Barangay Affairs and Development Commission Act

TWENTIETH CONGRESS OF THE JUL -3 P3:39 REPUBLIC OF THE PHILIPPINES First Regular Session SENATE S. B. NO. 65 Introduced by Senator Rodante D. Marcoleta AN ACT CREATING THE BARANGAY AFFAIRS AND DEVELOPMENT COMMISSION, DEFINING ITS POWERS AND FUNCTIONS, ESTABLISHING THE BARANGAY DEVELOPMENT FUND, AND APPROPRIATING FUNDS THEREFOR EXPLANATORY NOTE This bill seeks to create the Barangay Affairs and Development Commission, define its powers and functions, and establish the Barangay Development Fund. With history dating back pre-colonial times, the barangay is considered to be the government unit closest to the people. Not only does it provide basic social and health services, but it also facilitates neighborhood planning and assembly; assists in community reconciliation; and even serves as an essential response unit in times of emergencies and disasters. With more or less 42,000 barangays in the country, the barangay undoubtedly plays an indispensable role to the country's current political landscape and development.1 The landmark legislation Republic Act No. 7160 (RA 7160), otherwise known as the "Local Government Code of 1991," has recognized the critical role of barangays. In particular, Section 384 of the said law provides: "SEC. 384. Role of the Barangay. - As the basic political unit, the barangay serves as the primary planning and implementing unit of government policies, 1 Department of Interior and Local Government. "Regional Summary - Number of Provinces, Cities, and Municipalities and Barangays 31, 2025." (29 April 2025). Accessed https://www.dilg.gov.ph/facts-and-figures/Regional-Summary-Number-of-Provinces-Cities-Municipalities-and- Barangays-as-of-March-31-2025/32

plans, programs, projects, and activities in the community and as a forum wherein the collective views of the people may be expressed, crystallized and considered, and where disputes may be amicably settled." Barangays today, however, face various challenges. For one, barangays and barangay officials especially those in rural and remote areas-often lack resources and support. This is incongruous to the extensive nature of their work, which often always requires them to be on-standby 24 hours a day, 7 days a week. Politics also considerably impacts the distribution of resources and projects at the barangay level. A mayor's political priorities may lead to the concentration of resources and development projects in certain areas while neglecting others. Various factors, including political alliances, personal biases, and the availability of funds, can influence this. As a result, economic development is not cascaded to the barangays the way it should. Therefore, it is crucial to re-examine the functions of the barangay not only as a political unit but also as an enabler of the community's socioeconomic affairs. Equipping barangays with the necessary skills to manage their limited resources effectively, generate economic gains, and provide basic local services to their constituents is essential. This bill seeks to establish a Barangay Affairs and Development Commission, a government agency that will focus on the development and welfare of barangays. The proposed commission will formulate policies, plans, and programs for the development of barangays, monitor and evaluate the implementation of barangay development programs, provide technical assistance and capacity-building initiatives, and coordinate with relevant government agencies for resource generation and allocation for barangay development. A Barangay Development Fund is also proposed to be established, which will be utilized exclusively for the development projects and programs of the barangays, including subsidies to poor barangays for the honoraria of barangay officials and employees. This will ensure that barangays have the financial resources to implement their local development initiatives and pay reasonable honoraria for their officials and employees.

The creation of the Barangay Affairs and Development Commission is a way to enhance the capacity of barangays to address the needs of their constituents, particularly in rural areas where many barangays need more resources and expertise to provide essential services. The commission will also bridge the national government and the barangays, ensuring that national policies and programs are effectively implemented. With the passage of this bill, we are taking a significant step towards strengthening our barangays, empowering our citizens at the grassroots level, and realizing the true potential of effective local governance. In view of the foregoing, the passage of this bill is earnestly sought. RODANTE D. MARCOLETA

TWENTIETH CONGRESS OF THE JUL - 3 P3:39 REPUBLIC OF THE PHILIPPINES First Regular Session NETT SENATE S. B. No._ Introduced by Senator Rodante D. Marcoleta AN ACT CREATING THE BARANGAY AFFAIRS AND DEVELOPMENT COMMISSION, DEFINING ITS POWERS AND FUNCTIONS, ESTABLISHING THE BARANGAY DEVELOPMENT FUND, AND APPROPRIATING FUNDS THEREFOR Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title. - This Act shall be known as the "Barangay Affairs and

2 Development Commission Act."

Sec. 2. Declaration of Policy. - The State recognizes the barangay as the basic

4 political unit that serves as the primary planning and implementing unit of government 5 policies, plans, programs, projects, and activities in the community, and as a forum 6 wherein the collective views of the people may be expressed, formed and considered, 7 and where disputes may be amicably settled. The State also recognizes the barangay's 8 important role in supporting good governance, promoting public participation and 9 achieving sustainable development. Towards this end, the State shall uplift the social, 10 economic and political status of barangays by institutionalizing a body focused on barangay welfare and development.

Sec. 3. Barangay Affairs and Development Commission. - The Barangay Affairs

and Development Commission, hereinafter referred to as the "Commission," is created to oversee barangay affairs, support the development of barangays, and implement the programs and projects of the national government that promote the welfare and development of the barangays.

The Commission shall be an agency attached to the Department of the Interior and Local Government (DILG) for policy and program coordination. It shall establish its principal office in the National Capital Region and may set-up field offices as may be necessary to fulfill its mandate and in coordination with appropriate government agencies.

Sec. 4. Composition. - The Commission shall be composed of seven (7) regular

7 Commissioners to be appointed by the President of the Philippines. Three (3) 8 Commissioners shall represent Luzon, two (2) shall represent Visayas and two (2) shall represent Mindanao: Provided, That at least two (2) Commissioners are women. The 10 Secretary of the Interior and Local Government and President of the National Liga ng mga Barangay shall serve as ex-officio Chairperson and ex-officio member, respectively.

Sec. 5. Term of Office. - The regular Commissioners shall have a term of office

of four (4) years, without prejudice to reappointment by the President of the Philippines. Of those first appointed, the three (3) Commissioners shall hold office for four (4) years, two (2) Commissioners shall hold office for three (3) years, and two (2) Commissioners shall hold office for two (2) years. Appointment to any vacancy shall only be for the unexpired term of the predecessor.

Sec. 6. Qualifications. - The regular Commissioners must be citizens and

residents of the Philippines; at least forty-five (45) years old at the time of their appointment; of good moral character; have not been convicted by final judgment of 22 a crime involving moral turpitude; and possessed a working knowledge in public administration with a minimum of five (5) years of experience in the administration of local government units, preferably with legal or financial knowledge on local government programs.

Sec. 7. Powers and Functions. - The Commission shall exercise the following

powers and functions: a. Formulate, coordinate, and undertake development programs, plans, policies, and projects for the advancement of barangays, with due consideration to national and local development plans;

b. Identify the problems and needs of a barangay and recommend appropriate solutions necessary for its development and conduct research, study and analysis for the purpose; c. Assess, monitor, and evaluate the performance of the barangays and initiate measures and interventions to improve their operations and services; d. Provide technical assistance, advisory services and trainings to barangay officials and personnel; e. Coordinate with other national and local government agencies, as well as non- government organizations, civil society groups, and other stakeholders involved in barangay development efforts; f. Administer and manage the Barangay Development Fund established under

Section 17 of this Act, and other resources allocated to the Commission for

barangay development; g. Issue and promulgate rules, regulations and guidelines as may be necessary to implement and enforce its powers and functions under this Act; h. Appoint, hire and maintain adequate staff and personnel, advisers or consultants with suitable qualifications and experience, as may be necessary; and, i. Exercise such other powers and functions necessary or incidental or that which the President may, from time to time, assign to the Commission to carry out the objectives of this Act and for the effective administration, management and development of barangays

Sec. 8. Organizational Structure. - Subject to the approval of the Department

of Budget and Management, the Commission shall determine its organizational structure and staffing pattern, create offices, divisions, or units as it may deem necessary, and appoint its officers and employees in accordance with civil service laws, rules and regulations. In addition to any office that the Commission may create, the Commission shall establish the following permanent offices: a. Administrative and Human Resource Management Service; b. Barangay Affairs Monitoring and Evaluation Service; c. Barangay Development and Planning Service;

d. Financial Management Service; and, e. Legislative and Legal Service; and, f. Regional Offices The Office of the Undersecretary for Barangay Affairs and National Barangay 5 Operations Office, including their powers and functions, under the DILG are hereby transferred to the Commission. The remuneration and other emoluments for the positions in the staffing pattern shall strictly conform with existing laws on compensation and position classification.

Sec. 9. Executive Director. - The Commission shall appoint an Executive Director

who shall implement the policies, rules, regulations and directives of the Commission, and manage, coordinate and supervise the daily operations of the Commission. The Executive Director shall be a Career Executive Service Officer and must possess working knowledge in public administration and must have a minimum of five (5) years of experience in the administration of local government units, preferably with legal or financial knowledge of local government programs.

Sec. 10. Administrative and Human Resource Management Service. - The

Administrative and Human Resource Management Service of the Commission shall be responsible for providing the Commission with efficient and effective staff services relating to personnel, information, records, supplies, equipment, collection, 20 disbursement, security, and custodial work. For such purposes, it shall exercise the following functions: a. Advise the Commission on all matters relating to internal administration and human resources management; b. Prepare and implement an integrated personnel plan that includes provisions on merit promotions, performance evaluation, job rotation, suggestions and incentive awards systems, and heath and welfare services; c. Provide services related to human resources training, education, and development, including manpower, career planning and forecasting, and development of indigenous training materials; d. Establish and maintain an efficient and cost-effective property procurement system, in line with existing laws, and coordinate or otherwise interface with

relevant agencies, whether government or private, for the purpose of developing or upgrading the system; e. Secure and maintain necessary 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; f. Coordinate with the appropriate government agencies for a more efficient conduct of administrative processes; g. Develop, establish, and maintain an efficient records system; h. Provide assistance in its area of specialization to the Commission; and, i. Perform such other related duties and responsibilities as may be assigned or delegated by the Commission or as may be required by law.

Sec. 11. Barangay Affairs Monitoring and Evaluation Service. - The Barangay

Affairs Monitoring and Evaluation Service shall be responsible for providing the Commission with effective staff services relating to monitoring and evaluation of programs and projects, including timely reports on the status of various Commission projects and activities, regulatory compliance of barangays, and barangay statistics, status, and evaluation. The National Barangay Operations Office under the DILG shall serve as the 20 Barangay Affairs Monitoring and Evaluation Service and exercise the following 21 functions: a. Advise the Commission on all matters relating to monitoring, evaluation and functionality of barangays; b. Assess, monitor and evaluate the performance of barangays and initiate measures to improve their operations and services; c. Develop policies, plans and programs related to barangay governance and administration; d. Develop and maintain a system for retrieving and processing monitoring information on all projects and activities of concern, including the regulatory compliance of barangays, to the Commission; e. Provide technical assistance and advisory services to the barangays;

f. Coordinate with the appropriate national government agencies tasked with management of barangay affairs; and, g. Perform such other related duties and responsibilities as may be assigned or delegated by the Commission or as may be required by law.

Sec. 12. Barangay Development and Planning Service. - The Barangay

Development and Planning Service shall be responsible for developing policies, plans and programs related to barangay development. For this purpose, it shall exercise the following functions: a. Advise the Commission on all matters relating to barangay development and planning; b. Develop policies, plans and programs related to barangay development and coordinate with other stakeholders involved in barangay development efforts; c. Formulate strategies and priorities for sustainable development in barangays consistent with national development objectives and initiate or undertake relevant surveys for development planning; d. Assist in the formulation of Barangay Development Master Plan and gather, analyze and organize necessary data and information; e. Provide relevant technical assistance to other offices of the Commission as needed; and, f. Perform such other related duties and responsibilities as may be assigned or delegated by the Commission or as may be required by law.

Sec. 13. Financial Management Service. - The Financial Management Service

shall be responsible for providing the Commission with coordinated services relating to financial systems and procedures, budget, cash, accounting, and all financial housekeeping matters, including the management of the Barangay Development Fund. For such purposes, it shall have the following functions: a. Advise the Commission on all matters relating to the accounting of government expenditures and receipts, budgeting and cash management, project finances, and financial systems and procedures; b. Prepare budget proposals and pursue formal budget authorizations, undertake budget execution, and prepare and submit all appropriate reports to the proper offices;

c. Develop and maintain accounting, financial, and assets management systems, procedures, and practices in the Commission, including the management of the Barangay Development Fund; d. Provide assistance in its area of specialization to any unit of the Commission; e. Review and appraise systems and procedures, organizational structure, assets and management practices, accounting, and other records, reports, performance standards such as budgets and standard costs of the Commission; and, f. Perform such other related duties and responsibilities as may be assigned or delegated by the Commission or as may be required by law

Sec. 14. Legislative and Legal Service. - The Legislative and Legal Service shall

be responsible for providing the Commission with services on legislative and legal affairs such as contract letting and litigation, legal and legislative research, complaints investigation, legal counseling, and other matters of law. For such purposes, it shall have the following functions: a. Advise the Commission on all matters relating to legislative and legal affairs; b. Prepare Department contracts and legal instruments, review and interpret all contracts and agreements entered into by the Commission, and evaluate all legal proposals; c. Conduct administrative investigation as well as the review of administrative charges against officers and employees of the Commission; d. Exercise functional jurisdiction over the legislative and legal staff of regional offices; e. Provide legal assistance to the Commission and its offices; and, f. Perform such other related duties and responsibilities as may be assigned or delegated by the Commission or as may be required by law.

Sec. 15. Regional Office. - Regional offices shall be responsible for providing

support and assistance to barangays within their regional jurisdiction. For this purpose, their duties and responsibilities are as follows: a. Facilitate the implementation of national government programs and projects in the barangays within the region;

b. Provide technical assistance and capacity-building programs to barangay officials and workers to enhance their skills and knowledge in governance, administration, and community development; c. Conduct research, surveys, and studies to identify the needs and concerns of the barangays and their residents, and develop appropriate policies and programs to address them; d. Coordinate with other government agencies, non-governmental organizations, and other stakeholders to ensure the effective and efficient delivery of services to the barangays; e. In coordination with relevant offices, monitor and evaluate the performance of barangay officials and workers and providing feedback and recommendations for improvement; f. Provide support and assistance to barangays in times of emergencies and disasters, including natural calamities, conflicts, and other crises; g. Promote the empowerment and participation of barangay residents, particularly women, youth, and marginalized groups, in governance and development processes; h. Assist in the resolution of conflicts and disputes within and among barangays and facilitate the peaceful settlement of issues and concerns; and, i. Perform such other related duties and responsibilities as may be assigned or delegated by the Commission.

Sec. 16. 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. The regional director shall, within the defined powers, exercise functional and administrative supervision over barangays within the region. The Regional Director shall also perform such other related duties and responsibilities as may be assigned or delegated by the Commission or as may be required by law. The regional director shall be assisted by one (1) assistant regional director who shall exercise supervision in the planning, evaluation, and technical assistance functions of the regional office.

Sec. 17. Barangay Development Fund; Sources. - There is hereby created a

2 Barangay Development Fund (BDF), which shall be administered by the Commission 3 for the accelerated development of all barangays and implementation of the programs, 4 projects and activities under the Barangay Development Master Plan provided under

Section 18 of this Act. The BDF shall be sourced from the following:

a. Three percent (3%) of the provinces' share on National Tax Allotment (NTA) under Republic Act No. 7160 or the Local Government Code of 1991, as amended (LGC); b. Three percent (3%) of the cities' share on NTA under the LGC; C. Four percent (4%) of the municipalities' share on NTA under the LGC; and, d. Donations, grants, and endowments from private individuals, organizations and corporations.

Sec. 18. Barangay Development Master Plan. - The Commission shall, in

coordination with the Department of Economy, Planning, and Development (DEPDev) and other concerned government agencies and stakeholders, formulate a Barangay Development Master Plan. The Master Plan shall include: a. Priority listing of barangays that require immediate social and economic development; b. Common and specific program for all barangays; C. Utilization of the BDF that includes the following, in coordination with relevant government agencies: i. Construction and maintenance of barangay infrastructure, such as roads, bridges, health centers, and schools; Livelihood and employment programs for the residents of the barangay; iii. Promotion of economic development by supporting small businesses and attracting investment; iv. Improvement of access to education and equality of learning opportunities for residents of the barangay; V. Environmental protection and conservation projects; vi. Disaster preparedness and mitigation programs; vil. Health and sanitation programs;

vili. Subsidies to poor barangays for the honoraria of barangay officials and employees; and Any other projects and programs that promote the development of the ix. barangay; d. Oversight, audit, and accountability functions of the Commission, DILG, and the barangays; and, e. Other components of the program may be determined by the Commission, DILG and DEPDev.

Sec. 19. Management, Administration, and Audit. - The Commission shall,

10 through the Executive Director, oversee the management and administration of the 11 BDF, establish guidelines and procedures for the allocation, disbursement, and 12 monitoring of funds, and ensure that the funds are utilized for their intended purposes. The management and administration of the BDF, including its allocation and disbursement, shall be subject to relevant accounting and auditing rules and regulations of the Commission on Audit (COA).

Sec. 20. Annual Report. - The Commission shall submit an annual report to the

President of the Philippines and Congress of the Philippines on the status of the BDF, including the amount of funds collected and disbursed and the projects and programs 19 implemented.

Sec. 21. Interface with Other Sector Regulators. - DILG shall continue to assist

21 the President of the Philippines in the exercise of general supervision and 22 establishment of rules, regulations and other issuances implementing the LGC and 23 promotion of local autonomy, community empowerment and monitor compliance over provinces, cities and municipalities, while the Commission shall exercise such general supervision and establishment of rules and regulations implementing the LGC and promotion of local autonomy, community empowerment and monitor compliance over the barangays.

Sec. 22. Transfer of Rights and Obligations. - The Commission shall, by virtue

of this Act, be subrogated to all the rights, and assume all the obligations of the relevant parts of any government agency or unit whose powers and functions have been transferred to the Commission.

The transfer of powers and functions as indicated in the preceding paragraph, 2 as applicable and as herein provided for, shall take effect within one hundred eighty 3 (180) days after the effectivity of this Act. The foregoing transfer of powers and 4 functions shall include all applicable funds, personnel, records, property, and 5 equipment, as may be necessary. All offices shall continue to function under their 6 present mandates until transition is effected as provided for under this Act. All rights and obligations of affected government agencies are hereby 8 transferred to and assumed by the Commission and shall be acted upon in accordance g with the rules and regulations of COA and other pertinent laws, rules, and regulations.

Sec. 23. Separation from Service. - Employees separated from government

service as a result of this Act shall, within one (1) month from their separation from the service, receive the benefits to which they may be entitled under existing laws, rules, and regulations.

Sec. 24. Appropriations. - The amount necessary for the organization of the

Commission and its initial operations shall be charged against the current appropriations of the Contingent Fund. Thereafter, such sums as necessary to fully carry out the objectives, powers, and functions of the Commission shall be included in the annual General Appropriations Act. The Commission shall include in its annual budget detailed information on the 20 compensation and benefits received by their employees.

Sec. 25. Periodic Performance Evaluation. - The Commission is hereby required

to formulate and enforce a system of measuring and evaluating periodically and objectively the performance of the Commission and submit the same annually to the 24 President.

Sec. 26. Implementing Rules and Regulations. - Within one hundred twenty

(120) days from the effectivity of this Act, the Commission shall, in coordination with the Department of Budget and Management, DEPDeV, and the Civil Service Commission, and in consultation with other relevant government agencies, 29 promulgate the necessary rules and regulations to effectively implement the provisions of this Act.

Sec. 27. Separability Clause. - If any provision or part of this Act is declared

2 invalid or unconstitutional, the remaining parts not affected shall remain in full force and effect.

Sec. 28. Repealing Clause. - The provisions of the LGC which are inconsistent

with this Act are hereby amended or modified accordingly. All laws, presidential 6 decrees, executive orders, letters of instructions, administrative orders, proclamations 7 or administrative regulations that are inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.

Sec. 29. Effectivity. - This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in a newspaper of general circulation. Approved,