Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Chapter Fifty-six of the Revised Administrative Code is amended by inserting between sections two thousand sixty-seven and two thousand sixty-eight thereof two new sections, to be known as sections two thousand sixty-seven-A and two thousand sixty-seven-B which shall read as follows:

"SEC. 2067-A. Classification of provinces.—Provinces are divided into seven classes, according to their income, as follows:

"(a) First Class: The provinces that have obtained an average total revenue of one million five hundred thousand pesos or more per annum during the last five fiscal years;
"(b) Second Class: The provinces that have obtained average total revenue of one million pesos or more but less than one million five hundred thousand per annum during the last five fiscal years;
"(c) Third Class: The provinces that have obtained an average total revenue of seven hundred hundred thousand pesos or more but less than one million pesos per annum during the last five fiscal years;
"(d) Fourth Class: The provinces that have obtained an average total revenue of five hundred thousand pesos or more but less than seven hundred thousand pesos per annum during the last five fiscal years;
"(e) Fifth Class: The provinces that have obtained an average total revenue of three hundred thousand pesos or more but less than five hundred thousand pesos per annum during the last five fiscal years;
"(f) Sixth Class: The provinces that have obtained an average total revenue of one hundred fifty thousand pesos or more but less than three hundred thousand pesos per annum during the last five fiscal years; and
"(g) Seventh Class: The provinces that have obtained an average total revenue of less than one hundred fifty thousand pesos per annum during the last five fiscal year: Provided, That revenue as used in this Act shall be interpreted to mean all revenues and receipts accruing the province except proceeds from bond issues, proceeds from or repayment of loans, aids from the National Government, private contributions and donations, return advances to economic enterprises, sales of fixed assets, income from sale of real property, prior year adjusts inventory adjustment, and other receipts not regularly recurring each fiscal year: Provided, further, That no readjustment of the classification shall be made oftener once in five consecutive years, except in cases of the diminishing revenues when the Secretary of Finance may in his discretion, order at any time the readjustment of the classification of any province in accordance with the foregoing schedule."

"SEC. 2067-B. Salaries of provincial officials.—The annual salaries of provincial governors, provincial treasurers, provincial fiscals, provincial auditors, provincial health, provincial assessors, assistant provincial treasurers, assistant provincial auditors, assistant provincial health officers and assistant provincial assessors shall be as hereinbelow fixed:

"In first class provinces: For provincial governors, twelve thousand pesos; for provincial treasurers, provincial fiscals, provincial auditors, and provincial health officers, seven thousand eight hundred pesos; for provincial assessors, seven thousand two hundred pesos; for assistant provincial treasurers, assistant provincial auditors and assistant provincial health officers, five thousand one hundred pesos; and for assistant provincial assessors, four thousand five hundred pesos;

"In second class provinces: For provincial governors, ten thousand pesos; for provincial treasurers, provincial fiscals, provincial auditors, and provincial health officers, seven thousand five hundred pesos; for provincial assessors, six thousand nine hundred pesos; for assistant provincial treasurers, assistant provincial auditors and assistant provincial health officers, five thousand one hundred pesos; and for assistant provincial assessors, four thousand five hundred pesos;

"In third class provinces: For provincial governors, nine thousand six hundred pesos; for provincial treasurers, provincial fiscals, provincial auditors, and provincial health officers,, seven thousand two hundred pesos; for provincial assessors, six thousand six hundred pesos; for assistant provincial treasurers, assistant provincial auditors and Provincial health officers, four thousand eight hundred Pesos; and for assistant provincial assessors, four thousand two hundred pesos;

"In fourth class provinces: For provincial governors, eight thousand four hundred pesos; for provincial treasures, provincial fiscals, provincial auditors, and provincial health officers, six thousand nine hundred pesos; for provincial assessors, six thousand three hundred pesos; for assistant provincial treasurers, assistant provincial auditors and assistant provincial health officers, four thousand five hundred sixty pesos; and for assistant provincial assessors, four thousand one hundred twenty pesos;

"In fifth class provinces: For provincial governors seven thousand two hundred pesos; for provincial treasurers, provincial fiscals, provincial auditors, and provincial health officers, six thousand six hundred pesos; for provincial assessors, six thousand pesos; for assistant provincial treasurers, assistant provincial auditors and assistant provincial health officers, four thousand one hundred twenty pesos; and for assistant provincial assessors, four thousand eighty pesos;

"In sixth class provinces: For provincial governors, six thousand six hundred pesos; for provincial treasurer, provincial fiscals, provincial auditors, and provincial health officers, six thousand pesos; for provincial assessors, six thousand four hundred pesos; for assistant provincial treasurers, assistant provincial auditors and assistant provincial health officers, four thousand eighty pesos; and for assistant provincial assessors, three thousand nine hundred pesos.

"In seventh class provinces: For provincial governors, six thousand pesos; for provincial treasurers, provincial fiscal, provincial auditors, and provincial health officers, five thousand four hundred pesos; for provincial assessor four thousand eight hundred pesos; for assistant provincial treasurers, assistant provincial auditors and assisted provincial health officers, three thousand nine hundred pesos; and for assistant provincial assessors, three thousand six hundred pesos: Provided, That if after the classification of provinces as provided for in section five of Act, the salaries of the present incumbents of the posit of provincial governor, provincial treasurer, provincial fiscal, provincial auditor, provincial health officer, provincial assessor, assistant provincial treasurer, assistant provincial auditor, assistant provincial health officer and assistant provincial assessors, shall be reduced on account of the application of the schedule provide for in this section, the said incumbents shall continue to receive their present salaries until their successors are appointed: And Provided, further, That if after the salary of a provincial governor or, provincial treasurer, provincial fiscal, provincial auditor provincial health officer, provincial assessor, assistant provincial treasurer, assistant provincial auditor, assistant provincial health officer and assistant provincial assessor has been increased by virtue of the provisions hereof, the province concerned incurs an overdraft in its general fund or the operating expenses thereof exceed the revenue collections, the President of the Philippines, upon recommendation of the Secretary of Finance, shall reduce the salary of said officials to the maximum rates fixed for them in the next lower class of province.

"One-half of the salary of the provincial auditor, of the provincial health officer, of the assistant provincial auditor and of the assistant provincial health officer shall be paid out of the national funds and the other half shall be paid out of the funds of the province concerned: Provided, however, That the increase in salary of the provincial auditor, provincial health officer, assistant provincial auditor and assistant provincial health officer shall be borne by the province until the share thereof of the National Government shall have been provided for in the General Appropriations Act."

SEC. 2. Section two thousand ninety-seven of the same chapter of the Revised Administrative Code, as amended, is hereby further amended to read as follows:

"SEC. 2097. Compensation of Members.—Except as otherwise specially provided, the members of the provincial board shall receive a compensation, to be fixed by resolution of the provincial board, of not exceeding thirty-five pesos in first class, second class and third class provinces; thirty pesos in fourth class and fifth class provinces; and twenty-five pesos in sixth class and seventh class provinces, for each day of actual attendance at the sessions of the board; and, except as otherwise specially provided compensation shall in no case be paid for service rendered by a member of the board out of session. The amount of the per diem shall not be changed more than once a year.

"If not a resident of the provincial capital, a member of the provincial board shall be entitled to reimbursement of his actual and necessary travel expenses from his place of residence to the place where the provincial board hold its sessions, when going to said sessions and returning from the same."

SEC. 3. Section two thousand one hundred twenty-one-A of the same chapter of the said Code is amended to read as follows:

"SEC. 2121-A. General limitation upon amount expend able for salaries and wages.—Except as hereinbelow provided, the amount expendable for salaries and wages of provincial officials and employees shall not exceed the following percentages of the ordinary and regular income that accrued to the general fund during the preceding fiscal year, exclusive of all balances carried forward from preceding fiscal years, transfers from other funds, and all receipts from loans, aids or gifts from government or private funds:

"First class provinces, forty-five per centum;
"Second class provinces, fifty per centum;
"Third and fourth class provinces, fifty-five per centum;
"Fifth class provinces, sixty per centum;
"Sixth class provinces, sixty-five per centum;
"Seventh class provinces, seventy-five per centum.

"In case the current income of the general funds is less than that which accrued to the same fund during the preceding fiscal year, the percentages fixed in the preceding paragraph shall be based on the reduced income for the current fiscal year.

"The Secretary of Finance may authorize any province to exceed the percentages hereinabove fixed under sue conditions as he may impose."

"SEC. 4. Salaries of ex-officio officials.—In cases where an official is designated as ex ofjlcio official, such official shall receive additional compensation which shall not exceed the following:

In first class, second class, and third class provinces, one thousand two hundred pesos per annum.

In fourth class and fifth class provinces, nine hundred sixty pesos per annum; and

In sixth class and seventh class provinces, seven hundred twenty pesos per annum."

SEC. 5. Classification under this Act.—Upon the approval of this Act and for each period of five consecutive fiscal years thereafter, the Secretary of Finance shall classify all provinces on the basis of the average total avenue of such provinces during the five consecutive fiscal years immediately preceding such classification according to the provisions of this Act as certified by the Auditor General: Provided, That the first classification shall take effect on July one, nineteen hundred and fifty-seven. Hereafter, there shall be no special or partial classification of the provinces, except as provided for in section two thousand sixty-seven-A of the Revised Administrative Code.

SEC. 6. Act Numbered Thirty-seven hundred ninety-eight, as amended, Republic Act Numbered Three hundred sixty-eight, as amended, sections sixteen hundred and seventy-five and twenty hundred and eighty-six of the Revised Administrative Code, and all Acts, executive orders or parts thereof inconsistent with the provisions of this Act are repealed.

SEC.7. This Act shall take effect on July first, nineteen hundred and fifty-seven.

Approved, June 22, 1957.