoration or replacement, whenever possible;

(2) Increase the productivity of natural resources in order to meet the demands for the products from forest, mineral, land and water resources of a growing population;

(3) Enhance the contribution of natural resources for achieving national economic and social development;

(4) Promote equitable access to natural resources by the different sectors of the population; and

(5) Conserve specific terrestrial and marine areas representative of the Philippine natural and cultural heritage for present and future generations.

SECTION 4. Powers and Functions. — The Department shall:

(1) Advise the President and the Congress on the enactment of laws relative to the exploration, development, use, regulation and conservation of the country's natural resources and the control of pollution;

(2) Formulate, implement and supervise the implementation of the government's policies, plans, and programs pertaining to the management, conservation, development, use and replenishment of the country's natural resources;

(3) Promulgate rules and regulations in accordance with law governing the exploration, development, conservation, extraction, disposition, use and such other commercial activities tending to cause the depletion and degradation of our natural resources;

(4) Exercise supervision and control over forest lands, alienable and disposable public lands, mineral resources and, in the process of exercising such control, impose appropriate taxes, fees, charges, rentals and any such form of levy and collect such revenues for the exploration, development, utilization or gathering of such resources;

(5) Undertake the exploration, assessment, classification and inventory of the country's natural resources, using ground surveys, remote sensing and complementary technologies;

(6) Promote proper and mutual consultation with the private sector on matters involving natural resources exploration, development, use and conservation;

(7) Undertake geological surveys of the whole country including its territorial waters;

(8) Issue licenses and permits for activities related to the use and development of aquatic resources, treasure hunting, salvaging of sunken vessels and other similar activities;

(9) Establish policies and implement programs for the:

(a) Accelerated inventory, survey and classification of lands, forest and mineral resources, using appropriate technology, to be able to come up with a more accurate assessment of resource quality and quantity;

(b) Equitable distribution of natural resources through the judicious administration, regulation, utilization, development and conservation of public lands, forest, water and mineral resources (including mineral reservation areas), that would benefit a greater number of Filipinos;

(c) Promotion, development and expansion of natural resource-based industries;

(d) Preservation of cultural and natural heritage through wildlife conservation and segregation of national parks and other protected areas;

(e) Maintenance of a wholesome natural environment by enforcing environmental protection laws; and

(f) Encouragement of greater people participation and private initiative in rural resource management;

(10) Promulgate rules and regulations necessary to:

(a) Accelerate cadastral and emancipation patent surveys, land use planning and public land titling;

(b) Harness forest resources in a sustainable manner, to assist rural development, support forest-based industries, and provide raw materials to meet increasing demands, at the same time keeping adequate reserves for environmental stability;

(c) Expedite mineral resources surveys, promote the production of metallic and non-metallic minerals and encourage mineral marketing;

(d) Assure conservation and judicious and sustainable development of aquatic resources.

(11) Assess, review and provide direction to, in coordination with concerned government agencies, energy research and development programs, including identification of sources of energy and determination of their commercial feasibility for development;

(12) Regulate the development, disposition, extraction, exploration and use of the country's forest, land, water and mineral resources;

(13) Assume responsibility for the assessment, development, protection, licensing and regulation as provided for by law, where applicable, of all energy and natural resources; the regulation and monitoring of service contractors, licensees, lessees, and permit for the extraction, exploration, development and use of natural resources products; the implementation of programs and measures with the end in view of promoting close collaboration between the government and the private sector; the effective and efficient classification and sub-classification of lands of the public domain; and the enforcement of natural resources and environmental laws, rules and regulations;

(14) Promulgate rules, regulations and guidelines on the issuance of licenses, permits, concessions, lease agreements and such other privileges concerning the development, exploration and utilization of the country's marine, freshwater, and brackish water and over all aquatic resources of the country and shall continue to oversee, supervise and police our natural resources; cancel or cause to cancel such privileges upon failure, non-compliance or violations of any regulation, order, and for all other causes which are in furtherance of the conservation of natural resources and supportive of the national interest;

(15) Exercise exclusive jurisdiction on the management and disposition of all lands of the public domain and serve as the sole agency responsible for classification, sub-classification, surveying and titling of lands in consultation with appropriate agencies;

(16) Implement measures for the regulation and supervision of the processing of forest products, grading and inspection of lumber and other forest products and monitoring of the movement of timber and other forest products;

(17) Promulgate rules and regulations for the control of water, air and land pollution;

(18) Promulgate ambient and effluent standards for water and air quality including the allowable levels of other pollutants and radiations;

(19) Promulgate policies, rules and regulations for the conservation of the country's genetic resources and biological diversity, and endangered habitats;

(20) Formulate an integrated, multi-sectoral, and multi-disciplinary National Conservation Strategy, which will be presented to the Cabinet for the President's approval;

(21) Perform such other functions as may be provided by law.

SECTION 5. Organizational Structure. — The Department shall consist of the Department Proper, the Staff Offices, the Staff Bureaus, and the Regional Offices, Provincial Offices and Community Offices.

CHAPTER 2 The Department Proper

SECTION 6. Composition. — The Department Proper shall be composed of the Office of the Secretary, the Offices of the Undersecretaries and Assistant Secretaries, and the Public Affairs Office, Special Concerns Office, and the Pollution Adjudication Board.

SECTION 7. Office of the Secretary. — The Office of the Secretary shall consist of the Secretary and his immediate staff.

SECTION 8. The Secretary. — The Secretary shall:

(1) Advise the President on the promulgation of rules, regulations and other issuances relative to the conservation, management, development and proper use of the country's natural resources;

(2) Establish policies and standards for the efficient and effective operations of the Department in accordance with the programs of the government;

(3) Promulgate rules, regulations and other issuances necessary in carrying out the Department's mandate, objectives, policies, plans, programs and projects.

(4) Exercise supervision and control over all functions and activities of the Department;

(5) Delegate authority for the performance of any administrative or substantive function to subordinate officials of the Department; and

(6) Perform such other functions as may be provided by law or assigned by the President.

SECTION 9. Undersecretaries. — The Secretary shall be assisted by five (5) Undersecretaries upon the recommendation of the Secretary. The Secretary is hereby authorized to delineate, assign and/or reassign the respective functional areas of responsibility of each Undersecretary, Provided, That such responsibility shall be with respect to the mandate and objectives of the Department; and Provided, further, That no Undersecretary shall be assigned primarily administrative responsibilities. Within his functional area of responsibility, an Undersecretary shall have the following functions:

(1) Advise the Secretary in the promulgation of Department orders, administrative orders and other issuances, with respect to his area of responsibility;

(2) Exercise supervision and control over the offices, services, operating units and officers and employees under his responsibility;

(3) Promulgate rules and regulations, consistent with Department policies, that will efficiently and effectively govern the activities of units under his responsibility;

(4) Coordinate the functions and activities of the units under his responsibility with those of other units under the responsibility of other Undersecretaries;

(5) Exercise such authority on substantive and administrative matters related to the functions and activities of units under his responsibility to the extent granted by the Secretary through administrative issuances; and

(6) Perform such other functions as may be provided by law or assigned by the Secretary.

SECTION 10. Assistant Secretaries. — The Secretary and the Undersecretaries shall, in the formulation, management and implementation of natural resources laws, policies, plans, and programs and projects, also be assisted by seven (7) Assistant Secretaries who shall be responsible for the following: one (1) for Policy and Planning Studies, one (1) for Foreign-Assisted and Special Projects, one (1) for Field Operations in Luzon, one (1) for Field Operations in the Visayas, and one (1) for Field Operations in Mindanao, one (1) for Legal Affairs, and one (1) for Management Services.

SECTION 11. Public Affairs Office. — The Public Affairs Office, under the Office of the Secretary, shall be headed by a Director to be assisted by an Assistant Director, and shall serve as the public information arm of the Department. It shall be responsible for disseminating information on natural resources development policies, plans, programs and projects and respond to public queries related to the development and conservation of natural resources.

SECTION 12. Special Concerns Office. — The Special Concerns Office, also under the Office of the Secretary, shall be headed by a Director to be assisted by an Assistant Director, and shall be responsible for handling priority areas or subjects identified by the Secretary which necessitate special and immediate attention.

SECTION 13. Pollution Adjudication Board. — The Pollution Adjudication Board, under the Office of the Secretary, shall be composed of the Secretary as Chairman, two Undersecretaries as may be designated by the Secretary, the Director of Environmental Management, and three others to be designated by the Secretary as members. The Board shall assume the powers and functions of the Commission/Commissioners of the National Pollution Control Commission with respect to the adjudication of pollution cases under Republic Act 3931 and Presidential Decree 984, particularly with respect to Section 6 letters (e), (f), (g), (j), (k) and (p) of P.D. 984. The Environmental Management Bureau shall serve as the Secretariat of the Board. These powers and functions may be delegated to the regional officers of the Department in accordance with rules and regulations to be promulgated by the Board.

CHAPTER 3 The Staff Sectoral Bureaus

SECTION 14. Forest Management Bureau. — The Forest Management Bureau shall be headed by a Director and assisted by an Assistant Director, and shall integrate and absorb the powers of the Bureau of Forest Development and the Wood Industry Development Authority which were abolished by Executive Order No. 131, except those line functions and powers thereof which are transferred to the regional field office.

It shall advise the Secretary on matters pertaining to forest development and conservation. As its primary functions, it shall:

(1) Recommend policies and/or programs for the effective protection, development, occupancy, management and conservation of forest lands and watersheds, including the grazing and mangrove areas; reforestation and rehabilitation of critically denuded or degraded forest reservations, improvement of water resource use and development, development of national parks, preservation of wilderness areas, game refuges and wildlife sanctuaries, ancestral lands, wilderness areas and other natural preserves, development of forest plantations, including rattan, bamboo, and other valuable non-timber forest resources; and rationalization of the wood-based industries, regulation of the utilization and exploitation of forest resources, including wildlife, to ensure continuous supply of forest and goods and services;

(2) Advise the regional offices in the implementation of the above policies and/or programs;

(3) Develop plans, programs, operating standards and administrative measures to promote the Bureau's objectives and functions;

(4) Assist in the monitoring and evaluation of forestry and watershed development projects to ensure efficiency and effectiveness;

(5) Undertake studies on the economics of forestry and forest-based industries, including supply and demand trends on the local, national and international levels, identifying investment problems and opportunities in various areas; and

(6) Perform such other functions as may be provided by law or assigned by the Secretary.

SECTION 15. Lands Management Bureau. — The Lands Management Bureau, to be headed by a Director and assisted by an Assistant Director, shall absorb the functions and powers of the Bureau of Lands abolished by Executive Order No. 131, except those line functions and powers thereof which are transferred to the regional field offices.

It shall advise the Secretary on matters pertaining to rational land management and disposition and shall have the following functions:

(1) Recommend policies and programs for the efficient and effective administration, surveys, management and disposition of alienable and disposable lands of the public domain and other lands outside the responsibilities of other government agencies, such as reclaimed areas and other areas not needed for or are not being utilized for the purposes for which they have been established;

(2) Advise the Regional Offices on the efficient and effective implementation of policies, programs and projects for more effective public lands management;

(3) Assist in the monitoring and evaluation of land surveys, management and disposition of lands to ensure efficiency and effectiveness thereof;

(4) Issue standards, guidelines, regulations and orders to enforce policies for the maximization of land use and development;

(5) Develop operating standards and procedures to promote the Bureau's objectives and functions; and

(6) Perform such other functions as may be provided by law or assigned by the Secretary.

SECTION 16. Mines and Geo-Sciences Bureau. — The Mines and Geo-Sciences Bureau, to be headed by a Director and assisted by an Assistant Director shall absorb the functions of the Bureau of Mines and Geo-Sciences, Mineral Reservations Development Board, and the Gold Mining Industry Development Board which were abolished by Executive Order No. 131, except line functions and powers thereof which are transferred to the regional field offices.

It shall advise the Secretary on matters pertaining to geology and mineral resources exploration, development, utilization and conservation and shall:

(1) Recommend policies, regulations or programs pertaining to mineral resources development and geology;

(2) Advise the Secretary on the granting of mining rights and contracts over areas containing metallic and non-metallic mineral resources;

(3) Advise the Regional Offices on the effective implementation of mineral development and conservation programs as well as geological surveys;

(4) Recommend policies, regulations and oversee the development and exploitation of mineral resources of the sea within the country's jurisdiction such as silica sand, gold placer, magnetic and chromite sand, etc;

(5) Assist in the monitoring and evaluation of the Bureau's programs and projects to ensure efficiency and effectiveness thereof;

(6) Develop and promulgate standards and operating procedures on mineral resources development and geology;

(7) Supervise and control the development and packaging of nationally applicable technologies on geological survey, mineral resource assessment, mining and metallurgy; the provision of geological, metallurgical, chemical and rock mechanics laboratory services; the conduct of marine geological and geophysical survey and natural exploration drilling programs; and

(8) Perform such other functions as may be provided by law or assigned by the Secretary.

SECTION 17. Environmental Management Bureau. — The Environmental Management Bureau, to be headed by a Director who shall be assisted by an Assistant Director shall, subject to the provisions of this Code relative to the Pollution Adjudication Board, absorb and integrate the powers and functions of the National Environmental Protection Council, the National Pollution Control Commission, and the Environmental Center of the Philippines which are hereby abolished.

It shall advise the Secretary on matters relating to environmental management, conservation, and pollution control, and shall:

(1) Recommend possible legislation, policies and programs for environmental management and pollution control;

(2) Advise the Regional Offices in the efficient and effective implementation of policies, programs, and projects for the effective and efficient environmental management and pollution control;

(3) Formulate environmental quality standards such as the quality standards for water, air, land, noise and radiations;

(4) Recommend rules and regulations for environmental impact assessments and provide technical assistance for their implementation and monitoring;

(5) Formulate rules and regulations for the proper disposition of solid wastes, toxic and hazardous substances;

(6) Advise the Secretary on the legal aspects of environmental management and pollution control and assist in the conduct of public hearings in pollution cases;

(7) Provide secretariat assistance to the Pollution Adjudication Board;

(8) Coordinate the inter-agency committees that may be created for the preparation of the State of the Philippine Environment Report and the National Conservation Strategy;

(9) Provide assistance to the Regional Offices in the formulation and dissemination of information on environmental and pollution matters to the general public;

(10) Assist the Secretary and the Regional Officers by providing technical assistance in the implementation of environmental and pollution laws; and

(11) Provide scientific assistance to the Regional Offices in the conduct of environmental research programs.

SECTION 18. Ecosystems Research and Development Bureau. — The Ecosystems Research and Development Bureau, to be headed by a Director and assisted by an Assistant Director, shall absorb the powers and functions of the Forest Research Institute and the National Mangrove Committee, which are hereby abolished.

It shall:

(1) Formulate and recommend an integrated research program relating to Philippine ecosystems and natural resources such as minerals, lands, forests, as holistic and interdisciplinary fields of inquiry;

(2) Assist the Secretary in determining a system of priorities for the allocation of resources to various technological research programs of the department;

(3) Provide technical assistance in the implementation and monitoring of the aforementioned research programs;

(4) Generate technologies and provide scientific assistance in the research and development of technologies relevant to the sustainable uses of Philippine ecosystems and natural resources; and

(5) Assist the Secretary in the evaluation of the effectiveness of the implementation of the integrated research program.

The Ecosystems Research and Development Bureau shall directly manage and administer the Forest Research Institute Research Offices, laboratories, and forest experiment stations located at UP Los Baños and such other field laboratories as the Secretary may assign to its direct supervision. The Bureau shall coordinate all technological researches undertaken by the field offices, assess and translate all recommendable findings and disseminate such findings for all possible users and clientele.

SECTION 19. Protected Areas and Wildlife Bureau. — The Protected Areas and Wildlife Bureau, to be headed by a Director and assisted by an Assistant Director, shall absorb the Division of Parks and Wildlife and the Marine Parks Program of the Bureau of Forest Development as well as the Calauit Game Preserve and Wildlife Sanctuary, Presidential Committee on the Conservation of Tamaraw, Ninoy Aquino Parks and Wildlife Center (formerly Parks and Wildlife Nature Center), shares in Kabuhayan Program and Agro Forestry State Projects of the KKK Processing Authority, all national parks, wildlife sanctuaries and game preserves previously managed and administered by the Ministry of Human Settlements including National Parks Reservation situated in the provinces of Bulacan, Rizal, Laguna and Quezon formerly declared as Bagong Lipunan Sites of said Ministry, Magat Forest Reservation and Mt. Arayat National Park, formerly with the Ministry of Tourism.

The Bureau shall:

(1) Formulate and recommend policies, guidelines, rules and regulations for the establishment and management of an Integrated Protected Areas Systems such as national parks, wildlife sanctuaries and refuge, marine parks, and biospheric reserves;

(2) Formulate and recommend policies, guidelines, rules and regulations for the preservation of biological diversity, genetic resources, the endangered Philippine flora and fauna;

(3) Prepare an up-to-date listing of endangered flora and fauna and recommend a program of conservation and propagation of the same;

(4) Assist the Secretary in the monitoring and assessment of the management of the Integrated Protected Areas System and provide technical assistance to the Regional Offices in the implementation of programs for these areas; and

(5) Perform such other functions as may be provided by law or assigned by the Secretary.

CHAPTER 4 The Department Field Offices

SECTION 20. Field Offices of the Department. — The field offices of the Department are the Environmental and Natural Resources Regional Offices in the thirteen (13) administrative regions of the country; the Environment and Natural Resources Provincial Office in every province, and the Community Office in every municipality, whenever deemed necessary.

SECTION 21. Environment and Natural Resources Regional Office. — A Regional Office shall be directly under the supervision and control of the Undersecretary for Field Operations and shall be headed by a Regional Executive Director (with the rank of Regional Director) who shall be assisted by five (5) Assistant Regional Technical Directors, (with the rank of Assistant Regional Director), one (1) each for Forestry, for Lands Management, for Mines and Geo-Sciences, Environmental Management and Ecosystems Research, respectively, and who shall be Career Executive Service Officers.

An Environment and Natural Resources Regional Office shall be located in the identified regional capital and shall have the following functions:

(1) Implement laws, policies, plans, programs, projects, rules and regulations of the Department to promote the sustainability and productivity of natural resources, social equity in natural resource utilization and environmental protection;

(2) Provide efficient and effective delivery of services to the people;

(3) Coordinate with regional offices of other departments, offices, agencies in the region and local government units in the enforcement of natural resource conservation laws and regulations, and in the formulation/implementation of natural resource programs and projects;

(4) Recommend and, upon approval, implement programs and projects on forestry, minerals, and land management and disposition;

(5) Conduct a comprehensive inventory of natural resources in the region and formulate regional short and long-term development plans for the conservation, utilization and replacement of natural resources;

(6) Evolve respective regional budget in conformity with the priorities established by the Regional Development Councils;

(7) Supervise the processing of natural resources products, grade and inspect minerals, lumber and other wood processed products, and monitor the movement of these products;

(8) Conduct field researches for appropriate technologies recommended for various projects; and

(9) Perform such other functions as may be provided by law or assigned by the Secretary.

SECTION 22. Provincial and Community Offices. — The Natural resources provincial and community offices shall each be headed by a provincial natural resource officer and community natural resource officer, respectively. They shall take over the functions of the district offices of the former Bureau of Forest Development, Bureau of Lands, and Bureau of Mines and Geo-Sciences.

CHAPTER 5 Attached Agencies and Corporations

SECTION 23. Attached Agencies and Corporations. — The following agencies and corporations shall be attached to and under the administrative supervision of the Department:

(1) National Mapping and Research Information Authority;

(2) National Electrification Administration; and

(3) National Resources Development Corporation.

The agencies attached to the Department shall continue to operate and function in accordance with the respective laws creating them, except as otherwise provided in this Code.

TITLE XV Transportation and Communications

CHAPTER 1 General Provisions

SECTION 1. Declaration of Policy. — The State is committed to the maintenance and expansion of viable, efficient, fast, safe and dependable transportation and communications systems as effective instruments for national recovery and economic progress. It shall not compete as a matter of policy with private enterprise and shall operate transportation and communications facilities only in those areas where private initiatives are inadequate or non-existent.

SECTION 2. Mandate. — The Department of Transportation and Communications shall be the primary policy, planning, programming, coordinating, implementing, regulating and administrative entity of the Executive Branch of the government in the promotion, development and regulation of dependable and coordinated networks of transportation and communications systems as well as in the fast, safe, efficient and reliable postal, transportation and communications services.

SECTION 3. Powers and Functions.— To accomplish its mandate, the Department shall:

(1) Formulate and recommend national policies and guidelines for the preparation and implementation of integrated and comprehensive transportation and communications systems at the national, regional and local levels;

(2) Establish and administer comprehensive and integrated programs for transportation and communications, and for this purpose, it may call on any agency, corporation or organization, whether public or private, whose development programs include transportation and communications as integral parts thereof, to participate and assist in the preparation and implementation of such programs;

(3) Assess, review and provide direction to transportation and communications research and development programs of the government in coordination with other institutions concerned;

(4) Administer and enforce all laws, rules and regulations in the field of transportation and communications;

(5) Coordinate with the Department of Public Works and Highways in the design, location, development, rehabilitation, improvement, construction, maintenance and repair of all infrastructure projects and facilities of the Department. However, government corporate entities attached to the Department shall be authorized to undertake specialized telecommunications, ports, airports and railways projects and facilities as directed by the President of the Philippines or as provided by law;

(6) Establish, operate and maintain a nationwide postal system that shall include mail processing, delivery services and money order services and promote the art of philately;

(7) Issue certificates of public convenience for the operation of public land and rail transportation utilities and services;

(8) Accredit foreign aircraft manufacturers or international organizations for aircraft certification in accordance with established procedures and standards;

(9) Establish and prescribe rules and regulations for identification of routes, zones or areas of operation of particular operators of public land services;

(10) Establish and prescribe rules and regulations for the establishment, operation and maintenance of such telecommunications facilities in areas not adequately served by the private sector in order to render such domestic and overseas services that are necessary with due consideration for advances in technology;

(11) Establish and prescribe rules and regulations for the issuance of certificates of public convenience for public land transportation utilities, such as motor vehicles, trimobiles and railways;

(12) Establish and prescribe rules and regulations for the inspection and registration of air and land transportation facilities, such as motor vehicles, trimobiles, railways and aircraft;

(13) Establish and prescribe rules and regulations for the issuance of licenses to qualified motor vehicle drivers, conductors and airmen;

(14) Establish and prescribe the corresponding rules and regulations for enforcement of laws governing land transportation, air transportation and postal services, including the penalties for violations thereof, and for the deputation of appropriate law enforcement agencies in pursuance thereof;

(15) Determine, fix or prescribe charges or rates pertinent to postal services and to the operation of public air and land transportation utility facilities and services, except such rates or charges as may be prescribed by the Civil Aeronautics Board under its charter and, in cases where charges or rates are established by international bodies or associations of which the Philippines is a participating member or by bodies or associations recognized by the Philippine government as the proper arbiter of such charges or rates;

(16) Establish and prescribe the rules, regulations, procedures and standards for the accreditation of driving schools;

(17) Administer and operate the Civil Aviation Training Center (CATC) and the National Telecommunications Training Institute (NTTI); and

(18) Perform such other powers and functions as may be provided by law.

SECTION 4. Organizational Structure. — The Department shall consist of the Department Proper, the Department Regional Offices, the Land Transportation Franchising and Regulatory Board, and the Attached Agencies.

CHAPTER 2 Department Proper

SECTION 5. Office of the Secretary. — The Office of the Secretary shall consist of the Secretary, his immediate staff, the Franchising Review Staff and the Investigation, Security and Law Enforcement Staff.

The Franchising Review Staff shall be headed by a Review Staff Director with the same rank, salary and privileges of a Department Regional Director who shall be appointed by the President upon the recommendation of the Secretary. The Franchising Review Staff shall assist the Secretary in the review of cases and matters pertaining to, among others, grants of franchises and the regulation thereof.

The Investigation, Security and Law Enforcement Staff shall be headed by a Staff Director with the same rank, salary and privileges of a Department Service Chief. The Investigation, Security and Law Enforcement Staff shall be responsible for: (a) providing security and intelligence for the Department; (b) coordinating security and intelligence activities of security units of its offices and attached agencies; and (c) undertaking law enforcement, functions and activities relating to land transportation.

SECTION 6. Undersecretaries. — The Secretary shall be assisted by four (4) Undersecretaries. Each Undersecretary shall have control and supervision over the respective offices and services assigned to him by the Secretary.

SECTION 7. Assistant Secretaries. — The Secretary shall also be assisted by eight (8) Assistant Secretaries each of whom shall be responsible for the four (4) staff offices and four (4) line offices. Each Assistant Secretary shall report to the respective Undersecretary to whom he is assigned by the President.

SECTION 8. Staff Offices. — The Department shall have the following staff offices:

(1) The Office of the Assistant Secretary for Administrative and Legal Affairs composed of the Administrative Service and the Legal Service;

(2) The Office of the Assistant Secretary for Finance and Comptrollership composed of the Finance and Management Service and the Comptrollership Service;

(3) The Office of the Assistant Secretary for Planning and Project Development composed of the Planning Service and the Project Development Service; and

(4) The Office of the Assistant Secretary for Management Information and Project Management composed of the Management Information Service and the Project Management Service.

SECTION 9. Line Offices. — The Department shall have the following line offices:

(1) The Office of the Assistant Secretary for Land Transportation;

(2) The Office of the Assistant Secretary for Postal Services;

(3) The Office of the Assistant Secretary for Telecommunications; and

(4) The Office of the Assistant Secretary for Air Transportation.

The line offices shall each have an Executive Director who shall assist the respective Assistant Secretary in the implementation and enforcement of the policies, programs and projects, and the pertinent laws on their respective areas of responsibilities.

SECTION 10. Service Units in the Office of the Assistant Secretary for Land Transportation. — There shall be two service units in the Office of the Assistant Secretary for Land Transportation, namely:

(1) Law Enforcement Service, and

(2) Traffic Adjudication Service.

Each of the aforesaid service units shall be headed by a Service Chief to be appointed by the President upon recommendation of the Secretary of Transportation and Communication.

SECTION 11. Functions of the Law Enforcement Service. — The Law Enforcement Service shall have the same functions and powers as those that the former Law Enforcement Division in the Office of the Assistant Secretary for Land Transportation exercised.

SECTION 12. Functions of the Traffic Adjudication Service. — The Traffic Adjudication Service shall have the following powers and functions:

(1) To hear and decide cases involving violations of laws, rules and regulations governing land transportation and to impose fines and/or penalties therefor; provided that violations resulting in damage to property and/or physical injuries or violations constituting offenses punishable under the Revised Penal Code and other penal laws shall be under the jurisdiction of the regular courts;

(2) To order the impounding of motor vehicles and confiscation of plates or the arrest of violators of laws, rules and regulations governing land transportation;

(3) To issue subpoena and subpoena duces tecum and to summon witnesses to appear in any proceedings thereof, and to administer oaths and affirmations;

(4) To promulgate rules and regulations governing the proceedings before it; provided that except with respect to paragraph C, the rules of procedure and evidence prevailing in the courts of law shall not be controlling and all reasonable means to ascertain the facts in each case shall be used without regard to technicalities of law and procedures but all in the interest of due process; and

(5) To perform such other functions and duties as may be provided by law, or as may be necessary, or proper or incidental to its powers and functions.

CHAPTER 3 Department Services

SECTION 13. Department Services. — The Department Services shall include the following:

(1) Administrative Service;

(2) Legal Service;

(3) Finance and Management Service;

(4) Comptrollership Service;

(5) Planning Service;

(6) Project Development Service;

(7) Management Information Service; and

(8) Project Management Service.

Each of the above named services shall be headed by a Service Chief appointed by the President upon the recommendation of the Secretary.

CHAPTER 4 Regional Offices

SECTION 14. Regional Offices. — The Department shall have three (3) Regional Offices in each of the administrative regions of the country: the Regional Office for Land Transportation, the Regional Office for Telecommunications and the Regional Office for Postal Services. Each Regional Office shall be headed by a Regional Director to be assisted by an Assistant Regional Director.

The Regional Offices shall essentially be line in character and shall be responsible for the delivery of all front line services of the Department.

For such purposes, the Regional Offices shall have, within their respective administrative regions, the following functions:

(1) Implement laws, policies, plans, programs, projects, rules and regulations of the Department;

(2) Provide efficient and effective service to the people;

(3) Coordinate with regional offices of other departments, offices and agencies;

(4) Coordinate with local government units; and

(5) Perform such other functions as may be provided by law.

The Office of the Secretary shall have direct line supervision and control over Regional Offices.

CHAPTER 5 Regulatory Board

SECTION 15. Land Transportation Franchising and Regulatory Board. — The quasi-judicial powers and functions with respect to land transportation shall be exercised through the Land Transportation and Regulatory Board, hereinafter referred to as the "Board".

SECTION 16. Composition of the Board. — The Board shall be composed of a Chairman and two (2) members with the rank, salary and privileges of an Assistant Secretary, all of whom shall be appointed by the President of the Philippines upon recommendation of the Secretary of Transportation and Communications. One (1) member of the Board shall be a member of the Bar and shall have been engaged in the practice of law in the Philippines for at least five (5) years, another a holder of a degree in civil engineering, and the other a holder of a degree in economics, finance or management both with the same number of years of experience and practice.

SECTION 17. Executive Director and Support Staff of the Board. — The Board shall have an Executive Director who shall also be appointed by the President of the Philippines upon the recommendation of the Secretary of Transportation and Communications. He shall have the rank, salary and privileges of a Department Service Chief. He shall assist the Board in the performance of its powers and functions.

The Board shall be supported by the Technical Evaluation Division, Legal Division, Management Information Division, Administrative Division and Finance Division.

SECTION 18. Supervision and Control Over the Board. — The Secretary of Transportation and Communications, through his duly designated Undersecretary, shall exercise administrative supervision and control over the Land Transportation Franchising and Regulatory Board.

SECTION 19. Powers and Functions of the Land Transportation Franchising and Regulatory Board. — The Board shall:

(1) Prescribe and regulate routes, economically viable capacities, and zones or areas of operation of public land transportation services provided by motorized vehicles in accordance with the public land transportation development plans and programs approved by the Department of Transportation and Communications;

(2) Issue, amend, revise, suspend or cancel Certificates of Public Convenience or permits authorizing the operation of public land transportation services provided by motorized vehicles, and prescribe the appropriate terms and conditions therefor;

(3) Determine, prescribe, approve and periodically review and adjust reasonable fares, rates and other related charges, relative to the operation of public land transportation services provided by motorized vehicles;

(4) Issue preliminary or permanent injunction, whether prohibitory or mandatory, in all cases in which it has jurisdiction and in which cases the pertinent provisions of the Rules of Court shall apply;

(5) Punish for contempt of the Board, both direct and indirect, in accordance with the pertinent provisions of, and the penalties prescribed by, the Rules of Court;

(6) Issue subpoena and subpoena duces tecum and to summon witnesses appear in any proceedings of the Board, to administer oaths and affirmations, and, in appropriate cases, to order the search and seizure of all vehicles and documents, upon probable cause and as may be necessary for the proper disposition of the cases before it;

(7) Conduct investigations and hearings of complaints for violation of the public service laws on land transportation and of the Board's rules and regulations, orders, decisions or rulings and to impose fines or penalties for such violations;

(8) Review motu proprio the decisions/actions of the Regional Franchising and Regulatory Offices;

(9) Promulgate rules and regulations governing proceedings before the Board and the Regional Franchising and Regulatory Office. However, except with respect to paragraphs 4, 5, 6 and 7 hereof, the rules of procedure and evidence prevailing in the courts of law should not be controlling but rather the spirit and intention of said rules. The Board and the Regional Franchising and Regulatory Offices shall use every and all reasonable means to ascertain facts in each case speedily and objectively and without regard to technicalities of law and procedures, all in the interest of due process;

(10) Fix, impose and collect, and periodically review and adjust, reasonable fees and other related charges for services rendered;

(11) Formulate, promulgate, administer, implement and enforce rules and regulations on land transportation public utilities, standards of measurements or design, and rules and regulations requiring operators of any public land transportation service to equip, install and provide in their utilities and in their stations such devices, equipment, facilities and operating procedures and techniques as may promote safety, protection, comfort and convenience to persons and property in their charges as well as the safety of persons and property within their areas of operation;

(12) Coordinate and cooperate with other government agencies and entities concerned with any aspect involving public land transportation services with the end in view of effecting continuing improvement of such services; and

(13) Perform such other functions and duties as may be provided by law, or as may be necessary, or proper or incidental to the purposes and objectives of the Department;

SECTION 20. Decisions of the Board; Appeals therefrom or Review Thereof . — The Board, in the exercise of its powers and functions, shall sit and render its decision en banc. Every such decision, order, or resolution of the Board must bear the concurrence and signature of at least two (2) members thereof.

The decision, order or resolution of the Board shall be appealable to the Secretary within thirty (30) days from receipt of the decision. However, the Secretary may motu proprio review any decision or action of the Board before the same becomes final.

SECTION 21. Regional Franchising and Regulatory Offices. — There shall be a Regional Franchising and Regulatory Office in each of the administrative regions of the country which shall be headed by a Regional Director having the rank, salary and privileges of a Department Assistant Regional Director. The Regional Franchising and Regulatory Offices shall hear and decide uncontested applications/petitions for routes, within their respective administrative regions but that applications/petitions for routes extending beyond their respective territorial jurisdiction shall be heard and decided by the Board.

SECTION 22. Appeals. — The decisions, orders or resolutions of the Regional Franchising and Regulatory Offices shall be appealable to the Board within thirty (30) days from receipt of the decision.