Republic Act No. 6734/Article XIII

by Congress of the Philippines

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Article XIII

ECONOMY AND PATRIMONY

Section 1. Consistent with the Constitution and national policies, the Regional Government may enact regional laws pertaining to the national economy and patrimony applicable and responsive to the needs of the Region. However, nothing herein shall be construed as to authorize the Regional Government to require lesser standards respecting the protection, conservation and enhancement of the natural resources than those required by the National Government.

Sec. 2. Except for strategic minerals such as uranium, coal, petroleum, and other fossil fuels, mineral oils, all sources of potential energy, as well as national reserves and aquatic parks, forest and watershed reservations as may be delimited by national law, the control and supervision over the exploration, utilization and development of the natural resources of the Autonomous Region is hereby delegated to the Regional Government in accordance with the Constitution and national laws.

The Regional Assembly shall have the authority to grant franchises and concessions but the Regional Governor may, by regional law, be authorized to grant leases, permits and licenses: Provided, That, any lease, permit, franchise or concession shall cover an area not exceeding the limits allowed by the Constitution and shall subsist for a period not exceeding twenty-five (25) years: Provided, further, That existing leases, permits, licenses, franchises and concessions shall be respected until their expiration unless legally terminated as provided by law: and Provided, finally, That when the natural resources are located within the ancestral domain, the permit, license, franchise or concession, shall be approved by the Regional Assembly after consultation with the cultural community concerned.

Sec. 3. The exploration, development and utilization of natural resources, except those enumerated in the first paragraph of Section 2 hereof, shall be allowed to all Filipinos and to private enterprises, including corporations, associations, cooperatives, and such other similar collective organizations with at least sixty percent (60%) of their capital investment or capital stocks directly controlled or owned by Filipinos who are preferably residents of the Region.

Sec. 4. Small-scale mining shall receive support from and be regulated by the Regional Government, considering ecological balance, the safety and health and the interest of the communities and the miners where such operations are conducted.

Sec. 5. The Regional Government may, in the interest of regional welfare and security, establish and operate pioneering public utilities. Upon payment of just compensation, it may transfer the ownership of such utilities to cooperatives or other collective organizations.

Sec. 6. The Regional Government may, in times of regional emergency declared by the President, when the public interest so requires and under reasonable terms and safeguards prescribed by the Regional Assembly, temporarily take over or direct the operation of any privately-owned public utility or business affected with public interest.

Sec. 7. The Regional Assembly shall enact laws for the just compensation, rehabilitation, relocation, and other similar measures of inhabitants adversely affected in the harnessing of natural and mineral resources in the Region.

The Regional Assembly shall likewise provide for the rehabilitation of the areas affected by said harnessing of natural and mineral resources in the Region.

Sec. 8. The Regional Government shall actively and immediately pursue reforestation measures to ensure that at least fifty percent (50%) of the land surface of the Autonomous Region shall be covered with trees, giving priority to land strips along the edges of rivers and streams and shorelines of lakes.

The Regional Government shall adopt measures for the development of lands eighteen percent (18%) in slope or over by providing infrastructure, financial and technical support to upland communities especially the Lumads or tribal peoples.

Sec. 9. The Regional Government shall prohibit the use, importation, deposit, disposal and dumping of toxic or hazardous substances within the Autonomous Region.

Sec. 10. The Regional Government shall adopt policies to promote profit sharing and broaden the base of ownership of business enterprises.

Sec. 11. The Regional Government shall provide incentives, including tax holidays, for investors in businesses that will contribute to the development of the Region. It shall provide the same incentives to all companies doing business in the Region which reinvest at least fifty percent (50%) of their net profits therein, and to all cooperatives which reinvest at least ten percent (10%) of their surplus into socially-oriented projects in the Region.

Sec. 12. The Regional Government shall give priority to the establishment of transportation and communication facilities for the economic development of the Region.

Sec. 13. In the delivery of power services, priority shall be given to provinces in the area of autonomy which do not have direct access to such services.

Sec. 14. The Regional Government is hereby empowered to create pioneering firms and other business entities needed to boost economic development in the Region.

Agriculture, Fisheries and Aquatic Resources

Sec. 15. The Regional Government shall recognize, promote and protect the rights and welfare of farmers, farmworkers, fishermen and fishworkers, as well as farmers' and fishworkers' cooperatives and associations.

Sec. 16. The Regional Government shall encourage agricultural productivity and promote a diversified and organic farming system.

Sec. 17. The Regional Government shall give top priority to the conservation, protection, utilization and development of soil and water resources for agricultural purposes.

Sec. 18. The Regional Assembly shall enact an Aquatic and Fisheries Code which shall enhance, develop, conserve and protect marine and aquatic resources, and shall protect the rights of subsistence fishermen to the preferential use of communal marine and fishing resources, including seaweeds. This protection shall extend to offshore fishing grounds, up to and including all waters twelve (12) nautical miles from the coastline of the Autonomous Region but within the territorial waters of the Philippines, regardless of depth, the seabed and the subsoil that are included between two (2) lines drawn perpendicular to the general coastline from points where the boundary lines of the Autonomous Region touch the sea at low tide and a third line parallel to the general coastline.

Further, it shall provide support to subsistence fishermen through appropriate technology and research, adequate financial, production and marketing assistance and other services.

Fishworkers shall also receive a just share from their labor in the utilization of marine and fishing resources.

Science, technology and other disciplines shall be developed and employed to protect and maintain aquatic and marine ecology.

Sec. 19. The Regional Assembly may, by law, create a Bureau on Agriculture and Fisheries and define its composition, powers and functions.

Trade and Industry

Sec. 20. The Regional Government recognizes the private sector as the prime mover of trade, commerce and industry. It shall encourage and support entrepreneurial capability in the Region and shall recognize, promote and protect cooperatives.

Sec. 21. The Regional Government shall promote and protect small and medium-scale cottage industries by providing assistance such as marketing opportunities, financial support, tax incentives, appropriate and alternative technology and technical training to produced semifinished and finished products.

Sec. 22. The Regional Government shall give support and encouragement to the establishment of banks in accordance with the principles of the Islamic banking system, subject to the supervision by the central monetary authority of the National Government

Sec. 23. Subject to national policies, the Regional Government shall regulate traditional barter trade and countertrade with neighboring countries.

Sec. 24. The Regional Government shall encourage, promote, undertake and support the establishment of economic zones, industrial centers and ports in strategic areas and growth centers of the Region to attract local and foreign investments and business enterprises.

Sec. 25. The Regional Government shall undertake measures to promote consumer education and to ensure that the rights, interests and general welfare of the consumers are protected.

Sec. 26. The Regional Government shall promote the preferential use of labor and locally produced goods and materials by adopting measures to increase their competitiveness.

Sec. 27. Subject to the Constitution and national policies, the Regional Government shall regulate and exercise authority over foreign investments within its jurisdiction in accordance with its goals and priorities.

Tourism Development

Sec. 28. The Regional Government shall, with the assistance of the National Government and the participation of the private sector, develop tourism as a positive instrument toward accelerated regional development. Tourism development shall promote greater pride in and commitment to the nation: Provided, That the diverse cultural heritage, and moral and spiritual values of the people in the Autonomous Region shall be primarily considered and respected.

Sec. 29. The Regional Assembly may, by law, create a Tourism Office, and shall define its composition, powers and functions.