304
THE LOCAL GOVERNMENT CODE OF THE PHILIPPINES BOOK I GENERAL PROVISIONS TITLE ONE. ‐ BASIC PRINCIPLES CHAPTER 1. ‐ THE CODE: POLICY AND APPLICATION SECTION 1. Title. ‐ This Act shall be known and cited as the "Local Government Code of 1991". SEC. 2. Declaration of Policy. ‐ (a) It is hereby declared the policy of the State that the territorial and political subdivisions of the State shall enjoy genuine and meaningful local autonomy to enable them to attain their fullest development as self‐reliant communities and make them more effective partners in the attainment of national goals. Toward this end, the State shall provide for a more responsive and accountable local government structure instituted through a system of decentralization whereby local government units shall be given more powers, authority, responsibilities, and resources. The process of decentralization shall proceed from the national government to the local government units. (b) It is also the policy of the State to ensure the accountability of local government units through the institution of effective mechanisms of recall, initiative and referendum. (c)It is likewise the policy of the State to require all national agencies and offices to conduct periodic consultations with appropriate local government units, non‐ governmental and people's organizations, and other concerned sectors of the community before any project or program is implemented in their respective jurisdictions. SEC. 3. Operative Principles of Decentralization. The formulation and implementation of policies and measures on local autonomy shall be guided by the following operative principles:

Local Government Code of 1991 (RA 7160)

Embed Size (px)

Citation preview

Page 1: Local Government Code of 1991 (RA 7160)

THELOCALGOVERNMENTCODE

OFTHEPHILIPPINES

BOOKI

GENERALPROVISIONS

TITLEONE.‐BASICPRINCIPLES

CHAPTER1.‐THECODE:POLICYANDAPPLICATION

SECTION 1. Title. ‐ This Act shall be known and cited as the "Local GovernmentCodeof1991".

SEC.2.DeclarationofPolicy.‐(a)It isherebydeclaredthepolicyoftheStatethatthe territorial and political subdivisions of the State shall enjoy genuine andmeaningful local autonomy to enable them to attain their fullest development asself‐reliantcommunitiesandmakethemmoreeffectivepartners intheattainmentofnationalgoals.Towardthisend,theStateshallprovideforamoreresponsiveandaccountable local government structure instituted through a system ofdecentralization whereby local government units shall be given more powers,authority, responsibilities, and resources. The process of decentralization shallproceedfromthenationalgovernmenttothelocalgovernmentunits.

(b)ItisalsothepolicyoftheStatetoensuretheaccountabilityoflocalgovernmentunits through the institution of effective mechanisms of recall, initiative andreferendum.

(c)ItislikewisethepolicyoftheStatetorequireallnationalagenciesandofficestoconduct periodic consultations with appropriate local government units, non‐governmental and people's organizations, and other concerned sectors of thecommunity before any project or program is implemented in their respectivejurisdictions.

SEC. 3. Operative Principles of Decentralization. ‐ The formulation andimplementationofpoliciesandmeasuresonlocalautonomyshallbeguidedbythefollowingoperativeprinciples:

Page 2: Local Government Code of 1991 (RA 7160)

(a)Thereshallbeaneffectiveallocationamongthedifferentlocalgovernmentunitsoftheirrespectivepowers,functions,responsibilities,andresources;

(b) There shall be established in every local government unit an accountable,efficient,anddynamicorganizational structureandoperatingmechanismthatwillmeetthepriorityneedsandservicerequirementsofitscommunities;

(c)Subjecttocivilservicelaw,rulesandregulations, localofficialsandemployeespaidwhollyormainlyfromlocalfundsshallbeappointedorremoved,accordingtomeritandfitness,bytheappropriateappointingauthority;

(d)Thevestingofduty,responsibility,andaccountabilityinlocalgovernmentunitsshall be accompanied with provision for reasonably adequate resources todischarge their powers and effectively carry out their functions; hence, they shallhavethepowertocreateandbroadentheirownsourcesofrevenueandtherighttoa just share in national taxes and an equitable share in the proceeds of theutilizationanddevelopmentofthenationalwealthwithintheirrespectiveareas;

(e) Provinceswith respect to component cities andmunicipalities, and cities andmunicipalitieswith respect to component barangays, shall ensure that the acts oftheir component units are within the scope of their prescribed powers andfunctions;

(f)Localgovernmentunitsmaygroupthemselves,consolidateorcoordinatetheirefforts,services,andresourcesforpurposescommonlybeneficialtothem;

(g) The capabilities of local government units,especially the municipalities andbarangays, shall beenhanced by providing themwith opportunities to participateactivelyintheimplementationofnationalprogramsandprojects;

(h)Thereshallbeacontinuingmechanismtoenhancelocalautonomynotonlybylegislativeenablingactsbutalsobyadministrativeandorganizationalreforms;

Page 3: Local Government Code of 1991 (RA 7160)

(i) Local government units shall share with the national government theresponsibility in the management and maintenance of ecological balance withintheir territorial jurisdiction, subject to the provisions of this Code and nationalpolicies;

(j)Effectivemechanismsforensuringtheaccountabilityof localgovernmentunitsto their respective constituents shall be strengthened in order toupgradecontinuallythequalityoflocalleadership;

(k) The realization of local autonomy shall be facilitated through improvedcoordination of national government policies and programs and extension ofadequate technical andmaterial assistance to less developed and deserving localgovernmentunits;

(l) The participation of the private sector in local governance, particularly in thedelivery of basic services, shall be encouraged to ensure the viability of localautonomyasanalternativestrategyforsustainabledevelopment;and

(m) The national government shall ensure that decentralizatioontributes to thecontinuing improvement of the performance of local government units and thequalityofcommunitylife.

SEC. 4. Scope of Application. ‐ This Code shall apply to all provinces, cities,municipalities,barangays,andotherpoliticalsubdivisionsasmaybecreatedbylaw,and, to the extent herein provided, to officials, offices, or agencies of the nationalgovernment.

SEC.5.RulesofInterpretation.‐IntheinterpretationoftheprovisionsofthisCode,thefollowingrulesshallapply:

(a)Any provision on a power of a local government unit shall be liberallyinterpretedinitsfavor,andincaseofdoubt,anyquestionthereonshallberesolvedin favorofdevolutionofpowers andof the lower local governmentunit.Any fairandreasonabledoubtastotheexistenceofthepowershallbeinterpretedinfavorofthelocalgovernmentunitconcerned;

Page 4: Local Government Code of 1991 (RA 7160)

(b) In case of doubt, any tax ordinance or revenue measure shall be construedstrictly against the local government unit enacting it, and liberally in favor of thetaxpayer. Any tax exemption, incentive or relief granted by any local governmentunitpursuant to theprovisionsof thisCodeshallbeconstruedstrictlyagainst thepersonclaimingit.

(c)ThegeneralwelfareprovisionsinthisCodeshallbeliberallyinterpretedtogivemorepowerstolocalgovernmentunitsinacceleratingeconomicdevelopmentandupgradingthequalityoflifeforthepeopleinthecommunity;

(d)RightsandobligationsexistingonthedateofeffectivityofthisCodeandarisingoutofcontractsoranyothersourceofprestationinvolvingalocalgovernmentunitshallbegovernedbytheoriginaltermsandconditionsofsaidcontractsorthelawinforceatthetimesuchrightswerevested;and

(e)In the resolution of controversies arising under this Code where no legalprovisionorjurisprudenceapplies,resortmaybehadtothecustomsandtraditionsintheplacewherethecontroversiestakeplace.

CHAPTER 2. ‐ GENERAL POWERS AND ATTRIBUTES OF LOCAL GOVERNMENTUNITS

SEC.6.AuthoritytoCreateLocalGovernmentUnits.‐Alocalgovernmentunitmaybecreated,divided,merged,abolished,oritsboundariessubstantiallyalteredeitherbylawenactedbyCongressinthecaseofaprovince,city,municipality,oranyotherpolitical subdivision, or by ordinance passed by the sangguniang panlalawigan orsangguniang panlungsod concerned in the case of a barangay located within itsterritorial jurisdiction, subject to such limitations and requirements prescribed inthisCode.

SEC. 7. Creation and Conversion. ‐ As a general rule, the creation of alocalgovernmentunitoritsconversionfromoneleveltoanotherlevelshallbebasedonverifiableindicatorsofviabilityandprojectedcapacitytoprovideservices,towit:

(a)Income.‐Itmustbesufficient,basedonacceptablestandards,toprovideforallessential government facilities and services and special functions commensu‐ ratewiththesizeofitspopulation,asexpectedofthelocalgovernmentunitconcerned;

Page 5: Local Government Code of 1991 (RA 7160)

(b)Population.‐Itshallbedeterminedasthetotalnumberofinhabitantswithintheterritorialjurisdictionofthelocalgovernmentunitconcerned;and

(c)LandArea.‐Itmustbecontiguous,unlessitcomprisestwoormoreislandsorisseparatedbyalocalgovernmentunitindependentoftheothers;properlyidentifiedbymetesandboundswithtechnicaldescriptions;andsufficienttoprovideforsuchbasic services and facilities tomeet the requirements of its populace. Compliancewith the foregoing indicators shall be attested to by the Department of Finance(DOF),theNationalStatisticsOffice(NSO),andtheLandsManagementBureau(LMB)oftheDepartmentofEnvironmentandNaturalResources(DENR).

SEC.8.DivisionandMerger.‐Divisionandmergerofexistinglocalgovernmentunitsshall comply with the same requirements herein prescribed for their creation:Provided,however,That suchdivisionshallnot reduce the income,population,orlandareaofthelocalgovernmentunitorunitsconcernedtolessthantheminimumrequirements prescribed in this Code: Provided, further, That the incomeclassificationof theoriginal local governmentunitorunits shallnot fall below itscurrent income classification prior to such division. The income classification oflocalgovernmentunitsshallbeupdatedwithinsix(6)monthsfromtheeffectivityofthis Code to reflect the changes in their financial position resulting from theincreasedrevenuesasprovidedherein.

SEC. 9. Abolition of Local Government Units. ‐ A local government unit may beabolishedwhenits income,population,or landareahasbeenirreversiblyreducedtolessthantheminimumstandardsprescribedforitscreationunderBookIIIofthisCode, as certified by the national agencies mentioned in Section 17 hereof toCongressortothesanggunianconcerned,asthecasemaybe.

Thelaworordinanceabolishingalocalgovernmentunitshallspecifytheprovince,city, municipality, or barangay with which thelocal government unitsought to beabolishedwillbeincorporatedormerged.

SEC. 10. Plebiscite Requirement. ‐ No creation, division, merger, abolition, orsubstantial alteration of boundaries of local government units shall take effectunlessapprovedbyamajorityofthevotescastinaplebiscitecalledforthepurposeinthepoliticalunitorunitsdirectlyaffected.SaidplebisciteshallbeconductedbytheCommissiononElections(Comelec)withinonehundredtwenty(120)daysfrom

Page 6: Local Government Code of 1991 (RA 7160)

thedateofeffectivityofthelaworordinanceeffectingsuchaction,unlesssaidlaworordinancefixesanotherdate.

SEC.11.SelectionandTransferofLocalGovernmentSite,OfficesandFacilities.‐(a)The laworordinancecreatingormerging localgovernmentunitsshallspecify theseat of government from where governmental and corporate services shall bedelivered. In selecting said site, factors relating to geographical centrality,accessibility, availability of transportation and communication facilities, drainageand sanitation, development and economic progress, and other relevantconsiderationsshallbetakenintoaccount.

(b)When conditions and developments in the local government unit concernedhave significantly changed subsequent to the establishment of the seat ofgovernment, its sanggunianmay, after public hearing and by a vote of two‐thirds(2/3) of all its members, transfer the same to a site better suited to its needs.Provided, however, That no such transfer shall be made outside the territorialboundariesofthelocalgovernmentunitconcerned.

Theoldsite,togetherwiththeimprovementsthereon,maybedisposedofbysaleor lease or converted to such other use as the sanggunian concernedmay deembeneficialtothelocalgovernmentunitconcernedanditsinhabitants.

(c) Local government offices and facilities shall not be transferred, relocated, orconvertedtootherusesunlesspublichearingsarefirstconductedforthepurposeandtheconcurrenceofthemajorityofallthemembersofthesanggunianconcernedisobtained.

SEC.12.GovernmentCenters. ‐Provinces,cities,andmunicipalitiesshallendeavortoestablishagovernmentcenterwhereoffices,agencies,orbranchesofthenationalgovernment , local government units, or government‐owned or ‐controlledcorporationsmay,asfaraspracticable,belocated.Indesignatingsuchacenter,thelocal government unit concerned shall take into account the existing facilities ofnationalandlocalagenciesandofficeswhichmayserveasthegovernmentcenterascontemplatedunderthisSection.Thenationalgovernment , localgovernmentunitorgovernment‐ownedor‐controlledcorporationconcernedshallbeartheexpensesfortheconstructionofitsbuildingsandfacilitiesinthegovernmentcenter.

Page 7: Local Government Code of 1991 (RA 7160)

SEC. 13. Naming of Local Government Units and Public Places, Streets andStructures. ‐ (a) The sangguniang panlalawigan may, in consultation with thePhilippineHistoricalCommission(PHC),changethenameofthefollowingwithinitsterritorialjurisdiction:

(1) Component cities and municipalities, upon the recommendation of thesanggunianconcerned;

(2)Provincialroads,avenues,boulevards,thorough‐fares,andbridges;

(3)Publicvocationalortechnicalschoolsandotherpost‐secondaryandtertiaryschools;

(4)Provincialhospitals,healthcenters,andotherhealthfacilities;and

(5)Anyotherpublicplaceorbuildingownedbytheprovincialgovernment.

(b) The sanggunian of highly urbanized cities and of component cities whosecharters prohibit their voters from voting for provincial elective officials,hereinafter referred to in this Code as independent component cities, may, inconsultation with the Philippine Historical Commission, change the name of thefollowingwithinitsterritorialjurisdiction:

(1) City barangays, upon the recommendation of the sangguniang barangayconcerned;

(2)Cityroads,avenues,boulevards,thoroughfares,andbridges;

(3)Publicelementary,secondaryandvocationalortechnicalschools,communitycollegesandnon‐charteredcolleges;

Page 8: Local Government Code of 1991 (RA 7160)

(4)Cityhospitals,healthcentersandotherhealthfacilities;and

(5)Anyotherpublicplaceorbuildingownedbythecitygovernment.

(c) The sanggunians of component cities andmunicipalitiesmay, in consultationwiththePhilippineHistoricalCommission,changethenameofthefollowingwithinitsterritorialjurisdiction:

(1) city and municipal barangays, upon recommendation of the sangguniangbarangayconcerned;

(2)city,municipalandbarangayroads,avenues,boulevards,thoroughfares,andbridges;

(3)cityandmunicipalpublicelementary,secondaryandvocationalortechnicalschools,post‐secondaryandothertertiaryschools;

(4) city andmunicipal hospitals, health centers and other health facilities; and(5)Anyotherpublicplaceorbuildingownedbythemunicipalgovernment.

(d)Noneoftheforegoinglocalgovernmentunits, institutions,places,orbuildingsshallbenamedafteralivingperson,normayachangeofnamebemadeunlessforajustifiablereasonand, inanycase,notoftenerthanonceeveryten(10)years.Thenameofalocalgovernmentunitorapublicplace,streetorstructurewithhistorical,cultural,orethnicsignificanceshallnotbechanged,unlessbyaunanimousvoteofthesanggunianconcernedandinconsultationwiththePHC.

(e) A change of name of a public school shall be made only upon therecommendationofthelocalschoolboardconcerned.

(f)Achangeofnameofpublichospitals,healthcenters,andotherhealthfacilitiesshallbemadeonlyupontherecommendationofthelocalhealthboardconcerned.

Page 9: Local Government Code of 1991 (RA 7160)

(g) The change of nameof anylocal government unit shall be effective only uponratification in a plebiscite conducted for the purpose in the political unit directlyaffected.Inanychangeofname,theOfficeofthePresident,therepresentativeofthelegislativedistrictconcerned,andtheBureauofPostsshallbenotified.

SEC.14.BeginningofCorporateExistence. ‐Whenanew localgovernmentunit iscreated,itscorporateexistenceshallcommenceupontheelectionandqualificationofitschiefexecutiveandamajorityofthemembersofitssanggunian,unlesssomeothertimeisfixedthereforbythelaworordinancecreatingit.

SEC. 15. Political and Corporate Nature of Local Government Units. ‐ Every localgovernment unit created or recognized under this Code is a body politic andcorporate endowedwith powers to be exercised by it in conformitywith law. Assuch, itshallexercisepowersasapoliticalsubdivisionofthenationalgovernmentandasacorporateentityrepresentingtheinhabitantsofitsterritory.

SEC.16.GeneralWelfare. ‐Every local governmentunit shall exercise thepowersexpresslygranted,thosenecessarilyimpliedtherefrom,aswellas

powers necessary, appropriate, or incidental for its efficient and effectivegovernance,andthosewhichareessentialtothepromotionofthegeneralwelfare.Withintheirrespectiveterritorialjurisdictions,localgovernmentunitsshallensureand support, among other things, the preservation and enrichment of culture,promotehealthandsafety,enhance therightof thepeopletoabalancedecology,encourage and support the development of appropriate and self‐reliant scientificandtechnologicalcapabilities,improvepublicmorals,enhanceeconomicprosperityandsocial justice,promotefullemploymentamongtheirresidents,maintainpeaceandorder,andpreservethecomfortandconvenienceoftheirinhabitants.

SEC.17.BasicServicesandFacilities.‐(a)Localgovernmentunitsshallendeavortobeself‐reliantandshallcontinueexercisingthepowersanddischargingthedutiesand functionscurrentlyvestedupon them.Theyshallalsodischarge the functionsandresponsibilitiesofnationalagenciesandofficesdevolvedtothempursuanttothis Code. Local government units shall likewise exercise such other powers anddischargesuchotherfunctionsandresponsibilitiesasarenecessary,appropriate,orincidental to efficient and effective provision of the basic services and facilitiesenumeratedherein.

Page 10: Local Government Code of 1991 (RA 7160)

(b)Suchbasicservicesandfacilitiesinclude,butarenotlimitedto,thefollowing:

(1)ForaBarangay:

(i) Agricultural support services which include planting materials distributionsystemandoperationoffarmproducecollectionandbuying

stations;

(ii) Health and socialwelfare serviceswhich includemaintenance of barangayhealthcenterandday‐carecenter;

(iii) Services and facilities related to general hygiene and sanitation,beautification,andsolidwastecollection;

(iv)Maintenanceofkatarungangpambarangay;

(v)Maintenanceofbarangayroadsandbridgesandwatersupplysystems

(vi)Infrastructurefacilitiessuchasmulti‐purposehall,multipurposepavement,plaza,sportscenter,andothersimilarfacilities;

(vii)Informationandreadingcenter;and

(viii)Satelliteorpublicmarket,whereviable;

(2)Foramunicipality:

Page 11: Local Government Code of 1991 (RA 7160)

(i) Extension and on‐site research services and facilities related to agricultureand fisheryactivitieswhich includedispersalof livestockand poultry, fingerlings,andotherseedingmaterialsforaquaculture;palay,corn,andvegetableseedfarms;medicinalplantgardens; fruit tree,coconut,andotherkindsofseedlingnurseries;demonstration farms;qualitycontrolof copraand improvementanddevelopmentof local distribution channels, preferably through cooperatives; interbarangayirrigation system; water and soil resource utilization and conservation projects;andenforcementof fisherylawsinmunicipalwaters includingtheconservationofmangroves;

(ii)Pursuanttonationalpoliciesandsubjecttosupervision,controlandreviewoftheDENR,implementationofcommunity‐basedforestryprojects whichincludeintegratedsocial forestryprogramsandsimilarprojects;managementandcontrolof communal forests with an area not exceeding fifty (50) square kilometers;establishmentoftreeparks,greenbelts,andsimilarforestdevelopmentprojects;

(iii) Subject to theprovisions ofTitle Five,Book I of this Code, health serviceswhichincludetheimplementationofprogramsandprojectsonprimaryhealthcare,maternalandchildcare,andcommunicableandnon‐communicablediseasecontrolservices;access to secondaryand tertiary healthservices;purchaseofmedicines,medical supplies, and equipment needed to carry out the services hereinenumerated;

(iv) Social welfare serviceswhich include programs and projects on child andyouth welfare, family and community welfare, women's welfare, welfare of theelderly and disabled persons; community‐based rehabilitation programs forvagrants, beggars, street children, scavengers, juveniledelinquents, andvictimsofdrugabuse;livelihoodandotherpro‐poor

projects;nutritionservices;andfamilyplanningservices;

(v) Information services which include investments and job placementinformationsystems,taxandmarketinginformationsystems,andmaintenanceofapubliclibrary;

(vi) Solid waste disposal system or environmental management system andservicesorfacilitiesrelatedtogeneralhygieneandsanitation;

Page 12: Local Government Code of 1991 (RA 7160)

(vii)Municipalbuildings,culturalcenters,publicparksincludingfreedomparks,playgrounds,andsportsfacilitiesandequipment,andothersimilar

facilities;

(viii) Infrastructure facilities intended primarily to service the needs of theresidentsofthemunicipalityandwhicharefundedoutofmunicipalfundsincluding,butnotlimitedto,municipalroadsandbridges;schoolbuildingsandotherfacilitiesfor public elementary and secondary schools; clinics, health centers and otherhealth facilitiesnecessary to carryouthealth services; communal irrigation, smallwater impounding projects and other similar projects; fish ports; artesian wells,spring development, rainwater collectors and water supply systems; seawalls,dikes,drainageandsewerage,andfloodcontrol;trafficsignalsandroadsigns;andsimilarfacilities;

(ix)Publicmarkets,slaughterhousesandothermunicipalenterprises;

(x)Publiccemetery;

(xi)Tourism facilitiesandother touristattractions, including theacquisitionofequipment, regulation and supervision of business concessions, and securityservicesforsuchfacilities;and

(xii)Sitesforpoliceandfirestationsandsubstationsandthemunicipaljail;

(3)ForaProvince:

(i) Agricultural extension and on‐site research services and facilities whichinclude theprevention and control of plant and animal pests and diseases; dairyfarms, livestock markets, animal breeding stations, and artificial inseminationcenters;andassistanceintheorganizationoffarmers'andfishermen'scooperativesandothercollectiveorganizations,aswellasthetransferofappropriatetechnology;

Page 13: Local Government Code of 1991 (RA 7160)

(ii) Industrial research and development services, as well as the transfer ofappropriatetechnology;

(iii)Pursuanttonationalpoliciesandsubjecttosupervision,controlandreviewof the DENR, enforcement of forestry laws limited to community‐based forestryprojects,pollutioncontrollaw,small‐scalemininglaw,andother

lawsontheprotectionoftheenvironment;andmini‐hydroelectricprojects forlocalpurposes;

(iv) Subject to the provisions of Title Five, Book I of this Code, health serviceswhichincludehospitalsandothertertiaryhealthservices;

(v) Social welfare services which include pro grams and projects on rebelreturneesandevacuees;reliefoperations;and,populationdevelopmentservices;

(vi) Provincial buildings, provincial jails, freedom parks and other publicassemblyareas,andothersimilarfacilities;

(vii)Infrastructurefacilitiesintendedtoservicetheneedsoftheresidentsoftheprovinceandwhicharefundedoutofprovincialfundsincluding,butnotlimitedto,provincialroadsandbridges; inter‐municipalwaterworks,drainageandsewerage,floodcontrol,andirrigationsystems;reclamationprojects;andsimilarfacilities;

(viii) Programs and projects for low‐cost housing and other mass dwellings,except those funded by the Social Security System (SSS), Government ServiceInsurance System (GSIS), and the Home Development Mutual Fund (HDMF):Provided, That national funds for these programs and projects shall be equitablyallocated among the regions in proportion to the ratio of the homeless to thepopulation;

(ix)Investmentsupportservices,includingaccesstocreditfinancing;

Page 14: Local Government Code of 1991 (RA 7160)

(x) Upgrading and modernization of tax information and collection servicesthroughtheuseofcomputerhardwareandsoftwareandothermeans;

(xi) Inter‐municipal telecommunications services, subject to national policyguidelines;and

(xii)Tourismdevelopmentandpromotionprograms;

(4)ForaCity:

All the services and facilities of the municipality and province, and in additionthereto,thefollowing:

(i)Adequatecommunicationandtransportationfacilities;

(ii)Supportforeducation,policeandfireservicesandfacilities.

(c) Notwithstanding the provisions of subsection (b) hereof, public works andinfrastructureprojectsandotherfacilitiesfundedbythenationalgovernmentunderthe annual General Appropriations Act, other special laws, pertinent executiveorders,andthosewhollyorpartiallyfundedfromforeignsources,arenotcoveredunder this Section, except in those cases where the local government unitconcerned is duly designated as the implementing agency for such projects,facilities,programs,andservices.

(d)Thedesigns,plans, specifications, testingofmaterials, and theprocurementofequipmentandmaterialsfrombothforeignandlocalsources

necessary for the provision of the foregoing services and facilities shall beundertakenbythelocalgovernmentunitconcerned,basedonnational

policies,standardsandguidelines.

Page 15: Local Government Code of 1991 (RA 7160)

(e)Nationalagenciesorofficesconcernedshalldevolve to localgovernmentunitstheresponsibilityfortheprovisionofbasicservicesandfacilitiesenumeratedinthisSectionwithinsix(6)monthsaftertheeffectivityofthisCode.

AsusedinthisCode, theterm"devolution"referstotheactbywhichthenationalgovernmentconferspowerandauthorityuponthevarious localgovernmentunitstoperformspecificfunctionsandresponsibilities.

(f)Thenationalgovernmentorthenexthigherlevelof localgovernmentunitmayprovideoraugmentthebasicservicesandfacilitiesassignedtoalowerleveloflocalgovernmentunitwhensuchservicesorfacilitiesarenotmadeavailableor,ifmadeavailable,areinadequatetomeetthe

requirementsofitsinhabitants.

(g)Thebasicservicesand facilitieshereinaboveenumeratedshallbe funded fromtheshareoflocalgovernmentunitsintheproceedsofnational

taxesandotherlocalrevenuesandfundingsupportfromthenationalgovernment,itsinstrumentalitiesandgovernment‐ownedor‐controlledcorporationswhicharetasked by law to establish and maintain such services or facilities. Any fund orresourceavailable for theuseof localgovernmentunitsshallbe firstallocated forthe provision of basic services or facilities enumerated in subsection (b) hereofbefore applying the same for other purposes, unless otherwise provided in thisCode.

(h)TheRegionalofficesofnationalagenciesorofficeswhosefunctionsaredevolvedtolocalgovernmentunitsasprovidedhereinshallbephasedoutwithinone(1)yearfromtheapprovalofthisCode.Saidnationalagenciesandofficesmayestablishsuchfield units asmay be necessary formonitoring purposes and providing technicalassistancetolocalgovernmentunits.Theproperties,equipment,andotherassetsoftheseregionalofficesshallbedistributedtothelocalgovernmentunitsintheregionin accordancewith the rules and regulations issued by the oversight committeecreatedunderthisCode.

(i) The devolution contemplated in this Code shall include the transfer to localgovernment units of the records, equipment, and other assets and personnel ofnationalagenciesandofficescorrespondingtothedevolvedpowers,functions,andresponsibilities.

Page 16: Local Government Code of 1991 (RA 7160)

Personnel of said national agencies or offices shall be absorbed by the localgovernmentunitstowhichtheybelongorinwhoseareastheyareassignedtotheextent that it is administratively viable as determined by the said oversightcommittee:Provided,That therightsaccorded tosuchpersonnelpursuant tocivilservice law, rules and regulations shall not be impaired: Provided, Further, Thatregional directors who are career executive service officers and other officers ofsimilar rank in the said regional offices who cannot be absorbed by the localgovernment unit shall be retained by the national government, without anydiminutionofrank,salaryortenure.

(j)Toensuretheactiveparticipationoftheprivatesectorinlocalgovernance,localgovernmentunitsmay,byordinance,sell,lease,encumber,orotherwisedisposeofpubliceconomicenterprisesownedbythemintheirproprietarycapacity.

CostsmayalsobechargedforthedeliveryofbasicservicesorfacilitiesenumeratedinthisSection.

SEC. 18. Power to Generate and Apply Resources. ‐ Local government units shallhavethepowerandauthoritytoestablishanorganizationthatshall

beresponsible for theefficientandeffective implementationof theirdevelopmentplans,programobjectivesandpriorities;tocreatetheirown

sources of revenue and to levy taxes, fees, and charges which shall accrueexclusivelyfortheiruseanddispositionandwhichshallberetainedby

them;tohaveajustshareinnationaltaxeswhichshallbeautomaticallyanddirectlyreleasedtothemwithoutneedofanyfurtheraction;tohave

an equitable share in the proceeds from the utilization and development of thenationalwealthandresourceswithintheirrespectiveterritorial

jurisdictions including sharing the same with the inhabitants by way of directbenefits;toacquire,develop,lease,encumber,alienate,orotherwisedisposeofrealorpersonalpropertyheldbythemintheirproprietarycapacityandtoapplytheirresources and assets for productive, developmental, or welfare purposes, in theexerciseorfurtheranceoftheirgovernmentalorproprietarypowersandfunctionsand thereby ensure their development into self‐reliant communities and activeparticipantsintheattainmentofnationalgoals.

Page 17: Local Government Code of 1991 (RA 7160)

SEC.19.EminentDomain.‐Alocalgovernmentunitmay,throughitschiefexecutiveand acting pursuant to an ordinance, exercise the power of eminent domain forpublicuse,orpurpose,orwelfareforthebenefitofthepoorandthelandless,uponpaymentof just compensation, pursuant to theprovisionsof theConstitution andpertinentlaws:Provided,however,Thatthepowerofeminentdomainmaynotbeexercisedunlessavalidanddefiniteofferhasbeenpreviouslymadetotheowner,andsuchofferwasnotaccepted:Provided,further,Thatthelocalgovernmentunitmay immediately take possession of the property upon the filing of theexpropriationproceedingsanduponmakingadepositwith thepropercourtofatleast fifteen percent (15%) of the fairmarket value of the property based on thecurrent taxdeclarationof theproperty tobeexpropriated:Provided, finally,That,the amount to be paid for the expropriated property shall be determined by theproper court, based on the fair market value at the time of the taking of theproperty.

SEC. 20. Reclassification of Lands. ‐ (a) A city or municipality may, through anordinance passed by the sanggunian after conducting public hearings for thepurpose, authorize the reclassification of agricultural lands and provide for themanneroftheirutilizationordispositioninthefollowingcases:(1)whenthelandceases to be economically feasible and sound for agricultural purposes asdetermined by the Department of Agriculture or (2) where the land shall havesubstantially greater economic value for residential, commercial, or industrialpurposes, as determined by the sanggunian concerned: Provided, That suchreclassificationshallbelimitedtothefollowingpercentageofthetotalagriculturallandareaatthetimeofthepassageoftheordinance:

(1) For highly urbanized and independent component cities, fifteen percent(15%);

(2) For component cities and first to third class municipalities, ten percent(10%);and

(3)Forfourthtosixthclassmunicipalities,fivepercent(5%):Provided,further,That agricultural lands distributed to agrarian reform beneficiaries pursuant toRepublic Act Numbered Sixty‐six hundred fifty‐seven (R.A. No. 6657), otherwiseknownas"TheComprehensiveAgrarianReformLaw",shallnotbeaffectedbythesaidreclassificationand theconversionofsuch lands intootherpurposesshallbegovernedbySection65ofsaidAct.

Page 18: Local Government Code of 1991 (RA 7160)

(b)ThePresidentmay,whenpublicinterestsorequiresanduponrecommendationof the National Economic and Development Authority, authorize a city ormunicipality to reclassify lands in excess of the limits set in the next precedingparagraph.

(c)The localgovernmentunitsshall, inconformitywithexisting laws,continue topreparetheirrespectivecomprehensivelanduseplansenacted

throughzoningordinanceswhichshallbetheprimaryanddominantbasesforthefutureuseoflandresources:Provided,Thattherequirementsforfoodproduction,humansettlements,andindustrialexpansionshallbetakenintoconsiderationinthepreparationofsuchplans.

(d) Where approval by a national agency is required for reclassification, suchapprovalshallnotbeunreasonablywithheld.Failuretoactona

properandcompleteapplication for reclassificationwithin three (3)months fromreceiptofthesameshallbedeemedasapprovalthereof.

(e)NothinginthisSectionshallbeconstruedasrepealing,amending,ormodifyinginanymannertheprovisionsofR.A.No.6657.

SEC.21.ClosureandOpeningofRoads.‐(a)Alocalgovernmentunitmay,pursuantto an ordinance, permanently or temporarily close or open any local road, alley,park, or square falling within its jurisdiction: Provided, however, That in case ofpermanentclosure,suchordinancemustbeapprovedbyatleasttwo‐thirds(2/3)ofallthemembersofthesanggunian,andwhennecessary,anadequatesubstituteforthepublicfacilitythatissubjecttoclosureisprovided.

(b)Nosuchwayorplaceoranypart thereofshallbepermanentlyclosedwithoutmaking provisions for the maintenance of public safety therein. A property thuspermanentlywithdrawnfrompublicusemaybeusedorconveyedforanypurposeforwhichotherrealpropertybelongingtothelocalgovernmentunitconcernedmaybe lawfully used or conveyed: Provided, however, That no freedom park shall beclosedpermanentlywithoutprovisionforitstransferorrelocationtoanewsite.

(c) Any national or local road, alley, park, or square may be temporarily closedduring an actual emergency, or fiesta celebrations, public rallies, agricultural or

Page 19: Local Government Code of 1991 (RA 7160)

industrial fairs, or an undertaking of public works and highways,telecommunications, and waterworks projects, the duration of which shall bespecified by the local chief executive concerned in a written order: Provided,however,Thatnonationalorlocalroad,alley,park,orsquareshallsettemporarilyclosedforathletic,cultural,orcivicactivitiesnotofficiallysponsored,recognized,orapprovedbythe

localgovernmentunitconcerned.

(d) Any city, municipality, or barangay may, by a duly enacted ordinance,temporarilycloseandregulatetheuseofanylocalstreet,road,thoroughfare,oranyotherpublicplacewhereshoppingmalls,Sunday,fleaornightmarkets,orshoppingareasmaybeestablishedandwheregoods,merchandise, foodstuffs, commodities,orarticlesofcommercemaybesoldanddispensedtothegeneralpublic.

SEC.22.CorporatePowers.‐(a)Everylocalgovernmentunit,asacorporation,shallhavethefollowingpowers:

(1)Tohavecontinuoussuccessioninitscorporatename;

(2)Tosueandbesued;

(3)Tohaveanduseacorporateseal;

(4)Toacquireandconveyrealorpersonalproperty;

(5)Toenterintocontracts;and

(6)Toexercisesuchotherpowersasaregrantedtocorporations,subjecttothelimitationsprovidedinthisCodeandotherlaws.

(b) Local government units may continue using, modify, or change their existingcorporateseals:Provided,Thatnewlyestablished localgovernmentunitsor those

Page 20: Local Government Code of 1991 (RA 7160)

without corporate seals may create their own corporate seals which shall beregistered with the Department of the Interior and Local Government: Provided,further, That any change of corporate seal shall also be registered as providedherein.

(c)UnlessotherwiseprovidedinthisCode,contractmaybeenteredintobythelocalchiefexecutiveinbehalfofthelocalgovernmentunitwithoutpriorauthorizationbythe sanggunian concerned. A legible copy of such contract shall be posted at aconspicuousplaceintheprovincialcapitolorthecity,municipalorbarangayhall.

(d) Local government units shall enjoy full autonomy in the exercise of theirproprietaryfunctionsandinthemanagementoftheireconomicenterprises,subjecttothelimitationsprovidedinthisCodeandotherapplicablelaws.

SEC. 23. Authority to Negotiate and Secure Grants. ‐ Local chief executives may,uponauthorityofthesanggunian,negotiateandsecurefinancial

grantsordonationsinkind,insupportofthebasicservicesorfacilitiesenumeratedunder Section 17 hereof, from local and foreign assistance agencies withoutnecessityofsecuringclearanceorapprovalthereforfromanydepartment,agency,or office of the national government or from any higher local government unit:Provided,Thatprojectsfinancedbysuchgrantsorassistancewithnationalsecurityimplicationsshallbeapprovedbythenationalagencyconcerned:Provided,further,Thatwhensuchnationalagencyfailstoactontherequestforapprovalwithinthirty(30)daysfromreceiptthereof,thesameshallbedeemedapproved.

The local chief executive shall,within thirty (30) daysupon signing of such grantagreement or deed of donation, report the nature, amount, and terms of suchassistancetobothHousesofCongressandthePresident.

SEC.24.Liability forDamages. ‐Localgovernmentunitsandtheirofficialsarenotexemptfromliabilityfordeathorinjurytopersonsor

damagetoproperty.

CHAPTER3.‐INTERGOVERNMENTALRELATIONS

ArticleOne.‐NationalGovernmentandLocalGovernmentUnits

Page 21: Local Government Code of 1991 (RA 7160)

SEC.25.NationalSupervisionoverLocalGovernmentUnits.‐(a)Consistentwiththebasicpolicyonlocalautonomy,thePresidentshallexercisegeneralsupervisionoverlocal government units to ensure that their acts are within the scope of theirprescribedpowersandfunctions.

The President shall exercise supervisory authority directly over provinces, highlyurbanized cities, and independent component cities; through the province withrespect to component cities and municipalities; and through the city andmunicipalitywithrespecttobarangays.

(b) National agencies and offices with project implementation functions shallcoordinatewithoneanotherandwiththelocalgovernmentunitsconcernedinthedischargeofthesefunctions.Theyshallensuretheparticipationoflocalgovernmentunitsbothintheplanningandimplementationofsaidnationalprojects.

(c)ThePresidentmay,uponrequestofthelocalgovernmentunitconcerned,directthe appropriate national agency to provide financial, technical, or other forms ofassistance to the local government unit. Such assistance shall be extended at noextracosttothelocalgovernmentunitconcerned.

(d) National agencies and offices including government‐owned or ‐controlledcorporationswith field units or branches in a province, city, ormunicipality shallfurnish the local chief executive concerned, for his infor mation and guidance,monthlyreportsincludingdulycertifiedbudgetaryallocationsandexpenditures.

SEC. 26. Duty of National Government Agencies in the Maintenance of EcologicalBalance. ‐ It shallbe thedutyofeverynationalagencyorgovernment‐ownedor ‐controlledcorporationauthorizingorinvolvedintheplanningandimplementationof any project or program thatmay cause pollution, climatic change, depletion ofnon‐renewable resources, loss of crop land, rangeland, or forest cover, andextinction of animal or plant species, to consult with the local government units,nongovernmentalorganizations,andothersectorsconcernedandexplainthegoalsand objectives of the project or program, its impact upon the people and thecommunityintermsofenvironmentalorecologicalbalance,andthemeasuresthatwillbeundertakentopreventorminimizetheadverseeffectsthereof.

Page 22: Local Government Code of 1991 (RA 7160)

SEC.27.PriorConsultationsRequired.‐NoprojectorprogramshallbeimplementedbygovernmentauthoritiesunlesstheconsultationsmentionedinSections2(c)and26 hereof are complied with, and prior approval of the sanggunian concerned isobtained: Provided, That occupants in areas where such projects are to beimplemented shall not be evicted unless appropriate relocation sites have beenprovided,inaccordancewiththeprovisionsoftheConstitution.

ArticleTwo.‐RelationswiththePhilippineNationalPolice

SEC.28.‐PowersofLocalChiefExecutivesovertheUnitsofthePhilippineNationalPolice.‐Theextentofoperationalsupervisionandcontrolof localchiefexecutivesoverthepoliceforce,fireprotectionunit,andjailmanagementpersonnelassignedintheirrespectivejurisdictionsshallbegovernedbytheprovisionsofRepublicActNumbered Sixty‐nine hundred seventy‐five (R.A. No. 6975), otherwise known as"TheDepartmentoftheInteriorandLocalGovernmentActof1990",andtherulesandregulationsissuedpursuantthereto.

ArticleThree.‐Inter‐LocalGovernmentRelations

SEC. 29. Provincial Relations with Component Cities and Municipalities. ‐ Theprovince, through the governor, shall ensure that every component city andmunicipalitywithinitsterritorialjurisdictionactswithinthescopeofitsprescribedpowers and functions. Highly urbanized cities and independent component citiesshallbeindependentoftheprovince.

SEC.30.ReviewofExecutiveOrders. ‐(a)ExceptasotherwiseprovidedundertheConstitution and special statutes, the governor shall review all executive orderspromulgatedbythecomponentcityormunicipalMayorwithinhisjurisdiction.Thecity or municipal Mayor shall review all executive orders promulgated by thepunongbarangaywithinhisjurisdiction.Copiesofsuchordersshallbeforwardedtothegovernoror the cityormunicipalMayor, as the casemaybe,within three (3)days from their issuance. In all instances of review, the local chief executiveconcernedshallensurethatsuchexecutiveordersarewithinthepowersgrantedbylawandinconformitywithprovincial,city,ormunicipalordinances.

(b) If the governor or the city or municipal Mayor fails to act on said executiveorders within thirty (30) days after their submission, the same shall be deemedconsistentwithlawandthereforevalid.

Page 23: Local Government Code of 1991 (RA 7160)

SEC. 31. Submission of Municipal Questions to the Provincial Legal Officer orProsecutor.‐Intheabsenceofamunicipal legalofficer,themunicipalgovernmentmay secure the opinion of the provincial legal officer, and in the absence of thelatter, that of the provincial prosecutor on any legal question affecting themunicipality.

SEC.32.CityandMunicipalSupervisionoverTheirRespectiveBarangays.‐Thecityor municipality, through the city or municipal Mayor concerned, shall exercisegeneral supervision over component barangays to ensure that said barangays actwithinthescopeoftheirprescribedpowersandfunctions.

SEC. 33. Cooperative Undertakings Among Local Government Units. ‐ Localgovernment units may, through appropriate ordinances, group themselves,consolidate, or coordinate their efforts, services, and resources for purposescommonlybeneficialtothem.Insupportofsuchundertakings,thelocalgovernmentunits involved may, upon approval by the sanggunian concerned after a publichearing conducted for the purpose, contribute funds, real estate, equipment, andother kinds of property and appoint or assign personnel under such terms andconditions as may be agreed upon by the participating local units throughMemorandaofAgreement.

CHAPTER 4. ‐ RELATIONS WITH PEOPLE'S AND NONGOVERNMENTALORGANIZATIONS

SEC.34.RoleofPeople'sandNongovernmentalOrganizations. ‐Localgovernmentunits shall promote the establishment and operation of people's andnongovernmental organizations to become active partners in the pursuit of localautonomy.

SEC. 35. Linkages with People's and Non‐Governmental Organizations. ‐ Localgovernment units may enter into joint ventures and such other cooperativearrangementswith people's and nongovernmental organizations to engage in thedeliveryofcertainbasicservices,capability‐buildingandlivelihoodprojects,andtodevelop local enterprises designed to improve productivity and income, diversifyagriculture, spur rural industrialization, promote ecological balance, and enhancetheeconomicandsocialwell‐beingofthepeople.

SEC. 36. Assistance to People's and Nongovernmental Organizations. ‐ A localgovernmentunitmay,throughitslocalchiefexecutiveandwiththeconcurrenceof

Page 24: Local Government Code of 1991 (RA 7160)

the sanggunian concerned, provide assistance, financial or otherwise, to suchpeople's and nongovernmental organizations for economic, socially‐oriented,environmental, or cultural projects to be implemented within its territorialjurisdiction.

CHAPTER5.‐LOCALPREQUALIFICATION,BIDSANDAWARDSCOMMITTEE

SEC. 37. Local Prequalification, Bids and Awards Committee (Local PBAC). ‐ (a)Thereisherebycreatedalocalprequalification,bidsandawardscommitteeineveryprovince, city, and municipality, which shall be primarily responsible for theconduct of prequalification of contractors, bidding, evaluation of bids, and therecommendationofawardsconcerning local infrastructureprojects.Thegovernoror the city or municipal Mayor shall act as the chairman with the following asmembers:

(1)Thechairmanoftheappropriationscommitteeofthesanggunianconcerned;

(2)Arepresentativeoftheminoritypartyinthesanggunianconcerned,ifany,oriftherebenone,one(1)chosenbysaidsanggunianfromamongitsmembers;

(3)Thelocaltreasurer;

(4) Two (2) representatives of nongovernmental organizations that arerepresented in the local development council concerned, to be chosen by theorganizationsthemselves;and

(5) Any practicing certified public accountant from the private sector, to bedesignated by the local chapter of the Philippine Institute of Certified PublicAccountants,ifany.

RepresentativesoftheCommissiononAuditshallobservetheproceedingsofsuchcommitteeandshallcertifythattherulesandproceduresforprequalification,bidsandawardshavebeencompliedwith.

Page 25: Local Government Code of 1991 (RA 7160)

(b)Theagendaandotherinformationrelevanttothemeetingsofsuchcommitteeshallbedeliberateduponbythecommitteeatleastone(1)weekbeforetheholdingofsuchmeetings.

(c)Allmeetingsofthecommitteeshallbeheldintheprovincialcapitolorthecityormunicipal hall. The o;O7 minutes of such meetings of the committee and anydecisionmade therein shall be duly recorded, posted at a prominent place in theprovincialcapitolorthecityormunicipalhall,anddeliveredbythemostexpedientmeanstoelectivelocalofficialsconcerned.

SEC.38.LocalTechnicalCommittee. ‐ (a)There isherebycreateda local technicalcommittee ineveryprovince,cityandmunicipality toprovide technicalassistanceto the localprequalification,bidsandawards committees. It shallbe composedofthe provincial, city or municipal engineer, the local planning and developmentcoordinator, and such other officials designated by the local prequalification, bidsandawardscommittee.

(b)Thechairmanof the local technicalcommitteeshallbedesignatedby the localprequalification,bidsandawardscommitteeandshallattenditsmeetinginordertopresentthereportsandrecommendationsofthelocaltechnicalcommittee.

TITLETWO.‐ELECTIVEOFFICIALS

CHAPTER1.‐QALIFICATIONSANDELECTION

SEC. 39. Qualifications. ‐ (a) An elective local official must be a citizen of thePhilippines;aregisteredvoterinthebarangay,municipality,city,orprovinceor,inthecaseofamemberofthesangguniangpanlalawigan,sangguniangpanlungsod,orsanggunianbayan,thedistrictwhereheintendstobeelected;aresidentthereinforatleastone(1)yearimmediatelyprecedingthedayoftheelection;andabletoreadandwriteFilipinooranyotherlocallanguageordialect.

(b) Candidates for the position of governor, vice‐ governor or member of thesangguniang panlalawigan, or Mayor, vice‐mayor or member of the sangguniangpanlungsodof highly urbanized citiesmust be at least twenty‐three (23) years ofageonelectionday.

Page 26: Local Government Code of 1991 (RA 7160)

(c)CandidatesforthepositionofMayororvice‐mayorofindependentcomponentcities,componentcities,ormunicipalitiesmustbeatleasttwenty‐one(21)yearsofageonelectionday.

(d) Candidates for the position of member of the sangguniang panlungsod orsangguniangbayanmustbeatleasteighteen(18)yearsofageonelectionday.

(e)Candidatesforthepositionofpunongbarangayormemberofthesangguniangbarangaymustbeatleasteighteen(18)yearsofageonelectionday.

(f)Candidates for thesangguniangkabataanmustbeat least fifteen(15)yearsofagebutnotmorethantwenty‐one(21)yearsofageonelectionday.

SEC.40.Disqualifications.‐Thefollowingpersonsaredisqualifiedfromrunningforanyelectivelocalposition:

(a)Thosesentencedbyfinaljudgmentforanoffenseinvolvingmoralturpitudeorforanoffensepunishablebyone(1)yearormoreofimprisonment,withintwo(2)years after serving sentence; (b) Those removed from office as a result of anadministrativecase;

(c) Those convicted by final judgment for violating the oath of allegiance to theRepublic;

(d)Thosewithdualcitizenship;

(e)Fugitivesfromjusticeincriminalornonpoliticalcaseshereorabroad;

(f)PermanentresidentsinaforeigncountryorthosewhohaveacquiredtherighttoresideabroadandcontinuetoavailofthesamerightaftertheeffectivityofthisCode;and

Page 27: Local Government Code of 1991 (RA 7160)

(g)Theinsaneorfeeble‐minded.

SEC.41.MannerofElection.‐(a)Thegovernor,vice‐governor,cityMayor,cityvice‐mayor, municipal Mayor, municipal vice‐mayor, and punong barangay shall beelected at large in their respectiveunitsby thequalifiedvoters therein.However,the sangguniang kabataan chairman for each barangay shall be elected by theregisteredvotersofthekatipunanngkabataan,asprovidedinthisCode.

(b) The regular members of the sangguniang panlalawigan, sangguniangpanlungsod,andsangguniangbayanshallbeelectedbydistrict,asmaybeprovidedforbylaw.Sangguniangbarangaymembersshallbeelectedatlarge.Thepresidentsoftheleaguesofsanggunianmembersofcomponentcitiesandmunicipalitiesshallserve as ex officio members of the sangguniang panlalawigan concerned. Thepresidents of the liga ngmga barangay and the pederasyon ngmga sangguniangkabataanelectedbytheirrespectivechapters,asprovidedinthisCode,shallserveas ex officiomembers of the sangguniang panlalawigan, sangguniang panlungsod,andsangguniangbayan.

(c) In addition thereto, there shall be one (1) sectoral representative from thewomen,one(1)fromtheworkers,andone(1)fromanyofthefollowingsectors:theurbanpoor,indigenousculturalcommunities,disabledpersons,oranyothersectorasmaybedeterminedbythesanggunianconcernedwithinninety(90)dayspriortotheholdingofthenextlocalelections,asmaybeprovidedforbylaw.TheComelecshallpromulgatetherulesandregulationstoeffectivelyprovidefortheelectionofsuchsectoralrepresentatives.

SEC.42.DateofElection.‐Unlessotherwiseprovidedbylaw,theelectionsforlocalofficialsshallbeheldeverythree(3)yearsonthesecondMondayofMay.

SEC.43.TermofOffice. ‐(a)Thetermofofficeofall localelectiveofficialselectedaftertheeffectivityofthisCodeshallbethree(3)years,startingfromnoonofJune30, 1992 or such date as may be provided for by law, except that of electivebarangay officials: Provided, That all local officials first elected during the localelectionsimmediatelyfollowingtheratificationofthe1987ConstitutionshallserveuntilnoonofJune30,1992.

Page 28: Local Government Code of 1991 (RA 7160)

(b)Nolocalelectiveofficialshallserveformorethanthree(3)consecutivetermsinthesameposition.Voluntaryrenunciationof theoffice forany lengthof timeshallnotbeconsideredasaninterruptioninthecontinuityofserviceforthefulltermforwhichtheelectiveofficialconcernedwaselected.

(c) The term of office of barangay officials and members of the sangguniangkabataanshallbeforthree(3)years,whichshallbeginaftertheregularelectionofbarangayofficialsonthesecondMondayofMay1994.

CHAPTER2.‐VACANCIESANDSUCCESSION

SEC.44.PermanentVacanciesintheOfficesoftheGovernor,Vice‐Governor,Mayor,and Vice‐Mayor. ‐ If a permanent vacancy occurs in the office of the governor orMayor, the vice‐governor or vice‐mayor concerned shall become the governor orMayor.Ifapermanentvacancyoccursintheofficesofthegovernor,vice‐governor,Mayor, or vice‐mayor, the highest ranking sanggunian member or, in case of hispermanentinability,thesecondhighestrankingsanggunianmember,shallbecomethegovernor,vice‐governor,Mayororvice‐mayor,asthecasemaybe.Subsequentvacancies in the said office shall be filled automatically by the other sanggunianmembersaccordingtotheirrankingasdefinedherein.

(b)Ifapermanentvacancyoccursintheofficeofthepunongbarangay,thehighestranking sanggunian barangay member or, in case of his permanent inability, thesecondhighestrankingsanggunianmember,shallbecomethepunongbarangay.

(c) A tie between or among the highest ranking sanggunian members shall beresolvedbythedrawingoflots.

(d)Thesuccessorsasdefinedhereinshallserveonlytheunexpiredtermsoftheirpredecessors.

For purposes of this Chapter, a permanent vacancy arises when an elective localofficial fills ahighervacantoffice, refuses toassumeoffice, fails toqualify,dies, isremovedfromoffice,voluntarilyresigns,orisotherwisepermanentlyincapacitatedtodischargethefunctionsofhisoffice.

Forpurposesofsuccessionasprovided in thisChapter, ranking in thesanggunianshall be determined on the basis of the proportion of votes obtained by each

Page 29: Local Government Code of 1991 (RA 7160)

winning candidate to the total number of registered voters in each district in theimmediatelyprecedinglocalelection.

SEC.45.PermanentVacancies in theSanggunian. ‐ (a)Permanentvacancies in thesanggunianwhereautomaticsuccessionsprovidedabovedonotapplyshallbefilledbyappointmentinthefollowingmanner:

(1) The President, through the Executive Secretary, in the case of thesangguniang panlalawigan and the sangguniang panlungsod of highly urbanizedcitiesandindependentcomponentcities;

(2)Thegovernor,inthecaseofthesangguniangpanlungsodofcomponentcitiesandthesangguniangbayan;

(3) The city or municipal Mayor, in the case of sangguniang barangay, uponrecommendationofthesangguniangbarangayconcerned.

(b) Except for the sangguniang barangay, only the nominee of the political partyunder which the sanggunian member concerned had been elected and whoseelevation to the position next higher in rank created the last vacancy in thesanggunianshallbeappointedinthemannerhereinaboveprovided.Theappointeeshall come from the same political party as that of the sanggunianmemberwhocaused thevacancyandshall serve theunexpired termof thevacantoffice. In theappointmenthereinmentioned,anominationandacertificateofmembershipoftheappointee from the highest official of the political party concerned are conditionssinequanon,andanyappointmentwithoutsuchnominationandcertificationshallbenullandvoidabinitioandshallbeagroundforadministrativeactionagainsttheofficialresponsibletherefor.

(c)Incasethepermanentvacancyiscausedbyasanggunianmemberwhodoesnotbelongtoanypoliticalparty, the localchiefexecutiveshall,uponrecommendationo;O7ofthesanggunianconcerned,appointaqualifiedpersontofillthevacancy.

(d) In caseof vacancy in the representationof the youth and thebarangay in thesanggunian,saidvacancyshallbefilledautomaticallybytheofficialnextinrankoftheorganizationconcerned.

Page 30: Local Government Code of 1991 (RA 7160)

SEC.46.TemporaryVacancyintheOfficeoftheLocalChiefExecutive.‐(a)Whenthegovernor,cityormunicipalMayor,orpunongbarangayistemporarilyincapacitatedtoperformhisdutiesforphysicalorlegalreasonssuchas,butnotlimitedto,leaveof absence, travel abroad, and suspension from office, the vice‐governor, city ormunicipalvice‐mayor,or thehighest rankingsangguniangbarangaymembershallautomaticallyexercisethepowersandperformthedutiesandfunctionsofthelocalchief executive concerned, except the power to appoint, suspend, or dismissemployees which can only be exercised if the period of temporary incapacityexceedsthirty(30)workingdays.

(b)Saidtemporaryincapacityshallterminateuponsubmissiontotheappropriatesanggunianofawrittendeclarationby the localchiefexecutiveconcerned thathehasreportedbacktooffice.Incaseswherethetemporaryincapacityisduetolegalcauses, the local chiefexecutiveconcernedshallalsosubmitnecessarydocumentsshowingthatsaidlegalcausesnolongerexist.

(c)When the incumbent local chief executive is travelingwithin the country butoutsidehisterritorialjurisdictionforaperiodnotexceedingthree(3)consecutivedays, he may designate in writing the officer‐in‐charge of the said office. Suchauthorizationshallspecifythepowersandfunctionsthatthelocalofficialconcernedshallexerciseintheabsenceofthelocalchiefexecutiveexceptthepowertoappoint,suspend,ordismissemployees.

(d)Intheevent,however,thatthelocalchiefexecutiveconcernedfailsorrefusestoissuesuchauthorization,thevice‐governor,thecityormunicipalvice‐mayor,orthehighestrankingsangguniangbarangaymember,asthecasemaybe,shallhavetheright to assume the powers, duties, and functions of the said office on the fourth(4th) day of absence of the said local chief executive, subject to the limitationsprovidedinsubsection(c)hereof.

(e)Exceptasprovidedabove,thelocalchiefexecutiveshallinnocaseauthorizeanylocalofficialtoassumethepowers,duties,andfunctionsoftheoffice,otherthanthevice‐governor,thecityormunicipalvice‐Mayor,orthehighestrankingsangguniangbarangaymember,asthecasemaybe.

SEC. 47. Approval of Leaves of Absence. ‐ (a) Leaves of absence of local electiveofficialsshallbeapprovedasfollows:(1)Leavesofabsenceofthegovernorandthe

Page 31: Local Government Code of 1991 (RA 7160)

Mayor of a highly urbanized city or an independent component city shall beapprovedbythePresidentorhisdulyauthorizedrepresentative;

(2)Leavesofabsenceofavice‐governororacityormunicipalvice‐mayorshallbeapproved by the local chief executive concerned: Provided, That the leaves ofabsenceofthemembersofthesangguniananditsemployeesshallbeapprovedbythevice‐governororcityormunicipalvice‐mayorconcerned;

(3)LeavesofabsenceofthecomponentcityormunicipalMayorshallbeapprovedbythegovernor;and

(4) Leaves of absence of a punong barangay shall be approved by the city ormunicipal mayor: Provided, That leaves of absence of sangguniang barangaymembersshallbeapprovedbythepunongbarangay.

(b) Whenever the application for leave of absence hereinabove specified is notacted uponwithin five (5)working days after receipt thereof, the application forleaveofabsenceshallbedeemedapproved.

CHAPTER3.‐LOCALLEGISLATION

SEC.48.LocalLegislativePower.‐Locallegislativepowershallbeexercisedbythesangguniang panlalawigan for the province; the sangguniang panlungsod for thecity;thesangguniangbayanforthemunicipality;andthesangguniangbarangayforthebarangay.

SEC.49.PresidingOfficer. ‐ (a)Thevice‐governor shallbe thepresidingofficerofthesangguniangpanlalawigan;thecityvice‐mayor,ofthesangguniangpanlungsod;themunicipalvice‐mayor,of thesangguniangbayan;and thepunongbarangay,ofthesangguniangbarangay.Thepresidingofficershallvoteonlytobreakatie.

(b) In the event of the inability of the regular Presiding officer to preside at asanggunian session, the members present and constituting a quorum shall electfrom among themselves a temporary presiding officer. He shall certifywithin ten(10)days from thepassageofordinancesenactedandresolutionsadoptedby thesanggunianinthesessionoverwhichhetemporarilypresided.

Page 32: Local Government Code of 1991 (RA 7160)

SEC.50.InternalRulesofProcedure.‐(a)Onthefirstregularsessionfollowingtheelection of its members and within ninety (90) days thereafter, the sanggunianconcernedshalladoptorupdateitsexistingrulesofprocedure.

(b)Therulesofprocedureshallprovideforthefollowing:

(1)Theorganizationofthesanggunianandtheelectionofitsofficersaswellasthecreationofstandingcommitteeswhichshallinclude,butshallnotbelimitedto,thecommitteesonappropriations,womenandfamily,humanrights,youthandsportsdevelopment, environmentalprotection, andcooperatives; thegeneral jurisdictionof each committee; and the election of the chairman and members of eachcommittee;

(2)Theorderandcalendarofbusinessforeachsession;

(3)Thelegislativeprocess;

(4) The parliamentary procedureswhich include the conduct ofmembers duringsessions;

(5) The discipline of members for disorderly behavior and absences withoutjustifiablecauseforfour(4)consecutivesessions,forwhichtheymaybecensured,reprimanded,orexcludedfromthesession,suspendedfornotmorethansixty(60)days, or expelled: Provided, That the penalty of suspension or expulsion shallrequire the concurrence of at least two‐thirds (2/3) vote of all the sanggunianmembers: Provided, further, That a member convicted by final judgment toimprisonmentofatleastone(1)yearforanycrimeinvolvingmoralturpitudeshallbeautomaticallyexpelledfromthesanggunian;and

(6)Suchotherrulesasthesanggunianmayadopt.

SEC.51.FullDisclosureofFinancialandBusinessInterestsofSanggunianMembers.‐ (a) Every sanggunian member shall, upon assumption to office, make a fulldisclosureofhisbusinessandfinancialinterests.Heshallalsodiscloseanybusiness,

Page 33: Local Government Code of 1991 (RA 7160)

financial, or professional relationship or any relation by affinity or consanguinitywithin the fourthcivildegree,whichhemayhavewithanyperson, firm,orentityaffectedbyanyordinanceor resolutionunder considerationby the sanggunianofwhich he is amember,which relationshipmay result in conflict of interest. Suchrelationshipshallinclude:

(1)Ownershipofstockorcapital,orinvestment,intheentityorfirmtowhichtheordinanceorresolutionmayapply;and

(2) Contracts or agreements with any person or entity which the ordinance orresolutionunderconsiderationmayaffect.Intheabsenceofaspecificconstitutionalor statutory provision applicable to this situation, "conflict of interest" refers ingeneraltoonewhereitmaybereasonablydeducedthatamemberofasanggunianmaynotactinthepublicinterestduetosomeprivate,pecuniary,orotherpersonalconsiderationsthatmaytendtoaffecthisjudgmenttotheprejudiceoftheserviceorthepublic.

(b)ThedisclosurerequiredunderthisActshallbemadeinwritingandsubmittedtothesecretaryofthesanggunianorthesecretaryofthecommitteeofwhichheisamember.Thedisclosureshall,inallcases,formpartoftherecordoftheproceedingsandshallbemadeinthefollowingmanner:

(1)Disclosureshallbemadebeforethememberparticipatesinthedeliberationsontheordinanceorresolutionunderconsideration:Provided,That,ifthememberdidnotparticipateduringthedeliberations,thedisclosureshallbemadebeforevotingontheordinanceorresolutiononsecondandthirdreadings;and

(2)Disclosureshallbemadewhenamembertakesapositionormakesaprivilegespeech on amatter thatmay affect the business interest, financial connection, orprofessionalrelationshipdescribedherein.

SEC. 52. Sessions. ‐ (a) On the first day of the session immediately following theelectionof itsmembers, the sanggunian shall, by resolution, fix theday, time, andplaceofitsregularsessions.Theminimumnumberofregularsessionsshallbeoncea week for the sangguniang panlalawigan, sangguniang panlungsod, andsangguniangbayan,andtwiceamonthforthesangguniangbarangay.

Page 34: Local Government Code of 1991 (RA 7160)

(b)Whenpublic interest sodemands, special sessionsmaybe calledby the localchiefexecutiveorbyamajorityofthemembersofthesanggunian.

(c)Allsangguniansessionsshallbeopentothepublicunlessaclosed‐doorsessionisorderedbyanaffirmativevoteofamajorityofthememberspresent,therebeingaquorum, in thepublic interestor for reasonsof security, decency, ormorality.Notwo(2)sessions,regularorspecial,maybeheldinasingleday.

(d) In the case of special sessions of the sanggunian, a written notice to themembers shall be served personally at themember's usual place of residence atleast twenty‐ four (24) hours before the special session is held. Unless otherwiseconcurred in by two‐thirds (2/3) vote of the sanggunianmembers present, therebeing a quorum, no othermattersmay be considered at a special session exceptthosestatedinthenotice.

(e)Eachsanggunianshallkeepajournalandrecordofitsproceedingswhichmaybepublisheduponresolutionofthesanggunianconcerned.

SEC.53.Quorum. ‐ (a)Amajorityofall themembersof thesanggunianwhohavebeen elected and qualified shall constitute a quorum to transact official business.Shouldaquestionofquorumberaisedduringasession,thepresidingofficershallimmediately proceed to call the roll of themembers and thereafter announce theresults.

(b)Wherethereisnoquorum,thepresidingofficermaydeclarearecessuntilsuchtimeasaquorumisconstituted,oramajorityofthememberspresentmayadjournfromdaytodayandmaycompeltheimmediateattendanceofanymemberabsentwithoutjustifiablecausebydesignatingamemberofthesanggunian,tobeassistedbyamemberormembersofthepoliceforceassignedintheterritorialjurisdictionof the localgovernmentunit concerned, toarrest theabsentmemberandpresenthimatthesession.

(c)Ifthereisstillnoquorumdespitetheenforcementoftheimmediatelyprecedingsubsection, no business shall be transacted. The presiding officer, upon proper

Page 35: Local Government Code of 1991 (RA 7160)

motion duly approved by the members present, shall then declare the sessionadjournedforlackofquorum.

SEC.54.ApprovalofOrdinances.‐(a)Everyordinanceenactedbythesangguniangpanlalawigan,sangguniangpanlungsod,orsangguniangbayanshallbepresentedtotheprovincialgovernororcityormunicipalmayor,asthecasemaybe.Ifthelocalchief executive concerned approves the same, he shall affix his signature on eachand every page thereof; otherwise, he shall veto it and return the samewith hisobjections to the sanggunian, which may proceed to reconsider the same. Thesanggunian concernedmay override the veto of the local chief executive by two‐thirds (2/3) vote of all itsmembers, therebymaking the ordinance or resolutioneffectiveforalllegalintentsandpurposes.

(b)Thevetoshallbecommunicatedby the local chiefexecutiveconcerned to thesanggunianwithinfifteen(15)days inthecaseofaprovince,andten(10)days inthe case of a city or a municipality; otherwise, the ordinance shall be deemedapprovedasifhehadsignedit.

(c) ordinances enacted by the sangguniang barangay shall, upon approval by themajorityofallitsmembers,besignedbythepunongbarangay.

SEC.55.VetoPoweroftheLocalChiefExecutive.‐(a)Thelocalchiefexecutivemayveto any ordinance of the sangguniang panlalawigan, sangguniang panlungsod, orsangguniangbayanon theground that it isultraviresorprejudicial to thepublicwelfare,statinghisreasonsthereforinwriting.

(b)Thelocalchiefexecutive,exceptthepunongbarangay,shallhavethepowertovetoanyparticular itemor itemsofanappropriationsordinance,anordinanceorresolutionadoptingalocaldevelopmentplanandpublicinvestmentprogram,oranordinancedirecting thepaymentofmoneyorcreating liability. Insuchacase, thevetoshallnotaffecttheitemoritemswhicharenotobjectedto.Thevetoeditemoritemsshallnottakeeffectunlessthesanggunianoverridestheveto inthemannerhereinprovided;otherwise,theitemoritemsintheappropriationsordinanceofthepreviousyearcorrespondingtothosevetoed,ifany,shallbedeemedreenacted.

(c) The local chief executivemay veto an ordinance or resolution only once. Thesanggunianmay override the veto of the local chief executive concerned by two‐

Page 36: Local Government Code of 1991 (RA 7160)

thirds (2/3) vote of all itsmembers, therebymaking theordinance effective evenwithouttheapprovalofthelocalchiefexecutiveconcerned.

SEC.56.ReviewofComponentCityandMunicipalOrdinancesorResolutionsbytheSangguniangPanlalawigan.‐(a)Withinthree(3)daysafterapproval,thesecretaryto the sanggunian panlungsod or sangguniang bayan shall forward to thesangguniang panlalawigan for review, copies of approved ordinances and theresolutionsapprovingthelocaldevelopmentplansandpublicinvestmentprogramsformulatedbythelocaldevelopmentcouncils.

(b) Within thirty (30) days after receipt of copies of such ordinances andresolutions,thesangguniangpanlalawiganshallexaminethedocumentsortransmitthemtotheprovincialattorney,oriftherebenone,totheprovincialprosecutorforpromptexamination.Theprovincialattorneyorprovincialprosecutorshall,withina period of ten (10) days from receipt of the documents, inform the sangguniangpanlalawigan in writing of his comments or recommendations, which may beconsideredbythesangguniangpanlalawiganinmakingitsdecision.

(c) If the sangguniangpanlalawigan finds that such an ordinance or resolution isbeyond the power conferred upon the sangguniang panlungsod or sangguniangbayanconcerned,itshalldeclaresuchordinanceorresolutioninvalidinwholeorinpart.Thesangguniangpanlalawiganshallenter itsaction in theminutesandshalladvisethecorrespondingcityormunicipalauthoritiesoftheactionithastaken.

(d)Ifnoactionhasbeentakenbythesangguniangpanlalawiganwithinthirty(30)days after submission of such an ordinance or resolution, the same shall bepresumedconsistentwithlawandthereforevalid.

SEC. 57. Review of Barangay Ordinances by the sangguniang panlungsod orsangguniangbayan.‐(a)Withinten(10)daysafteritsenactment,thesangguniangbarangay shall furnish copies of all barangay ordinances to the sangguniangpanlungsod or sangguniang bayan concerned for review as to whether theordinanceisconsistentwithlawandcityormunicipalordinances.

(b)Ifthesangguniangpanlungsodorsangguniangbayan,asthecasemaybe,failstotakeactiononbarangayordinanceswithinthirty(30)daysfromreceiptthereof,thesameshallbedeemedapproved.

Page 37: Local Government Code of 1991 (RA 7160)

(c)Ifthesangguniangpanlungsodorsangguniangbayan,asthecasemaybe,findsthebarangayordinancesinconsistentwithlaworcityormunicipalordinances,thesanggunianconcernedshall,withinthirty(30)daysfromreceiptthereof,returnthesame with its comments and recommendations to the sangguniang barangayconcerned for adjustment, amendment, or modification; in which case, theeffectivity of thebarangayordinance is suspendeduntil such time as the revisioncalledforiseffected.

SEC. 58. Enforcement ofDisapprovedordinancesorResolutions. ‐Any attempt toenforceanyordinanceoranyresolutionapprovingthelocaldevelopmentplanandpublicinvestmentprogram,afterthedisapprovalthereof,shallbesufficientgroundforthesuspensionordismissaloftheofficialoremployeeconcerned.

SEC.59.EffectivityofOrdinancesorResolutions.(a)Unlessotherwisestatedintheordinance or the resolution approving the local development plan and publicinvestmentprogram,thesameshalltakeeffectafterten(10)daysfromthedateacopythereofispostedinabulletinboardattheentranceoftheprovincialcapitolorcity,municipal,orbarangayhall, as thecasemaybe,and inat least two(2)otherconspicuousplacesinthelocalgovernmentunitconcerned.

(b) The secretary to the sanggunian concerned shall cause the posting of anordinanceorresolutioninthebulletinboardattheentranceoftheprovincialcapitolandthecity,municipal,orbarangayhallinatleasttwo(2)conspicuousplacesinthelocalgovernmentunitconcernednotlaterthanfive(5)daysafterapprovalthereof.

ThetextoftheordinanceorresolutionshallbedisseminatedandpostedinFilipinoorEnglishandinthelanguageordialectunderstoodbythemajorityofthepeopleinthe local government unit concerned, and the secretary to the sanggunian shallrecordsuch fact inabookkept for thepurpose, stating thedatesofapprovalandposting.

(c)Thegistofallordinanceswithpenalsanctionsshallbepublishedinanewspaperof general circulation within the province where the local legislative bodyconcernedbelongs. In theabsenceof anynewspaperof general circulationwithinthe province, posting of such ordinances shall be made in all municipalities andcitiesoftheprovincewherethesanggunianoforiginissituated.

Page 38: Local Government Code of 1991 (RA 7160)

(d) In the case of highly urbanized cities, the main features of the ordinance orresolutiondulyenactedoradoptedshall, inadditiontobeingposted,bepublishedonce ina localnewspaperofgeneral circulationwithin the city:Provided,That inthe absence thereof the ordinance or resolution shall be published in anynewspaperofgeneralcirculation.

CHAPTER4.‐DISCIPLINARYACTIONS

SEC. 60. Grounds for Disciplinary Actions. ‐ An elective local official may bedisciplined,suspended,orremovedfromofficeonanyofthefollowinggrounds:

(a)DisloyaltytotheRepublicofthePhilippines;

(b)CulpableviolationoftheConstitution;

(c)Dishonesty,oppression,misconductinoffice,grossnegligence,orderelictionofduty;

(d)Commissionofanyoffenseinvolvingmoralturpitudeoranoffensepunishablebyatleastprisionmayor;

(e)Abuseofauthority;

(f)Unauthorizedabsence for fifteen (15) consecutiveworkingdays, except in thecase of members of the sangguniang panlalawigan, sangguniang panlungsod,sangguniangbayan,andsangguniangbarangay;

(g)Applicationfor,oracquisitionof,foreigncitizenshiporresidenceorthestatusofanimmigrantofanothercountry;and

Page 39: Local Government Code of 1991 (RA 7160)

(h)SuchothergroundsasmaybeprovidedinthisCodeandotherlaws.Anelectivelocal official may be removed from office on the grounds enumerated above byorderofthepropercourt.

SEC. 61. Form and Filing of Administrative Complaints. ‐ A verified complaintagainstanyerringlocalelectiveofficialshallbepreparedasfollows:

(a)Acomplaintagainstanyelectiveofficialofaprovince,ahighlyurbanizedcity,anindependentcomponentcityorcomponentcityshallbefiledbeforetheOfficeofthePresident;

(b)Acomplaintagainstanyelectiveofficialofamunicipality shallbe filedbeforethesangguniangpanlalawiganwhosedecisionmaybeappealedtotheOfficeofthePresident;and

(c) A complaint against any elective barangay official shall be filed before thesangguniangpanlungsodorsangguniangbayanconcernedwhosedecisionshallbefinalandexecutory.

SEC. 62. Notice of Hearing. ‐ (a) Within seven (7) days after the administrativecomplaint is filed, theOffice of thePresident or the sanggunian concerned, as thecase may be, shall require the respondent to submit his verified answer withinfifteen(15)daysfromreceiptthereof,andcommencethe investigationof thecasewithinten(10)daysafterreceiptofsuchansweroftherespondent.

(b)When the respondent is an elective official of a province or highly urbanizedcity, such hearing and investigation shall be conducted in the place where herendersorholdsoffice. Forall other local electiveofficials, thevenue shallbe theplacewherethesanggunianconcernedislocated.

(c) However, no investigation shall be heldwithin ninety (90) days immediatelyprior to any local election, andnopreventive suspension shall be imposedwithinthe said period. If preventive suspension has been imposed prior to the 90‐dayperiodimmediatelyprecedinglocalelection,itshallbedeemedautomaticallylifteduponthestartofaforesaidperiod.

Page 40: Local Government Code of 1991 (RA 7160)

SEC.63.PreventiveSuspension.‐(a)Preventivesuspensionmaybeimposed:

(1)BythePresident,iftherespondentisanelectiveofficialofaprovince,ahighlyurbanizedoranindependentcomponentcity;

(2)Bythegovernor,iftherespondentisanelectiveofficialofacomponentcityormunicipality;or

(3)Bythemayor,iftherespondentisanelectiveofficialofthebarangay.

(b)Preventivesuspensionmaybeimposedatanytimeaftertheissuesarejoined,when the evidenceof guilt is strong, andgiven the gravityof theoffense, there isgreatprobabilitythatthecontinuanceinofficeoftherespondentcouldinfluencethewitnesses or pose a threat to the safety and integrity of the records and otherevidence:Provided,That,anysinglepreventivesuspensionof localelective fficialsshall not extend beyond sixty (60) days: Provided, further, That in the event thatseveral administrative cases are filed against an elective official, he cannot bepreventivelysuspendedformorethanninety(90)dayswithinasingleyearonthesamegroundorgroundsexistingandknownatthetimeofthefirstsuspension.

(c) Upon expiration of the preventive suspension, the suspended elective officialshall be deemed reinstated in office without prejudice to the continuation of theproceedings against him, which shall be terminated within one hundred twenty(120)daysfromthetimehewasformallynotifiedofthecaseagainsthim.However,if the delay in the proceedings of the case is due to his fault, neglect, or request,otherthantheappealdulyfiled,thedurationofsuchdelayshallnotbecountedincomputingthetimeofterminationofthecase.

(d) Any abuse of the exercise of the power of preventive suspension shall bepenalizedasabuseofauthority.

SEC. 64. Salary of Respondent Pending Suspension. ‐ The respondent officialpreventivelysuspendedfromofficeshallreceivenosalaryorcompensationduringsuchsuspension;but,uponsubsequentexonerationandreinstatement,heshallbe

Page 41: Local Government Code of 1991 (RA 7160)

paid full salaryor compensation including suchemolumentsaccruingduring suchsuspension.

SEC.65.RightsofRespondent‐Therespondentshallbeaccordedfullopportunitytoappearanddefendhimself inpersonorbycounsel,toconfrontandcross‐examinethe witnesses against him, and to require the attendance of witnesses and theproductionofdocumentaryevidenceinhisfavorthroughthecompulsoryprocessofsubpoenaorsubpoenaducestecum.

SEC. 66. Form andNotice of Decision. ‐ (a) The investigation of the case shall beterminatedwithinninety(90)days fromthestart thereof.Within thirty(30)daysafter the end of the investigation, the Office of the President or the sanggunianconcernedshallrenderadecision inwritingstatingclearlyanddistinctlythe factsand the reasons for such decision. Copies of said decision shall immediately befurnishedtherespondentandallinterestedparties.

(b) The penalty of suspension shall not exceed the unexpired term of therespondentoraperiodofsix(6)monthsforeveryadministrativeoffense,norshallsaidpenaltybeabartothecandidacyoftherespondentsosuspendedaslongashemeetsthequalificationsrequiredfortheoffice.

(c)Thepenaltyofremovalfromofficeasaresultofanadministrativeinvestigationshall be considered a bar to the candidacy of the respondent for any electiveposition.

SEC. 67. Administrative Appeals. ‐ Decisions in administrative cases may, withinthirty(30)daysfromreceiptthereof,beappealedtothefollowing:

(a) The sangguniang panlalawigan, in the case of decisions of the sangguniangpanlungsodofcomponentcitiesandthesangguniangbayan;and

(b) The Office of the President, in the case of decisions of the sangguniangpanlalawigan and the sangguniang panlungsod of highly urbanized cities andindependentcomponentcities.DecisionsoftheOfficeofthePresidentshallbefinalandexecutory.

Page 42: Local Government Code of 1991 (RA 7160)

SEC. 68. Execution Pending appeal. ‐ An appeal shall not prevent a decision frombecoming final or executory. The respondent shall be considered as having beenplacedunderpreventivesuspensionduringthependencyofanappealintheeventhewinssuchappeal. Intheeventtheappealresults inanexoneration,heshallbepaidhissalaryandsuchotheremolumentsduringthependencyoftheappeal.

CHAPTER5.‐RECALL

SEC.69.ByWhomExercised. ‐Thepowerof recall for lossof confidence shall beexercised by the registered voters of a local government unit to which the localelectiveofficialsubjecttosuchrecallbelongs.

SEC. 70. Initiation of the Recall Process. ‐ (a) Recall may be initiated by apreparatoryrecallassemblyorbytheregisteredvotersofthelocalgovernmentunittowhichthelocalelectiveofficialsubjecttosuchrecallbelongs.

(b)Thereshallbeapreparatoryrecallassemblyineveryprovince,city,district,andmunicipalitywhichshallbecomposedofthefollowing:

(1) Provincial level. ‐ All mayors, vice‐mayors, and sanggunian members of themunicipalitiesandcomponentcities;

(2) City level. ‐ All punong barangay and sangguniang barangaymembers in thecity;

(3)LegislativeDistrict level. ‐ Incaseswheresangguniangpanlalawiganmembersare elected by district, all electivemunicipal officials in the district; and in caseswhere sangguniang panlungsod members are elected by district, all electivebarangayofficialsinthedistrict;and

(4)Municipal level. ‐Allpunongbarangayandsangguniangbarangaymembersinthemunicipality.

Page 43: Local Government Code of 1991 (RA 7160)

(c) A majority of all the preparatory recall assembly members may convene insessioninapublicplaceandinitiatearecallproceedingagainstanyelectiveofficialin the local government unit concerned. Recall of provincial, city, or municipalofficialsshallbevalidly initiated througharesolutionadoptedbyamajorityofallthemembersofthepreparatoryrecallassemblyconcernedduringitssessioncalledforthepurpose.

(d)Recallofanyelectiveprovincial,city,municipal,orbarangayofficialmayalsobevalidly initiated upon petition of at least twenty‐five percent (25%) of the totalnumber of registered voters in the local government unit concerned during theelectioninwhichthelocalofficialsoughttoberecalledwaselected.

(1) A written petition for recall duly signed before the election registrar or hisrepresentative, and in the presence of a representative of the petitioner and arepresentative of the official sought to be recalled, and in a public place in theprovince,city,municipality,orbarangay,asthecasemaybe,shallbefiledwiththeComelecthroughitsofficeinthelocalgovernmentunitconcerned.TheComelecorits duly authorized representative shall cause the publication of the petition in apublicandconspicuousplace foraperiodofnot less thanten(10)daysnormorethantwenty(20)days,forthepurposeofverifyingtheauthenticityandgenuinenessofthepetitionandtherequiredpercentageofvoters.

(2) Upon the lapse of the aforesaid period, the Comelec or its duly authorizedrepresentative shall announce the acceptance of candidates to the position andthereafterpreparethelistofcandidateswhichshallincludethenameoftheofficialsoughttoberecalled.

SEC.71.ElectiononRecall.‐Uponthefilingofavalidresolutionorpetitionforrecallwith the appropriate local office of the Comelec, the Commission or its dulyauthorizedrepresentativeshallsetthedateoftheelectiononrecall,whichshallnotbelaterthanthirty(30)daysafterthefilingoftheresolutionorpetitionforrecallinthecaseofthebarangay,city,ormunicipalofficials,andforty‐five(45)daysinthecase of provincial officials. The official or officials sought to be recalled shallautomatically be considered as duly registered candidate or candidates to thepertinentpositionsand,likeothercandidates,shallbeentitledtobevotedupon.

SEC.72.EffectivityofRecall.‐Therecallofanelectivelocalofficialshallbeeffectiveonly upon the election and proclamation of a successor in the person of the

Page 44: Local Government Code of 1991 (RA 7160)

candidatereceivingthehighestnumberofvotescastduringtheelectiononrecall.Should the official sought to be recalled receive the highest number of votes,confidenceinhimistherebyaffirmed,andheshallcontinueinoffice.

SEC. 73. Prohibition from Resignation. ‐ The elective local official sought to berecalledshallnotbeallowedtoresignwhiletherecallprocessisinprogress.

SEC.74.LimitationsonRecall.‐(a)Anyelectivelocalofficialmaybethesubjectofarecallelectiononlyonceduringhistermofofficeforlossofconfidence.

(b) No recall shall take place within one (1) year from the date of the official'sassumptiontoofficeorone(1)yearimmediatelyprecedingaregularlocalelection.

SEC. 75. Expenses Incident to Recall Elections. ‐ All expenses incident to recallelectionsshallbebornebytheComelec.Forthispurpose,thereshallbeincludedinthe annual General Appropriations Act a contingency fund at the disposal of theComelecfortheconductofrecallelections.

TITLETHREE.‐HUMANRESOURCESANDDEVELOPMENT

SEC.76.OrganizationalStructureandStaffingPattern.‐Everylocalgovernmentunitshall design and implement its own organizational structure and staffing patterntakingintoconsiderationitsservicerequirementsandfinancialcapability,subjecttotheminimumstandardsandguidelinesprescribedbytheCivilServiceCommission.

SEC. 77. Responsibility for Human Resources and Development. ‐ The chiefexecutiveofeverylocalgovernmentunitshallberesponsibleforhumanresourcesanddevelopmentinhisunitandshalltakeallpersonnelactionsinaccordancewiththe Constitutional provisions on civil service, pertinent laws, and rules andregulations thereon, including such policies, guidelines and standards as the CivilService Commission may establish: Provided, That the local chief executive mayemploy emergency or casual employees or laborers paid on a daily wage orpieceworkbasisandhired through joborders for localprojectsauthorizedby thesanggunianconcerned,withoutneedofapprovalorattestationbytheCivilServiceCommission: Provided, further, That the period of employment of emergency orcasuallaborersasprovidedinthisSectionshallnotexceedsix(6)months.

Page 45: Local Government Code of 1991 (RA 7160)

The Joint Commission on Local Government Personnel Administration organizedpursuant to Presidential Decree Numbered Eleven Hundred thirty‐six (P.D. No.1136) isherebyabolishedanditspersonnel ,records,equipmentandotherassetstransferredtotheappropriateofficeintheCivilServiceCommission.

SEC.78.CivilServiceLaw,RulesandRegulations,andOtherRelatedIssuances.‐Allmatterspertinent tohumanresourcesanddevelopment in localgovernmentunitsshallbegovernedbythecivilservicelawandsuchrulesandregulationsandotherissuancespromulgatedpursuantthereto,unlessotherwisespecifiedinthisCode.

SEC.79.LimitationonAppointments. ‐Nopersonshallbeappointed inthecareerservice of the local government if he is related within the fourth civil degree ofconsanguinityoraffinitytotheappointingorrecommendingauthority.

SEC.80.PublicNoticeofVacancy;PersonnelSelectionBoard.‐(a)Wheneveralocalchiefexecutivedecidestofillavacantcareerposition,thereshallbepostednoticesof the vacancy in at least three (3) conspicuous public places in the localgovernmentunitconcernedforaperiodofnotlessthanfifteen(15)days.

(b)There shall be established in everyprovince, cityormunicipality apersonnelselection board to assist the local chief executive in the judicious and objectiveselection of personnel for employment as well as for promotion, and in theformulationofsuchpoliciesaswouldcontributetoemployeewelfare.

(c)Thepersonnelselectionboardshallbeheadedbythelocalchiefexecutive,andits members shall be determined by resolution of the sanggunian concerned. Arepresentativeof theCivilServiceCommission, ifany,andthepersonnelofficerofthelocalgovernmentunitconcernedshallbeexofficiomembersoftheboard.

SEC.81.CompensationofLocalOfficialsandEmployees.‐Thecompensationoflocalofficialsandpersonnelshallbedeterminedbythesanggunianconcerned:Provided,That the increase in compensation of elective local officials shall take effect onlyafter the terms of office of those approving such increase shall have expired:Provided,further,Thattheincreaseincompensationoftheappointiveofficialsandemployeesshalltakeeffectasprovidedintheordinanceauthorizingsuchincrease:Provided, however, That said increases shall not exceed the limitations onbudgetaryallocationsforpersonalservicesprovidedunderTitleFive,BookIIofthis

Page 46: Local Government Code of 1991 (RA 7160)

Code:Provided, finally,That suchcompensationmaybebasedupon thepertinentprovisions of Republic Act Numbered Sixty‐seven fifty‐eight (R.A. No. 6758),otherwiseknownasthe"CompensationandPositionClassificationActof1989".

The punong barangay, the sangguniang barangay members, the sangguniangkabataan chairman, the barangay treasurer, and the barangay secretary shall beentitled to suchcompensation, allowances, emoluments, andsuchotherprivilegesasprovidedunderTitleOne,BookIIIofthisCode.

Electivelocalofficialsshallbeentitledtothesameleaveprivilegesasthoseenjoyedbyappointivelocalofficials,includingthecumulationandcommutationthereof.

SEC. 82.Resignationof Elective LocalOfficials. ‐ (a)Resignationsby elective localofficials shall be deemed effective only upon acceptance by the followingauthorities:

(1)ThePresident, inthecaseofgovernors,vice‐governors,andmayorsandvice‐mayorsofhighlyurbanizedcitiesandindependentcomponentcities;

(2) The governor, in the case of municipal mayors, municipal vice‐mayors, citymayorsandcityvice‐mayorsofcomponentcities;

(3)Thesanggunianconcerned,inthecaseofsanggunianmembers;and

(4)Thecityormunicipalmayor,inthecaseofbarangayofficials.

(b) Copies of the resignation letters of elective local officials, togetherwith theaction taken by the aforesaid authorities, shall be furnished the Department ofInteriorandLocalGovernment.

(c) Theresignationshallbedeemedacceptedifnotacteduponbytheauthorityconcernedwithinfifteen(15)workingdaysfromreceiptthereof.

Page 47: Local Government Code of 1991 (RA 7160)

(d)Irrevocableresignationsbysangguniangmembersshallbedeemedacceptedupon presentation before an open session of the sanggunian concerned and dulyentered in its records: Provided,however,That this subsectiondoesnotapply tosanggunianmemberswhoaresubjecttorecallelectionsortocaseswhereexistinglawsprescribethemannerofactinguponsuchresignations.

SEC. 83. Grievance Procedure. ‐ In every local government unit, the local chiefexecutive sahll establish a procedure to inquire into, act upon, resolve or settlecomplaintsandgrievancespresentedbylocalgovernmentemployees.

SEC.84.AdministrativeDiscipline.‐Investigationandadjudicationofadministrativecomplaints against appointive local officials and employees as well as theirsuspensionandremovalshallbeinaccordancewiththecivilservicelawandrulesandotherpertinentlaws.TheresultsofsuchadministrativeinvestigationsshallbereportedtotheCivilServiceCommission.

SEC. 85. Preventive Suspension of Appointive Local Officials and Employees. ‐ (a)Thelocalchiefexecutivesmaypreventivelysuspendforaperiodnotexceedingsixty(60) days any subordinate official or employee under his authority pendinginvestigation if the charge against such official or employee involves dishonesty,oppressionorgravemisconductorneglectintheperformanceofduty,orifthereisreasontobelievethattherespondentisguiltyofthechargeswhichwouldwarranthisremovalfromtheservice.

(b) Upon expiration of the preventive suspension, the suspended official oremployee shall be automatically reinstated in office without prejudice to thecontinuationoftheadministrativeproceedingsagainsthimuntilitstermination.Ifthedelayintheproceedingsofthecaseisduetothefault,neglectorrequestoftherespondent, the timeof thedelayshallnotbecounted incomputing theperiodofsuspensionhereinprovided.

SEC.86.AdministrativeInvestigation.‐Inanylocalgovernmentunit,administrativeinvestigationmaybeconductedbyapersonoracommitteedulyauthorizedbythelocalchiefexecutive.Saidpersonorcommitteeshallconducthearingsonthecasesbroughtagainstappointive localofficialsandemployeesandsubmit their findingsand recommendations to the local chief executive concerned within fifteen (15)days from the conclusion of the hearings. The administrative cases herein

Page 48: Local Government Code of 1991 (RA 7160)

mentionedshallbedecidedwithinninety(90)daysfromthetimetherespondentisformallynotifiedofthecharges.

SEC.87.Disciplinary Jurisdiction. ‐Exceptasotherwiseprovidedby law, the localchiefexecutivemayimposethepenaltyofremovalfromservice,demotioninrank,suspension for not more than one (1) year without pay, fine in an amount notexceedingsix(6)months'salary,orreprimandandotherwisedisciplinesubordinateofficialsandemployeesunderhisjurisdiction.Ifthepenaltyimposedissuspensionwithout pay for notmore than thirty (30) days, his decision shall be final. If thepenaltyimposedisheavierthansuspensionofthirty(30)days,thedecisionshallbeappealable to the Civil Service Commission, which shall decide the appeal withinthirty(30)daysfromreceiptthereof.

SEC.88.ExecutionPendingAppeal.‐Anappealshallnotpreventtheexecutionofadecision of removal or suspension of a respondent‐appellant. In case therespondent‐appellant is exonerated, he shall be reinstated to his positionwith alltherightsandprivilegesappurtenant thereto fromthe timehehadbeendeprivedthereof.

SEC.89.ProhibitedBusinessandPecuniaryInterest.‐(a)Itshallbeunlawfulforanylocalgovernmentofficialoremployee,directlyorindirectly,to:

(1)Engageinanybusinesstransactionwiththelocalgovernmentunitinwhichheisanofficialoremployeeoroverwhichhehasthepowerofsupervision,orwithanyofitsauthorizedboards,officials,agents,orattorneys,wherebymoneyistobepaid, or property or any other thing of value is to be transferred, directly orindirectly,outoftheresourcesofthelocalgovernmentunittosuchpersonorfirm;

(2) Hold such interests in any cockpit or other games licensed by a localgovernmentunit.

(3) Purchaseany real estateorotherproperty forfeited in favorof such localgovernmentunit forunpaid taxesorassessment,orbyvirtueofa legalprocessattheinstanceofthesaidlocalgovernmentunit.

Page 49: Local Government Code of 1991 (RA 7160)

(4) Be a surety for any person contracting or doing business with the localgovernmentunitforwhichasuretyisrequired;and

(5)Possessoruseanypublicpropertyofthelocalgovernmentunitforprivatepurposes.

(b) All other prohibitions governing the conduct of national public officersrelating to prohibited business and pecuniary interest so provided for underRepublicActNumberedSixty‐seven thirteen (R.A.No.6713)otherwiseknownasthe"CodeofConductandEthicalStandardsforPublicOfficialsandEmployees"andotherlawsshallalsobeapplicabletolocalgovernmentofficialsandemployees.

SEC.90.PracticeofProfession. ‐ (a) Allgovernors,cityandmunicipalmayorsareprohibited from practicing their profession or engaging in any occupation otherthantheexerciseoftheirfunctionsaslocalchiefexecutives.

(b)Sanggunianmembersmaypracticetheirprofessions,engageinanyoccupation,or teach in schools except during session hours: Provided, That sanggunianmemberswhoarealsomembersoftheBarshallnot:

(1) Appear as counsel before any court in any civil case wherein a localgovernmentunitoranyoffice,agency,or instrumentalityofthegovernmentistheadverseparty;

(2)Appearascounselinanycriminalcasewhereinanofficeroremployeeofthenationalor localgovernment isaccusedofanoffensecommitted inrelation tohisoffice.

(3) Collectanyfee fortheirappearance inadministrativeproceedings involvingthelocalgovernmentunitofwhichheisanofficial;and

(4)Usepropertyandpersonnelofthegovernmentexceptwhenthesanggunianmemberconcernedisdefendingtheinterestofthegovernment.

Page 50: Local Government Code of 1991 (RA 7160)

(5)Doctorsofmedicinemaypracticetheirprofessionevenduringofficialhoursofworkonlyonoccasionsofemergency:Provided,Thattheofficialsconcerneddonotderivemonetarycompensationtherefrom.

SEC. 91. Statement of Assets and Liabilities.‐ (a) Officials and employees of localgovernmentunitsshallfileswornstatementsofassets,liabilitiesandnetworth,listsofrelativeswithinthefourthcivildegreeofconsanguinityoraffinityingovernmentservice, financialandbusiness interests,andpersonneldatasheetsasrequiredbylaw.

SEC.92.OathofOffice.‐(a)Allelectiveandappointivelocalofficialsandemployeesshall,uponassumptiontooffice,subscribetoanoathoraffirmationofofficeintheprescribedform.Theoathoraffirmationofofficeshallbefiledwiththeofficeofthelocal chief executive concerned. A copy of the oath or affirmation of office of allelective and appointive local officials and employees shall be preserved in theindividualpersonalrecordsfileunderthecustodyofthepersonneloffice,division,orsectionofthelocalgovernmentunitconcerned.

SEC.93.PartisanPoliticalActivity.‐Nolocalofficialoremployeeinthecareercivilservice shall engagedirectly or indirectly in anypartisanpolitical activity or takepart inanyelection, initiative,referendum,plebiscite,orrecall,excepttovote,norshall he use his official authority or influence to cause the performance of anypolitical activity by any person or body. Hemay, however, express his views oncurrent issues,ormention thenamesofcertaincandidates forpublicofficewhomhesupports.Electivelocalofficialsmaytakepartinpartisanpoliticalandelectoralactivities, but it shall be unlawful for them to solicit contributions from theirsubordinatesorsubjectthesesubordinatestoanyoftheprohibitedactsundertheOmnibusElectionCode.

SEC. 94. Appointment of Elective and Appointive Local Officials; Candidates whoLost in Election. ‐ (a) No elective or appointive local official shall be eligible forappointmentordesignation inanycapacity toanypublicofficeorpositionduringhistenure.

Unlessotherwiseallowedby laworby theprimary functionsofhisposition,noelectiveorappointivelocalofficialshallholdanyotherofficeoremploymentinthe

Page 51: Local Government Code of 1991 (RA 7160)

government or any subdivision, agency or instrumentality thereof, includinggovernment‐ownedor‐controlledcorporationsortheirsubsidiaries.

(b) Except for losingcandidates inbarangayelections,nocandidatewholost inanyelectionshall,withinone(1)yearaftersuchelection,beappointedtoanyofficeinthegovernmentoranygovernment‐ownedor‐controlledcorporationsorinanyoftheirsubsidiaries.

SEC.95.Additionalordoublecompensation.‐Noelectiveorappointivelocalofficialor employee shall receive additional, double, or indirect compensation, unlessspecifically authorized by law, nor accept without the consent of Congress, anypresent, emoluments, office, or title of any kind from any foreign government.Pensions or gratuities shall not be considered as additional, double, or indirectcompensation.

SEC.96.PermissiontoLeaveStation.‐(a)Provincial,city,municipal,andbarangayappointiveofficialsgoingonofficialtravelshallapplyandsecurewrittenpermissionfromtheirrespectivelocalchiefexecutivesbeforedeparture.Theapplicationshallspecify the reasons for such travel, and thepermission shall begivenorwithheldbased on considerations of public interest, financial capability of the localgovernmentunitconcernedandurgencyofthetravel.

Shouldthelocalchiefexecutiveconcernedfailtoactuponsuchapplicationwithinfour(4)workingdaysfromreceiptthereof,itshallbedeemedapproved.

(b)Mayorsofcomponentcitiesandmunicipalitiesshallsecurethepermissionofthegovernorconcernedforanytraveloutsidetheprovince.

(c) Local government officials traveling abroad shall notify their respectivesanggunian: Provided,Thatwhentheperiodof travelextendstomorethanthree(3)monhs,duringperiodsofemergencyorcrisisorwhenthetravelinvolvestheuseofpublicfunds,permissionfromtheOfficeofthePresidentshallbesecured.

(d)Fieldofficersofnationalagenciesorofficesassignedinprovinces,cities,andmunicipalities shall not leave their official stations without giving prior writtennoticetothelocalchiefexecutiveconcerned.Suchnoticeshallstatethedurationof

Page 52: Local Government Code of 1991 (RA 7160)

travel and the name of the officer whom he shall designate to act for and in hisbehalfduringhisabsence.

SEC. 97. Annual Report. ‐ On or before March 31 of each year, every local chiefexecutive shall submit an annual report to the sanggunian concerned on thesocioeconomic, political and peace and order conditions, and other mattersconcerningthelocalgovernmentunit,whichshallcovertheimmediatelyprecedingcalendaryear.AcopyofthereportshallbeforwardedtotheDepartmentofInteriorandLocalGovernment.Componentcitiesandmunicipalitiesshalllikewiseprovidethesangguniangpanlalawigancopiesoftheirrespectiveannualreports.

TITLEFOUR.‐LOCALSCHOOLBOARDS

SEC.98.Creation,CompositionandCompensation.‐(a)Thereshallbeestablishedineveryprovince,city,ormunicipalityaprovincial,cityormunicipalschoolboard,respectively.

(b)Thecompositionoflocalschoolboardsshallbeasfollows:

(1) The provincial school board shall be composed of the governor and thedivision superintendent of schools as co‐chairmen; the chairmanof the educationcommittee of the sangguniang panlalawigan, the provincial treasurer, therepresentativeofthepederasyonngmgasangguniangkabataaninthesangguniangpanlalawigan, the duly elected president of the provincial federation of parents‐teachersassociation,thedulyelectedrepresentativeoftheteachers'organizationintheprovince,andthedulyelectedrepresentativeofthenon‐academicpersonnelofpublicschoolsintheprovince,asmembers;

(2) The city school board shall be composed of the city mayor and the citysuperintendentofschoolsasco‐chairmen;thechairmanoftheeducationcommitteeof the sangguniang panlungsod, the city treasurer, the representative of thepederasyonngmgasangguniangkabataaninthesangguniangpanlungsod,thedulyelected president of the city federation of parents‐teachers associations, the dulyelectedrepresentativeoftheteachers'organizationsinthecity,andthedulyelectedrepresentative of the non‐academic personnel of public schools in the city, asmembers;and

Page 53: Local Government Code of 1991 (RA 7160)

(3)Themunicipalschoolboardshallbecomposedofthemunicipalmayorandthedistrict supervisor of schools as co‐chairmen; the chairman of the educationcommitteeofthesangguniangbayan,themunicipaltreasurer,therepresentativeofthepederasyonngmga sangguniangkabataan in the sangguniangbayan, thedulyelectedpresidentof themunicipal federationofparents‐teachersassociations, theduly elected representativeof the teachers' organizations in themunicipality, andthedulyelectedrepresentativeofthenon‐academicpersonnelofpublicschools inthecity,asmembers;

(c) In the event that a province or city has two (2) or more schoolsuperintendents,and in theevent thatamunicipalityhas two(2)ormoredistrictsupervisors, the co‐chairman of the local school board shall be determined asfollows:

(1) The Department of Education, Culture and Sports shall designate the co‐chairmanfortheprovincialandcityschoolboards;and

(2)Thedivisionsuperintendentofschoolsshalldesignatethedistrictsupervisorwhoshallserveasco‐chairmanofthemunicipalschoolboard.

(d) The performance of the duties and responsibilities of the abovementionedofficialsintheirrespectivelocalschoolboardsshallnotbedelegated.

SEC.99.FunctionsofLocalSchoolBoards.‐Theprovincial,cityormunicipalschoolboardshall:

(a) Determine, in accordance with the criteria set by the Department ofEducation,CultureandSports, theannual supplementarybudgetaryneeds for theoperation and maintenance of public schools within the province, city ormunicipality,asthecasemaybe,andthesupplementarylocalcostofmeetingsuchneeds, which shall be reflected in the form of an annual school board budgetcorresponding to its share in the proceeds of the special levy on real propertyconstituting the SpecialEducation fundand suchother sourcesof revenueas thisCodeandotherlawsorordinancesmayprovide;

Page 54: Local Government Code of 1991 (RA 7160)

(b) Authorize theprovincial, cityormunicipal treasurer,as thecasemaybe, todisburse funds from the Special Education fund pursuant to the budget preparedandinaccordancewithexistingrulesandregulations;

(c) Serveasanadvisorycommitteetothesanggunianconcernedoneducationalmatters such as, but not limited to, the necessity for and the uses of localappropriationsforeducationalpurposes;and

(d) Recommend changes in the names of public schools within the territorialjurisdiction of the local government unit for enactment by the sanggunianconcerned.

The Department of Education, Culture and Sports shall consult the local schoolboardon theappointmentofdivisionsuperintendents,districtsupervisors, schoolprincipals,andotherschoolofficials.

SEC.100.MeetingsandQuorum;Budget.‐(a)Thelocalschoolboardshallmeetatleastonceamonthorasoftenasmaybenecessary.

(b)Anyoftheco‐chairmenmaycallameeting.Amajorityofallitsmembersshallconstitute aquorum. However,whenboth co‐chairmenarepresent in ameeting,the local chief executive concerned, as a matter of protocol, shall be givenpreference to preside over the meeting. The division superintendent, citysuperintendentordistrictsupervisor,asthecasemaybe,shallpreparethebudgetof the school board concerned. Such budget shall be supported by programs,projects, and activities of the school board for the ensuing fiscal year. Theaffirmativevoteofthemajorityofallitsmembersshallbenecessarytoapprovethebudget.

(c)Theannualschoolboardbudgetshallgiveprioritytothefollowing:

(1)Construction,repair,andmaintenanceofschoolbuildingsandotherfacilitiesofpublicelementaryandsecondaryschools;

Page 55: Local Government Code of 1991 (RA 7160)

(2)Establishmentandmaintenanceofextensionclasseswherenecessary;and

(3)Sportsactivitiesatthedivision,district,municipal,andbarangaylevels.

SEC.101.CompensationandRemuneration.‐Theco‐chairmenandmembersoftheprovincial,cityormunicipalschoolboardshallperformtheirdutiesassuchwithoutcompensationorremuneration.Membersthereofwhoarenotgovernmentofficialsor employees shall be entitled to necessary traveling expenses and allowanceschargeable against funds of the local school board concerned, subject to existingaccountingandauditingrulesandregulations.

TITLEFIVE.‐LOCALHEALTHBOARDS

SEC.102.CreationandComposition. ‐ (a)Thereshallbeestablisheda localhealthboard ineveryprovince, cityormunicipality. Thecompositionof the localhealthboardsshallbeasfollows:

(1)Theprovincialhealthboardshallbeheadedbythegovernoraschairman,theprovincial health officer as vice‐chairman, and the chairman of the committee onhealthofthesangguniangpanlalawigan,arepresentativefromtheprivatesectorornon‐governmentalorganizationsinvolvedinhealthservices,andarepresentativeoftheDepartmentofHealthintheprovince,asmembers;

(2)Thecityhealthboardshallbeheadedbythecitymayoraschairman,thecityhealthofficerasvice‐chairman,andthechairmanofthecommitteeonhealthofthesangguniang panlungsod, a representative from the private sector or non‐governmentalorganizationsinvolvedinhealthservices,andarepresentativeoftheDepartmentofHealthinthecity,asmembers;and

(3) The municipal health board shall be headed by the municipal mayor aschairman, themunicipal health officer as vice‐chairman, and the chairman of thecommittee on health of the sangguniang bayan, a representative from the privatesector or non‐governmental organizations involved in health services, and arepresentativeoftheDepartmentofHealthinthemunicipality,asmembers;

Page 56: Local Government Code of 1991 (RA 7160)

(b)Thefunctionsofthelocalhealthboardshallbe:

(1) Toproposeto thesanggunianconcerned, inaccordancewithstandardsandcriteria set by the Department of Health, annual budgetary allocations for theoperationandmaintenanceofhealthfacilitiesandserviceswithinthemunicipality,cityorprovince,asthecasemaybe.

(2) To serve as an advisory committee to the sanggunian concerned on healthmatters such as, but not limited to, the necessity for, and application of, localappropriationsforpublichealthpurposes;and

(3)ConsistentwiththetechnicalandadministrativestandardsoftheDepartmentof Health, create committees which shall advise local health agencies onmatterssuch as, but not limited to, personnel selection and promotion, bids and awards,grievancesandcomplaints,personneldiscipline,budgetreview,operationsreviewandsimilarfunctions.

SEC.103.MeetingsandQuorum.‐(a)Theboardshallmeetatleastonceamonthorasoftenasmaybenecessary.

(b) Amajority of themembers of the board shall constitute a quorum, but thechairmanor thevice‐chairmanmustbepresentduringmeetingswherebudgetaryproposalsarebeingpreparedorconsidered.Theaffirmativevoteofallthemajorityofthemembersshallbenecessarytoapprovesuchproposals.

SEC. 104. Compensation and Remuneration. ‐ The chairman, vice‐chairman, andmembersoftheprovincial,cityormunicipalhealthboardshallperformtheirdutiesas such without compensation or remuneration. Members thereof who are notgovernmentofficialsoremployeesshallbeentitledtonecessarytravelingexpensesand allowances chargeable against the funds of the local health board concerned,subjecttoexistingaccountingandauditingrulesandregulations.

SEC. 105.DirectNational Supervision andControl by the Secretary ofHealth. ‐ Incases of epidemics, pestilence, and other widespread public health dangers, theSecretary of Healthmay, upon the direction of the President and in consultationwith the local government unit concerned, temporarily assumedirect supervision

Page 57: Local Government Code of 1991 (RA 7160)

andcontroloverhealthoperationsinanylocalgovernmentunitforthedurationofthe emergency, but in no case exceeding a cumulative period of six (6) months.With theconcurrenceof the localgovernmentunit concerned, theperiod forsuchdirectnationalcontrolandsupervisionmaybefurtherextended.

TITLESIX.‐LOCALDEVELOPMENTCOUNCILS

SEC.106.LocalDevelopmentCouncils.‐(a)Eachlocalgovernmentunitshallhaveacomprehensivemultisectoraldevelopmentplan tobe initiatedby itsdevelopmentcouncilandapprovedbyitssanggunian.Forthispurpose,thedevelopmentcouncilat the provincial city,municipal, or barangay level, shall assist the correspondingsanggunian in setting the direction of economic and social development, andcoordinatingdevelopmenteffortswithinitsterritorialjurisdiction.

SEC.107.CompositionofLocalDevelopmentCouncils.‐Thecompositionofthelocaldevelopmentcouncilshallbeasfollows:

(a) Thebarangaydevelopmentcouncilshallbeheadedbythepunongbarangayandshallbecomposedofthefollowingmembers:

(1)Membersofthesangguniangbarangay;

(2) Representatives of non‐governmental organizations operating in thebarangay,whoshallconstitutenotlessthanonefourth(1/4)ofthemembersofthefullyorganizedcouncil;

(3)Arepresentativeofthecongressman.

(b)Thecityormunicipaldevelopmentcouncilshallbeheadedbythemayorandshallbecomposedofthefollowingmembers:

(1)Allpunongbarangaysinthecityormunicipality;

(2) The chairman of the committee on appropriations of the sangguniangpanlungsodorsangguniangbayanconcerned;

Page 58: Local Government Code of 1991 (RA 7160)

(3)Thecongressmanorhisrepresentative;and

(4) Representatives of nongovernmental organizations operating in the city ormunicipality,asthecasemaybe,whoshallconstitutenotlessthanone‐fourth(1/4)ofthemembersofthefullyorganizedcouncil.

(c)Theprovincialdevelopmentcouncilshallbeheadedbythegovernorandshallbecomposedofthefollowingmembers:

(1)Allmayorsofcomponentcitiesandmunicipalities;

(2) The chairman of the committee on appropriations of the sangguniangpanlalawigan;

(3)Thecongressmanorhisrepresentative;and

(4) Representatives of nongovernmental organizations operating in the province,who shall constitute not less than one‐fourth (1/4) of the members of the fullyorganizedcouncil.

(d) The local development councilsmay call upon any local official concerned oranyofficialofnationalagenciesoroffices in the localgovernmentunit toassist inthe formulation of their respective development plans and public investmentprograms.

SEC.108.RepresentationofNon‐GovernmentalOrganizations. ‐Withinaperiodofsixty (60) days from the start of organization of local development councils, thenongovernmental organizations shall choose from among themselves theirrepresentatives to said councils. The local sanggunian concerned shall accreditnongovernmentalorganizationssubjecttosuchcriteriaasmaybeprovidedbylaw.

Page 59: Local Government Code of 1991 (RA 7160)

SEC. 109. Functions of LocalDevelopment Councils. ‐ (a) The provincial, city, andmunicipaldevelopmentcouncilsshallexercisethefollowingfunctions:

(1) Formulate long‐term, medium‐term, and annual socioeconomic developmentplansandpolicies;

(2)Formulatethemedium‐termandannualpublicinvestmentprograms;

(3)Appraiseandprioritizesocioeconomicdevelopmentprogramsandprojects;

(4) Formulate local investment incentives topromote the inflowanddirectionofprivateinvestmentcapital;

(5) Coordinate, monitor, and evaluate the implementation of developmentprogramsandprojects;and

(6) Perform such other functions as may be provided by law or competentauthority.

(b)Thebarangaydevelopmentcouncilshallexercisethefollowingfunctions:

(1)Mobilizepeople'sparticipationinlocaldevelopmentefforts;

(2)Preparebarangaydevelopmentplansbasedonlocalrequirements;

(3) Monitor and evaluate the implementation of national or local programs andprojects;and

(4) Perform such other functions as may be provided by law or competentauthority.

Page 60: Local Government Code of 1991 (RA 7160)

SEC.110.MeetingsandQuorum.‐Thelocaldevelopmentcouncilshallmeetatleastonceeverysix(6)monthsorasoftenasmaybenecessary.

SEC.111.ExecutiveCommittee.‐(a)Eachlocaldevelopmentcouncilshallcreateanexecutivecommittee to represent it andact in itsbehalfwhen it isnot in session.Thecompositionoftheexecutivecommitteeshallbeasfollows:

(1) The executive committee of the provincial development council shall becomposedof the governor as chairman, the representativeof component city andmunicipal mayors to be chosen from among themselves, the chairman of thecommitteeonappropriationsofthesangguniangpanlalawigan,thepresidentoftheprovincial league of barangays, and a representative of nongovernmentalorganizationsthatarerepresentedinthecouncil,asmembers;

(2)Theexecutivecommitteeofthecityormunicipaldevelopmentcouncilshallbecomposed of the mayor as chairman, the chairman of the committee onappropriations of the sangguniang panlalawigan, the president of the city ormunicipal league of barangays, and a representative of nongovernmentalorganizationsthatarerepresentedinthecouncil,asmembers;and

(3) The executive committee of the barangay development council shall becomposedofthepunongbarangayaschairman,arepresentativeofthesangguniangbarangay to be chosen from among its members, and a representative ofnongovernmentalorganizationsthatarerepresentedinthecouncil,asmembers.

(b)Theexecutivecommitteeshallexercisethefollowingpowersandfunctions:

(1) Ensure that the decision of the council are faithfully carried out andimplemented;

(2)Actonmattersrequiringimmediateattentionoractionbythecouncil;

Page 61: Local Government Code of 1991 (RA 7160)

(3) Formulate policies, plans, and programs based on the general principles laiddownbythecouncil;and

(4)Actonothermattersthatmaybeauthorizedbythecouncil.

SEC.112.SectoralorFunctionalCommittees.‐Thelocaldevelopmentcouncilsmayformsectoral or functional committees to assist them in theperformanceof theirfunctions.

SEC. 113. Secretariat. ‐ There is hereby constituted for each local developmentcouncil a secretariat which shall be responsible for providing technical support,documentationofproceedings,preparationofreportsandsuchotherassistanceasmay be required in the discharge of its functions. The local development councilmay avail of the services of any nongovernmental organization or educational orresearchinstitutionforthispurpose.

Thesecretariatsoftheprovincial,city,andmunicipaldevelopmentcouncilsshallbeheadedbytheirrespectiveplanninganddevelopmentcoordinators.Thesecretariatofthebarangaydevelopmentcouncilshallbeheadedbythebarangaysecretarywhoshall be assisted by the city ormunicipal planning and development coordinatorconcerned.

SEC. 114. Relation of Local Development Councils to the Sanggunian and theRegionalDevelopmentCouncil. ‐ (a)Thepolicies,programs,andprojectsproposedby localdevelopment councils shall be submitted to the sanggunian concerned forappropriate action. The local development plans approved by their respectivesanggunianmaybeintegratedwiththedevelopmentplansofthenexthigherleveloflocaldevelopmentcouncil.

(b) The approved development plans of provinces, highly‐urbanized cities, andindependent component cities shall be submitted to the regional developmentcouncil,whichshallbeintegratedintotheregionaldevelopmentplanforsubmissionto theNationalEconomicandDevelopmentAuthority, inaccordancewithexistinglaws.

Page 62: Local Government Code of 1991 (RA 7160)

SEC.115.Budget Information. ‐TheDepartmentofBudgetandManagement shallfurnish the various local development councils informationon financial resourcesandbudgetaryallocationsapplicabletotheirrespectivejurisdictionstoguidethemintheirplanningfunctions.

TITLESEVEN.‐LOCALPEACEANDORDERCOUNCIL

SEC. 116. Organization. ‐ There is hereby established in every province, city andmunicipality a local peace and order council, pursuant to Executive OrderNumberedThreehundrednine(E.O.No.309),Seriesof1988.The localpeaceandordercouncils shallhave thesamecompositionand functionsas thoseprescribedbythesaidexecutiveorder.

TITLEEIGHT.‐AUTONOMOUSSPECIALECONOMICZONE

SEC. 117. Establishment of Autonomous Special Economic Zones. ‐ Theestablishmentbylawofautonomousspecialeconomiczonesinselectedareasofthecountry shall be subject to concurrence by the local government units includedtherein.

TITLENINE.‐OTHERPROVISIONSAPPLICABLETOLOCALGOVERNMENTUNITS

CHAPTER1.‐SettlementofBoundaryDisputes

SEC. 118. Jurisdictional Responsibility for Settlement of Boundary Dispute. ‐Boundary disputes between and among local government units shall, asmuch aspossible,besettledamicably.Tothisend:

(a) Boundary disputes involving two (2) or more barangays in the same city ormunicipality shall be referred for settlement to the sangguniang panlungsod orsangguniangbayanconcerned.

(b) Boundary disputes involving two (2) ormoremunicipalities within the sameprovince shall be referred for settlement to the sangguniang panlalawiganconcerned.

Page 63: Local Government Code of 1991 (RA 7160)

(c) Boundary disputes involving municipalities or component cities of differentprovincesshallbejointlyreferredforsettlementtothesangguniansoftheprovincesconcerned.

(d)Boundarydisputesinvolvingacomponentcityormunicipalityontheonehandandahighlyurbanizedcityontheother,ortwo(2)ormorehighlyurbanizedcities,shallbejointlyreferredforsettlementtotherespectivesangguniansoftheparties.

(e) In theevent thesanggunian fails toeffectanamicable settlementwithinsixty(60)daysfromthedatethedisputewasreferredthereto,itshallissueacertificationto that effect. Thereafter, the dispute shall be formally tried by the sanggunianconcernedwhichshalldecidetheissuewithinsixty(60)daysfromthedateofthecertificationreferredtoabove.

SEC.119.Appeal. ‐Within the timeandmannerprescribedby theRulesofCourt,any party may elevate the decision of the sanggunian concerned to the properRegionalTrialCourthavingjurisdictionovertheareaindispute.TheRegionalTrialCourt shall decide the appealwithinone (1) year from the filing thereof. Pendingfinal resolution of the disputed area prior to the dispute shall bemaintained andcontinuedforalllegalpurposes.

CHAPTER2.‐LOCALINITIATIVEANDREFERENDUM

SEC.120.LocalInitiativeDefined.‐Localinitiativeisthelegalprocesswherebytheregisteredvotersofalocalgovernmentunitmaydirectlypropose,enact,oramendanyordinance.

SEC.121.WhoMayExercise.‐Thepoweroflocalinitiativeandreferendummaybeexercised by all registered voters of the provinces, cities, municipalities, andbarangays.

SEC. 122. Procedure in Local Initiative. ‐ (a) Not less than one thousand (1,000)registered voters in case of provinces and cities, one hundred (100) in case ofmunicipalities, and fifty (50) in case of barangays, may file a petition with thesanggunianconcernedproposingtheadoption,enactment,repeal,oramendmentofanordinance.

Page 64: Local Government Code of 1991 (RA 7160)

(b) If no favorable action thereon is taken by the sanggunian concerned withinthirty (30) days from its presentation, the proponents, through their dulyauthorized and registered representatives, may invoke their power of initiative,givingnoticethereoftothesanggunianconcerned.

(c)ThepropositionshallbenumberedseriallystartingfromRomannumeralI.TheComelecoritsdesignatedrepresentativeshallextendassistanceintheformulationoftheproposition.

(d)Two(2)ormorepropositionsmaybesubmittedinaninitiative.

(e)Proponentsshallhaveninety(90)daysincaseofprovincesandcities,sixty(60)daysincaseofmunicipalities,andthirty(30)daysincaseofbarangays,fromnoticementionedinsubsection(b)hereoftocollecttherequirednumberofsignatures.

(f) The petition shall be signed before the election registrar, or his designatedrepresentatives, in the presence of a representative of the proponent, and arepresentative of the sanggunian concerned in a public place in the localgovernment unit, as the case may be. Stations for collecting signatures may beestablishedinasmanyplacesasmaybewarranted.

(g)Uponthelapseoftheperiodhereinprovided,theComelec,throughitsofficeinthelocalgovernmentunitconcerned,shallcertifyastowhetherornottherequirednumber of signatures has been obtained. Failure to obtain the required numberdefeatstheproposition.

(h) If the requirednumberof signatures is obtained, theComelec shall then set adate for the initiative during which the proposition shall be submitted to theregisteredvotersinthelocalgovernmentunitconcernedfortheirapprovalwithinsixty (60) days from the date of certification by the Comelec, as provided insubsection(g)hereof,incaseofprovincesandcities,forty‐five(45)daysincaseofmunicipalities,andthirty(30)daysincaseofbarangays.Theinitiativeshallthenbeheldonthedateset,afterwhichtheresultsthereofshallbecertifiedandproclaimedbytheComelec.

Page 65: Local Government Code of 1991 (RA 7160)

SEC. 123. Effectivity of Local Propositions. ‐ If the proposition is approved by amajorityofthevotescast, itshalltakeeffectfifteen(15)daysaftercertificationbytheComelecasifaffirmativeactionthereonhadbeenmadebythesanggunianandlocal chief executive concerned. If it fails to obtain said number of votes, thepropositionisconsidereddefeated.

SEC.124.LimitationsonLocalInitiatives.‐(a)Thepoweroflocalinitiativeshallnotbeexercisedmorethanonceayear.

(b) Initiative shall extend only to subjects ormatters which arewithin the legalpowersofthesanggunianstoenact.

(c) Ifatanytimebeforethe initiative isheld, thesanggunianconcernedadopts intotothepropositionpresentedandthelocalchiefexecutiveapprovesthesame,theinitiative shall be canceled. However, those against such action may, if they sodesire,applyforinitiativeinthemannerhereinprovided.

SEC.125.LimitationsuponSanggunians. ‐Anypropositionorordinanceapprovedthrough the system of initiative and referendum as herein provided shall not berepealed,modifiedoramendedbythesanggunianconcernedwithinsix(6)monthsfromthedateoftheapprovalthereof,andmaybeamended,modifiedorrepealedbythesanggunianwithinthree(3)yearsthereafterbyavoteofthree‐fourths(3/4)ofall itsmembers:Provided,That in caseofbarangays, theperiod shall be eighteen(18)monthsaftertheapprovalthereof.

SEC. 126. Local Referendum Defined. ‐ Local referendum is the legal processwherebytheregisteredvotersofthelocalgovernmentunitsmayapprove,amendorrejectanyordinanceenactedbythesanggunian.Thelocalreferendumshallbeheldunder the control and direction of the Comelec within sixty (60) days in case ofprovinces and cities, forty‐five (45) days in case ofmunicipalities and thirty (30)daysincaseofbarangays.TheComelecshallcertifyandproclaimtheresultsofthesaidreferendum.

SEC.127.AuthorityofCourts.‐NothinginthisChaptershallpreventorprecludetheproper courts fromdeclaringnull andvoidanypropositionapprovedpursuant tothisChapterforviolationoftheConstitutionorwantofcapacityofthesanggunianconcernedtoenactthesaidmeasure.

Page 66: Local Government Code of 1991 (RA 7160)

BOOKII

LOCALTAXATIONANDFISCALMATTERS

TITLEONE.‐LOCALGOVERNMENTTAXATION

CHAPTER1‐GENERALPROVISIONS

SEC. 128. Scope.‐ The provisions herein shall govern the exercise by provinces,cities, municipalities, and barangays of their taxing and other revenue‐raisingpowers.

SEC.129.Power toCreateSourcesofRevenue. ‐Each local governmentunit shallexerciseitspowertocreateitsownsourcesofrevenueandtolevytaxes,fees,andcharges subject to the provisions herein, consistentwith the basic policy of localautonomy. Such taxes, fees, andcharges shall accrue exclusively to the localgovernmentunits.

SEC. 130. Fundamental Principles. ‐ The following fundamental principles shallgovern the exercise of the taxing and other revenue‐raising powers of localgovernmentunits:

(a)Taxationshallbeuniformineachlocalgovernmentunit;(b)Taxes,fees,chargesandotherimpositionsshall:

(1)beequitableandbasedasfaraspracticableonthetaxpayer'sabilitytopay;

(2)beleviedandcollectedonlyforpublicpurposes;

(3)notbeunjust,excessive,oppressive,orconfiscatory;

(4)notbecontrarytolaw,publicpolicy,nationaleconomicpolicy,orinrestraintoftrade;

Page 67: Local Government Code of 1991 (RA 7160)

(c)Thecollectionoflocaltaxes,fees,chargesandotherimpositionsshallinnocasebelettoanyprivateperson;

(d)TherevenuecollectedpursuanttotheprovisionsofthisCodeshallinuresolelytothebenefitof,andbesubjecttodispositionby,thelocalgovernmentunitlevyingthe tax, fee, charge or other imposition unless otherwise specifically providedherein;and,

(e) Each local government unit shall, as far as practicable, evolve a progressivesystemoftaxation.

SEC.131.DefinitionofTerms.‐WhenusedinthisTitle,theterm:

(a) "AgriculturalProduct" includes the yieldof the soil, such as corn, rice,wheat,rye, hay, coconuts, sugarcane, tobacco, root crops, vegetables, fruits, flowers, andtheirby‐products;ordinarysalt;allkindsoffish;poultry;andlivestockandanimalproducts, whether in their original form or not. The phrase "whether in theiroriginal formornot" refers to the transformationof saidproducts by the farmer,fisherman,producerorowner throughtheapplicationofprocesses topreserveorotherwisetopreparesaidproductsforthemarketsuchasfreezing,drying,salting,smoking, or stripping for purposes of preserving or otherwise preparing saidproductsforthemarket;

(b)"Amusement"isapleasurablediversionandentertainment.Itissynonymoustorelaxation,avocation,pastime,orfun;

(c)"AmusementPlaces"includetheaters,cinemas,concerthalls,circusesandotherplacesofamusementwhereoneseeksadmissiontoentertainoneselfbyseeingorviewingtheshoworperformances;

(d)"Business"meanstradeorcommercialactivityregularlyengagedinasameansoflivelihoodorwithaviewtoprofit;

Page 68: Local Government Code of 1991 (RA 7160)

(e) "Banks and other financial institutions" include non‐bank financialintermediaries, lending investors, finance and investment companies, pawnshops,money shops, insurance companies, stock markets, stock brokers and dealers insecurities and foreign exchange, as defined under applicable laws, or rules andregulationsthereunder;

(f)"CapitalInvestment"isthecapitalwhichapersonemploysinanyundertaking,orwhich he contributes to the capital of a partnership, corporation, or any otherjuridicalentityorassociationinaparticulartaxingjurisdiction;

(g) "Charges" refer to pecuniary liability, as rents or fees against persons orproperty; (h) "Contractor" includes persons, natural or juridical, not subject toprofessionaltaxunderSection139ofthisCode,whoseactivityconsistsessentiallyof the sale of all kinds of services for a fee, regardless of whether or not theperformance of the service calls for the exercise or use of the physical ormentalfacultiesofsuchcontractororhisemployees.

As used in this Section, the term "contractor" shall include general engineering,generalbuildingandspecialtycontractorsasdefinedunderapplicablelaws;filling,demolitionandsalvageworkscontractors;proprietorsoroperatorsofminedrillingapparatus; proprietors or operators of dockyards; persons engaged in theinstallationofwatersystem,andgasorelectriclight,heat,orpower;proprietorsoroperators of smelting plants; engraving, plating, and plastic laminationestablishments;proprietorsoroperatorsofestablishmentsforrepairing,repainting,upholstering, washing or greasing of vehicles, heavy equipment, vulcanizing,recapping and battery charging; proprietors or operators of furniture shops andestablishmentsforplaningorsurfacingandrecuttingoflumber,andsawmillsundercontract to saw or cut logs belonging to others; proprietors or operators of dry‐cleaning or dyeing establishments, steam laundries, and laundries using washingmachines;proprietorsorownersofshopsfortherepairofanykindofmechanicaland electrical devices, instruments, apparatus, or furniture and shoe repairing bymachineoranymechanicalcontrivance;proprietorsoroperatorsofestablishmentsor lotsforparkingpurposes;proprietorsoroperatorsoftailorshops,dressshops,millinersandhatters,beautyparlors,barbershops,massageclinics,sauna,Turkishand Swedish baths, slenderizing and building saloons and similar establishments;photographic studios; funeral parlors; proprietors or operators of hotels, motels,and lodging houses; proprietors or operators of arrastre and stevedoring,warehousing,orforwardingestablishments;masterplumbers,smiths,andhouseorsignpainters;printers,bookbinders,lithographers;publishersexceptthoseengagedinthepublicationorprintingofanynewspaper,magazine,revieworbulletinwhichappearsatregularintervalswithfixedpricesforsubscriptionandsaleandwhichis

Page 69: Local Government Code of 1991 (RA 7160)

not devoted principally to the publication of advertisements; business agents,privatedetectiveorwatchmanagencies,commercialandimmigrationbrokers,andcinematographicfilmowners,lessorsanddistributors.

(i)"Corporation"includespartnerships,nomatterhowcreatedororganized,joint‐stock companies, joint accounts (cuentas en participacion), associations orinsurancecompaniesbutdoesnot includegeneralprofessionalpartnershipsandajoint venture or consortium formed for the purpose of undertaking constructionprojects or engaging in petroleum, coal, geothermal, and other energy operationspursuanttoanoperatingorconsortiumagreementunderaservicecontractwiththegovernment.Generalprofessionalpartnershipsarepartnershipsformedbypersonsforthesolepurposeofexercisingtheircommonprofession,nopartoftheincomeofwhich is derived from engaging in any trade or business. The term "residentforeign"whenappliedtoacorporationmeansaforeigncorporationnototherwiseorganizedunderthelawsofthePhilippinesbutengagedintradeorbusinesswithinthePhilippines;

(j) "CountrysideandBarangayBusinessEnterprise" refers toanybusinessentity,association, or cooperative registered under the provisions of Republic ActNumbered Sixty‐eight hundred ten (R.A. No. 6810), otherwise known as "MagnaCartaForCountrysideAndBarangayBusinessEnterprises(Kalakalan20)";

(k)"Dealer"meansonewhosebusinessistobuyandsellmerchandise,goods,andchattels as a merchant. He stands immediately between the producer ormanufacturer and the consumeranddepends forhisprofitnotupon the laborhebestows upon his commodities but upon the skill and foresight with which hewatchesthemarket;

(l)"Fee"meansachargefixedbylaworordinancefortheregulationorinspectionofabusinessoractivity;

(m) "Franchise" is a right or privilege, affected with public interest which isconferreduponprivatepersonsorcorporations,undersuchtermsandconditionsasthegovernmentand itspolitical subdivisionsmay impose in the interestofpublicwelfare,security,andsafety;

Page 70: Local Government Code of 1991 (RA 7160)

(n) "GrossSalesorReceipts" include the total amountofmoneyor its equivalentrepresentingthecontractprice,compensationorservicefee, includingtheamountchargedormaterialssuppliedwiththeservicesanddepositsoradvancepaymentsactually or constructively received during the taxable quarter for the servicesperformed or to be performed for another person excluding discounts ifdeterminable at the time of sales, sales return, excise tax, and value‐added tax(VAT);

(o) "Manufacturer" includes every person who, by physical or chemical process,alters the exterior texture or form or inner substance of any raw material ormanufacturedorpartiallymanufacturedproductinsuchmannerastoprepareitforspecialuseorusestowhichitcouldnothavebeenputinitsoriginalcondition,orwho by any such process alters the quality of any such raw material ormanufacturedorpartiallymanufacturedproductssoas toreduce it tomarketableshape or prepare it for any of the use of industry, or who by any such processcombines any such raw material or manufactured or partially manufacturedproductswithothermaterialsorproductsofthesameorofdifferentkindsandinsuchmannerthatthefinishedproductsofsuchprocessormanufacturecanbeputto a special use or uses towhich such rawmaterial ormanufactured or partiallymanufacturedproductsintheiroriginalconditioncouldnothavebeenput,andwhoin addition alters such raw material or manufactured or partially manufacturedproducts,orcombinesthesametoproducesuchfinishedproductsforthepurposeoftheirsaleordistributiontoothersandnotforhisownuseorconsumption;

(p)"MarginalFarmerorFisherman"referstoanindividualengagedinsubsistencefarming or fishing which shall be limited to the sale, barter or exchange ofagriculturalormarineproductsproducedbyhimselfandhisimmediatefamily;

(q)"MotorVehicle"meansanyvehiclepropelledbyanypowerotherthanmuscularpower using the public roads, but excluding road rollers, trolley cars, street‐sweepers,sprinklers,lawnmowers,bulldozers,graders,fork‐lifts,amphibiantrucks,andcranes ifnotusedonpublic roads,vehicleswhichrunonlyonrailsor tracks,and tractors, trailers, and traction engines of all kinds used exclusively foragriculturalpurposes;

(r)"MunicipalWaters"includesnotonlystreams,lakes,andtidalwaterswithinthemunicipality,notbeingthesubjectofprivateownershipandnotcomprisedwithinthenationalparks, public forest, timber lands, forest reservesor fishery reserves,but alsomarinewaters included between two lines drawnperpendicularly to thegeneralcoastline frompointswheretheboundary linesof themunicipalityorcity

Page 71: Local Government Code of 1991 (RA 7160)

touch the sea at low tide and a third line parallel with the general coastline andfifteen(15)kilometersfromit.Wheretwo(2)municipalitiesaresosituatedontheopposite shores that there is less than fifteen (15) kilometers of marine watersbetween them, the third line shall be equally distant from opposite shores of therespectivemunicipalities;

(s) "Operator" includes the owner, manager, administrator, or any other personwho operates or is responsible for the operation of a business establishment orundertaking;

(t) "Peddler"meansanypersonwho,either forhimselforoncommission, travelsfrom place to place and sells his goods or offers to sell and deliver the same.Whether a peddler is a wholesale peddler or a retail peddler of a particularcommodity shall be determined from the definition of wholesale dealer or retaildealerasprovidedinthisTitle;

(u) "Persons" means every natural or juridical being, susceptible of rights andobligationsorofbeingthesubjectoflegalrelations;

(v) "Residents" refer tonatural personswhohave their habitual residence in theprovince,city,ormunicipalitywheretheyexercisetheircivilrightsandfulfilltheircivilobligations,andto juridicalpersons forwhich the laworanyotherprovisioncreatingorrecognizing themfixes theirresidence inaparticularprovince,city,ormunicipality. In the absence of such law, juridical persons are residents of theprovince, city, ormunicipality where they have their legal residence or principalplaceofbusinessorwheretheyconducttheirprincipalbusinessoroccupation;

(w) "Retail"means a salewhere the purchaser buys the commodity for his ownconsumption, irrespective of the quantity of the commodity sold; (x) "Vessel"includeseverytypeofboat,craft,orotherartificialcontrivanceused,orcapableofbeingused,asameansoftransportationonwater;

(y) "Wharfage" means a fee assessed against the cargo of a vessel engaged inforeign or domestic trade based on quantity,weight, ormeasure received and/ordischargedbyvessel;and

Page 72: Local Government Code of 1991 (RA 7160)

(z)"Wholesale"meansasalewherethepurchaserbuysorimportsthecommoditiesfor resale to persons other than the end user regardless of the quantity of thetransaction.

SEC.132.LocalTaxingAuthority. ‐Thepowertoimposeatax, fee,orchargeortogeneraterevenueunderthisCodeshallbeexercisedbythesanggunianofthelocalgovernmentunitconcernedthroughanappropriateordinance.

SEC.133.CommonLimitationsontheTaxingPowersofLocalGovernmentUnits. ‐Unless otherwiseprovidedherein, the exercise of the taxingpowersof provinces,cities,municipalities,andbarangaysshallnotextendtothelevyofthefollowing:

(a)Incometax,exceptwhenleviedonbanksandotherfinancialinstitutions;

(b)Documentarystamptax;

(c)Taxesonestates,inheritance,gifts,legaciesandotheracquisitionsmortiscausa,exceptasotherwiseprovidedherein;

(d)Customsduties, registration feesof vessel andwharfageonwharves, tonnagedues, and all other kinds of customs fees, charges and dues except wharfage onwharvesconstructedandmaintainedbythelocalgovernmentunitconcerned;

(e)Taxes,feesandchargesandotherimpositionsupongoodscarriedintooroutof,or passing through, the territorial jurisdictions of local government units in theguiseofchargesforwharfage,tollsforbridgesorotherwise,orothertaxes,feesorchargesinanyformwhatsoeveruponsuchgoodsormerchandise;(f)Taxes,feesorcharges on agricultural and aquatic products when sold by marginal farmers orfishermen; (g) Taxes on business enterprises certified to by the Board ofInvestments as pioneer or non‐pioneer for a period of six (6) and four (4) years,respectivelyfromthedateofregistration;

(h)ExcisetaxesonarticlesenumeratedundertheNationalInternalRevenueCode,asamended,andtaxes,feesorchargesonpetroleumproducts;

Page 73: Local Government Code of 1991 (RA 7160)

(i)Percentageorvalue‐added tax (VAT)onsales,bartersorexchangesor similartransactionsongoodsorservicesexceptasotherwiseprovidedherein;(j)Taxesonthe gross receipts of transportation contractors and persons engaged in thetransportationofpassengersorfreightbyhireandcommoncarriersbyair,landorwater,exceptasprovidedinthisCode;

(k)Taxesonpremiumspaidbywayofreinsuranceorretrocession;

(l)Taxes,feesorchargesfortheregistrationofmotorvehiclesandfortheissuanceofallkindsoflicensesorpermitsforthedrivingthereof,excepttricycles;

(m)Taxes, fees,orotherchargesonPhilippineproductsactuallyexported,exceptas otherwise provided herein; (n) Taxes, fees, or charges, on Countryside andBarangay Business Enterprises and cooperatives duly registered under R.A. No.6810 andRepublicActNumbered Sixty‐ninehundred thirty‐eight (R.A.No. 6938)otherwiseknownasthe"CooperativesCodeofthePhilippines"respectively;and

(o)Taxes,feesorchargesofanykindontheNationalGovernment,itsagenciesandinstrumentalities,andlocalgovernmentunits.

CHAPTER 2. SPECIFIC PROVISIONS ON THE TAXING AND OTHER REVENUE‐RAISINGPOWERSOFLOCALGOVERNMENTUNITS

ArticleOne‐Provinces

SEC.134.ScopeofTaxingPowers.‐ExceptasotherwiseprovidedinthisCode,theprovincemaylevyonlythetaxes,fees,andchargesasprovidedinthisArticle.

SEC. 135. Tax on Transfer of Real Property Ownership. ‐ (a) The province mayimpose a tax on the sale, donation, barter, or on any othermode of transferringownershiportitleofrealpropertyattherateofnotmorethanfiftypercent(50%)of one percent (1%) of the total consideration involved in the acquisition of thepropertyorofthefairmarketvalueincasethemonetaryconsiderationinvolvedinthe transfer is not substantial, whichever is higher. The sale, transfer or otherdispositionofrealpropertypursuanttoR.A.No.6657shallbeexemptfromthistax.

Page 74: Local Government Code of 1991 (RA 7160)

(b)Forthispurpose,theRegisterofDeedsoftheprovinceconcernedshall,beforeregisteringanydeed,requirethepresentationoftheevidenceofpaymentofthistax.Theprovincialassessorshalllikewisemakethesamerequirementbeforecancellinganoldtaxdeclarationandissuinganewoneinplacethereof.Notariespublicshallfurnishtheprovincialtreasurerwithacopyofanydeedtransferringownershiportitle to any real propertywithin thirty (30) days from the date of notarization. Itshallbe thedutyof the seller,donor, transferor, executororadministrator topaythetaxhereinimposedwithinsixty(60)daysfromthedateoftheexecutionofthedeedorfromthedateofthedecedent'sdeath.

SEC.136.TaxonBusinessofPrintingandPublication.‐Theprovincemayimposeataxonthebusinessofpersonsengagedintheprintingand/orpublicationofbooks,cards, posters, leaflets, handbills, certificates, receipts, pamphlets, and others ofsimilarnature,ataratenotexceedingfiftypercent(50%)ofonepercent(1%)ofthegrossannualreceiptsfortheprecedingcalendaryear.Inthecaseofanewlystartedbusiness,thetaxshallnotexceedone‐twentieth(1/20)ofonepercent(1%)ofthecapitalinvestment.Inthesucceedingcalendaryear,regardlessofwhenthebusinessstarted to operate, the tax shall be based on the gross receipts for the precedingcalendar year, or any fraction thereof, as provided herein. The receipts from theprinting and/or publishing of books or other readingmaterials prescribed by theDepartmentofEducation,CultureandSports,asschooltextsorreferencesshallbeexemptfromthetaxhereinimposed.

SEC. 137. FranchiseTax. ‐Notwithstanding any exemption granted by any laworotherspeciallaw,theprovincemayimposeataxonbusinessesenjoyingafranchise,ataratenotexceedingfiftypercent(50%)ofonepercent(1%)ofthegrossannualreceiptsfortheprecedingcalendaryearbasedontheincomingreceipt,orrealized,withinitsterritorialjurisdiction.Inthecaseofanewlystartedbusiness,thetaxshallnotexceedone‐twentieth(1/20)ofonepercent(1%)ofthecapital investment. Inthe succeeding calendar year, regardless ofwhen the business started to operate,thetaxshallbebasedonthegrossreceiptsfortheprecedingcalendaryear,oranyfractionthereof,asprovidedherein.

SEC.138.TaxonSand,GravelandOtherQuarryResources.‐Theprovincemaylevyandcollectnotmorethantenpercent(10%)offairmarketvalueinthelocalitypercubicmeterofordinarystones,sand,gravel,earth,andotherquarryresources,asdefined under the National Internal Revenue Code, as amended, extracted frompubliclandsorfromthebedsofseas,lakes,rivers,streams,creeks,andotherpublicwaterswithinitsterritorialjurisdiction.Thepermittoextractsand,gravelandotherquarryresourcesshallbeissuedexclusivelybytheprovincialgovernor,pursuantto

Page 75: Local Government Code of 1991 (RA 7160)

the ordinance of the sangguniang panlalawigan. The proceeds of the tax on sand,gravelandotherquarryresourcesshallbedistributedasfollows:

(1)Province‐Thirtypercent(30%);

(2) Component city or municipality where the sand, gravel, and other quarryresourcesareextracted‐Thirtypercent(30%);and

(3) barangay where the sand, gravel, and other quarry resources are extracted ‐Fortypercent(40%).

SEC.139.ProfessionalTax. ‐(a)Theprovincemaylevyanannualprofessional taxon each person engaged in the exercise or practice of his profession requiringgovernment examination at such amount and reasonable classification as thesangguniang panlalawigan may determine but shall in no case exceed Threehundredpesos(P=300.00).

(b) Every person legally authorized to practice his profession shall pay theprofessional tax to the province where he practices his profession or where hemaintainshisprincipaloffice in casehepracticeshisprofession in severalplaces:Provided,however,ThatsuchpersonwhohaspaidthecorrespondingprofessionaltaxshallbeentitledtopracticehisprofessioninanypartofthePhilippineswithoutbeingsubjectedtoanyothernationalorlocaltax, license,orfeeforthepracticeofsuchprofession.

(c) Any individual or corporation employing a person subject to professional taxshall require payment by that person of the tax on his profession beforeemploymentandannuallythereafter.

(d) The professional tax shall be payable annually, on or before the thirty‐first(31st)dayof January.AnypersonfirstbeginningtopracticeaprofessionafterthemonthofJanuarymust,however,paythefulltaxbeforeengagingtherein.Alineofprofessiondoesnotbecomeexemptevenifconductedwithsomeotherprofessionfor which the tax has been paid. Professionals exclusively employed in thegovernmentshallbeexemptfromthepaymentofthistax.

Page 76: Local Government Code of 1991 (RA 7160)

(e) Any person subject to the professional tax shall write in deeds, receipts,prescriptions,reports,booksofaccount,plansanddesigns,surveysandmaps,asthecasemaybe,thenumberoftheofficialreceiptissuedtohim.

SEC. 140. Amusement Tax. ‐ (a) The provincemay levy an amusement tax to becollected from the proprietors, lessees, or operators of theaters, cinemas, concerthalls,circuses,boxingstadia,andotherplacesofamusementatarateofnotmorethanthirtypercent(30%)ofthegrossreceiptsfromadmissionfees.

(b)Inthecaseoftheatersorcinemas,thetaxshallfirstbedeductedandwithheldby their proprietors, lessees, or operators and paid to the provincial treasurerbeforethegrossreceiptsaredividedbetweensaidproprietors,lessees,oroperatorsandthedistributorsofthecinematographicfilms.

(c)Theholdingof operas, concerts, dramas, recitals, paintingandart exhibitions,flowershows,musicalprograms, literaryandoratoricalpresentations,exceptpop,rock, or similar concerts shall be exempt from the payment of the tax hereinimposed.

(d) The sangguniang panlalawigan may prescribe the time, manner, terms andconditions for the payment of tax. In case of fraud or failure to pay the tax, thesangguniangpanlalawiganmayimposesuchsurcharges,interestsandpenaltiesasitmaydeemappropriate.

(e)Theproceedsfromtheamusementtaxshallbesharedequallybytheprovinceandthemunicipalitywheresuchamusementplacesarelocated.

SEC. 141.Annual FixedTaxForEveryDeliveryTruckorVanofManufacturers orProducers, Wholesalers of, Dealers, or Retailers in, Certain Products. ‐ (a) Theprovincemay levyanannual fixed tax forevery truck,vanoranyvehicleusedbymanufacturers, producers, wholesalers, dealers or retailers in the delivery ordistributionofdistilledspirits,fermentedliquors,softdrinks,cigarsandcigarettes,andotherproductsasmaybedeterminedbythesangguniangpanlalawigan,tosalesoutlets, or consumers, whether directly or indirectly, within the province in anamountnotexceedingFivehundredpesos(P500.00).

Page 77: Local Government Code of 1991 (RA 7160)

(b)Themanufacturers,producers,wholesalers,dealers,andretailersreferredtointhe immediately foregoing paragraph shall be exempt from the tax on peddlersprescribedelsewhereinthisCode.

ArticleTwo‐Municipalities

SEC. 142. Scope of Taxing Powers. ‐ Except as otherwise provided in this Code,municipalitiesmaylevytaxes,fees,andchargesnototherwiseleviedbyprovinces.

SEC. 143. Tax onBusiness. ‐ Themunicipalitymay impose taxes on the followingbusinesses:

(a) On manufacturers, assemblers, repackers, processors, brewers, distillers,rectifiers,andcompoundersofliquors,distilledspirits,andwinesormanufacturersof any article of commerce of whatever kind or nature, in accordance with thefollowing schedule:With gross sales or receipts for theAmount of Tax precedingcalendaryearintheamountof:

PerAnnum

*Lessthan10,000.00165.00

*P10,000.00ormorebutlessthan15,000.00

*15,000.00ormorebutlessthan20,000.00

*20,000.00ormorebutlessthan30,000.00

*30,000.00ormorebutlessthan

*40,000.00660.0040,000.00ormorebutlessthan

*50,000.00825.0050,000.00ormorebutlessthan75,000.001,320.00

*75,000.00ormorebutlessthan100,000.001,650.00

*100,000.00ormorebutlessthan150,000.002,200.00

*150,000.00ormorebutlessthan200,000.002,750.00

Page 78: Local Government Code of 1991 (RA 7160)

*200,000.00ormorebutlessthan300,000.003,850.00

*300,000.00ormorebutlessthan500,000.005,500.00

*500,000.00ormorebutlessthan750,000.008,000.00

*750,000.00ormorebutlessthan1,000,000.0010,000.00

*1,000,000.00ormorebutlessthan2,000,000.0013,750.00

*2,000,000.00ormorebutlessthan3,000,000.0016,500.00

*3,000,000.00ormorebutlessthan4,000,000.0019,800.00

*4,000,000.00ormorebutlessthan5,000,000.0023,100.00

*5,000,000.00ormorebutlessthan6,500,000.0024,375.00

*6,500,000.00ormoreataratenotexceedingthirty‐sevenandahalfpercent(371/2%)ofonepercent(1%)

(b)Onwholesalers,distributors,ordealersinanyarticleofcommerceofwhateverkind or nature in accordance with the following schedule: With gross sales orreceiptsfortheAmountofTaxprecedingcalendaryearintheamountof:

PerAnnum

*LessthanP1,000.0018.00

*P1,000.00ormorebutlessthanP2,000.0033.00

*2,000.00ormorebutlessthan3,000.0050.00

*3,000.00ormorebutlessthan4,000.0072.00

*4,000.00ormorebutlessthan5,000.00100.00

*5,000.00ormorebutlessthan6,000.00121.00

*6,000.00ormorebutlessthan7,000.00143.00

*7,000.00ormorebutlessthan8,000.00165.00

*8,000.00ormorebutlessthan10,000.00187.00

*10,000.00ormorebutlessthan15,000.00220.00

Page 79: Local Government Code of 1991 (RA 7160)

*15,000.00ormorebutlessthan20,000.00275.00

*20,000.00ormorebutlessthan30,000.00330.00

*30,000.00ormorebutlessthan40,000.00440.00

*40,000.00ormorebutlessthan50,000.00660.00

*50,000.00ormorebutlessthan75,000.00990.00

*75,000.00ormorebutlessthan100,000.001320.00

*100,000.00ormorebutlessthan150,000.001870.00

*150,000.00ormorebutlessthan200,000.002420.00

*200,000.00ormorebutlessthan300,000.003300.00

*300,000.00ormorebutlessthan500,000.004400.00

*500,000.00ormorebutlessthan750,000.006600.00

*750,000.00ormorebutlessthan1,000,000.008800.00

*1,000,000.00ormorebutlessthan2,000,000.0010000.00

*2,000,000.00ormoreataratenotexceedingfiftypercent(50%)ofonepercent(1%).

(c) On exporters, and on manufacturers, millers, producers, wholesalers,distributors,dealersorretailersofessentialcommoditiesenumeratedhereunderataratenotexceedingone‐half(1/2)oftheratesprescribedundersubsections(a),(b)and(d)ofthisSection:

(1)Riceandcorn;

(2)Wheatorcassava flour,meat,dairyproducts, locallymanufactured,processedor preserved food, sugar, salt and other agricultural, marine, and fresh waterproducts,whetherintheiroriginalstateornot;

(3)Cookingoilandcookinggas;

Page 80: Local Government Code of 1991 (RA 7160)

(4)Laundrysoap,detergents,andmedicine;

(5) Agricultural implements, equipment and post‐ harvest facilities, fertilizers,pesticides,insecticides,herbicidesandotherfarminputs;

(6)Poultryfeedsandotheranimalfeeds;

(7)Schoolsupplies;and

(8)Cement.

(d)Onretailers,WithgrosssalesorreceiptsRateoftaxfortheprecedingcalendaryearof:

perannum

*P400,000.00orless2%

*morethanP400,000.001%

Provided,however,Thatbarangaysshallhavetheexclusivepowertolevytaxes,asprovided under Section 152 hereof, on gross sales or receipts of the precedingcalendaryearofFiftythousandpesos(P=50,000.00)orless,inthecaseofcities,andThirtythousandpesos(P=30,000.00)orless,inthecaseofmunicipalities.

(e) On contractors and other independent contractors, in accordance with thefollowingschedule:

Withgrossreceiptsfortheprecedingcalendaryearintheamountof:

AmountofTaxPerAnnum

Page 81: Local Government Code of 1991 (RA 7160)

*LessthanP=5,000.0027.50

*P5,000.00ormorebutlessthanP10,000.0061.60

*10,000.00ormorebutlessthan15,000.00104.50

*15,000.00ormorebutlessthan20,000.00165.00

*20,000.00ormorebutlessthan30,000.00275.00

*30,000.00ormorebutlessthan40,000.00385.00

*40,000.00ormorebutlessthan50,000.00550.00

*50,000.00ormorebutlessthan75,000.00880.00

*75,000.00ormorebutlessthan100,000.001320.00

*100,000.00ormorebutlessthan150,000.001980.00

*150,000.00ormorebutlessthan200,000.002640.00

*200,000.00ormorebutlessthan250,000.003630.00

*250,000.00ormorebutlessthan300,000.004620.00

*300,000.00ormorebutlessthan400,000.006160.00

*400,000.00ormorebutlessthan500,000.008250.00

*500,000.00ormorebutlessthan750,000.009250.00

*750,000.00ormorebutlessthan1,000,000.0010250.00

*1,000,000.00ormorebutlessthan2,000,000.0011500.00

*2,000,000.00ormoreataratenotexceedingfiftypercent(50%)ofonepercent(1%)

(f) On banks and other financial institutions, at a rate not exceeding fifty percent(50%) of one percent (1%) on the gross receipts of the preceding calendar yearderived from interest, commissions and discounts from lending activities, incomefrom financial leasing,dividends, rentalsonpropertyandprofit fromexchangeorsaleofproperty,insurancepremium.

Page 82: Local Government Code of 1991 (RA 7160)

(g)Onpeddlersengagedinthesaleofanymerchandiseorarticleofcommerce,ataratenotexceedingFiftypesos(P50.00)perpeddlerannually.

(h)Onanybusiness,nototherwisespecifiedintheprecedingparagraphs,whichthesanggunian concerned may deem proper to tax: Provided, That on any businesssubject to the excise, value‐added or percentage tax under the National InternalRevenue Code, as amended, the rate of tax shall not exceed two percent (2%) ofgross sales or receipts of the preceding calendar year. The sanggunian concernedmayprescribeascheduleofgraduatedtaxratesbutinnocasetoexceedtheratesprescribedherein.

SEC. 144. Rates of Taxwithin theMetropolitanManila Area. ‐ ThemunicipalitieswithintheMetropolitanManilaAreamaylevytaxesatrateswhichshallnotexceedbyfiftypercent(50%)themaximumratesprescribedintheprecedingSection.

SEC. 145. 4 Retirement of Business. ‐ A business subject to tax pursuant to theprecedingsectionsshall,uponterminationthereof,submitaswornstatementofitsgrosssalesor receipts for thecurrentyear. If the taxpaidduring theyearbe lessthan the taxdueonsaidgrosssalesorreceiptsof thecurrentyear, thedifferenceshallbepaidbeforethebusinessisconsideredofficiallyretired.

SEC. 146. Payment of Business Taxes. ‐ (a) The taxes imposed under Section 143shall be payable for every separate or distinct establishment or place wherebusinesssubjecttothetax isconductedandone lineofbusinessdoesnotbecomeexemptbybeingconductedwithsomeotherbusinessforwhichsuchtaxhasbeenpaid.Thetaxonabusinessmustbepaidbythepersonconductingthesame.

(b)Incaseswhereapersonconductsoroperatestwo(2)ormoreofthebusinessesmentionedinSection143ofthisCodewhicharesubjecttothesamerateoftax,thetaxshallbecomputedonthecombinedtotalgrosssalesorreceiptsofthesaidtwo(2)ormorerelatedbusinesses.

(c) In cases where a person conducts or operates two (2) or more businessesmentionedinSection143ofthisCodewhicharesubjecttodifferentratesoftax,thegrosssalesorreceiptsofeachbusinessshallbeseparatelyreportedforthepurposeofcomputingthetaxduefromeachbusiness.

Page 83: Local Government Code of 1991 (RA 7160)

SEC. 147. Fees and Charges. ‐ The municipality may impose and collect suchreasonablefeesandchargesonbusinessandoccupationand,exceptasreservedtotheprovinceinSection139ofthisCode,onthepracticeofanyprofessionorcalling,commensurate with the cost of regulation, inspection and licensing before anypersonmayengage insuchbusinessoroccupation,orpracticesuchprofessionorcalling.

SEC. 148. Fees for Sealing and Licensing of Weights and Measures. ‐ (a) Themunicipalitymaylevyfeesforthesealingandlicensingofweightsandmeasuresatsuchreasonableratesasshallbeprescribedbythesangguniangbayan.

(b)Thesangguniangbayanshallprescribethenecessaryregulationsfortheuseofsuchweightsandmeasures,subjecttosuchguidelinesasshallbeprescribedbytheDepartment of Science and Technology. The sanggunian concerned shall, byappropriate ordinance, penalize fraudulent practices and unlawful possession oruse of instruments of weights and measures and prescribe the criminal penaltythereforinaccordancewiththeprovisionsofthisCode.Provided,however,Thatthesanggunian concernedmay authorize themunicipal treasurer to settle an offensenotinvolvingthecommissionoffraudbeforeacasethereforisfiledincourt,uponpaymentofacompromisepenaltyofnotlessthanTwohundredpesos(P=200.00).

SEC. 149. Fishery Rentals, Fees and Charges . ‐ (a) Municipalities shall have theexclusiveauthority togrant fisheryprivileges in themunicipalwatersand imposerentals, feesor charges therefor inaccordancewith theprovisionsof thisSection.(b)Thesangguniangbayanmay:

(1) Grant fishery privileges to erect fish corrals, oyster,mussels or other aquaticbeds or bangus fry areas, within a definite zone of the municipal waters, asdetermined by it: Provided, however, That duly registered organizations andcooperativesofmarginalfishermenshallhavethepreferentialrighttosuchfisheryprivileges: Provided, further, That the sangguniang bayan may require a publicbidding in conformity with and pursuant to an ordinance for the grant of suchprivileges: Provided, finally, That in the absence of such organizations andcooperativesor their failure toexercise theirpreferential right, otherpartiesmayparticipateinthepublicbiddinginconformitywiththeabovecitedprocedure.

Page 84: Local Government Code of 1991 (RA 7160)

(2) Grant the privilege to gather, take or catch bangus fry, prawn fry or kawag‐kawagor fryofotherspeciesandfish fromthemunicipalwatersbynets, trapsorotherfishinggearstomarginalfishermenfreeofanyrental,fee,chargeoranyotherimpositionwhatsoever.

(3) Issue licenses for theoperationof fishingvesselsof three (3) tonsor less forwhich purpose the sangguniang bayan shall promulgate rules and regulationsregardingtheissuancesofsuchlicensestoqualifiedapplicantsunderexistinglaws.

Provided,however,Thatthesanggunianconcernedshall,byappropriateordinance,penalize theuseofexplosives,noxiousorpoisonoussubstances,electricity,muro‐ami, and other deleterious methods of fishing and prescribe a criminal penaltytherefor inaccordancewiththeprovisionsof thisCode:Provided, finally,Thatthesanggunian concerned shall have the authority to prosecute any violation of theprovisionsofapplicablefisherylaws.

SEC.150.SitusoftheTax.‐(a)ForpurposesofcollectionofthetaxesunderSection143ofthisCode,manufacturers,assemblers,repackers,brewers,distillers,rectifiersandcompoundersofliquor,distilledspiritsandwines,millers,producers,exporters,wholesalers, distributors, dealers, contractors, banks and other financialinstitutions,andotherbusinesses,maintainingoroperatingbranchorsalesoutletelsewhere shall record the sale in the branch or sales outlet making the sale ortransaction,and the tax thereonshallaccrueandshallbepaid to themunicipalitywheresuchbranchorsalesoutletislocated.Incaseswherethereisnosuchbranchorsalesoutletinthecityormunicipalitywherethesaleortransactionismade,thesaleshallbedulyrecordedintheprincipalofficeandthetaxesdueshallaccrueandshallbepaidtosuchcityormunicipality.

(b) The following sales allocation shall apply to manufacturers, assemblers,contractors, producers, and exporters with factories, project offices, plants, andplantationsinthepursuitoftheirbusiness:

(1)Thirtypercent(30%)ofallsalesrecordedintheprincipalofficeshallbetaxablebythecityormunicipalitywheretheprincipalofficeislocated;and

(2) Seventy percent (70%) of all sales recorded in the principal office shall betaxablebythecityorcityormunicipalitywherethefactoryislocated;and

Page 85: Local Government Code of 1991 (RA 7160)

(2)Fortypercent(40%)tothecityormunicipalitywheretheplantationislocated.

(d)Incaseswhereamanufacturer,assembler,producer,exporterorcontractorhastwo(2)ormorefactories,projectoffices,plants,orplantationslocatedindifferentlocalities, the seventy percent (70%) sales allocationmentioned in subparagraph(b) of subsection (2) above shall be prorated among the localities where thefactories, project offices, plants, andplantations are located inproportion to theirrespectivevolumesofproductionduringtheperiodforwhichthetaxisdue.

(e) The foregoing sales allocation shall be applied irrespective ofwhether or notsales are made in the locality where the factory, project office, plant, or plan islocated.

ArticleThree‐Cities

SEC.151.ScopeofTaxingPowers.‐ExceptasotherwiseprovidedinthisCode,thecity,may levythetaxes, fees,andchargeswhichtheprovinceormunicipalitymayimpose:Provided,however,Thatthetaxes,feesandchargesleviedandcollectedbyhighly urbanized and independent component cities shall accrue to them anddistributed inaccordancewith theprovisionsof thisCode.The ratesof taxes thatthe city may levy may exceed the maximum rates allowed for the province ormunicipalitybynotmorethanfiftypercent(50%)excepttheratesofprofessionalandamusementtaxes.

ArticleFour‐Barangays

SEC.152.ScopeofTaxingPowers.‐Thebarangaysmaylevytaxes,fees,andcharges,asprovidedinthisArticle,whichshallexclusivelyaccruetothem:

(a) Taxes ‐ On stores or retailers with fixed business establishments with grosssales or receipts of the preceding calendar year of Fifty thousand pesos(P=50,000.00)orless,inthecaseofcitiesandThirtythousandpesos(P=30,000.00)or less, in the caseofmunicipalities, at a ratenot exceedingonepercent (1%)onsuchgrosssalesorreceipts.

(b)ServiceFeesorCharges‐barangaysmaycollectreasonablefeesorchargesforservicesrenderedinconnectionwiththeregulationortheuseofbarangay‐ownedpropertiesorservicefacilitiessuchaspalay,copra,ortobaccodryers.

Page 86: Local Government Code of 1991 (RA 7160)

(c)BarangayClearance‐Nocityormunicipalitymayissueanylicenseorpermitforanybusinessoractivityunlessaclearanceisfirstobtainedfromthebarangaywheresuch business or activity is located or conducted. For such clearance, thesangguniangbarangaymay imposeareasonable fee.Theapplication forclearanceshall be acted uponwithin seven (7)working days from the filing thereof. In theeventthattheclearanceisnotissuedwithinthesaidperiod,thecityormunicipalitymayissuethesaidlicenseorpermit.

(d)OtherFeesandCharges‐Thebarangaymaylevyreasonablefeesandcharges:

(1)Oncommercialbreedingoffightingcocks,cockfightsandcockpits;

(2)Onplacesofrecreationwhichchargeadmissionfees;and

(3)Onbillboards,signboards,neonsigns,andoutdooradvertisements.

ArticleFive‐CommonRevenue‐RaisingPowers

SEC. 153. Service Fees and Charges. ‐ Local government units may impose andcollectsuchreasonablefeesandchargesforservicesrendered.

SEC.154.PublicUtilityCharges.‐Localgovernmentunitsmayfixtheratesfortheoperationofpublicutilitiesowned,operatedandmaintainedbythemwithin theirjurisdiction.

SEC.155.TollFeesorCharges.‐Thesanggunianconcernedmayprescribethetermsandconditionsandfixtheratesfortheimpositionoftollfeesorchargesfortheuseof any public road, pier or wharf, waterway, bridge, ferry or telecommunicationsystemfundedandconstructedbythelocalgovernmentunitconcerned:Provided,ThatnosuchtollfeesorchargesshallbecollectedfromofficersandenlistedmenoftheArmedForcesofthePhilippinesandmembersofthePhilippineNationalPoliceon mission, post office personnel delivering mail, physically‐handicapped, anddisabled citizens who are sixty‐five (65) years or older. When public safety and

Page 87: Local Government Code of 1991 (RA 7160)

welfaresorequires,thesanggunianconcernedmaydiscontinuethecollectionofthetolls,andthereafterthesaidfacilityshallbefreeandopenforpublicuse.

ArticleSix‐CommunityTax

SEC. 156. Community Tax. ‐ Cities ormunicipalitiesmay levy a community tax inaccordancewiththeprovisionsofthisArticle.

SEC.157.IndividualsLiabletoCommunityTax.‐EveryinhabitantofthePhilippineseighteen(18)yearsofageoroverwhohasbeenregularlyemployedonawageorsalarybasis for at least thirty (30) consecutiveworkingdaysduringany calendaryear,orwhoisengagedinbusinessoroccupation,orwhoownsrealpropertywithanaggregateassessedvalueofOnethousandpesos(P=1,000.00)ormore,orwhoisrequiredbylawtofileanincometaxreturnshallpayanannualcommunitytaxofFivepesos(P=5.00)andanannualadditionaltaxofOnepeso(P=1.00)foreveryOnethousand pesos (P=1,000.00) of income regardless of whether from business,exerciseofprofessionorfrompropertywhichinnocaseshallexceedFivethousandpesos (P=5,000.00). In the case of husband and wife, the additional tax hereinimposedshallbebaseduponthetotalpropertyownedbythemandthetotalgrossreceiptsorearningsderivedbythem.

SEC.158.JuridicalPersonsLiabletoCommunityTax.‐Everycorporationnomatterhow created or organized, whether domestic or resident foreign, engaged in ordoing business in the Philippines shall pay an annual community tax of Fivehundred pesos (P=500.00) and an annual additional tax, which, in no case, shallexceed Ten thousand pesos (P=10,000.00) in accordance with the followingschedule:

(1) For every Five thousand pesos (P=5,000.00) worth of real property in thePhilippinesownedbyitduringtheprecedingyearbasedonthevaluationusedforthepaymentof therealpropertytaxunderexisting laws, found in theassessmentrolls of the city or municipality where the real property is situated ‐ Two pesos(P=2.00);and

(2) For every Five thousand pesos (P=5,000.00) of gross receipts or earningsderivedby it from itsbusiness in thePhilippinesduring theprecedingyear ‐Twopesos(P=2.00).Thedividendsreceivedbyacorporationfromanothercorporationhowever shall, for the purpose of the additional tax, be considered as part of thegrossreceiptsorearningsofsaidcorporation.

Page 88: Local Government Code of 1991 (RA 7160)

SEC.159.Exemptions.‐Thefollowingareexemptfromthecommunitytax:

(1)Diplomaticandconsularrepresentatives;and

(2)TransientvisitorswhentheirstayinthePhilippinesdoesnotexceedthree(3)months.

SEC. 160. Place of Payment. ‐ The community tax shall be paid in the place ofresidenceoftheindividual,orintheplacewheretheprincipalofficeofthejuridicalentityislocated.

SEC. 161. Time for Payment; Penalties for Delinquency. ‐ (a) The community taxshall accrueon the first (1st)dayof Januaryof eachyearwhich shall bepaidnotlater than the last day of February of each year. If a person reaches the age ofeighteen(18)yearsorotherwiselosesthebenefitofexemptiononorbeforethelastdayofJune,heshallbeliableforthecommunitytaxonthedayhereachessuchageor upon the day the exemption ends. However, if a person reaches the age ofeighteen (18)yearsor loses thebenefit of exemptiononorbefore the lastdayofMarch,heshallhavetwenty(20)daystopaythecommunitytaxwithoutbecomingdelinquent. Persons who come to reside in the Philippines or reach the age ofeighteen(18)yearsonorafterthefirst(1st)dayofJulyofanyyear,orwhoceasetobelong to an exempt class on or after the same date, shall not be subject to thecommunitytaxforthatyear.

(b)Corporationsestablishedandorganizedonorbeforethe lastdayof Juneshallbe liable for the community tax for that year. But corporations established andorganized on or before the last day ofMarch shall have twenty (20) dayswithinwhich to pay the community tax without becoming delinquent. CorporationsestablishedandorganizedonorafterthefirstdayofJulyshallnotbesubjecttothecommunitytaxforthatyear.Ifthetaxisnotpaidwithinthetimeprescribedabove,thereshallbeaddedtotheunpaidamountaninterestoftwenty‐fourpercent(24%)perannumfromtheduedateuntilitispaid.

SEC.162.CommunityTaxCertificate.‐Acommunitytaxcertificateshallbeissuedtoeverypersonorcorporationuponpaymentofthecommunitytax.Acommunitytax

Page 89: Local Government Code of 1991 (RA 7160)

certificate may also be issued to any person or corporation not subject to thecommunitytaxuponpaymentofOnepeso(P=1.00).

SEC. 163. Presentation of Community Tax Certificate On Certain Occasions. ‐ (a)When an individual subject to the community tax acknowledges any documentbeforeanotarypublic,takestheoathofofficeuponelectionorappointmenttoanypositioninthegovernmentservice;receivesanylicense,certificate,orpermitfromanypublicauthority;paysanytaxorfee;receivesanymoneyfromanypublicfund;transactsotherofficialbusiness;orreceivesanysalaryorwagefromanypersonorcorporation, it shall be thedutyof anyperson, officer, or corporationwithwhomsuch transaction is made or business done or fromwhom any salary or wage isreceived to require such individual to exhibit the community tax certificate. Thepresentationofcommunitytaxcertificateshallnotberequired inconnectionwiththeregistrationofavoter.

(b) When, through its authorized officers, any corporation subject to thecommunitytaxreceivesanylicense,certificate,orpermitfromanypublicauthority,pays any tax or fee, receivesmoney from public funds, or transacts other officialbusiness, it shall be the duty of the public officialwithwhom such transaction ismadeorbusinessdone, to require such corporation to exhibit the community taxcertificate.

(c)Thecommunitytaxcertificaterequiredinthetwoprecedingparagraphsshallbethe one issued for the current year, except for the period from January until thefifteenth (15th) of April each year, in which case, the certificate issued for theprecedingyearshallsuffice.

SEC.164.PrintingofCommunityTaxCertificatesandDistributionofProceeds.‐(a)The Bureau of Internal Revenue shall cause the printing of community taxcertificatesanddistributethesametothecitiesandmunicipalitiesthroughthecityandmunicipal treasurers inaccordancewithprescribedregulations.Theproceedsof the tax shall accrue to the general funds of the cities, municipalities andbarangays except a portion thereofwhich shall accrue to the general fund of thenational government to cover the actual cost of printing and distribution of theformsandotherrelatedexpenses.Thecityormunicipal treasurerconcernedshallremit to the national treasurer the said share of the national government in theproceedsofthetaxwithinten(10)daysaftertheendofeachquarter.

Page 90: Local Government Code of 1991 (RA 7160)

(b)Thecityormunicipaltreasurershalldeputizethebarangaytreasurertocollectthe community tax in their respective jurisdictions: Provided, however, That saidbarangaytreasurershallbebondedinaccordancewithexistinglaws.

(c)Theproceedsofthecommunitytaxactuallyanddirectlycollectedbythecityormunicipal treasurer shall accrue entirely to the general fund of the city ormunicipalityconcerned.However,proceedsofthecommunitytaxcollectedthroughthebarangaytreasurersshallbeapportionedasfollows:

(1)Fiftypercent(50%)shallaccruetothegeneralfundofthecityormunicipalityconcerned;and(2)Fiftypercent(50%)shallaccruetothebarangaywherethetaxiscollected.

CHAPTER3‐COLLECTIONOFTAXES

SEC.165.TaxPeriodandMannerofPayment. ‐Unlessotherwiseprovided in thisCode, the taxperiodofall local taxes, feesandchargesshallbe thecalendaryear.Suchtaxes,feesandchargesmaybepaidinquarterlyinstallments.

SEC. 166.Accrual ofTax. ‐Unless otherwiseprovided in thisCode, all local taxes,fees,andchargesshallaccrueonthefirst(1st)dayofJanuaryofeachyear.However,newtaxes,feesorcharges,orchangesintheratesthereof,shallaccrueonthefirst(1st)dayofthequarternextfollowingtheeffectivityoftheordinanceimposingsuchnewleviesorrates.

SEC.167.TimeofPayment.‐UnlessotherwiseprovidedinthisCode,alllocaltaxes,fees,andchargesshallbepaidwithinthefirsttwenty(20)daysofJanuaryorofeachsubsequent quarter, as the case may be. The sanggunian concerned may, for ajustifiable reason or cause, extend the time for payment of such taxes, fees, orchargeswithoutsurchargesorpenalties,butonlyforaperiodnotexceedingsix(6)months.

SEC. 168. Surcharges and Penalties on Unpaid Taxes, Fees, or Charges. ‐ Thesanggunianmayimposeasurchargenotexceedingtwenty‐fivepercent(25%)oftheamount of taxes, fees or charges not paid on time and an interest at the rate notexceeding two percent (2%) per month of the unpaid taxes, fees or charges

Page 91: Local Government Code of 1991 (RA 7160)

including surcharges,until suchamount is fullypaidbut inno case shall the totalinterestontheunpaidamountorportionthereofexceedthirty‐six(36)months.

SEC. 169. Interests on Other Unpaid Revenues. ‐Where the amount of any otherrevenueduea localgovernmentunit,exceptvoluntarycontributionsordonations,is not paid on the date fixed in the ordinance, or in the contract, expressed orimplied,orupontheoccurrenceoftheeventwhichhasgivenriseto itscollection,there shall be collectedaspartof that amount an interest thereonat the ratenotexceedingtwopercent(2%)permonthfromthedateitisdueuntilitispaid,butinno case shall the total interest on theunpaid amount or a portion thereof exceedthirty‐six(36)months.

SEC. 170. Collection of Local Revenues by Treasurer. ‐ All local taxes, fees, andchargesshallbecollectedbytheprovincial,city,municipal,orbarangaytreasurer,or theirduly authorizeddeputies.Theprovincial, cityormunicipal treasurermaydesignatethebarangaytreasurerashisdeputytocollectlocaltaxes,fees,orcharges.In case a bond is required for the purpose, the provincial, city or municipalgovernment shallpay thepremiums thereon inaddition to thepremiumsofbondthatmayberequiredunderthisCode.

SEC.171.ExaminationofBooksofAccountsandPertinentRecordsofBusinessmenbyLocalTreasurer.‐Theprovincial,city,municipalorbarangaytreasurermay,byhimself or through any of his deputies duly authorized in writing, examine thebooks, accounts, and other pertinent records of any person, partnership,corporation, or association subject to local taxes, fees and charges in order toascertain, assess, and collect the correct amount of the tax, fee, or charge. Suchexamination shallbemadeduring regularbusinesshours,onlyonce forevery taxperiod, and shall be certified toby the examiningofficial. Such certificate shall bemade of record in the books of accounts of the taxpayer examined. In case theexamination herein authorized is made by a duly authorized deputy of the localtreasurer,thewrittenauthorityofthedeputyconcernedshallspecificallystatethename,address,andbusinessofthetaxpayerwhosebooks,accounts,andpertinentrecords are to be examined, the date and place of such examination, and theprocedure tobe followed inconducting thesame.For thispurpose, therecordsoftherevenuedistrictofficeoftheBureauofInternalRevenueshallbemadeavailabletothelocaltreasurer,hisdeputyordulyauthorizedrepresentative.

CHAPTER4‐CIVILREMEDIESFORCOLLECTIONOFREVENUES

Page 92: Local Government Code of 1991 (RA 7160)

SEC.172.ApplicationofChapter.‐TheprovisionsofthisChapterandtheremediesprovidedhereinmaybeavailedof forthecollectionofanyelinquent localtax, fee,charge,orotherrevenue.

SEC.173.LocalGovernment'sLien. ‐Local taxes, fees,chargesandotherrevenuesconstitute a lien, superior to all liens, charges or encumbrances in favor of anyperson,enforceablebyappropriateadministrativeorjudicialaction,notonlyuponany property or rights therein which may be subject to the lien but also uponpropertyusedinbusiness,occupation,practiceofprofessionorcalling,orexerciseof privilege with respect to which the lien is imposed. The lien may only beextinguished upon full payment of the elinquent local taxes fees and chargesincludingrelatedsurchargesandinterest.

SEC.174.CivilRemedies.‐Thecivilremediesforthecollectionoflocaltaxes,fees,orcharges,andrelatedsurchargesandinterestresultingfromdelinquencyshallbe:

(a)Byadministrativeaction thrudistraintofgoods, chattels,oreffects,andotherpersonal property of whatever character, including stocks and other securities,debts,credits,bankaccounts,andinterestinandrightstopersonalproperty,andbylevyuponrealpropertyandinterestinorrightstorealproperty;and

(b)Byjudicialaction.Eitheroftheseremediesorallmaybepursuedconcurrentlyorsimultaneouslyatthediscretionofthelocalgovernmentunitconcerned.

SEC.175.DistraintofPersonalProperty.‐Theremedybydistraintshallproceedasfollows:

(a)Seizure‐Uponfailureofthepersonowinganylocaltax,fee,orchargetopaythesame at the time required, the local treasurer or his deputy may, upon writtennotice, seize or confiscate any personal property belonging to that person or anypersonalpropertysubjecttothelieninsufficientquantitytosatisfythetax,fee,orchargeinquestion,togetherwithanyincrementtheretoincidenttodelinquencyandtheexpensesofseizure.Insuchcase,thelocaltreasurerorhisdeputyshallissueadulyauthenticatedcertificatebasedupontherecordsofhisofficeshowingthefactofdelinquencycyand theamountsof the tax, fee,orchargeandpenaltydue.Suchcertificate shall serve as sufficient warrant for the distraint of personal propertyaforementioned, subject to the taxpayer's right to claim exemption under the

Page 93: Local Government Code of 1991 (RA 7160)

provisions of existing laws. Distrained personal property shall be sold at publicauctioninthemannerhereinprovidedfor.

(b)Accountingofdistrainedgoods‐Theofficerexecutingthedistraintshallmakeorcausetobemadeanaccountofthegoods,chattelsoreffectsdistrained,acopyofwhichsignedbyhimselfshallbe lefteitherwith theownerorperson fromwhosepossession the goods, chattels or effects are taken, or at the dwelling or place ofbusinessofthatpersonandwithsomeoneofsuitableageanddiscretion, towhichlist shall be added a statement of the sum demanded and a note of the time andplaceofsale.

(c)Publication ‐Theofficer shall forthwithcauseanotification tobeexhibited innot less than three (3) public and conspicuous places in the territory of the localgovernmentunitwherethedistraintismade,specifyingthetimeandplaceofsale,andthearticlesdistrained.Thetimeofsaleshallnotbelessthantwenty(20)daysafternotice to theownerorpossessorof theproperty as above specified and thepublicationorpostingofthenotice.Oneplaceforthepostingofthenoticeshallbeattheofficeofthechiefexecutiveofthelocalgovernmentunitinwhichthepropertyisdistrained.

(d)Releaseofdistrainedpropertyuponpaymentpriortosale‐Ifatanytimepriorto the consummation of the sale, all the proper charges are paid to the officerconductingthesale,thegoodsoreffectsdistrainedshallberestoredtotheowner.

(e) Procedure of sale ‐ At the time and place fixed in the notice, the officerconductingthesaleshallsellthegoodsoreffectssodistrainedatpublicauctiontothehighestbidder for cash.Within five (5)daysafter the sale, the local treasurershall make a report of the proceedings in writing to the local chief executiveconcerned.Should thepropertydistrainedbenotdisposedofwithinonehundredand twenty (120)days fromthedateofdistraint, thesameshallbeconsideredassoldtothelocalgovernmentunitconcernedfortheamountoftheassessmentmadethereonbytheCommitteeonAppraisalandtotheextentof thesameamount, thetax delinquencies shall be cancelled. Said Committee on Appraisal shall becomposedof thecityormunicipal treasureraschairman,witharepresentativeoftheCommissiononAuditandthecityormunicipalassessorasmembers.

(f)Dispositionofproceeds‐Theproceedsofthesaleshallbeappliedtosatisfythetax, includingthesurcharges, interest,andotherpenaltiesincidenttodelinquency,

Page 94: Local Government Code of 1991 (RA 7160)

and the expenses of the distraint and sale. The balance over and above what isrequiredtopaytheentireclaimshallbereturnedtotheownerofthepropertysold.The expenses chargeable upon the seizure and sale shall embrace only the actualexpenses of seizure and preservation of the property pending the sale, and nochargeshallbeimposedfortheservicesofthelocalofficerorhisdeputy.Wheretheproceedsofthesaleareinsufficienttosatisfytheclaim,otherpropertymay,inlikemanner,bedistraineduntilthefullamountdue,includingall

SEC.176.LevyonRealProperty.‐Aftertheexpirationofthetimerequiredtopaythe delinquent tax, fee, or charge, real property may be levied on before,simultaneously, or after the distraint of personal property belonging to thedelinquenttaxpayer.Tothisend,theprovincial,cityormunicipaltreasurer,asthecasemaybe,shallprepareadulyauthenticatedcertificateshowingthenameofthetaxpayerandtheamountofthetax,fee,orcharge,andpenaltyduefromhim.Saidcertificate shall operate with the force of a legal execution throughout thePhilippines.Levyshallbeeffectedbywritinguponsaidcertificatethedescriptionofthepropertyuponwhichlevyismade.Atthesametime,writtennoticeofthelevyshall bemailed to or served upon the assessor and the Registrar of Deeds of theprovinceorcitywherethepropertyislocatedwhoshallannotatethelevyonthetaxdeclarationandcertificateof titleof theproperty,respectively,andthedelinquenttaxpayeror,ifhebeabsentfromthePhilippines,tohisagentorthemanagerofthebusinessinrespecttowhichtheliabilityarose,oriftherebenone,totheoccupantofthepropertyinquestion.Incasethelevyonrealpropertyisnotissuedbeforeorsimultaneouslywiththewarrantofdistraintonpersonalproperty,andthepersonalpropertyof the taxpayer isnotsufficient tosatisfyhisdelinquency, theprovincial,cityormunicipal treasurer, as thecasemaybe, shallwithin thirty (30)daysafterexecutionofthedistraint,proceedwiththelevyonthetaxpayer'srealproperty.Areport on any levy shall, within ten (10) days after receipt of the warrant, besubmittedbythelevyingofficertothesanggunianconcerned.

SEC.177.Penalty forFailureto IssueandExecuteWarrant. ‐WithoutprejudicetocriminalprosecutionundertheRevisedPenalCodeandotherapplicable laws,anylocaltreasurerwhofailstoissueorexecutethewarrantofdistraintorlevyaftertheexpiration of the time prescribed, or who is found guilty of abusing the exercisethereof by competent authority shall be automatically dismissed from the serviceafterduenoticeandhearing.

SEC. 178. Advertisement and Sale. ‐ Within thirty (30) days after levy, the localtreasurer shall proceed topublicly advertise for sale or auction theproperty or ausableportionthereofasmaybenecessarytosatisfytheclaimandcostofsale;andsuch advertisement shall cover a period of at least thirty (30) days. It shall be

Page 95: Local Government Code of 1991 (RA 7160)

effectedbypostinganoticeat themainentranceof themunicipalbuildingorcityhall,andinapublicandconspicuousplaceinthebarangaywheretherealpropertyis located, andbypublicationonce aweek for three (3)weeks in anewspaperofgeneral circulation in the province, city or municipality where the property islocated.Theadvertisementshall contain theamountof taxes, feesorcharges,andpenalties due thereon, and the time and place of sale, the name of the taxpayeragainstwhomthe taxes, fees,orchargesare levied,andashortdescriptionof thepropertytobesold.Atanytimebeforethedatefixedforthesale,thetaxpayermaystaytheproceedingsbypayingthetaxes,fees,charges,penaltiesandinterests.Ifhefailstodoso,thesaleshallproceedandshallbeheldeitheratthemainentranceoftheprovincial, cityormunicipalbuilding, oron theproperty tobe sold, or at anyotherplaceasdeterminedbythelocaltreasurerconductingthesaleandspecifiedinthenoticeof sale.Within thirty (30)days after the sale, the local treasurerorhisdeputyshallmakeareportofthesaletothesanggunianconcerned,andwhichshallformpartofhisrecords.Afterconsultationwiththesanggunian,thelocaltreasurershall make and deliver to the purchaser a certificate of sale, showing theproceedings of the sale, describing the property sold, stating the name of thepurchaserand settingout theexact amountof all taxes, fees, charges, and relatedsurcharges, interests, or penalties: Provided, however, That any excess in theproceeds of the sale over the claim and cost of sales shall be turned over to theowner of the property. The local treasurer may, by ordinance duly approved,advance an amount sufficient to defray the costs of collection by means of theremediesprovidedfor inthisTitle, includingthepreservationortransportationincaseofpersonalproperty, and theadvertisementandsubsequent sale, in casesofpersonalandrealpropertyincludingimprovementsthereon.

SEC.179.RedemptionofPropertySold.‐Withinone(1)yearfromthedateofsale,the delinquent taxpayer or his representative shall have the right to redeem thepropertyuponpaymenttothelocaltreasurerofthetotalamountoftaxes, fees,orcharges,andrelatedsurcharges,interestsorpenaltiesfromthedateofdelinquencytothedateofsale,plus interestofnotmorethantwopercent(2%)permonthonthe purchase price from the date of purchase to the date of redemption. Suchpayment shall invalidate the certificate of sale issued to the purchaser and theowner shall be entitled to a certificate of redemption from the provincial, city ormunicipaltreasurerorhisdeputy.Theprovincial,cityormunicipaltreasurerorhisdeputy,uponsurrenderbythepurchaserofthecertificateofsalepreviouslyissuedtohim,shallforthwithreturntothelattertheentirepurchasepricepaidbyhimplustheinterestofnotmorethantwopercent(2%)permonthhereinprovidedfor,theportionofthecostofsaleandotherlegitimateexpensesincurredbyhim,andsaidpropertythereaftershallbefreefromthelienofsuchtaxes,fees,orcharges,relatedsurcharges, interests, andpenalties.Theowner shallnot,however,bedeprivedofthepossessionofsaidpropertyandshallbeentitledtotherentalsandotherincomethereofuntiltheexpirationofthetimeallowedforitsredemption.

Page 96: Local Government Code of 1991 (RA 7160)

SEC. 180. Final Deed to Purchaser. ‐ In case the taxpayer fails to redeem thepropertyasprovidedherein, the local treasurershallexecuteadeedconveying tothepurchasersomuchofthepropertyashasbeensold,freefromliensofanytaxes,fees, charges, related surcharges, interests, andpenalties.Thedeed shall succintlyrecitealltheproceedingsuponwhichthevalidityofthesaledepends.

SEC.181.PurchaseofPropertyBytheLocalGovernmentUnitsforWantofBidder.‐In case there is no bidder for the real property advertised for sale as providedherein,or if thehighestbid is foranamount insufficient topay the taxes, fees,orcharges, related surcharges, interests, penalties and costs, the local treasurerconducting the sale shall purchase theproperty inbehalf of the local governmentunitconcernedtosatisfytheclaimandwithintwo(2)daysthereaftershallmakeareportofhisproceedingswhichshallbereflectedupontherecordsofhisoffice. Itshall be the duty of the Registrar of Deeds concerned upon registration with hisoffice of any such declaration of forfeiture to transfer the title of the forfeitedpropertytothelocalgovernmentunitconcernedwithoutthenecessityofanorderfroma competent court.Withinone (1) year from thedateof such forfeiture, thetaxpayer or any of his representative,may redeem the property by paying to thelocal treasurer the full amount of the taxes, fees, charges, and related surcharges,interests, or penalties, and the costs of sale. If the property is not redeemed asprovided herein, the ownership thereof shall be fully vested on the localgovernmentunitconcerned.

SEC.182.ResaleofRealEstateTakenforTaxes,Fees,orCharges.‐Thesanggunianconcerned may, by ordinance duly approved, and upon notice of not less thantwenty(20)days,sellanddisposeoftherealpropertyacquiredundertheprecedingsectionatpublicauction.Theproceedsofthesaleshallaccruetothegeneralfund

SEC.183.CollectionofDelinquentTaxes,Fees,ChargesorotherRevenuesthroughJudicialAction.‐Thelocalgovernmentunitconcernedmayenforcethecollectionofdelinquent taxes, fees, charges or other revenues by civil action in any court ofcompetent jurisdiction.The civil action shallbe filedby the local treasurerwithintheperiodprescribedinSection194ofthisCode.

SEC. 184. FurtherDistraint or Levy. ‐ The remedies by distraint and levymay berepeatedifnecessaryuntilthefullamountdue,includingallexpenses,iscollected.

Page 97: Local Government Code of 1991 (RA 7160)

SEC. 185. Personal Property Exempt from Distraint or Levy. ‐ The followingproperty shall be exempt from distraint and the levy, attachment or executionthereoffordelinquencyinthepaymentofanylocaltax,feeorcharge,includingtherelatedsurchargeandinterest:

(a) Tools and the implements necessarily used by the delinquent taxpayer in histradeoremployment;

(b)One (1)horse, cow,carabao,orotherbeastofburden, suchas thedelinquenttaxpayermayselect,andnecessarilyusedbyhiminhisordinaryoccupation;

(c)Hisnecessaryclothing,andthatofallhisfamily;

(d)Householdfurnitureandutensilsnecessaryforhousekeepingandusedforthatpurposebythedelinquenttaxpayer,suchashemayselect,ofavaluenotexceedingTenthousandpesos(P=10,000.00);

(e) Provisions, including crops, actually provided for individual or family usesufficientforfour(4)months;

(f)Theprofessionallibrariesofdoctors,engineers,lawyersandjudges;

(g)One fishingboatandnet,notexceeding the totalvalueofTen thousandpesos(P=10,000.00),bythelawfuluseofwhichafishermanearnshislivelihood;and

(h) Any material or article forming part of a house or improvement of any realproperty.

CHAPTER5‐MISCELLANEOUSPROVISIONS

SEC. 186. Power To LevyOther Taxes, Fees or Charges. ‐ Local government unitsmay exercise the power to levy taxes, fees or charges on any base or subject nototherwise specifically enumerated herein or taxed under the provisions of the

Page 98: Local Government Code of 1991 (RA 7160)

National Internal Revenue Code, as amended, or other applicable laws: Provided,That the taxes, fees, or charges shall not be unjust, excessive, oppressive,confiscatory or contrary to declared national policy: Provided, further, That theordinancelevyingsuchtaxes,feesorchargesshallnotbeenactedwithoutanypriorpublichearingconductedforthepurpose.

SEC. 187. Procedure for Approval and Effectivity of Tax ordinances and RevenueMeasures; Mandatory Public Hearings. ‐ The procedure for approval of local taxordinancesandrevenuemeasuresshallbeinaccordancewiththeprovisionsofthisCode:Provided,Thatpublichearingsshallbeconductedforthepurposepriortotheenactmentthereof:Provided,further,Thatanyquestionontheconstitutionalityorlegality of tax ordinances or revenue measures may be raised on appeal withinthirty (30) days from the effectivity thereof to the Secretary of Justice who shallrender a decision within sixty (60) days from the date of receipt of the appeal:Provided, however, That such appeal shall not have the effect of suspending theeffectivityof theordinanceand theaccrual andpaymentof the tax, fee,or chargelevied therein: Provided, finally, That within thirty (30) days after receipt of thedecisionorthelapseofthesixty‐dayperiodwithouttheSecretaryofJusticeactingupontheappeal,theaggrievedpartymayfileappropriateproceedingswithacourtofcompetentjurisdiction.

SEC. 188. PublicationofTaxordinances andRevenueMeasures. ‐Within ten (10)daysaftertheirapproval,certifiedtruecopiesofallprovincial,city,andmunicipaltax ordinances or revenue measures shall be published in full for three (3)consecutive days in a newspaper of local circulation: Provided, however, That inprovinces, cities and municipalities where there are no newspapers of localcirculation, the samemay be posted in at least two (2) conspicuous and publiclyaccessibleplaces.

SEC.189.FurnishingofCopiesofTaxordinancesandRevenueMeasures.‐Copiesofall provincial, city, and municipal and barangay tax ordinances and revenuemeasuresshallbefurnishedtherespectivelocaltreasurersforpublicdissemination.

SEC. 190. Attempt to Enforce Void or Suspended Tax ordinances and revenuemeasures. ‐ The enforcement of any tax ordinance or revenuemeasure after duenotice of the disapproval or suspension thereof shall be sufficient ground foradministrative disciplinary action against the local officials and employeesresponsibletherefor.

Page 99: Local Government Code of 1991 (RA 7160)

SEC.191.AuthorityofLocalGovernmentUnitstoAdjustRatesofTaxordinances.‐Localgovernmentunitsshallhavetheauthoritytoadjustthetaxratesasprescribedherein not oftener than once every five (5) years, but in no case shall suchadjustmentexceedtenpercent(10%)oftheratesfixedunderthisCode.

SEC. 192. Authority to Grant Tax Exemption Privileges. ‐ Local government unitsmay,throughordinancesdulyapproved,granttaxexemptions,incentivesorreliefsundersuchtermsandconditionsastheymaydeemnecessary.

SEC.193.WithdrawalofTaxExemptionPrivileges. ‐Unlessotherwiseprovided inthis Code, tax exemptions or incentives granted to, or presently enjoyed by allpersons,whether natural or juridical, including government‐owned or ‐controlledcorporations, except localwater districts, cooperatives duly registered under R.A.No. 6938, non‐stock and non‐profit hospitals and educational institutions, areherebywithdrawnupontheeffectivityofthisCode.

CHAPTER6‐TAXPAYER'SREMEDIES

SEC. 194. Periods ofAssessment andCollection. ‐ (a) Local taxes, fees, or chargesshallbeassessedwithinfive(5)yearsfromthedatetheybecamedue.Noactionforthecollectionofsuchtaxes,fees,orcharges,whetheradministrativeorjudicial,shallbe instituted after the expiration of such period: Provided, That, taxes, fees orcharges which have accrued before the effectivity of this Code may be assessedwithinaperiodofthree(3)yearsfromthedatetheybecamedue.

(b) In caseof fraudor intent to evade thepaymentof taxes, fees, or charges, thesamemaybeassessedwithinten(10)yearsfromdiscoveryofthefraudorintenttoevadepayment.

(c)Localtaxes,fees,orchargesmaybecollectedwithinfive(5)yearsfromthedateofassessmentbyadministrativeorjudicialaction.Nosuchactionshallbeinstitutedafter theexpirationofsaidperiod:Provided,however,That, taxes, feesorchargesassessedbeforetheeffectivityofthisCodemaybecollectedwithinaperiodofthree(3)yearsfromthedateofassessment.

(d) The running of the periods of prescription provided in the precedingparagraphsshallbesuspendedforthetimeduringwhich:

Page 100: Local Government Code of 1991 (RA 7160)

(1)Thetreasurerislegallypreventedfrommakingtheassessmentofcollection;

(2) The taxpayer requests for a reinvestigation and executes awaiver inwritingbeforeexpirationoftheperiodwithinwhichtoassessorcollect;and

(3)Thetaxpayerisoutofthecountryorotherwisecannotbelocated.

SEC.195.ProtestofAssessment. ‐Whenthe local treasurerorhisdulyauthorizedrepresentativefindsthatcorrecttaxes,fees,orchargeshavenotbeenpaid,heshallissueanoticeofassessmentstatingthenatureofthetax,feeorcharge,theamountof deficiency, the surcharges, interests and penalties.Within sixty (60) days fromthereceiptofthenoticeofassessment,thetaxpayermayfileawrittenprotestwiththe local treasurer contesting the assessment; otherwise, the assessment shallbecomefinalandexecutory.Thelocaltreasurershalldecidetheprotestwithinsixty(60) days from the time of its filing. If the local treasurer finds the protest to bewhollyorpartlymeritorious,heshallissueanoticecancelingwhollyorpartiallytheassessment. However, if the local treasurer finds the assessment to bewholly orpartlycorrect,heshalldenytheprotestwhollyorpartlywithnoticetothetaxpayer.Thetaxpayershallhavethirty(30)daysfromthereceiptofthedenialoftheprotestor from the lapse of the sixty (60) day period prescribed hereinwithinwhich toappealwiththecourtofcompetentjurisdictionotherwisetheassessmentbecomesconclusiveandunappealable.

SEC. 196. Claim for Refund of Tax Credit. ‐ No case or proceeding shall bemaintained inanycourt for the recoveryof any tax, fee,or chargeerroneouslyorillegallycollecteduntilawrittenclaimforrefundorcredithasbeen filedwiththelocal treasurer. No case or proceeding shall be entertained in any court after theexpirationoftwo(2)yearsfromthedateofthepaymentofsuchtax,fee,orcharge,orfromthedatethetaxpayerisentitledtoarefundorcredit.

TITLEII.REALPROPERTYTAXATION

CHAPTER1‐GENERALPROVISIONS

SEC.197.Scope.‐ThisTitleshallgoverntheadministration,appraisal,assessment,levyandcollectionofrealpropertytax.

Page 101: Local Government Code of 1991 (RA 7160)

SEC.198.FundamentalPrinciples.‐Theappraisal,assessment,levyandcollectionofrealpropertytaxshallbeguidedbythefollowingfundamentalprinciples:

(a)Realpropertyshallbeappraisedatitscurrentandfairmarketvalue;

(b) Real property shall be classified for assessment purposes on the basis of itsactualuse;

(c)Realproperty shallbeassessedon thebasisofauniformclassificationwithineachlocalgovernmentunit;

(d)Theappraisal,assessment, levyandcollectionofrealpropertytaxshallnotbelettoanyprivateperson;and

(e)Theappraisalandassessmentofrealpropertyshallbeequitable.

SEC. 199. Definitions. ‐When used in this Title: (a) "Acquisition Cost" for newly‐acquired machinery not yet depreciated and appraised within the year of itspurchase, refers to theactual costof themachinery to itspresentowner,plus thecostoftransportation,handling,andinstallationatthepresentsite;

(b) "Actual Use" refers to the purpose for which the property is principally orpredominantlyutilizedbythepersoninpossessionthereof;

(c)"AdValoremTax" isa levyonrealpropertydeterminedonthebasisofa fixedproportionofthevalueoftheproperty;

(d)"AgriculturalLand"islanddevotedprincipallytotheplantingoftrees,raisingofcrops, livestock and poultry, dairying, salt making, inland fishing and similaraquacultural activities, and other agricultural activities, and is not classified asmineral,timber,residential,commercialorindustrialland;

Page 102: Local Government Code of 1991 (RA 7160)

(e) "Appraisal" is the act or process of determining the value of property as of aspecificdateforaspecificpurpose;

(f) "Assessment" is the act or process of determining the value of a property, orproportionthereofsubjecttotax,includingthediscovery,listing,classification,andappraisalofproperties;

(g) "Assessment Level" is the percentage applied to the fair market value todeterminethetaxablevalueoftheproperty;

(h)"AssessedValue"isthefairmarketvalueoftherealpropertymultipliedbytheassessmentlevel.Itissynonymoustotaxablevalue;

(i)"CommercialLand"islanddevotedprincipallyfortheobjectofprofitandisnotclassifiedasagricultural,industrial,mineral,timber,orresidentialland;

(j)"DepreciatedValue"isthevalueremainingafterdeductingdepreciationfromtheacquisitioncost;

(k) "Economic Life" is the estimated period over which it is anticipated that amachineryorequipmentmaybeprofitablyutilized;

(l)"FairMarketValue"isthepriceatwhichapropertymaybesoldbyasellerwhoisnotcompelledtosellandboughtbyabuyerwhoisnotcompelledtobuy;

(m)"Improvement"isavaluableadditionmadetoapropertyoranameliorationinits condition, amounting to more than a mere repair or replacement of partsinvolving capital expenditures and labor, which is intended to enhance its value,beautyorutilityortoadaptitforneworfurtherpurposes;

(n) "Industrial Land" is land devoted principally to industrial activity as capitalinvestment and is not classified as agricultural, commercial, timber, mineral orresidentialland;

Page 103: Local Government Code of 1991 (RA 7160)

(o) "Machinery" embraces machines, equipment, mechanical contrivances,instruments, appliances or apparatus which may or may not be attached,permanentlyor temporarily, to therealproperty. It includes thephysical facilitiesforproduction,theinstallationsandappurtenantservicefacilities,thosewhicharemobile, self‐poweredorself‐propelled,and thosenotpermanentlyattached to therealpropertywhichareactually,directly,andexclusivelyusedtomeettheneedsofthe particular industry, business or activity and which by their very nature andpurpose are designed for, or necessary to its manufacturing, mining, logging,commercial,industrialoragriculturalpurposes;

(p)"MineralLands"are lands inwhichminerals,metallicornon‐metallic,exist insufficient quantity or grade to justify the necessary expenditures to extract andutilizesuchmaterials;

(q)"Reassessment"istheassigningofnewassessedvaluestoproperty,particularlyreal estate, as the result of a general, partial, or individual reappraisal of theproperty;

(r) "Remaining Economic Life" is the period of time expressed in years from thedateofappraisaltothedatewhenthemachinerybecomesvalueless;

(s)"RemainingValue"isthevaluecorrespondingtotheremainingusefullifeofthemachinery;

(t) "ReplacementorReproductionCost" is thecost thatwouldbe incurredon thebasisofcurrentprices,inacquiringanequallydesirablesubstituteproperty,orthecostofreproducinganewreplicaofthepropertyonthebasisofcurrentpriceswiththesameorcloselysimilarmaterial;and

(u)"ResidentialLand"islandprincipallydevotedtohabitation.

Sec. 200. Administration of the Real Property Tax. ‐ The provinces and cities,includingthemunicipalitieswithintheMetropolitanManilaArea,shallbeprimarily

Page 104: Local Government Code of 1991 (RA 7160)

responsiblefortheproper,efficientandeffectiveadministrationoftherealpropertytax.

CHAPTER2‐APPRAISALANDASSESSMENTOFREALPROPERTY

SEC.201.AppraisalofRealProperty.‐Allrealproperty,whethertaxableorexempt,shall be appraised at the current and fair market value prevailing in the localitywhere the property is situated. The Department of Finance shall promulgate thenecessaryrulesandregulations for theclassification,appraisal,andassessmentofrealpropertypursuanttotheprovisionsofthisCode.

SEC.202.DeclarationofRealPropertybytheOwnerorAdministrator.‐Itshallbethedutyofallpersons,naturalorjuridical,owningoradministeringrealproperty,including the improvements therein, within a city or municipality, or their dulyauthorized representative, to prepare, or cause to be prepared, and file with theprovincial,cityormunicipalassessor,aswornstatementdeclaringthetruevalueoftheir property, whether previously declared or undeclared, taxable or exempt,whichshallbethecurrentandfairmarketvalueoftheproperty,asdeterminedbythedeclarant.Suchdeclarationshallcontainadescriptionofthepropertysufficientindetail to enable the assessororhisdeputy to identify the same for assessmentpurposes.The sworndeclarationof real propertyherein referred to shall be filedwith the assessor concerned once every three (3) years during the period fromJanuaryfirst(1st)toJunethirtieth(30th)commencingwiththecalendaryear1992.

SEC.203.DutyofPersonAcquiringRealPropertyorMakingImprovementThereon.‐Itshallalsobethedutyofanyperson,orhisauthorizedrepresentative,acquiringatanytimerealpropertyinanymunicipalityorcityormakinganyimprovementonrealproperty,toprepare,orcausetobeprepared,andfilewiththeprovincial,cityor municipal assessor, a sworn statement declaring the true value of subjectproperty, within sixty (60) days after the acquisition of such property or uponcompletionoroccupancyoftheimprovement,whichevercomesearlier.

SEC.204.DeclarationofRealPropertybytheAssessor.‐Whenanyperson,naturalor juridical, bywhom real property is required to be declared under Section 202hereof, refuses or fails for any reason to make such declaration within the timeprescribed, the provincial, city or municipal assessor shall himself declare theproperty in the name of the defaulting owner, if known, or against an unknownowner,asthecasemaybe,andshallassessthepropertyfortaxationinaccordancewiththeprovisionofthisTitle.Nooathshallberequiredofadeclarationthusmadebytheprovincial,cityormunicipalassessor.

Page 105: Local Government Code of 1991 (RA 7160)

SEC.205.ListingofRealProperty in theAssessmentRolls. ‐ (a) Ineveryprovinceand city, including the municipalities within the Metropolitan Manila Area, thereshall bepreparedandmaintainedby theprovincial, cityormunicipal assessor anassessmentrollwhereinshallbelistedallrealproperty,whethertaxableorexempt,locatedwithin the territorial jurisdiction of the local government unit concerned.Real property shall be listed, valued and assessed in the name of the owner oradministrator,oranyonehavinglegalinterestintheproperty.

(b) The undivided real property of a deceased personmay be listed, valued andassessedinthenameoftheestateoroftheheirsanddeviseeswithoutdesignatingthemindividually;andundividedrealpropertyotherthanthatownedbyadeceasedmaybelisted,valuedandassessedinthenameofoneormoreco‐owners:Provided,however, That such heir, devisee, or co‐owner shall be liable severally andproportionatelyforallobligationsimposedbythisTitleandthepaymentoftherealpropertytaxwithrespecttotheundividedproperty.

(c) The real property of a corporation, partnership, or association shall be listed,valuedandassessedinthesamemannerasthatofanindividual.

(d) Real property owned by the Republic of the Philippines, its instrumentalitiesand political subdivisions, the beneficial use of which has been granted, forconsiderationorotherwise,toataxableperson,shallbelisted,valuedandassessedin the nameof the possessor, grantee or of the public entity if such property hasbeenacquiredorheldforresaleorlease.

SEC.206.ProofofExemptionofRealPropertyfromTaxation.‐Everypersonbyorforwhomrealpropertyisdeclared,whoshallclaimtaxexemptionforsuchpropertyunderthisTitleshallfilewiththeprovincial,cityormunicipalassessorwithinthirty(30)days fromthedateof thedeclarationofrealpropertysufficientdocumentaryevidence insupportofsuchclaim includingcorporatecharters, titleofownership,articles of incorporation, bylaws, contracts, affidavits, certifications andmortgagedeeds,andsimilardocuments.Iftherequiredevidenceisnotsubmittedwithintheperiodhereinprescribed, thepropertyshallbe listedas taxable in theassessmentroll.However, if theproperty shallbeproven tobe taxexempt, the sameshallbedroppedfromtheassessmentroll.

Page 106: Local Government Code of 1991 (RA 7160)

SEC. 207. Real Property Identification System. ‐ All declarations of real propertymade under the provisions of this Title shall be kept and filed under a uniformclassificationsystemtobeestablishedbytheprovincial,cityormunicipalassessor.

SEC. 208. Notification of Transfer of Real Property Ownership. ‐ Any personwhoshalltransferrealpropertyownershiptoanothershallnotifytheprovincial,cityormunicipalassessorconcernedwithinsixty(60)daysfromthedateofsuchtransfer.Thenotificationshall includethemodeoftransfer, thedescriptionofthepropertyalienated,thenameandaddressofthetransferee.

SEC.209.DutyofRegistrarofDeedstoAppriseAssessorofRealPropertyListedinRegistry.‐(a)ToascertainwhetherornotanyrealpropertyenteredintheRegistryof Property has escaped discovery and listing for the purpose of taxation, theRegistrar of Deeds shall prepare and submit to the provincial, city or municipalassessor,withinsix (6)months fromthedateofeffectivityof thisCodeandeveryyear thereafter, an abstract of his registry,which shall includebrief but sufficientdescription of the real properties entered therein, their present owners, and thedates of their most recent transfer or alienation accompanied by copies ofcorrespondingdeedsofsale,donation,orpartitionorotherformsofalienation.

(b)ItshallalsobethedutyoftheRegistrarofDeedstorequireeverypersonwhoshallpresentforregistrationadocumentoftransfer,alienation,orencumbranceofreal property to accompany the samewith a certificate to the effect that the realpropertysubjectofthetransfer,alienation,orencumbrance,asthecasemaybe,hasbeen fully paid of all real property taxes due thereon. Failure to provide suchcertificateshallbeavalidcausefortheRegistrarofDeedstorefusetheregistrationofthedocument.

SEC. 210. Duty of Official Issuing Building Permit or Certificate of Registration ofMachinerytoTransmitCopytoAssessor.‐Anypublicofficialoremployeewhomaynoworhereafterberequiredbylaworregulationto issuetoanypersonapermitfor the construction, addition, repair, or renovation of a building, or permanentimprovement on land, or a certificate of registration for anymachinery, includingmachines,mechanicalcontrivances,andapparatusattachedoraffixedonlandortoanother real property, shall transmit a copy of such permit or certificate withinthirty(30)daysofitsissuance,totheassessoroftheprovince,cityormunicipalitywherethepropertyissituated.

Page 107: Local Government Code of 1991 (RA 7160)

SEC.211.DutyofGeodeticEngineerstoFurnishCopyofPlanstoAssessor.‐Itshallbethedutyofallgeodeticengineers,publicorprivate, tofurnishfreeofchargetotheassessorof theprovince, cityormunicipalitywhere the land is locatedwithawhite or blue print copy of each of all approved original or subdivision plans ormapsofsurveysexecutedbythemwithinthirty(30)daysfromreceiptofsuchplansfrom the Lands Management Bureau, the Land Registration Authority, or theHousingandLandUseRegulatoryBoard,asthecasemaybe.

SEC. 212. Preparation of Schedule of Fair Market Values. ‐ Before any generalrevision of property assessment ismade pursuant to the provisions of this Title,thereshallbepreparedascheduleoffairmarketvaluesbytheprovincial,cityandthemunicipalassessorsof themunicipalitieswithin theMetropolitanManilaAreafor the different classes of real property situated in their respective localgovernment units for enactment by ordinance of the sanggunian concerned. Theschedule of fair market values shall be published in a newspaper of generalcirculationintheprovince,cityormunicipalityconcerned,orintheabsencethereof,shall be posted in the provincial capitol, city or municipal hall and in two otherconspicuouspublicplacestherein.

SEC. 213. Authority of Assessor to Take Evidence. ‐ For the purpose of obtaininginformationonwhichtobasethemarketvalueofanyrealproperty,theassessorofthe province, city or municipality or his deputy may summon the owners of theproperties to be affected or persons having legal interest therein and witnesses,administer oaths, and take deposition concerning the property, its ownership,amount,nature,andvalue.

SEC. 214. Amendment of Schedule of FairMarket Values. ‐ The provincial, city ormunicipal assessormay recommend to the sanggunian concernedamendments tocorrect errors in valuation in the schedule of fairmarket values. The sanggunianconcerned shall, by ordinance, act upon the recommendation within ninety (90)daysfromreceiptthereof.

SEC. 215. Classes of Real Property for Assessment Purposes. ‐ For purposes ofassessment,realpropertyshallbeclassifiedasresidential,agricultural,commercial,industrial, mineral, timberland or special. The city or municipality within theMetropolitan Manila Area, through their respective sanggunian, shall have thepowertoclassify landsasresidential,agricultural,commercial, industrial,mineral,timberland,orspecialinaccordancewiththeirzoningordinances.

Page 108: Local Government Code of 1991 (RA 7160)

SEC. 216. Special Classes of Real Property. ‐ All lands, buildings, and otherimprovementsthereonactually,directlyandexclusivelyusedforhospitals,cultural,or scientific purposes, and those owned and used by local water districts, andgovernment‐ownedor ‐controlledcorporationsrenderingessentialpublicservicesin the supply and distribution of water and/or generation and transmission ofelectricpowershallbeclassifiedasspecial.

SEC.217.ActualUseofRealPropertyasBasisforAssessment.‐Realpropertyshallbeclassified,valuedandassessedonthebasisofitsactualuseregardlessofwherelocated,whoeverownsit,andwhoeverusesit.

SEC.218.AssessmentLevels.‐Theassessmentlevelstobeappliedtothefairmarketvalueofrealpropertytodetermineitsassessedvalueshallbefixedbyordinancesofthesangguniangpanlalawigan,sangguniangpanlungsodorsangguniangbayanofamunicipality within theMetropolitanManila Area, at the rates not exceeding thefollowing:

(a)OnLands:

CLASSASSESSMENTLEVELS

Residential20%

Agricultural40%

Commercial50%

Industrial50%

Page 109: Local Government Code of 1991 (RA 7160)

Mineral50%

Timberland20%

(b)OnBuildingsandOtherStructures:

(1)Residential

FairMarketValue

OverNotOverAssessmentLevels

P175,000.000%

P175,000.00300,000.0010%

300,000.00500,000.0020%

500,000.00750,000.0025%

750,000.001,000,000.0030%

Page 110: Local Government Code of 1991 (RA 7160)

1,000,000.002,000,000.0035%

2,000,000.005,000,000.0040%

5,000,000.0010,000.000.0050%

10,000,000.0060%

(2)Agricultural

FairMarketValue

OverNotOverAssessmentLevels

P300,000.0025%

300,000.00500,000.0030%

Page 111: Local Government Code of 1991 (RA 7160)

500,000.00750,000.0035%

750,000.001,000,000.0040%

1,000,000.002,000,000.0045%

2,000,000.0050%

(3)Commercial/Industrial

FairMarketValue

OverNotOverAssessmentLevels

P300,000.0030%

P300,000.00500,000.0035%

Page 112: Local Government Code of 1991 (RA 7160)

500,000.00750,000.0040%

750,000.001,000,000.0050%

1,000,000.002,000,000.0060%

2,000,000.005,000,000.0070%

5,000,000.0010,000,000.0075%

10,000,000.0080%

(4)Timberland

FairMarketValue

OverNotOverAssessmentLevels

Page 113: Local Government Code of 1991 (RA 7160)

P300,000.0045%

P300,000.00500,000.0050%

500,000.00750,000.0055%

750,000.001,000,000.0060%

1,000,000.002,000,000.0065%

2,000,000.070%

(c)OnMachineries

ClassAssessmentLevels

Agricultural40%

Residential50%

Page 114: Local Government Code of 1991 (RA 7160)

Commercial80%

Industrial80%

(d)On Special Classes: The assessment levels for all lands, buildings,machineriesandotherimprovements;

ActualUseAssessmentLevel

Cultural15%

Scientific15%

Hospital15%

localwaterdistricts10%

Government‐ownedor

controlledcorporations

engagedinthesupplyand

distributionofwaterand/or

Page 115: Local Government Code of 1991 (RA 7160)

generationandtransmissionof

electricpower10%

SEC. 219. General Revision of assessments and Property Classification. ‐ Theprovincial, city or municipal assessor shall undertake a general revision of realproperty assessments within two (2) years after the effectivity of this Code andeverythree(3)yearsthereafter.

SEC.220.ValuationofRealProperty.‐Incaseswhere(a)realpropertyisdeclaredand listed for taxationpurposes for the first time; (b) there is anongoinggeneralrevisionofpropertyclassificationandassessment;or(c)arequest ismadebytheperson inwhose name the property is declared, the provincial, city ormunicipalassessororhisdulyauthorizeddeputy shall, inaccordancewith theprovisionsofthis Chapter,make a classification, appraisal and assessment of the real propertylistedanddescribed in thedeclaration irrespectiveofanypreviousassessmentortaxpayer's valuation thereon: Provided, however, That the assessment of realproperty shall not be increasedoftener thanonce every three (3) years except incaseofnewimprovementssubstantiallyincreasingthevalueofsaidpropertyorofanychangeinitsactualuse.

SEC. 221.Date of Effectivity of Assessment orReassessment. ‐ All assessments orreassessmentsmadeafterthefirst(1st)dayofJanuaryofanyyearshalltakeeffectonthefirst(1st)dayofJanuaryofthesucceedingyear:Provided,however,Thatthereassessmentof realpropertydue to itspartialor totaldestruction,or toamajorchange in its actual use, or to any great and sudden inflation or deflation of realproperty values, or to the gross illegality of the assessmentwhenmadeor to anyotherabnormalcause,shallbemadewithinninety(90)daysfromthedateanysuchcauseorcausesoccurred,andshalltakeeffectatthebeginningofthequarternextfollowingthereassessment.

SEC.222.assessmentofPropertySubjecttoBackTaxes.‐Realpropertydeclaredforthefirsttimeshallbeassessedfortaxesfortheperiodduringwhichitwouldhavebeen liablebut innocase formore than ten (10)yearsprior to thedateof initialassessment:Provided,however,Thatsuchtaxesshallbecomputedonthebasisoftheapplicablescheduleofvalues in forceduringthecorrespondingperiod. Ifsuchtaxesarepaidonorbefore theendof thequarter followingthedate thenoticeof

Page 116: Local Government Code of 1991 (RA 7160)

assessment was received by the owner or his representative, no interest fordelinquencyshallbeimposedthereon;otherwise,suchtaxesshallbesubjecttoaninterest at the rateof twopercent (2%)permonthor a fraction thereof from thedateofthereceiptoftheassessmentuntilsuchtaxesarefullypaid.

SEC. 223. Notification of New or Revised Assessment. ‐ When real property isassessedforthefirsttimeorwhenanexistingassessmentisincreasedordecreased,theprovincial,cityormunicipalassessorshallwithinthirty(30)daysgivewrittennoticeofsuchneworrevisedassessmenttothepersoninwhosenamethepropertyisdeclared.Thenoticemaybedeliveredpersonallyorbyregisteredmailorthroughtheassistanceofthepunongbarangaytothelastknownaddressofthepersontobeserved.

SEC.224.AppraisalandAssessmentofMachinery. ‐ (a)The fairmarketvalueofabrand‐newmachineryshallbetheacquisitioncost.Inallothercases,thefairmarketvalueshallbedeterminedbydividingtheremainingeconomiclifeofthemachineryby its estimatedeconomic life andmultipliedby the replacementor reproductioncost.

(b) If themachinery is imported, the acquisition cost includes freight, insurance,bank and other charges, brokerage, arrastre and handling, duties and taxes, pluscostofinlandtransportation,handling,andinstallationchargesatthepresentsite.ThecostinforeigncurrencyofimportedmachineryshallbeconvertedtopesocostonthebasisofforeigncurrencyexchangeratesasfixedbytheCentralBank.

SEC. 225. Depreciation Allowance forMachinery. ‐ For purposes of assessment, adepreciation allowance shall be made for machinery at a rate not exceeding fivepercent(5%)ofitsoriginalcostoritsreplacementorreproductioncost,asthecasemaybe, for eachyearof use: Provided, however,That the remaining value for allkinds ofmachinery shall be fixed at not less than twenty percent (20%) of suchoriginal, replacement, or reproduction cost for so long as themachinery is usefulandinoperation.

CHAPTER3‐ASSESSMENTAPPEALS

SEC.226.LocalBoardofAssessmentAppeals. ‐Anyownerorpersonhaving legalinterestinthepropertywhoisnotsatisfiedwiththeactionoftheprovincial,cityormunicipal assessor in the assessment of his propertymay,within sixty (60) daysfromthedateofreceiptofthewrittennoticeofassessment,appealtotheBoardof

Page 117: Local Government Code of 1991 (RA 7160)

Assessmentappealsoftheprovinceorcitybyfilingapetitionunderoathintheformprescribed for the purpose, togetherwith copies of the tax declarations and suchaffidavitsordocumentssubmittedinsupportoftheappeal.

SEC. 227. Organization, Powers, Duties, and Functions of the Local Board ofAssessmentAppeals.‐(a)TheBoardofAssessmentappealsoftheprovinceorcityshall be composed of the Registrar of Deeds, as Chairman, the provincial or cityprosecutorandtheprovincial,orcityengineerasmembers,whoshallserveassuchinanexofficiocapacitywithoutadditionalcompensation.

(b)ThechairmanoftheBoardshallhavethepowertodesignateanyemployeeofthe province or city to serve as secretary to the Board also without additionalcompensation.

(c)ThechairmanandmembersoftheBoardofAssessmentappealsoftheprovinceorcityshallassumetheirrespectivepositionswithoutneedoffurtherappointmentorspecialdesignationimmediatelyuponeffectivityofthisCode.Theyshalltakeanoathoraffirmationofofficeintheprescribedform.

(d) In provinces and cities without a provincial or city engineer, the districtengineer shall serve as member of the Board. In the absence of the Registrar ofDeeds,ortheprovincialorcityprosecutor,ortheprovincialorcityengineer,orthedistrictengineer,thepersonsperformingtheirduties,whetherinanactingcapacityorasadulydesignatedofficer‐in‐charge,shallautomaticallybecomethechairmanormember,respectively,ofthesaidBoard,asthecasemaybe.

SEC. 228.Meetings andExpenses of the Local Board ofAssessmentAppeals. ‐ (a)TheBoardofAssessmentappealsof theprovinceorcityshallmeetonceamonthandasoftenasmaybenecessaryforthepromptdispositionofappealedcases.Nomember of the Board shall be entitled to per diems or traveling expenses for hisattendance in Board meetings, except when conducting an ocular inspection inconnectionwithacaseunderappeal.

(b) All expenses of the Board shall be charged against the general fund of theprovinceor city, as the casemaybe.The sanggunian concerned shall appropriatethe necessary funds to enable the Board in their respective localities to operateeffectively.

Page 118: Local Government Code of 1991 (RA 7160)

SEC. 229. Action by the Local Board of Assessment appeals. ‐ (a) TheBoard shalldecidetheappealwithinonehundredtwenty(120)daysfromthedateofreceiptofsuchappeal.TheBoard,afterhearing,shallrenderitsdecisionbasedonsubstantialevidenceorsuchrelevantevidenceonrecordasareasonablemindmightacceptasadequatetosupporttheconclusion.

(b) In theexerciseof itsappellate jurisdiction, theBoardshallhave thepower tosummonwitnesses, administer oaths, conduct ocular inspection, take depositions,andissuesubpoenaandsubpoenaducestecum.TheproceedingsoftheBoardshallbe conducted solely for the purpose of ascertaining the facts without necessarilyadheringtotechnicalrulesapplicableinjudicialproceedings.

(c)ThesecretaryoftheBoardshallfurnishtheownerofthepropertyorthepersonhaving legal interest thereinandtheprovincialorcityassessorwithacopyof thedecisionoftheBoard.Incasetheprovincialorcityassessorconcursintherevisionor the assessment, it shall be his duty to notify the owner of the property or thepersonhaving legal interest thereinof such factusing the formprescribed for thepurpose.Theownerof thepropertyor thepersonhaving legal interest thereinortheassessorwhoisnotsatisfiedwiththedecisionoftheBoard,may,withinthirty(30)daysafterreceiptofthedecisionofsaidBoard,appealtotheCentralBoardofAssessmentappeals,ashereinprovided.ThedecisionoftheCentralBoardshallbefinalandexecutory.

SEC.230.CentralBoardofAssessmentappeals.‐TheCentralBoardofAssessmentappealsshallbecomposedofachairmanandtwo(2)memberstobeappointedbythePresident,whoshallserveforatermofseven(7)years,withoutreappointment.Of those first appointed, the chairman shall hold office for seven (7) years, onememberforfive(5)years,andtheothermemberforthree(3)years.Appointmentto any vacancy shall be only for the unexpired portion of the term of thepredecessor. In no case shall any member be appointed or designated in atemporaryoractingcapacity.ThechairmanandthemembersoftheBoardshallbeFilipinocitizens,at least forty(40)yearsoldatthetimeoftheirappointment,andmembers of the Bar or Certified Public Accountants for at least ten (10) yearsimmediatelyprecedingtheirappointment.ThechairmanoftheBoardofAssessmentappealsshallhavethesalarygradeequivalenttotherankofDirectorIIIundertheSalary Standardization Law exclusive of allowances and other emoluments. ThemembersoftheBoardshallhavethesalarygradeequivalenttotherankofDirectorII under the Salary Standardization Law exclusive of allowances and otheremoluments.TheBoardshallhaveappellate jurisdictionoverallassessmentcasesdecidedbytheLocalBoardofAssessmentappeals.

Page 119: Local Government Code of 1991 (RA 7160)

ThereshallbeHearingOfficerstobeappointedbytheCentralBoardofAssessmentappeals pursuant to civil service laws, rules and regulations, one each for Luzon,Visayas andMindanao,who shall hold office inManila, CebuCity andCagayandeOro City, respectively, and who shall serve for a term of six (6) years, withoutreappointment until their successors have been appointed and qualified. TheHearing Officers shall have the same qualifications as that of the Judges of theMunicipalTrialCourts.

The Hearing Officers shall each have the salary grade equivalent to the rank ofDirectorIundertheSalaryStandardizationLawexclusiveofallowancesandotheremoluments.TheHearingOfficersshall tryandreceiveevidenceson theappealedassessmentcasesasmaybedirectedbytheBoard.

TheCentralBoardAssessmentappeals,intheperformanceofitspowersandduties,may establish andorganize staffs, offices, units, prescribe the titles, functions anddutiesoftheirmembersandadoptitsownrulesandregulations.Unlessotherwiseprovided by law, the annual appropriations for the Central Board of AssessmentappealsshallbeincludedintheannualbudgetoftheDepartmentofFinanceinthecorrespondingGeneralAppropriationsAct.

SEC. 231. Effect of appeal on the Payment of Real Property Tax. ‐ appeal onassessments of real propertymade under the provisions of this Code shall, in nocase, suspend the collection of the corresponding realty taxes on the propertyinvolved as assessed by the provincial or city assessor, without prejudice tosubsequentadjustmentdependinguponthefinaloutcomeoftheappeal.

CHAPTER4‐IMPOSITIONOFREALPROPERTYTAX

SEC.232.Power toLevyRealPropertyTax. ‐Aprovinceor cityor amunicipalitywithin the MetropolitanManila Areamay levy an annual ad valorem tax on realpropertysuchasland,building,machinery,andotherimprovementnothereinafterspecificallyexempted.

SEC. 233. Rates of Levy. ‐ A province or city or a municipality within theMetropolitan Manila Area shall fix a uniform rate of basic real property taxapplicable to their respective localitiesas follows: (a) In thecaseofaprovince,attheratenotexceedingonepercent(1%)oftheassessedvalueofrealproperty;and

Page 120: Local Government Code of 1991 (RA 7160)

(b)InthecaseofacityoramunicipalitywithintheMetropolitanManilaArea,attheratenotexceedingtwopercent(2%)oftheassessedvalueofrealproperty.

SEC.234.Exemptions fromRealPropertyTax. ‐The followingareexempted frompaymentoftherealpropertytax:

(a)Real property ownedby theRepublic of thePhilippines or anyof its politicalsubdivisions except when the beneficial use thereof has been granted, forconsiderationorotherwise,toataxableperson;

(b)Charitable institutions,churches,parsonagesorconventsappurtenantthereto,mosques, nonprofit or religious cemeteries and all lands, buildings, andimprovements actually, directly, and exclusively used for religious, charitable oreducationalpurposes;

(c)Allmachineriesandequipment thatareactually,directlyandexclusivelyusedbylocalwaterdistrictsandgovernment‐ownedor‐controlledcorporationsengagedin the supply and distribution of water and/or generation and transmission ofelectricpower;

(d)AllrealpropertyownedbydulyregisteredcooperativesasprovidedforunderR.A.No.6938;and

(e) Machinery and equipment used for pollution control and environmentalprotection. Except as provided herein, any exemption from payment of realproperty tax previously granted to, or presently enjoyed by, all persons,whethernaturalorjuridical,includingallgovernment‐ownedor‐controlledcorporationsareherebywithdrawnupontheeffectivityofthisCode.

CHAPTER5‐SPECIALLEVIESONREALPROPERTY

SEC. 235. Additional Levy on Real Property for the Special Education Fund. ‐ Aprovince or city, or amunicipalitywithin theMetropolitanManilaArea,may levyandcollectanannualtaxofonepercent(1%)ontheassessedvalueofrealproperty

Page 121: Local Government Code of 1991 (RA 7160)

whichshallbeinadditiontothebasicrealpropertytax.TheproceedsthereofshallexclusivelyaccruetotheSpecialEducationFund(SEF).

SEC. 236. Additional Ad Valorem Tax on Idle Lands. ‐ A province or city, or amunicipalitywithin theMetropolitanManilaArea,may levy an annual tax on idlelands at the rate not exceeding five percent (5%) of the assessed value of thepropertywhichshallbeinadditiontothebasicrealpropertytax.

SEC.237.IdleLands,Coverage.‐Forpurposesofrealpropertytaxation, idle landsshallincludethefollowing:

(a)"Agricultural lands,morethanone(1)hectare inarea,suitable forcultivation,dairying,inlandfishery,andotheragriculturaluses,one‐half(1/2)ofwhichremainuncultivated or unimproved by the owner of the property or person having legalinteresttherein."Agriculturallandsplantedtopermanentorperennialcropswithatleast fifty(50)treestoahectareshallnotbeconsidered idle lands.Landsactuallyusedforgrazingpurposesshalllikewisenotbeconsideredidlelands.

(b)Lands,otherthanagricultural, locatedinacityormunicipality,morethanonethousand(1,000)squaremeters inareaone‐half(1/2)ofwhichremainunutilizedorunimprovedbytheownerofthepropertyorpersonhavinglegalinteresttherein.Regardless of land area, this Section shall likewise apply to residential lots insubdivisionsdulyapprovedbyproperauthorities,theownershipofwhichhasbeentransferred to individual owners, who shall be liable for the additional tax:Provided, however, That individual lots of such subdivisions, the ownership ofwhich has not been transferred to the buyer shall be considered as part of thesubdivision,andshallbesubjecttotheadditionaltaxpayablebysubdivisionowneroroperator.

SEC.238.IdleLandsExemptfromTax.‐AprovinceorcityoramunicipalitywithintheMetropolitanManila Areamay exempt idle lands from the additional levy byreason of force majeure, civil disturbance, natural calamity or any cause orcircumstance which physically or legally prevents the owner of the property orperson having legal interest therein from improving, utilizing or cultivating thesame.

Page 122: Local Government Code of 1991 (RA 7160)

SEC.239.Listingof IdleLandsby theAssessor. ‐Theprovincial, cityormunicipalassessorshallmakeandkeepanupdatedrecordofallidlelandslocatedwithinhisarea of jurisdiction. For purposes of collection, the provincial, city or municipalassessor shall furnish a copy thereof to the provincial or city treasurerwho shallnotify,onthebasisofsuchrecord,theownerofthepropertyorpersonhavinglegalinterestthereinoftheimpositionoftheadditionaltax.

SEC.240.SpecialLevybyLocalGovernmentUnits.‐Aprovince,cityormunicipalitymayimposeaspeciallevyonthelandscomprisedwithinitsterritorialjurisdictionspeciallybenefitedbypublicworksprojectsor improvements fundedby the localgovernment unit concerned: Provided, however, That the special levy shall notexceed sixtypercent (60%)of theactual costof suchprojects and improvements,including the costs of acquiring land and such other real property in connectiontherewith:Provided, further,That thespecial levyshallnotapply to landsexemptfrombasicrealpropertytaxandtheremainderofthelandportionsofwhichhavebeendonated to the localgovernmentunitconcerned for theconstructionofsuchprojectsorimprovements.

SEC.241.OrdinanceImposingaSpecialLevy. ‐Ataxordinance imposingaspeciallevyshalldescribewithreasonableaccuracythenature,extent,andlocationofthepublicworksprojectsor improvementstobeundertaken,state theestimatedcostthereof,specifythemetesandboundsbymonumentsandlinesandthenumberofannualinstallmentsforthepaymentofthespeciallevywhichinnocaseshallbelessthanfive(5)normorethanten(10)years.Thesanggunianconcernedshallnotbeobliged, in the apportionment and computation of the special levy, to establish auniform percentage of all lands subject to the payment of the tax for the entiredistrict, but it may fix different rates for different parts or sections thereof,dependingonwhethersuchlandismoreorlessbenefitedbytheproposedwork.

SEC.242.PublicationofProposedOrdinanceImposingaSpecialLevy. ‐Beforetheenactmentofanordinanceimposingaspeciallevy,thesanggunianconcernedshallconductapublichearingthereon;notifyinwritingtheownersoftherealpropertytobeaffectedorthepersonshaving legal interest thereinastothedateandplacethereofandaffordthelattertheopportunitytoexpresstheirpositionsorobjectionsrelativetotheproposedordinance.

SEC. 243. Fixing theAmount of Special Levy. ‐ The special levy authorized hereinshallbeapportioned,computed,andassessedaccordingtotheassessedvaluationofthe landsaffectedasshownbythebooksof theassessorconcerned,or itscurrentassessedvalueasfixedbysaidassessorifthepropertydoesnotappearofrecordin

Page 123: Local Government Code of 1991 (RA 7160)

hisbooks.Upontheeffectivityoftheordinanceimposingspeciallevy,theassessorconcernedshall forthwithproceedtodeterminetheannualamountofspecial levyassessedagainsteachparceloflandcomprisedwithintheareaespeciallybenefitedandshallsendtoeachlandownerawrittennoticethereofbymail,personalserviceorpublicationinappropriatecases.

SEC.244.Taxpayers'RemediesAgainstSpecialLevy. ‐Anyownerofrealpropertyaffectedbya special levyor anypersonhavinga legal interest thereinmay,uponreceiptofthewrittennoticeofassessmentofthespeciallevy,availoftheremediesprovidedforinChapter3,TitleTwo,BookIIofthisCode.

SEC.245.AccrualofSpecialLevy. ‐Thespecial levyshallaccrueonthe firstdayofthequarternextfollowingtheeffectivityoftheordinanceimposingsuchlevy.

CHAPTER6‐COLLECTIONOFREALPROPERTYTAX

SEC.246.DateofAccrualofTax.‐TherealpropertytaxforanyyearshallaccrueonthefirstdayofJanuaryandfromthatdateitshallconstitutealienonthepropertywhich shall be superior to any other lien,mortgage, or encumbrance of any kindwhatsoever,andshallbeextinguishedonlyuponthepaymentofthedelinquenttax.

SEC. 247. Collection of Tax. ‐ The collection of the real property taxwith interestthereonandrelatedexpenses,andtheenforcementoftheremediesprovidedforinthisTitleoranyapplicablelaws,shallbetheresponsibilityofthecityormunicipaltreasurer concerned. The city or municipal treasurer may deputize the barangaytreasurertocollectalltaxesonrealpropertylocatedinthebarangay:Provided,Thatthebarangaytreasurerisproperlybondedforthepurpose:Provided,further,Thatthe premium on the bond shall be paid by the city or municipal governmentconcerned.

SEC. 248. Assessor to Furnish Local Treasurer with Assessment Roll. ‐ Theprovincial, cityormunicipalassessorshallprepareandsubmit to the treasurerofthelocalgovernmentunit,onorbeforethethirty‐first(31st)dayofDecembereachyear,anassessmentrollcontainingalistofallpersonswhoserealpropertieshavebeennewlyassessedorreassessedandthevaluesofsuchproperties.

Page 124: Local Government Code of 1991 (RA 7160)

SEC.249.NoticeofTimeforCollectionofTax.‐Thecityormunicipaltreasurershall,onorbeforethethirty‐first(31st)dayofJanuaryeachyear,inthecaseofthebasicrealpropertytaxandtheadditionaltaxfortheSpecialEducationFund(SEF)oronany other date to be prescribed by the sanggunian concerned in the case of anyother tax leviedunder thisTitle,post thenoticeof thedateswhenthetaxmaybepaidwithout interest at a conspicuous andpublicly accessibleplace at the city ormunicipal hall. Said notice shall likewise be published in a newspaper of generalcirculationinthelocalityonceaweekfortwo(2)consecutiveweeks.

SEC.250.PaymentofRealPropertyTaxes in Installments. ‐Theownerof therealpropertyorthepersonhavinglegalinterestthereinmaypaythebasicrealpropertytax and the additional tax for Special Education Fund (SEF) due thereonwithoutinterestinfour(4)equalinstallments;thefirstinstallmenttobedueandpayableonorbeforeMarchThirty‐first(31st);thesecondinstallment,onorbeforeJuneThirty(30); the third installment, on or before September Thirty (30); and the lastinstallment on or before December Thirty‐first (31st), except the special levy thepaymentofwhichshallbegovernedbyordinanceofthesanggunianconcerned.ThedateforthepaymentofanyothertaximposedunderthisTitlewithoutinterestshallbeprescribedby thesanggunianconcerned.Paymentsof realproperty taxesshallfirstbeappliedtoprioryearsdelinquencies,interests,andpenalties,ifany,andonlyafter saiddelinquencies are settledmay taxpayments be credited for the currentperiod.

SEC.251.TaxDiscount forAdvancedPromptPayment. ‐ If thebasic realpropertytaxandtheadditionaltaxaccruingtotheSpecialEducationFund(SEF)arepaidinadvanceinaccordancewiththeprescribedscheduleofpaymentasprovidedunderSection250,thesanggunianconcernedmaygrantadiscountnotexceedingtwentypercent(20%)oftheannualtaxdue.

SEC. 252.PaymentUnderProtest. ‐ (a)Noprotest shall be entertainedunless thetaxpayerfirstpaysthetax.Thereshallbeannotatedonthetaxreceiptsthewords"paid under protest". The protest inwritingmust be filedwithin thirty (30) daysfrompaymentofthetaxtotheprovincial,citytreasurerormunicipaltreasurer, inthe case of amunicipalitywithinMetropolitanManila Area,who shall decide theprotestwithinsixty(60)daysfromreceipt.

(b) The tax or a portion thereof paid under protest, shall be held in trust by thetreasurerconcerned.

Page 125: Local Government Code of 1991 (RA 7160)

(c) In the event that the protest is finally decided in favor of the taxpayer, theamount or portion of the tax protested shall be refunded to the protestant, orappliedastaxcreditagainsthisexistingorfuturetaxliability.

(d)Intheeventthattheprotestisdeniedoruponthelapseofthesixtydayperiodprescribedinsubparagraph(a),thetaxpayermayavailoftheremediesasprovidedforinChapter3,TitleII,BookIIofthisCode.

SEC.253.RepaymentofExcessiveCollections. ‐Whenanassessmentofbasic realproperty tax, or any other tax levied under this Title, is found to be illegal orerroneous and the tax is accordingly reducedor adjusted, the taxpayermay file awrittenclaimforrefundorcreditfortaxesandinterestswiththeprovincialorcitytreasurer within two (2) years from the date the taxpayer is entitled to suchreductionoradjustment.Theprovincialorcitytreasurershalldecidetheclaimfortaxrefundorcreditwithinsixty(60)daysfromreceiptthereof.Incasetheclaimfortaxrefundorcreditisdenied,thetaxpayermayavailoftheremediesasprovidedinChapter3,TitleII,BookIIofthisCode.

SEC.254.NoticeofDelinquencyinthePaymentoftheRealPropertyTax.‐(a)WhentherealpropertytaxoranyothertaximposedunderthisTitlebecomesdelinquent,theprovincial, city ormunicipal treasurer shall immediately cause anotice of thedelinquency tobepostedat themainentranceof theprovincial capitol, or cityormunicipalhallandinapubliclyaccessibleandconspicuousplaceineachbarangayof the local government unit concerned. The notice of delinquency shall also bepublished once aweek for two (2) consecutiveweeks, in a newspaper of generalcirculationintheprovince,city,ormunicipality.

(b) Suchnotice shall specify thedateuponwhich the taxbecamedelinquent andshall state that personal property may be distrained to effect payment. It shalllikewisestatethatatanytimebeforethedistraintofpersonalproperty,paymentofthetaxwithsurcharges,interestsandpenaltiesmaybemadeinaccordancewiththenextfollowingSection,andunlessthetax,surchargesandpenaltiesarepaidbeforethe expiration of the year for which the tax is due except when the notice ofassessmentorspeciallevyiscontestedadministrativelyorjudiciallypursuanttotheprovisionsofChapter3,Title II,Book IIof thisCode, thedelinquentrealpropertywill be sold at public auction, and the title to the property will be vested in thepurchaser,subject,however,totherightofthedelinquentownerofthepropertyoranypersonhavinglegalinterestthereintoredeemthepropertywithinone(1)yearfromthedateofsale.

Page 126: Local Government Code of 1991 (RA 7160)

SEC.255.InterestsonUnpaidRealPropertyTax.‐IncaseoffailuretopaythebasicrealpropertytaxoranyothertaxleviedunderthisTitleupontheexpirationoftheperiodsasprovidedinSection250,orwhendue,asthecasemaybe,shallsubjectthetaxpayertothepaymentofinterestattherateoftwopercent(2%)permonthontheunpaidamountorafractionthereof,untilthedelinquenttaxshallhavebeenfullypaid:Provided,however,Thatinnocaseshallthetotalinterestontheunpaidtaxorportionthereofexceedthirty‐six(36)months.

SEC.256.RemediesForTheCollectionOfRealPropertyTax.‐Forthecollectionofthe basic real property tax and any other tax levied under this Title, the localgovernmentunitconcernedmayavailoftheremediesbyadministrativeactionthrulevyonrealpropertyorbyjudicialaction.

SEC.257.LocalGovernmentsLien. ‐Thebasicrealproperty taxandanyother taxleviedunderthisTitleconstitutesalienonthepropertysubjecttotax,superiortoallliens,chargesorencumbrancesinfavorofanyperson,irrespectiveoftheownerorpossessorthereof,enforceablebyadministrativeorjudicialaction,andmayonlybeextinguisheduponpaymentofthetaxandtherelatedinterestsandexpenses.

SEC.258.LevyonRealProperty. ‐Aftertheexpirationofthetimerequiredtopaythe basic real property tax or any other tax levied under this Title, real propertysubject to such taxmay be levied upon through the issuance of a warrant on orbefore,orsimultaneouslywith,theinstitutionofthecivilactionforthecollectionofthedelinquenttax.Theprovincialorcitytreasurer,oratreasurerofamunicipalitywithintheMetropolitanManilaArea,asthecasemaybe,whenissuingawarrantoflevy shall prepare a duly authenticated certificate showing the name of thedelinquent owner of the property or person having legal interest therein, thedescriptionoftheproperty,theamountofthetaxdueandtheinterestthereon.Thewarrant shalloperatewith the forceofa legalexecution throughout theprovince,city or amunicipalitywithin theMetropolitanManila Area. Thewarrant shall bemailed to or served upon the delinquent owner of the real property or personhavinglegalinteresttherein,orincaseheisoutofthecountryorcannotbelocated,totheadministratororoccupantoftheproperty.Atthesametime,writtennoticeofthe levywiththeattachedwarrantshallbemailedtoorservedupontheassessorand the Registrar of Deeds of the province, city or a municipality within theMetropolitanManilaAreawherethepropertyislocated,whoshallannotatethelevyon the tax declaration and certificate of title of the property, respectively. Thelevyingofficershallsubmitareportonthelevytothesanggunianconcernedwithinten(10)daysafterreceiptof thewarrantby theownerof thepropertyorpersonhavinglegalinteresttherein.

Page 127: Local Government Code of 1991 (RA 7160)

SEC.259.Penalty forFailureto IssueandExecuteWarrant. ‐WithoutprejudicetocriminalprosecutionundertheRevisedPenalCodeandotherapplicable laws,anylocaltreasurerorhisdeputywhofailstoissueorexecutethewarrantoflevywithinone (1)year from the time the taxbecomesdelinquentorwithin thirty (30)daysfromthedateoftheissuancethereof,orwhoisfoundguiltyofabusingtheexercisethereof in an administrative or judicial proceeding shall be dismissed from theservice.

SEC. 260. Advertisement and Sale. ‐ Within thirty (30) days after service of thewarrant of levy, the local treasurer shall proceed to publicly advertise for sale orauctionthepropertyorausableportionthereofasmaybenecessarytosatisfythetaxdelinquencyandexpensesofsale.Theadvertisementshallbeeffectedbypostinganoticeatthemainentranceoftheprovincial,cityormunicipalbuilding,andinapubliclyaccessibleandconspicuousplaceinthebarangaywheretherealpropertyislocated,andbypublicationonceaweekfortwo(2)weeksinanewspaperofgeneralcirculation intheprovince,cityormunicipalitywheretheproperty is located.Theadvertisement shall specify the amount of the delinquent tax, the interest duethereonandexpensesofsale, thedateandplaceofsale, thenameoftheownerofthe real propertyorpersonhaving legal interest therein, and adescriptionof thepropertytobesold.Atanytimebeforethedatefixedforthesale,theowneroftherealpropertyorpersonhaving legal interest thereinmaystay theproceedingsbypaying the delinquent tax, the interest due thereon and the expenses of sale. Thesale shall be held either at themain entrance of the provincial, city ormunicipalbuilding, or on the property to be sold, or at any other place as specified in thenoticeof the sale.Within thirty (30)days after the sale, the local treasurerorhisdeputyshallmakeareportofthesaletothesanggunianconcerned,andwhichshallformpartofhisrecords.Thelocaltreasurershalllikewiseprepareanddelivertothepurchaser a certificate of sale which shall contain the name of the purchaser, adescriptionofthepropertysold,theamountofthedelinquenttax,theinterestduethereon, theexpensesofsaleandabriefdescriptionof theproceedings:Provided,however,Thatproceedsofthesaleinexcessofthedelinquenttax,theinterestduethereon,andtheexpensesofsaleshallberemittedtotheowneroftherealpropertyorpersonhavinglegalinteresttherein.Thelocaltreasurermay,byordinancedulyapproved, advance an amount sufficient to defray the costs of collection thru theremedies provided for in this Title, including the expenses of advertisement andsale.

SEC.261.RedemptionofPropertySold.‐Withinone(1)yearfromthedateofsale,theownerofthedelinquentrealpropertyorpersonhavinglegalinteresttherein,orhisrepresentative,shallhavetherighttoredeemthepropertyuponpaymenttothelocal treasurer of the amount of the delinquent tax, including the interest due

Page 128: Local Government Code of 1991 (RA 7160)

thereon,andtheexpensesofsale fromthedateofdelinquencytothedateofsale,plus interestofnotmorethantwopercent(2%)permonthonthepurchasepricefromthedateofsale to thedateofredemption.Suchpaymentshall invalidate thecertificate of sale issued to the purchaser and the owner of the delinquent realpropertyorpersonhaving legal interestthereinshallbeentitledtoacertificateofredemptionwhichshallbeissuedbythelocaltreasurerorhisdeputy.Fromthedateofsaleuntiltheexpirationoftheperiodofredemption,thedelinquentrealpropertyshallremaininthepossessionoftheownerorpersonhavinglegalinterestthereinwhoshallbeentitledtotheincomeandotherfruitsthereof.Thelocaltreasurerorhisdeputy,uponreceiptfromthepurchaserofthecertificateofsale,shallforthwithreturntothelattertheentireamountpaidbyhimplusinterestofnotmorethantwopercent(2%)permonth.Thereafter,thepropertyshallbefreefromthelienofsuchdelinquenttax,interestduethereonandexpensesofsale.

SEC. 262. Final Deed to Purchaser. ‐ In case the owner or person having legalinterestthereinfailstoredeemthedelinquentpropertyasprovidedherein,thelocaltreasurershallexecuteadeedconveyingtothepurchasersaidproperty,freefromlienofthedelinquenttax,interestduethereonandexpensesofsale.Thedeedshallbrieflystatetheproceedingsuponwhichthevalidityofthesalerests.

SEC.263.PurchaseofPropertyBytheLocalGovernmentUnitsforWantofBidder.‐In case there is no bidder for the real property advertised for sale as providedherein,orifthehighestbidisforanamountinsufficienttopaytherealpropertytaxandtherelatedinterestandcostsofsalethelocaltreasurerconductingthesaleshallpurchase theproperty inbehalf of the local governmentunit concerned to satisfytheclaimandwithintwo(2)daysthereaftershallmakeareportofhisproceedingswhich shall be reflected upon the records of his office. It shall be the duty of theRegistrar of Deeds concerned upon registration with his office of any suchdeclaration of forfeiture to transfer the title of the forfeited property to the localgovernment unit concerned without the necessity of an order from a competentcourt.Withinone(1)yearfromthedateofsuchforfeiture,thetaxpayeroranyofhisrepresentative,may redeem the property by paying to the local treasurer the fullamountoftherealpropertytaxandtherelatedinterestandthecostsofsale.Iftheproperty isnot redeemedasprovidedherein, theownership thereofshallbe fullyvestedonthelocalgovernmentunitconcerned.

SEC.264.ResaleofRealEstateTakenforTaxes,Fees,orCharges.‐Thesanggunianconcerned may, by ordinance duly approved, and upon notice of not less thantwenty(20)days,sellanddisposeoftherealpropertyacquiredundertheprecedingsectionatpublicauction.Theproceedsofthesaleshallaccruetothegeneralfundofthelocalgovernmentunitconcerned.

Page 129: Local Government Code of 1991 (RA 7160)

SEC.265.FurtherDistraintorLevy.‐Levymayberepeatedifnecessaryuntilthefullamountdue,includingallexpenses,iscollected.

SEC. 266. Collection of Real Property Tax Through the Courts. ‐ The localgovernmentunitconcernedmayenforcethecollectionofthebasicrealpropertytaxor any other tax levied under this Title by civil action in any court of competentjurisdiction.The civil action shall be filedby the local treasurerwithin theperiodprescribedinSection270ofthisCode.

SEC.267.ActionAssailingValidityofTaxSale.‐Nocourtshallentertainanyactionassailingthevalidityofanysaleatpublicauctionofrealpropertyorrightsthereinunder thisTitleuntil the taxpayershallhavedepositedwith thecourt theamountforwhichtherealpropertywassold,togetherwithinterestoftwopercent(2%)permonthfromthedateofsaletothetimeoftheinstitutionoftheaction.Theamountsodepositedshallbepaidtothepurchaserattheauctionsaleifthedeedisdeclaredinvalidbutitshallbereturnedtothedepositoriftheactionfails.Neithershallanycourt declare a sale at public auction invalid by reason of irregularities orinformalities in the proceedings unless the substantive rights of the delinquentowner of the real property or the person having legal interest therein have beenimpaired.

SEC.268.PaymentofDelinquentTaxesonPropertySubjectofControversy.‐Inanyactioninvolvingtheownershiporpossessionof,orsuccessionto,realproperty,thecourtmay,motupropiooruponrepresentationoftheprovincial,city,ormunicipaltreasurer or his deputy, award such ownership, possession, or succession to anypartytotheactionuponpaymenttothecourtofthetaxeswithinterestdueonthepropertyandallothercoststhatmayhaveaccrued,subjecttothefinaloutcomeoftheaction.

SEC. 269. Treasurer to Certify Delinquencies Remaining Uncollected. ‐ Theprovincial,cityormunicipaltreasurerortheirdeputiesshallprepareacertifiedlistofallrealpropertytaxdelinquencieswhichremaineduncollectedorunpaidforatleastone(1)year inhis jurisdiction,andastatementof thereasonorreasons forsuchnon‐collectionornon‐payment,andshall submit thesame to thesanggunianconcerned on or before December thirty‐first (31st) of the year immediatelysucceeding the year inwhich the delinquencieswere incurred,with a request forassistanceintheenforcementoftheremediesforcollectionprovidedherein.

Page 130: Local Government Code of 1991 (RA 7160)

SEC. 270. PeriodsWithinWhich To Collect Real Property Taxes. ‐ The basic realpropertytaxandanyothertaxleviedunderthisTitleshallbecollectedwithinfive(5) years from the date they become due. No action for the collection of the tax,whether administrative or judicial, shall be instituted after the expiration of suchperiod. Incaseof fraudor intent toevadepaymentof the tax, suchactionmaybeinstitutedforthecollectionofthesamewithinten(10)yearsfromthediscoveryofsuchfraudor intenttoevadepayment.Theperiodofprescriptionwithinwhichtocollectshallbesuspendedforthetimeduringwhich:

(1)Thelocaltreasurerislegallypreventedfromcollectingthetax;

(2)Theownerofthepropertyorthepersonhavinglegalinterestthereinrequestsfor reinvestigation and executes a waiver in writing before the expiration of theperiodwithinwhichtocollect;and

(3)Theownerofthepropertyorthepersonhavinglegalinterestthereinisoutofthecountryorotherwisecannotbelocated.

CHAPTER7‐DISPOSITIONOFPROCEEDS

SEC. 271. Distribution of Proceeds. ‐ The proceeds of the basic real property tax,including interestthereon,andproceedsfromtheuse, leaseordisposition,saleorredemption of property acquired at a public auction in accordance with theprovisions of this Title by the province or city or a municipality within theMetropolitanManilaAreashallbedistributedasfollows:

(a)Inthecaseofprovinces:

(1)province‐Thirty‐fivepercent(35%)shallaccruetothegeneralfund;

(2) municipality ‐ Forty percent (40%) to the general fund of the municipalitywherethepropertyislocated;and

Page 131: Local Government Code of 1991 (RA 7160)

(3)barangay‐Twenty‐fivepercent(25%)shallaccruetothebarangaywherethepropertyislocated.

(b)Inthecaseofcities:

(1)city‐Seventypercent(70%)shallaccruetothegeneralfundofthecity;and

(2)Thirtypercent(30%)shallbedistributedamongthecomponentbarangaysofthecitieswherethepropertyislocatedinthefollowingmanner:

(i)Fiftypercent(50%)shallaccruetothebarangaywherethepropertyislocated;

(ii)Fiftypercent(50%)shallaccrueequallytoallcomponentbarangaysofthecity;and

(c)InthecaseofamunicipalitywithintheMetropolitanManilaArea:

(1)MetropolitanManilaAuthority ‐Thirty‐fivepercent (35%) shall accrue to thegeneralfundoftheauthority;

(2)municipality‐Thirty‐fivepercent(35%)shallaccruetothegeneralfundofthemunicipalitywherethepropertyislocated;

(3) barangays ‐ Thirty percent (30%) shall be distributed among the componentbarangays of the municipality where the property is located in the followingmanner:

(i)Fiftypercent(50%)shallaccruetothebarangaywherethepropertyislocated;

Page 132: Local Government Code of 1991 (RA 7160)

(ii) Fifty percent (50%) shall accrue equally to all component barangays of themunicipality.

(d) The share of each barangay shall be released, without need of any furtheraction,directly to thebarangaytreasureronaquarterlybasiswithin five(5)daysafter the end of each quarter and shall not be subject to any lien or holdback forwhateverpurpose.

SEC. 272. Application of Proceeds of the Additional One Percent SEF Tax. ‐ Theproceedsfromtheadditionalonepercent(1%)taxonrealpropertyaccruingtotheSpecial Education Fund (SEF) shall be automatically released to the local schoolboards:Provided,That, incaseofprovinces, theproceedsshallbedividedequallybetween theprovincial andmunicipal schoolboards:Provided,however,That theproceeds shall be allocated for the operation andmaintenance of public schools,construction and repair of school buildings, facilities and equipment, educationalresearch,purchaseofbooksandperiodicals,andsportsdevelopmentasdeterminedandapprovedbytheLocalSchoolBoard.

SEC.273.Proceedsof theTaxon IdleLands. ‐Theproceedsof theadditional realpropertytaxonidlelandsshallaccruetotherespectivegeneralfundoftheprovinceor city where the land is located. In the case of a municipality within theMetropolitan Manila Area, the proceeds shall accrue equally to the MetropolitanManilaAuthorityandthemunicipalitywherethelandislocated.

SEC.274.ProceedsoftheSpecialLevy. ‐Theproceedsofthespecial levyon landsbenefited by public works, projects and other improvements shall accrue to thegeneral fund of the local government unit which financed such public works,projectsorotherimprovements.

CHAPTER8‐SPECIALPROVISIONS

SEC. 275. General Assessment Revision; Expenses Incident Thereto. ‐ Thesanggunian of provinces, cities andmunicipalitieswithin theMetropolitanManilaAreashallprovidethenecessaryappropriationstodefraytheexpensesincidenttothegeneralrevisionofrealpropertyassessment.Allexpensesincidenttoageneralrevision of real property assessments shall, by ordinance of the sangguniangpanlalawigan, be apportioned between the province and the municipality on thebasisofthetaxableareaofthemunicipalityconcerned.

Page 133: Local Government Code of 1991 (RA 7160)

SEC.276.CondonationorReductionofRealPropertyTaxandInterest.‐Incaseofageneral failure of crops or substantial decrease in the price of agricultural oragribased products, or calamity in any province, city, or municipality, thesanggunianconcerned,byordinancepassedpriortothefirst(1st)dayofJanuaryofanyyearanduponrecommendationoftheLocalDisasterCoordinatingCouncil,maycondone or reduce, wholly or partially, the taxes and interest thereon for thesucceedingyearoryearsinthecityormunicipalityaffectedbythecalamity.

SEC.277.CondonationorReductionofTaxbythePresidentofthePhilippines.‐ThePresident of the Philippines may, when public interest so requires, condone orreduce therealproperty taxand interest foranyyear inanyprovinceorcityoramunicipalitywithintheMetropolitanManilaArea.

SEC.278.DutyofRegistrarofDeedsandNotariesPublictoAssisttheProvincial,CityorMunicipalAssessor. ‐ ItshallbethedutyoftheRegistrarofDeedsandnotariespublic to furnish the provincial, city or municipal assessor with copies of allcontracts selling, transferring, orotherwise conveying, leasing, ormortgaging realpropertyreceivedby,oracknowledgedbeforethem.

SEC.279. InsuranceCompaniestoFurnishInformation. ‐ Insurancecompaniesareherebyrequired to furnish theprovincial, cityormunicipalassessorcopiesofanycontractorpolicyinsuranceonbuildings,structures,andimprovementsinsuredbythemorsuchotherdocumentswhichmaybenecessaryfortheproperassessmentthereof.

SEC.280.FeesinCourtActions.‐Allcourtactions,criminalorcivil,institutedattheinstance of the provincial, city or municipal treasurer or assessor under theprovisionsofthisCode,shallbeexemptfromthepaymentofcourtandsheriff'sfees.

SEC.281.Fees inRegistrationofPapersorDocumentsonSaleofDelinquentRealPropertytoprovince,Cityormunicipality.‐Allcertificates,documents,andpaperscovering the sale of delinquent property to the province, city or municipality, ifregisteredintheRegistryofProperty,shallbeexemptfromthedocumentarystamptaxandregistrationfees.

Page 134: Local Government Code of 1991 (RA 7160)

SEC.282.RealPropertyAssessmentNoticesorOwner'sCopiesofTaxDeclarationstobeExemptfromPostalChargesorFees.‐Allrealpropertyassessmentnoticesorowner's copies of tax declaration sent through themails by the assessor shall beexemptfromthepaymentofpostalchargesorfees.

SEC. 283. Sale and Forfeiture Before Effectivity of Code. ‐ Tax delinquenciesincurred,andsalesand forfeituresofdelinquentrealpropertyeffected,before theeffectivityofthisCodeshallbegovernedbytheprovisionsofapplicablelawstheninforce.

TITLE III. ‐ SHARES OF LOCAL GOVERNMENT UNITS IN THE PROCEEDS OFNATIONALTAXES

CHAPTER1‐ALLOTMENTOFINTERNALREVENUE

SEC.284.AllotmentofInternalRevenueTaxes.‐Localgovernmentunitsshallhaveashareinthenationalinternalrevenuetaxesbasedonthecollectionofthethirdfiscalyearprecedingthecurrentfiscalyearasfollows:

(a)OnthefirstyearoftheeffectivityofthisCode,thirtypercent(30%);

(b)Onthesecondyear,thirty‐fivepercent(35%);and

(c) On the third year and thereafter, forty percent (40%). Provided, That in theevent that the national government incurs an unmanageable public sector deficit,thePresidentofthePhilippinesisherebyauthorized,upontherecommendationofSecretaryofFinance,Secretaryof InteriorandLocalGovernmentandSecretaryofBudgetandManagement,andsubjecttoconsultationwiththepresidingofficersofboth Houses of Congress and the presidents of the liga, to make the necessaryadjustments in the internal revenueallotmentof localgovernmentunitsbut innocase shall the allotment be less than thirty percent (30%) of the collection ofnational internalrevenuetaxesof the third fiscalyearprecedingthecurrent fiscalyear:Provided,furtherThatinthefirstyearoftheeffectivityofthisCode,thelocalgovernment units shall, in addition to the thirty percent (30%) internal revenueallotment which shall include the cost of devolved functions for essential publicservices, be entitled to receive the amount equivalent to the cost of devolvedpersonalservices.

Page 135: Local Government Code of 1991 (RA 7160)

SEC. 285. Allocation to Local Government Units. ‐ The share of local governmentunitsintheinternalrevenueallotmentshallbeallocatedinthefollowingmanner:

(a)Provinces‐Twenty‐threepercent(23%);

(b)Cities‐Twenty‐threepercent(23%);

(c)Municipalities‐Thirty‐fourpercent(34%);and

(d)barangays‐Twentypercent(20%)Provided,however,That theshareofeachprovince, city, andmunicipality shall be determined on the basis of the followingformula:

(a)Population‐Fiftypercent(50%);

(b)LandArea‐Twenty‐fivepercent(25%);and

(c)Equalsharing‐Twenty‐fivepercent(25%)Provided,further,Thattheshareofeach barangaywith a population of not less than one hundred (100) inhabitantsshallnotbe lessthanEightythousandpesos(P=80,000.00)perannumchargeableagainstthetwentypercent(20%)shareofthebarangayfromtheinternalrevenueallotment,andthebalancetobeallocatedonthebasisofthefollowingformula:

(a)OnthefirstyearoftheeffectivityofthisCode:

(1)Population‐Fortypercent(40%);and

(2)EqualSharing‐Sixtypercent(60%)

(b)Onthesecondyear:

Page 136: Local Government Code of 1991 (RA 7160)

(1)Population‐Fiftypercent(50%);and

(2)EqualSharing‐Fiftypercent(50%)

(c)Onthethirdyearandthereafter:

(1)Population‐Sixtypercent(60%);and

(2) Equal Sharing ‐ Forty percent (40%). Provided, finally, That the financialrequirementsofbarangayscreatedbylocalgovernmentunitsaftertheeffectivityofthisCodeshallbetheresponsibilityofthelocalgovernmentunitconcerned.

SEC.286.AutomaticReleaseofShares.‐(a)Theshareofeachlocalgovernmentunitshallbereleased,withoutneedofanyfurtheraction,directlytotheprovincial,city,municipalorbarangaytreasurer,asthecasemaybe,onaquarterlybasiswithinfive(5)daysaftertheendofeachquarter,andwhichshallnotbesubjecttoanylienorholdbackthatmaybeimposedbythenationalgovernmentforwhateverpurpose.

(b) Nothing in this Chapter shall be understood to diminish the share of localgovernmentunitsunderexistinglaws.

SEC. 287. Local Development Projects. ‐ Each local government unit shallappropriate in its annual budget no less than twenty percent (20%) of its annualinternal revenue allotment for development projects. Copies of the developmentplansof localgovernmentunits shallbe furnished theDepartmentof InteriorandLocalGovernment.

SEC.288.RulesandRegulations.‐TheSecretaryofFinance,inconsultationwiththeSecretary of Budget and Management, shall promulgate the necessary rules andregulations for a simplified disbursement scheme designed for the speedy andeffectiveenforcementoftheprovisionsofthisChapter.

Page 137: Local Government Code of 1991 (RA 7160)

CHAPTER2‐SHAREOFLOCALGOVERNMENTUNITSINTHENATIONALWEALTH

SEC. 289. Share in the Proceeds from the Development and Utilization of theNational Wealth. ‐ Local government units shall have an equitable share in theproceeds derived from the utilization and development of the national wealthwithin their respective areas, including sharing the samewith the inhabitants bywayofdirectbenefits.

SEC. 290. Amount of Share of Local Government Units. ‐ Local government unitsshall, in addition to the internal revenue allotment, have a share of forty percent(40%) of the gross collection derived by the national government from theprecedingfiscalyearfromminingtaxes,royalties,forestryandfisherycharges,andsuchother taxes, fees, or charges, including related surcharges, interests, or fines,and from its share in any co‐production, joint venture or production sharingagreement in the utilization and development of the nationalwealthwithin theirterritorialjurisdiction.

SEC.291.ShareoftheLocalGovernmentsfromanyGovernmentAgencyor‐Ownedand‐ControlledCorporation.‐Localgovernmentunitsshallhaveasharebasedonthepreceding fiscalyear fromtheproceedsderivedbyanygovernmentagencyorgovernment‐owned or ‐controlled corporation engaged in the utilization anddevelopmentofthenationalwealthbasedonthefollowingformulawhicheverwillproduceahighershareforthelocalgovernmentunit:

(a)Onepercent(1%)ofthegrosssalesorreceiptsoftheprecedingcalendaryear;or

(b)Fortypercent(40%)oftheminingtaxes,royalties,forestryandfisherychargesand such other taxes, fees or charges, including related surcharges, interests, orfines the government agency or government ‐owned or ‐controlled corporationwouldhavepaidifitwerenototherwiseexempt.

SEC. 292. Allocation of Shares. ‐ The share in the preceding Section shall bedistributedinthefollowingmanner:

(a)Wherethenaturalresourcesarelocatedintheprovince

Page 138: Local Government Code of 1991 (RA 7160)

(1)province‐Twentypercent(20%);

(2)Componentcity/municipality‐Forty‐fivepercent(45%);and

(3) barangay ‐ Thirty‐five percent (35%) Provided, however, That where thenaturalresourcesare located in two(2)ormoreprovinces,or in two(2)ormorecomponentcitiesormunicipalitiesorintwo(2)ormorebarangays,theirrespectivesharesshallbecomputedonthebasisof:

(1)Population‐Seventypercent(70%);and

(2)Landarea‐Thirtypercent(30%).

(b)Wherethenaturalresourcesare locatedinahighlyurbanizedor independentcomponentcity:

(1)city‐Sixty‐fivepercent(65%);and

(2) barangay ‐ Thirty‐five percent (35%) Provided, however, That where thenaturalresourcesarelocatedinsuchtwo(2)ormorecities,theallocationofsharesshallbebasedontheformulaonpopulationandlandareaasspecifiedinparagraph(a)ofthisSection.

SEC. 293Remittance of the Share of LocalGovernmentUnits. ‐ The share of localgovernmentunitsfromtheutilizationanddevelopmentofnationalwealthshallberemitted in accordancewith Section286of thisCode:Provided, however,That inthe case of any government agency or government‐owned or ‐controlledcorporationengagedintheutilizationanddevelopmentofthenationalwealth,suchshare shall be directly remitted to the provincial, city, municipal or barangaytreasurerconcernedwithinfive(5)daysaftertheendofeachquarter.

SEC. 294.Development andLivelihoodProjects. ‐ Theproceeds from the share oflocal government units pursuant to this chapter shall be appropriated by their

Page 139: Local Government Code of 1991 (RA 7160)

respective sanggunian to finance local development and livelihood projects:Provided,however,Thatatleasteightypercent(80%)oftheproceedsderivedfromthedevelopmentandutilizationofhydrothermal,geothermal,andothersourcesofenergyshallbeappliedsolelytolowerthecostofelectricityinthelocalgovernmentunitwheresuchasourceofenergyislocated.

TITLEIV.‐CREDITFINANCING

SEC. 295. Scope. ‐ This Title shall govern the power of local government units tocreateindebtednessandtoenterintocreditandotherfinancialtransactions.

SEC.296.GeneralPolicy.‐(a)Itshallbethebasicpolicythatanylocalgovernmentunit may create indebtedness, and avail of credit facilities to finance localinfrastructureandother socio‐economicdevelopmentprojects in accordancewiththeapprovedlocaldevelopmentplanandpublicinvestmentprogram.

(b)A local governmentunitmayavailof credit lines fromgovernmentorprivatebanksandlendinginstitutionsforthepurposeofstabilizinglocalfinances.

SEC. 297. Loans, Credits, and Other Forms of Indebted ness of Local GovernmentUnits.‐(a)Alocalgovernmentunitmaycontractloans,credits,andotherformsofindebtedness with any government or domestic private bank and other lendinginstitutions to finance the construction, installation, improvement, expansion,operation, or maintenance of public facilities, infrastructure facilities, housingprojects, the acquisition of real property, and the implementation of other capitalinvestmentprojects,subjecttosuchtermsandconditionsasmaybeagreeduponbythelocalgovernmentunitandthelender.Theproceedsfromsuchtransactionsshallaccruedirectlytothelocalgovernmentunitconcerned.

(b)A local governmentunitmay likewise secure fromany governmentbank andlending institution short, medium and long‐term loans and advances againstsecurity of real estate or other acceptable assets for the establishment,development, or expansionof agricultural, industrial, commercial, house financingprojects,livelihoodprojects,andothereconomicenterprises.

Page 140: Local Government Code of 1991 (RA 7160)

(c) Government financial and other lending institutions are hereby authorized tograntloans,credits,andotherformsofindebtednessoutoftheirloanablefundstolocalgovernmentunitsforpurposesspecifiedabove.

SEC. 298. Deferred‐Payment and other Financial Schemes. ‐ Provincial, city andmunicipal governments may likewise acquire property, plant, machinery,equipment, and such necessary accessories under a supplier's credit, deferredpaymentplan,orotherfinancialscheme.

SEC. 299. Bonds and Other Long‐Term Securities. ‐ Subject to the rules andregulations of the Central Bank and the Securities and Exchange Commission,provinces, cities, and municipalities are hereby authorized to issue bonds,debentures, securities, collaterals, notes and other obligations to finance self‐liquidating, income‐producing development or livelihood projects pursuant to thepriorities established in the approved local development plan or the publicinvestment program. The sanggunian concerned shall, through an ordinanceapproved by a majority of all its members, declare and state the terms andconditionsofthebondsandthepurposeforwhichtheproposedindebtednessistobeincurred.

SEC. 300. Inter‐Local Government Loans, Grants, and Subsidies. ‐ provinces, citiesand municipalities may, upon approval of the majority of all members of thesanggunian concerned and in amounts not exceeding their surplus funds, extendloans, grants, or subsidies to other local government units under such terms andconditions as may be agreed upon by the contracting parties. Local governmentunits may, upon approval of their respective sanggunian, jointly or severallycontract loans, credits, and other forms of indebtedness for purposes mutuallybeneficialtothem.

SEC. 301. Loans from Funds Secured by the National Government from ForeignSources.‐(a)ThePresident,orhisdulyauthorizedrepresentative,may,throughanygovernment financial or other lending institution, relend to any province, city,municipality, or barangay, the proceeds of loans contractedwith foreign financialinstitutionsorotherinternationalfundingagenciesforthepurposeoffinancingtheconstruction, installation, improvement, expansion, operation, or maintenance ofpublic utilities and facilities, infrastructure facilities, or housing projects, theacquisition of real property, and the implementation of other capital investmentprojects, subject to such terms and conditions as may be agreed upon by thePresidentandthelocalgovernmentunit.Theproceedsfromsuchloansshallaccruedirectlytothelocalgovernmentconcerned.

Page 141: Local Government Code of 1991 (RA 7160)

(b)ThePresidentmay likewiseauthorize therelendingto localgovernmentunitsthe proceeds of grants secured from foreign sources, subject to the provisions ofexistinglawsandtheapplicablegrantagreements.

(c)Repaymentoramortizationofloansincludingaccruedinterestthereon,maybefinanced partly from the income of the projects or services and from the regularincomeofthelocalgovernmentunit,whichmustbeprovidedforandappropriatedregularlyinitsannualbudgetuntiltheloanandtheinterestthereonshallhavebeenfullypaid.

SEC. 302. Financing, Construction, Maintenance, Operation, and Management ofInfrastructureProjectsbythePrivateSector.‐(a)Localgovernmentunitsmayenterinto contracts with any duly prequalified individual contractor, for the financing,construction, operation, and maintenance of any financially viable infrastructurefacilities,underthebuild‐operate‐and‐transferagreement,subjecttotheapplicableprovisionsofRepublicActNumberedSixty‐ninehundredfifty‐seven(R.A.No.6957)authorizingthefinancing,construction,operationandmaintenanceofinfrastructureprojectsbytheprivatesectorandtherulesandregulationsissuedthereunderandsuchtermsandconditionsprovidedinthisSection.

(b)Localgovernmentunitsshallincludeintheirrespectivelocaldevelopmentplansandpublicinvestmentprogramspriorityprojectsthatmaybefinanced,constructed,operated andmaintained by the private sector under this Section. It shall be theduty of the local government unit concerned to disclose to the public all projectseligible for financing under this Section, including official notification of dulyregisteredcontractorsandpublicationinnewspapersofgeneralorlocalcirculationand in conspicuous and accessible public places. Local projects under the build‐operate‐and‐transfer agreement shall be confirmed by the local developmentcouncils.

(c)ProjectsimplementedunderthisSectionshallbesubjecttothefollowingtermsandconditions:

(1) The provincial, city, or municipal engineer, as the casemay be, upon formalrequest in writing by the local chief executive, shall prepare the plans andspecificationsfortheproposedproject,whichshallbesubmittedtothesanggunianforapproval.

Page 142: Local Government Code of 1991 (RA 7160)

(2) Upon approval by the sanggunian of the project plans and specifications, theprovincial, city, or municipal engineer shall, as the case may be, cause to bepublishedonceeveryweek for two(2)consecutiveweeks inat leastone(1) localnewspaperwhichiscirculatedintheregion,province,cityormunicipalityinwhichtheproject is tobe implemented,anotice invitingalldulyqualifiedcontractors toparticipate inapublicbidding for theprojectssoapproved.Theconductofpublicbidding and award of contracts for local government projects under this Sectionshall be in accordance with this Code and other applicable laws, rules andregulations.

In the case of a build‐operate‐and‐transfer agreement, the contract shall beawardedtothelowestcomplyingbidderwhoseofferisdeemedmostadvantageousto the localgovernmentandbasedonthepresentvalueof itsproposedtolls, fees,rentals, and chargesover a fixed term for the facility tobe constructed, operated,and maintained according to the prescribed minimum design and performancestandards,plans,andspecifications.Forthispurpose, thewinningcontractorshallbeautomatically grantedby the local governmentunit concerned the franchise tooperateandmaintainthefacility, includingthecollectionoftolls, fees,rentals,andchargesinaccordancewithsubsection(c‐4)hereof.

In the case of a build‐operate‐and‐transfer agreement, the contract shall beawardedtothelowestcomplyingbidderbasedonthepresentvalueofitsproposedscheduleofamortizationpaymentsforthefacilitytobeconstructedaccordingtotheprescribedminimumdesignandperformancestandards,plans,andspecifications.

(3)Anycontractorwhoshallundertake theprosecutionofanyprojectunder thisSectionshallposttherequiredbondstoprotecttheinterestoftheprovince,city,ormunicipality,insuchamountsasmaybefixedbythesanggunianconcernedandtheprovincial, city, or municipal engineer shall not, as the case may be, allow anycontractor to initiate the prosecution of projects under this Section unless suchcontractorpresentsprooforevidencethathehaspostedtherequiredbond.

(4) The contractor shall be entitled to a reasonable return of its investment inaccordance with its bid proposal as accepted by the local government unitconcerned. In the case of a build‐operate‐and‐transfer agreement, the repaymentshallbemadebyauthorizingthecontractor tochargeandcollectreasonable tolls,fees, rentals, and charges for the use of the project facility not exceeding thoseproposed in the bid and incorporated in the contract: Provided, That the local

Page 143: Local Government Code of 1991 (RA 7160)

governmentunitconcernedshall,basedonreasonablenessandequity,approvethetolls,fees,rentalsandcharges:Provided,further,Thattheimpositionandcollectionoftolls, fees,rentalsandchargesshallbefora fixedperiodasproposedinthebidand incorporated in the contract which shall in no case exceed fifty (50) years:Provided, finally, That during the lifetime of the contract, the contractor shallundertakethenecessarymaintenanceandrepairof the facility inaccordancewithstandardsprescribedinthebiddingdocumentsandinthecontract.Inthecaseofabuild‐operate‐and‐transfer agreement, the repayment shall be made throughamortization payments in accordancewith the schedule proposed in the bid andincorporated in the contract. In case of land reclamation or construction ofindustrial estates, the repayment plan may consist of the grant of a portion orpercentageofthereclaimedlandortheindustrialestateconstructed.

(5)EveryinfrastructureprojectundertakenunderthisSectionshallbeconstructed,operated,andmaintainedbythecontractorunderthetechnicalsupervisionof thelocal governmentunit and in accordancewith theplans, specifications, standards,andcostsapprovedbyit.

(d)Theprovincial,cityormunicipal legalofficershall,asthecasemaybe,reviewthecontractsexecutedpursuanttothisSectiontodeterminetheirlegality,validity,enforceabilityandcorrectnessofform.

SEC. 303. Remedies and Sanctions. ‐ Local government units shall appropriate intheirrespectiveannualbudgetssuchamountsasaresufficienttopaytheloansandother indebtedness incurred or redeem or retire bonds, debentures, securities,notesandotherobligationsissuedunderthisTitle:Provided,Thatfailuretoprovidetheappropriationshereinrequiredshallrendertheirannualbudgetsinoperative.

TITLEFIVE.‐LOCALFISCALADMINISTRATION

CHAPTER1‐GENERALPROVISIONS

SEC.304.Scope.‐ThisTitleshallgoverntheconductandmanagementoffinancialaffairs, transactions, and operations of provinces, cities, municipalities, andbarangays.

SEC. 305. Fundamental Principles. ‐ The financial affairs, transactions, andoperations of local government units shall be governed by the followingfundamentalprinciples:

Page 144: Local Government Code of 1991 (RA 7160)

(a) No money shall be paid out of the local treasury except in pursuance of anappropriationsordinanceorlaw;

(b)Localgovernmentfundsandmoniesshallbespentsolelyforpublicpurposes;

(c) Local revenue is generated only from sources expressly authorized by law orordinance,andcollectionthereofshallatalltimesbeacknowledgedproperly;

(d)Allmoniesofficiallyreceivedbyalocalgovernmentofficerinanycapacityoronany occasion shall be accounted for as local funds, unless otherwise provided bylaw;

(e)Trustfundsinthelocaltreasuryshallnotbepaidoutexceptinfulfillmentofthepurposeforwhichthetrustwascreatedorthefundsreceived;

(f)Everyofficerof the local governmentunitwhosedutiespermit or require thepossessionorcustodyoflocalfundsshallbeproperlybonded,andsuchofficershallbe accountable and responsible for said funds and for the safekeeping thereof inconformitywiththeprovisionsoflaw;

(g)Localgovernmentsshallformulatesoundfinancialplans,andthelocalbudgetsshall be based on functions, activities, and projects, in terms of expected results;pmentplans,goals,andstrategies inorder tooptimize theutilizationofresourcesandtoavoidduplicationintheuseoffiscalandphysicalresources;

(i)Localbudgetsshalloperationalizeapprovedlocaldevelopmentplans;

(j) Local government units shall ensure that their respective budgets incorporatethe requirementsof their componentunitsandprovide forequitableallocationofresourcesamongthesecomponentunits;

Page 145: Local Government Code of 1991 (RA 7160)

(k)Nationalplanningshallbebasedonlocalplanningtoensurethattheneedsandaspirations of the people as articulated by the local government units in theirrespectivelocaldevelopmentplansareconsideredintheformulationofbudgetsofnationallineagenciesoroffices;

(l) Fiscal responsibility shall be shared by all those exercising authority over thefinancialaffairs,transactions,andoperationsofthelocalgovernmentunits;and

(m)The local governmentunit shall endeavor to have a balancedbudget in eachfiscalyearofoperation.

SEC.306.Definitions.‐WhenusedinthisTitle,theterm‐(a)"AnnualBudget"referstoafinancialplanembodyingtheestimatesofincomeandexpendituresforone(1)fiscalyear;

(b) "Appropriation" refers to an authorization made by ordinance, directing thepayment of goods and services from local government funds under specifiedconditionsorforspecificpurposes;

(c)"BudgetDocument"referstotheinstrumentusedbythelocalchiefexecutivetopresentacomprehensivefinancialplantothesanggunianconcerned;

(d) "Capital Outlays" refers to appropriations for the purchase of goods andservices, thebenefitsofwhichextendbeyondthe fiscalyearandwhichaddtotheassets of the local government unit concerned, including investments in publicutilitiessuchaspublicmarketsandslaughterhouses;

(e) "Continuing Appropriation" refers to an appropriation available to supportobligationsforaspecifiedpurposeorprojects,suchasthosefortheconstructionofphysicalstructuresorfortheacquisitionofrealpropertyorequipment,evenwhentheseobligationsareincurredbeyondthebudgetyear;

(f) "CurrentOperatingExpenditures" refers toappropriations for thepurchaseofgoods and services for the conductofnormal local governmentoperationswithin

Page 146: Local Government Code of 1991 (RA 7160)

the fiscalyear, includinggoodsandservicesthatwillbeusedorconsumedduringthebudgetyear;

(g)"ExpectedResults"referstotheservices,products,orbenefitsthatwillaccruetothepublic,estimatedintermsofperformancemeasuresorphysicaltargets;

(h)"Fund"referstoasumofmoney,orotherassetsconvertibletocash,setasidefor thepurposeof carryingout specificactivitiesorattainingcertainobjectives inaccordancewithspecial regulations, restrictions,or limitations,andconstitutesanindependentfiscalandaccountingentity;

(i) "Income" refers to all revenues and receipts collectedor received forming thegrossaccretionsoffundsofthelocalgovernmentunit;

(j)"Obligations"referstoanamountcommittedtobepaidbythelocalgovernmentunitforanylawfulactmadebyanaccountableofficerforandinbehalfofthelocalunitconcerned;

(k)"PersonalServices"referstoappropriationsforthepaymentofsalaries,wagesand other compensation of permanent, temporary, contractual, and casualemployeesofthelocalgovernmentunit;

(l) "Receipts" refers to incomerealized fromoperationsandactivitiesof the localgovernment or are received by it in the exercise of its corporate functions,consistingofchargesforservicesrendered,conveniencesfurnished,orthepriceofacommoditysold,aswellas loans, contributionsoraids fromotherentities,exceptprovisionaladvancesforbudgetarypurposes;and

(m) "Revenue" refers to income derived from the regular system of taxationenforced under authority of law or ordinance, and, as such, accrue more or lessregularlyeveryyear.

CHAPTER2‐LOCALANDOTHERSPECIALFUNDS

Page 147: Local Government Code of 1991 (RA 7160)

ArticleOne.‐Receipts,SafekeepingandDispositionofLocalFunds

SEC.307.RemittanceofGovernmentMoniestotheLocalTreasury.‐Officersofthelocal government authorized to receive and collect monies arising from taxes,revenues,orreceiptsofanykindshallremitthefullamountreceivedandcollectedto the treasury of such local government unit which shall be credited to theparticularaccountoraccountstowhichthemoniesinquestionproperlybelong.

SEC.308.LocalFunds.‐EverylocalgovernmentunitshallmaintainaGeneralFundwhichshallbeusedtoaccountforsuchmoniesandresourcesasmaybereceivedbyanddisbursedfromthelocaltreasury.TheGeneralFundshallconsistofmoniesandresources of the local government which are available for the payment ofexpenditures, obligationsorpurposesnot specificallydeclaredby lawas accruingandchargeableto,orpayablefrom,anyotherfund.

SEC. 309. Special Funds. ‐ There shall be maintained in every provincial, city, ormunicipaltreasurythefollowingspecialfunds:

(a)SpecialEducationFund(SEF)shallconsistoftherespectivesharesofprovinces,cities, municipalities and barangays in the proceeds of the additional tax on realproperty to be appropriated for purposes prescribed in Section 272 of this Code;and

(b) Trust Funds shall consist of private and public monies which have officiallycomeintothepossessionofthelocalgovernmentorofalocalgovernmentofficialastrustee,agentoradministrator,orwhichhavebeenreceivedasaguarantyforthefulfillment of some obligation. A trust fund shall only be used for the specificpurpose forwhich itwas created or forwhich it came into the possession of thelocalgovernmentunit.

SEC. 310. Separation of Books and Depository Accounts. ‐ Local accountants andtreasurersshallmaintainseparatebooksanddepositoryaccounts,respectively,foreachfundintheircustodyoradministrationundersuchrulesandregulationsastheCommissiononAuditmayprescribe.

SEC. 311. Depository Accounts. ‐ Local treasurers shall maintain depositoryaccounts in the name of their respective local government units with banks,

Page 148: Local Government Code of 1991 (RA 7160)

preferably government‐owned, located in or nearest to their respective areas ofjurisdiction.Earningsofeachdepositoryaccountshallaccrueexclusivelythereto.

SEC.312.SeparationofPersonalMoney fromPublicFunds. ‐Local treasurersandother accountable officers shall keep personalmonies separate and distinct fromlocalpublicfundsintheircustodyandshallnotmakeprofitoutofpublicmoneyorotherwiseapplythesametoanyusenotauthorizedbylaworordinance.

ArticleTwo.‐SpecialAccounts

SEC.313.SpecialAccountstobeMaintainedintheGeneralFund.‐Localgovernmentunitsshallmaintainspecialaccountsinthegeneralfundforthefollowing:

(a)Publicutilitiesandothereconomicenterprises;

(b)Loans,interests,bondissues,andothercontributionsforspecificpurposes;and

(c) Development projects funded from the share of the local government unitconcernedintheinternalrevenueallotmentandsuchotherspecialaccountswhichmaybecreatedbylaworordinance.Receipts,transfers,andexpendituresinvolvingthe foregoing special accounts shall be properly taken up thereunder. Profits orincome derived from the operation of public utilities and other economicenterprises, afterdeduction for the costof improvement, repair andother relatedexpenses of the public utility or economic enterprise concerned, shall first beappliedforthereturnoftheadvancesorloansmadetherefor.Anyexcessshallformpartofthegeneralfundofthelocalgovernmentunitconcerned.

CHAPTER3.‐BUDGETING

ArticleOne.‐LocalGovernmentBudgets

SEC.314.FormandContent.‐(a)Localgovernmentbudgetsshallprimarilyconsistoftwo(2)parts:

(1)Theestimatesofincome;and

Page 149: Local Government Code of 1991 (RA 7160)

(2) The total appropriations covering the current operating expenditures andcapitaloutlays.

(b)Thebudgetdocumentshallcontain:

(1) A budget message of the local chief executive setting forth in brief thesignificance of the executive budget, particularly in relation to the approved localdevelopmentplan;

(2)Abriefsummaryofthefunctions,projects,andactivitiestobeaccomplishedinpursuitofthegoalsandobjectivesofthelocalgovernmentunitfortheensuingfiscalyear, specifically the delivery of basic services or facilities enumerated underSection17ofthisCode;

(3)Summaryoffinancialstatementssettingforth:

(i)Theactualincomeandexpendituresduringtheimmediatelyprecedingyear;(ii)Theactualincomeandexpendituresofthefirsttwo(2)quartersandtheestimatesofincomeandexpendituresforthelasttwo(2)quartersofthecurrentfiscalyear;

(iii)Theestimatesof incomefortheensuingfiscalyearfromordinancesandlawsexisting at the time the proposed budget is transmitted, together with otherrevenue‐raisingproposals;

(iv)Theestimatedexpendituresnecessarytocarryoutthefunctions,projects,andactivitiesofthelocalgovernmentunitfortheensuingfiscalyear;

(v) All essential facts regarding the bonded and other long‐term obligations andindebtednessofthelocalgovernmentunit,ifany;

(vi)Summarystatementofallstatutoryandcontractualobligationsdue;and

Page 150: Local Government Code of 1991 (RA 7160)

(vii)Suchotherfinancialstatementsanddataasaredeemednecessaryordesirablein order to disclose in all practicable detail the financial condition of the localgovernmentunit.

SEC.315.SubmissionofDetailedStatementsofIncomeandExpenditures.‐(a)Onorbeforethefifteenth(15th)dayofJulyofeachyear,localtreasurersshallsubmittotheirrespectivelocalchiefexecutivesacertifiedstatementcoveringtheincomeandexpendituresoftheprecedingfiscalyear,theactualincomeandexpendituresofthefirst two (2) quarters of the current year, and the estimated income andexpendituresforthelasttwo(2)quartersofthecurrentyear.

SEC.316.LocalFinanceCommittee.‐Thereisherebycreatedineveryprovince,city,ormunicipalityalocalfinancecommitteetobecomposedofthelocalplanninganddevelopmentofficer,thelocalbudgetofficer,andthelocaltreasurer.Itshallexercisethefollowingfunctions:

(a)Determinetheincomereasonablyprojectedascollectiblefortheensuingfiscalyear;

(b) Recommend the appropriate tax and other revenuemeasures or borrowingswhichmaybeappropriatetosupportthebudget;

(c) Recommend to the local chief executive concerned the level of the annualexpendituresandtheceilingsofspendingforeconomic,social,andgeneralservicesbasedontheapprovedlocaldevelopmentplans;

(d) Recommend to the local chief executive concerned the proper allocation ofexpenditures for each development activity between current operatingexpendituresandcapitaloutlays;

(e)Recommendto the localchiefexecutiveconcernedtheamount tobeallocatedforcapitaloutlayundereachdevelopmentactivityorinfrastructureproject;

Page 151: Local Government Code of 1991 (RA 7160)

(f)Assist thesangguniangpanlalawiganinthereviewandevaluationofbudgetofcomponentcitiesandmunicipalitiesinthecaseofprovincialfinancecommittee,thebarangay budgets in the case of city or municipal finance committee, andrecommendtheappropriateactionthereon;

(g)Assist the sanggunian concerned in the analysis and reviewof annual regularand supplemental budgets of the respective local government unit to determinecompliancewithstatutoryandadministrativerequirements;and

(h) Conduct semi‐annual review and general examination of cost andaccomplishments against performance standards applied in undertakingdevelopment projects. A copy of this report shall be furnished the local chiefexecutive and the sanggunian concerned, and shall be posted in conspicuous andpubliclyaccessibleplacesintheprovinces,cities,municipalitiesandbarangays.

SEC.317.SubmissionofBudgetProposalsbyHeadsofDepartmentsorOffices.‐(a)Eachheadofdepartmentorofficeshallsubmitabudgetproposalforhisdepartmentorofficetothelocalchiefexecutiveonorbeforethefifteenth(15th)ofJulyofeachyear: Provided, That the budget proposal of each department or office shall becategorized under either economic, social or general services: Provided, further,Thateachserviceshallbecoveredbythebudgetofat leastone(1)departmentoroffice of the local government unit concerned. The said budget proposal shall bepreparedinaccordancewithsuchpolicyandprogramguidelinesasthe localchiefexecutiveconcernedmay issue inconformitywiththe localdevelopmentplan, thebudgetary ceilings prescribed by the local finance committee, and the generalrequirementsprescribedinthisTitle.

(b) Budget proposals of departments or offices shall be divided into two (2)primary categories, namely: the current operating expenditures and the capitaloutlays.Suchbudgetproposalsshallcontainthefollowinginformation:

(1)Objectives, functions, andprojects showing thegeneral character and relativeimportanceoftheworktobeaccomplishedortheservicestoberendered,andthecostthereof;

(2) Organizational charts and staffing patterns indicating the list of plantillapositions with their corresponding salaries, and proposals for reclassification of

Page 152: Local Government Code of 1991 (RA 7160)

positions and salary changes, as well as the creation of new positions with theirproposedsalarygrade,dulysupportedbyproperjustification;

(3)Brief descriptionof the functions, projects and activities for the ensuing fiscalyear,expectedresultsforeachfunction,projectandactivity,andthenatureofworktobeperformed,includingtheobjectsofexpenditureforeachfunction,projectandactivity;

(4) Relation of the work and financial proposals to approved local developmentplans;

(5)Estimatedcurrentoperatingexpendituresandcapitaloutlayswithcomparativedataforthelasttwo(2)preceding,current,andensuingfiscalyears;and

(6)Accomplishmentreportsforthelasttwo(2)precedingandcurrentfiscalyears.

SEC.318.PreparationoftheBudgetbytheLocalChiefExecutive.‐Uponreceiptofthestatementsofincomeandexpendituresfromthetreasurer,thebudgetproposalsoftheheadsofdepartmentsandoffices,andtheestimatesofincomeandbudgetaryceilingsfromthelocalfinancecommittee,thelocalchiefexecutiveshallpreparetheexecutivebudgetfortheensuingfiscalyearinaccordancewiththeprovisionsofthisTitle. The local chief executive shall submit the said executive budget to thesanggunianconcernednotlaterthanthesixteenth(16th)ofOctoberofthecurrentfiscalyear.Failuretosubmitsuchbudgetonthedateprescribedhereinshallsubjectthe localchiefexecutivetosuchcriminalandadministrativepenaltiesasprovidedforunderthisCodeandotherapplicablelaws.

SEC. 319. Legislative Authorization of the Budget. ‐ On or before the end of thecurrentfiscalyear,thesanggunianconcernedshallenact,throughanordinance,theannualbudgetofthelocalgovernmentunitfortheensuingfiscalyearonthebasisoftheestimatesofincomeandexpendituressubmittedbythelocalchiefexecutive.

SEC. 320. Effectivity ofBudgets. ‐ The ordinance enacting the annual budget shalltakeeffectat thebeginningof theensuingcalendaryear.Anordinanceenactingasupplemental budget, however, shall take effect upon its approval or on the date

Page 153: Local Government Code of 1991 (RA 7160)

fixed therein.The responsibility for theexecutionof theannualandsupplementalbudgetsandtheaccountabilitythereforshallbevestedprimarilyinth

SEC.321.ChangesintheAnnualBudget.‐Allbudgetaryproposalsshallbeincludedand considered in the budget preparation process. After the local chief executiveconcerned shall have submitted the executive budget to the sanggunian, noordinance providing for a supplemental budget shall be enacted, except whensupportedby fundsactuallyavailableascertifiedbythe local treasurerorbynewrevenuesources.

Asupplementalbudgetmayalsobeenacted intimesofpubliccalamitybywayofbudgetaryrealignmenttosetasideappropriationsforthepurchaseofsuppliesandmaterialsor thepaymentof serviceswhichareexceptionallyurgentorabsolutelyindispensable to prevent imminent danger to, or loss of, life or property, in thejurisdictionofthelocalgovernmentunitorinotherareasdeclaredbythePresidentin a state of calamity. Such ordinance shall clearly indicate the sources of fundsavailableforappropriations,ascertifiedunderoathbythelocaltreasurerandlocalaccountant and attested by the local chief executive, and the various items ofappropriationsaffectedandthereasonsforthechange.

SEC. 322. Reversion of Unexpended Balances of Appropriations, ContinuingAppropriations.‐Unexpendedbalancesofappropriationsauthorizedintheannualappropriationsordinanceshallreverttotheunappropriatedsurplusofthegeneralfund at the end of the fiscal year and shall not thereafter be available forexpenditureexceptbysubsequentenactment.However, appropriations for capitaloutlaysshallcontinueandremainvaliduntil fullyspent,revertedortheproject iscompleted. Reversions of continuing appropriations shall not be allowed unlessobligations therefor have been fully paid or otherwise settled. The balances ofcontinuing appropriations shall be reviewed as part of the annual budgetpreparationandthesanggunianconcernedmayapprove,uponrecommendationofthelocalchiefexecutive,thereversionoffundsnolongerneededinconnectionwiththeactivitiesfundedbysaidcontinuingappropriationssubjecttotheprovisionsofthisSection.

SEC. 323. Failure to Enact the Annual Appropriations. ‐ In case the sanggunianconcernedfailstopasstheordinanceauthorizingtheannualappropriationsatthebeginning of the ensuing fiscal year, it shall continue to hold sessions, withoutadditionalremunerationforitsmembers,untilsuchordinanceisapproved,andnootherbusinessmaybetakenupduringsuchsessions.Ifthesanggunianstillfailstoenactsuchordinanceafterninety(90)daysfromthebeginningofthefiscalyear,the

Page 154: Local Government Code of 1991 (RA 7160)

ordinance authorizing the appropriations of the preceding year shall be deemedreenactedand shall remain in forceandeffectuntil theordinanceauthorizing theproposedappropriationsispassedbythesanggunianconcerned.However,onlytheannual appropriations for salaries and wages of existing positions, statutory andcontractualobligations,andessentialoperatingexpensesauthorized in theannualand supplemental budgets for the preceding year shall be deemed reenacted anddisbursementof funds shall be in accordance therewith. In the implementationofsuch reenacted ordinance, the local treasurer concerned shall exclude from theestimatesof incomefortheprecedingfiscalyearthoserealizedfromnonrecurringsources, like national aids, proceeds from loans, sale of assets, prior yearadjustments, and other analogous sources of income. No ordinance authorizingsupplementalappropriationsshallbepassedinplaceoftheannualappropriations.In case the revised income estimates be less than the aggregate reenactedappropriations, the local treasurer concerned shall accordingly advise thesanggunian concernedwhich shall, within ten (10) days from the receipt of suchadvice,makethenecessaryadjustmentsorreductions.Therevisedappropriationsauthorizedbythesanggunianconcernedshallthenbethebasisfordisbursements.

SEC.324.BudgetaryRequirements.‐Thebudgetsoflocalgovernmentunitsforanyfiscalyearshallcomplywiththefollowingrequirements:(a)Theaggregateamountappropriatedshallnotexceedtheestimatesofincome;

(b)Fullprovisionshallbemadeforallstatutoryandcontractualobligationsofthelocal government unit concerned: Provided, however, That the amount ofappropriations for debt servicing shall not exceed twenty percent (20%) of theregularincomeofthelocalgovernmentunitconcerned;

(c)Inthecaseofprovinces,cities,andmunicipalities,aidtocomponentbarangaysshallbeprovidedinamountsofnotlessthanOnethousandpesos(P=1,000.00)perbarangay;and

(d)Fivepercent (5%)of theestimated revenue fromregular sources shallbe setaside as an annual lump sum appropriation for unforeseen expenditures arisingfromtheoccurrenceofcalamities:Provided,however,Thatsuchappropriationshallbeusedonlyinthearea,oraportionthereof,ofthelocalgovernmentunitorotherareasdeclaredbythePresidentinastateofcalamity.

Page 155: Local Government Code of 1991 (RA 7160)

SEC.325.GeneralLimitations.‐Theuseoftheprovincial,city,andmunicipalfundsshallbesubjecttothefollowinglimitations:

(a)Thetotalappropriations,whetherannualorsupplemental,forpersonalservicesofalocalgovernmentunitforone(1)fiscalyearshallnotexceedforty‐fivepercent(45%)inthecaseoffirsttothirdclassprovinces,cities,andmunicipalities,andfifty‐fivepercent (55%) in thecaseof fourthclassor lower,of the totalannual incomefromregularsourcesrealizedinthenextprecedingfiscalyear.Theappropriationsfor salaries, wages, representation and transportation allowances of officials andemployees of the public utilities and economic enterprises owned, operated, andmaintained by the local government unit concerned shall not be included in theannualbudgetorinthecomputationofthemaximumamountforpersonalservices.Theappropriationsforthepersonalservicesofsucheconomicenterprisesshallbechargedtotheirrespectivebudgets;

(b) No official or employee shall be entitled to a salary rate higher than themaximumfixedforhispositionorotherpositionsofequivalentrankbyapplicablelawsorrulesandregulationsissuedthereunder;

(c)No local fund shall be appropriated to increaseor adjust salaries orwages ofofficials and employees of the national government, except as may be expresslyauthorizedbylaw;(d)Incasesofabolitionofpositionsandthecreationofnewonesresultingfromtheabolitionofexistingpositionsinthecareerservice,suchabolitionorcreationshallbemadeinaccordancewithpertinentprovisionsofthiscodeandthecivilservicelaw,rulesandregulations;

(e) Positions in the official plantilla for career positions which are occupied byincumbents holding permanent appointments shall be covered by adequateappropriations;

(f)Nochangesindesignationornomenclatureofpositionsresultinginapromotionor demotion in rank or increase or decrease in compensation shall be allowed,exceptwhenthepositionisactuallyvacant,andthefillingofsuchpositionsshallbestrictlymadeinaccordancewiththecivilservicelaw,rulesandregulations;(g)Thecreation of newpositions and salary increases or adjustments shall in no case bemaderetroactive;and

Page 156: Local Government Code of 1991 (RA 7160)

(h) The annual appropriations for discretionary purposes of the local chiefexecutive shall not exceed two percent (2%) of the actual receipts derived frombasicrealpropertytaxinthenextprecedingcalendaryear.Discretionaryfundsshallbedisbursedonlyforpublicpurposestobesupportedbyappropriatevouchersandsubject to such guidelines as may be prescribed by law. No amount shall beappropriatedforthesamepurposeexceptasauthorizedunderthisSection.

SEC. 326. Review of Appropriation Ordinances of provinces, Highly‐UrbanizedCities, Independent Component Cities, andMunicipalitieswithin theMetropolitanManilaArea.‐TheDepartmentofBudgetandManagementshallreviewordinancesauthorizing the annual or supplemental appropriations of provinces, highly‐urbanized cities, independent component cities, and municipalities within theMetropolitanManilaAreainaccordancewiththeimmediatelysucceedingSection.

SEC. 327. Review of Appropriation Ordinances of Component Cities andMunicipalities. ‐ The sangguniang panlalawigan shall review the ordinanceauthorizing annual or supplemental appropriations of component cities andmunicipalities in the samemannerandwithin the sameperiodprescribed for thereviewofotherordinances.Ifwithinninety(90)daysfromreceiptofcopiesofsuchordinance,thesangguniangpanlalawigantakesnoactionthereon,thesameshallbedeemedtohavebeenreviewedinaccordancewithlawandshallcontinuetobeinfull forceandeffect. Ifwithinthesameperiod,thesangguniangpanlalawiganshallhave ascertained that the ordinance authorizing annual or supplementalappropriationshasnot compliedwith the requirements set forth in thisTitle, thesangguniang panlalawigan shall, within the ninety‐day period hereinaboveprescribed, declare such ordinance inoperative in its entirety or in part. Items ofappropriation contrary to limitations prescribed in this Title or in excess of theamounts prescribed herein shall be disallowed or reduced accordingly. Thesangguniang panlalawigan shall within the same period advise the sangguniangpanlungsod or sangguniang bayan concerned through the local chief executive ofanyactionontheordinanceunderreview.Uponreceiptofsuchadvice, thecityormunicipaltreasurerconcernedshallnotmakefurtherdisbursementsoffundsfromanyoftheitemsofappropriationdeclaredinoperative,disallowedorreduced.

SEC. 328.DurationofAppropriation. ‐Appropriations for ordinary administrativepurposesnotdulyobligatedshallterminatewiththefiscalyearandallunexpendedbalances thereof shall be automatically reverted on the thirty‐first (31st) day ofDecemberofeachyeartothegeneralfundofthelocalgovernmentunit.

ArticleTwo.‐BarangayBudgets

Page 157: Local Government Code of 1991 (RA 7160)

SEC.329.BarangayFunds.‐UnlessotherwiseprovidedinthisTitle,alltheincomeofthebarangayfromwhateversourceshallaccruetoitsgeneralfundandshall,attheoptionofthebarangayconcerned,bekeptastrustfundinthecustodyofthecityormunicipal treasurer or be deposited in a bank, preferably government‐owned,situated in or nearest to its area of jurisdiction. Such funds shall be disbursed inaccordancewiththeprovisionsofthisTitle.Tenpercent(10%)ofthegeneralfundofthebarangayshallbesetasideforthesangguniangkabataan.

SEC. 330. Submission of Detailed Statements of Income and Expenditures for theBarangayBudgets.‐Onorbeforethefifteenth(15th)dayofSeptemberofeachyear,thebarangay treasurershall submit to thepunongbarangayastatementcoveringthe estimates of income and expenditures for the ensuing fiscal year, based on acertifiedstatementissuedbythecityormunicipaltreasurercoveringtheestimatesofincomefromlocalsourcesforthebarangayconcerned.

SEC.331.PreparationoftheBarangayBudget.‐(a)Uponreceiptofthestatementofincomeandexpenditures fromthebarangay treasurer, thepunongbarangayshallprepare thebarangaybudget for theensuing fiscalyear in themannerandwithinthe period prescribed in this Title and submit the annual barangay budget to thesangguniangbarangayforlegislativeenactment.

(b)Thetotalannualappropriationsforpersonalservicesofabarangayforone(1)fiscal year shall not exceed fifty‐five percent (55%) of the total annual incomeactuallyrealizedfromlocalsourcesduringthenextprecedingfiscalyear.

(c) The barangay budget shall likewise be subject to the same budgetaryrequirementsandlimitationshereinaboveprescribed.

SEC. 332. Effectivity of Barangay Budgets. ‐ The ordinance enacting the annualbudgetshalltakeeffectatthebeginningoftheensuingcalendaryear.Anordinanceenactingasupplementalbudget,however,shalltakeeffectuponitsapprovaloronthe date fixed therein. The responsibility for the execution of the annual andsupplemental budgets and the accountability therefor shall be vestedprimarily inthepunongbarangayconcerned.

SEC. 333. Review of the Barangay Budget. ‐ (a) Within ten (10) days from itsapproval, copiesof thebarangayordinanceauthorizing the annual appropriations

Page 158: Local Government Code of 1991 (RA 7160)

shall be furnished the sangguniang panlungsod or the sangguniang bayan, as thecase may be, through the city or municipal budget officer. The sanggunianconcernedshallhavethepowertoreviewsuchordinanceinordertoensurethattheprovisionsofthisTitlearecompliedwith.Ifwithinsixty(60)daysafterthereceiptoftheordinance,thesanggunianconcernedtakesnoactionthereon,thesameshallcontinue to be in full force and effect. If within the same period, the sanggunianconcerned shall have ascertained that the ordinance contains appropriations inexcessoftheestimatesoftheincomedulycertifiedascollectible,orthatthesamehasnot compliedwith thebudgetary requirements set forth in thisTitle, the saidordinance shall be declared inoperative in its entirety or in part. Items ofappropriation contrary to, or in excess of, any of the general limitations or themaximum amount prescribed in this Title shall be disallowed or reducedaccordingly.

(b) Within the period hereinabove fixed, the sangguniang panlungsod orsangguniangbayanconcernedshallreturnthebarangayordinance,throughthecityor municipal budget officer, to the punong barangay with the advice of actionthereonforproperadjustments, inwhichevent, thebarangayshalloperateontheordinanceauthorizingannualappropriationsoftheprecedingfiscalyearuntilsuchtimethatthenewordinanceauthorizingannualappropriationsshallhavemettheobjectionsraised.Uponreceiptofsuchadvice,thebarangaytreasurerorthecityormunicipal treasurer who has custody of the funds shall not make furtherdisbursement fromany itemof appropriationdeclared inoperative,disallowed,orreduced.

SEC.334.BarangayFinancialProcedures.‐(a)Thebarangaytreasurershallcollectalltaxes,fees,andotherchargesdueandcontributionsaccruingtothebarangayforwhichheshallissueofficialreceipts,andshalldepositallcollectionswiththecityormunicipal treasury or in the depository account maintained in the name of thebarangay within five (5) days after receipt thereof. He may collect real propertytaxesand suchother taxesasmaybe imposedbyaprovince, cityormunicipalitythat are due in his barangay only after being deputized by the local treasurerconcernedforthepurpose.

(b) The barangay treasurer may be authorized by the sangguniang barangay tomake direct purchases amounting to not more than One thousand pesos(P=1,000.00)atanytimefortheordinaryandessentialneedsofthebarangay.Thepettycash that thebarangay treasurermaybeauthorized tohold for thepurposeshallnotexceedtwentypercent(20%)ofthefundsavailableandtothecreditofthebarangaytreasury.

Page 159: Local Government Code of 1991 (RA 7160)

(c)The financial recordsof thebarangay shall be kept in theoffice of the city ormunicipal accountant in simplified manner as prescribed by the Commission onAudit. Representatives of the Commission on Audit shall audit such accountsannually or as often as may be necessary andmake a report of the audit to thesangguniang panlungsod or sangguniang bayan, as the case may be. TheCommissiononAudit shallprescribeandput intoeffect simplifiedprocedures forbarangayfinanceswithinsix(6)monthsfollowingtheeffectivityofthisCode.

CHAPTER 4. ‐ EXPENDITURES, DISBURSEMENTS, ACCOUNTING ANDACCOUNTABILITY

SEC.335.ProhibitionsAgainstExpendituresforReligiousorPrivatePurposes.‐Nopublicmoneyorpropertyshallbeappropriatedorapplied forreligiousorprivatepurposes.

SEC. 336. Use of Appropriated Funds and Savings. ‐ Funds shall be availableexclusively for the specific purpose for which they have been appropriated. Noordinanceshallbepassedauthorizinganytransferofappropriationsfromoneitemto another. However, the local chief executive or the presiding officer of thesanggunianconcernedmay,byordinance,beauthorizedtoaugmentanyitemintheapproved annual budget for their respective offices from savings in other itemswithinthesameexpenseclassoftheirrespectiveappropriations.

SEC.337.RestrictionUponLimitofDisbursements.‐Disbursementsinaccordancewith appropriations in the approved annual budgetmay bemade from any localfundinthecustodyofthetreasurer,butthetotaldisbursementsfromanylocalfundshall in no case exceed fifty percent (50%) of the uncollected estimated revenueaccruingtosuchlocalfundinadditiontotheactualcollections:Provided,however,That no cash overdraft in any local fund shall be incurred at the endof the fiscalyear. In case of emergency arising from a typhoon, earthquake, or any othercalamity, the sanggunian concernedmayauthorize the local treasurer to continuemaking disbursements from any local fund in his possession in excess of thelimitationshereinprovided,butonlyforsuchpurposesandamountsincludedintheapprovedannualbudgets.Anyoverdraftwhichmaybe incurredat the endof theyear inany local fundbyvirtueof theprovisionshereofshallbecoveredwith thefirst collections of the immediately succeeding fiscal year accruing to such localfund.

Page 160: Local Government Code of 1991 (RA 7160)

SEC. 338. Prohibitions Against Advance Payments. ‐ No money shall be paid onaccount of any contract under which no services have been rendered or goodsdelivered.

SEC.339.CashAdvances.‐Nocashadvanceshallbegrantedtoanylocalofficialoremployee, elective or appointive, unless made in accordance with the rules andregulationsastheCommissiononAuditmayprescribe.

SEC.340.PersonsAccountableforLocalGovernmentFunds.‐AnyofficerofthelocalgovernmentunitwhosedutypermitsorrequiresthepossessionorcustodyoflocalgovernmentfundsshallbeaccountableandresponsibleforthesafekeepingthereofinconformitywiththeprovisionsofthisTitle.Otherlocalofficerswho,thoughnotaccountablebythenatureoftheirduties,maylikewisebesimilarlyheldaccountableandresponsibleforlocalgovernmentfundsthroughtheirparticipationintheuseorapplicationthereof.

SEC. 341. ProhibitionsAgainst Pecuniary Interest. ‐Without prejudice to criminalprosecutionunder applicable laws, any local treasurer, accountant, budgetofficer,orotheraccountablelocalofficerhavinganypecuniaryinterest,directorindirect,inanycontract,workorotherbusinessofthelocalgovernmentunitofwhichheisanaccountableofficershallbeadministrativelyliabletherefor.

SEC. 342. Liability for Acts Done Upon Direction of Superior Officer, or UponParticipationofOtherDepartmentHeadsorOfficersofEquivalentRank.‐Unlessheregistershisobjectioninwriting,thelocaltreasurer,accountant,budgetofficer,orotheraccountableofficershallnotberelievedofliabilityforillegalorimproperuseorapplicationordepositofgovernmentfundsorpropertybyreasonofhishavingacted upon the direction of a superior officer, elective or appointive, or uponparticipationofotherdepartmentheadsorofficersofequivalentrank.Thesuperiorofficerdirecting, or thedepartmentheadparticipating in such illegal or improperuseorapplicationordepositofgovernmentfundsorproperty,shallbejointlyandseverally liable with the local treasurer, accountant, budget officer, or otheraccountableofficerforthesumorpropertysoillegallyorimproperlyused,appliedordeposited.

SEC. 343. Prohibition Against Expenses for Reception and Entertainment. ‐ Nomoneyshallbeappropriated,used,orpaidforentertainmentorreceptionexcepttotheextentoftherepresentationallowancesauthorizedbylaworforthereceptionof

Page 161: Local Government Code of 1991 (RA 7160)

visitingdignitariesof foreigngovernmentsor foreignmissions,orwhenexpresslyauthorizedbythePresidentinspecificcases.

SEC.344.Certificationon,andApprovalof,Vouchers.‐Nomoneyshallbedisbursedunless the local budget officer certifies to the existence of appropriation that hasbeen legally made for the purpose, the local accountant has obligated saidappropriation, and the local treasurer certifies to the availability of funds for thepurpose.Vouchersandpayrollsshallbecertifiedtoandapprovedbytheheadofthedepartment or officewho has administrative control of the fund concerned, as tovalidity, propriety, and legality of the claim involved. Except in cases ofdisbursements involving regularly recurring administrative expenses such aspayrolls for regularorpermanent employees, expenses for light,water, telephoneand telegraph services, remittances to government creditor agencies such as theGSIS,SSS,LBP,DBP,NationalPrintingOffice,ProcurementServiceof theDBMandothers, approval of the disbursement voucher by the local chief executive himselfshall be requiredwhenever local funds are disbursed. In cases of special or trustfunds,disbursementsshallbeapprovedbytheadministratorofthefund.Incaseoftemporary absence or incapacity of the department head or chief of office, theofficer next‐in‐rank shall automatically perform his function and he shall be fullyresponsibletherefor.

SEC.345.OfficialsAuthorizedtoDrawChecksinSettlementofObligations.‐Checksinsettlementofobligationsshallbedrawnbythelocaltreasurerandcountersignedby the local administrator. In case of temporary absence or incapacity of theforegoingofficials,thesedutiesshalldevolveupontheirimmediateassistants.

SEC. 346. Disbursements of Local Funds and Statement of Accounts. ‐Disbursements shall be made in accordance with the ordinance authorizing theannual or supplemental appropriations without the prior approval of thesanggunian concerned.Within thirty (30) days after the close of eachmonth, thelocalaccountantshallfurnishthesanggunianwithsuchfinancialstatementsasmaybeprescribedbytheCommissiononAudit.Inthecaseoftheyear‐endstatementofaccounts,theperiodshallbesixty(60)daysafterthethirty‐first(31st)ofDecember.

SEC. 347. Rendition of Accounts. ‐ Local treasurers, accountants and other localaccountableofficersshallrendertheiraccountswithinsuchtime,insuchform,style,andcontentandundersuchregulationsastheCommissiononAuditmayprescribe.Provincial, city, and municipal auditors shall certify the balances arising in theaccounts settledby them to theChairmanof theCommissiononAudit and to thelocal treasurer, accountant, and other accountable officers. Copies of the

Page 162: Local Government Code of 1991 (RA 7160)

certificationshallbepreparedand furnishedother localofficerswhomaybeheldjointlyandseverally liable forany lossor illegal, improperorunauthorizeduseormisappropriationoflocalfundsorproperty.

SEC. 348. Auditorial Visitation. ‐ The books, accounts, papers, and cash of localtreasurer,accountant,budgetofficer,orotheraccountableofficersshallatalltimesbe open for inspection of the Commission on Audit or its duly authorizedrepresentative.Incaseanexaminationoftheaccountsofalocaltreasurerdisclosesa shortage in cashwhich shouldbeonhand, it shallbe thedutyof theexaminingofficertoseizetheofficeanditscontents,notifytheCommissiononAudit,thelocalchief executive concerned, and the local accountant. Thereupon, the examiningofficer shall immediately turn over to the accountable officer next‐in‐ rank in thelocal treasury service, unless the said officer is likewise under investigation, theoffice of the treasurer and its contents, and close and render his accounts on thedateofturnover.Incasetheaccountableofficernextinrankisunderinvestigation,theauditorshalltakefullpossessionoftheofficeanditscontents,closeandrenderhisaccountsonthedateoftakingpossession,andtemporarilycontinuethepublicbusiness of such office until such time that the local treasurer is restored or asuccessorhasbeendulydesignated.Thelocaltreasureroraccountableofficerfoundwithsuchshortageshallbeautomaticallysuspendedfromoffice.

SEC.349.AccountingforRevenues. ‐Estimatedrevenueswhichremainunrealizedatthecloseofthefiscalyearshallnotbebookedorcreditedtotheunappropriatedsurplusoranyotheraccount.

SEC. 350. Accounting for Obligations. ‐ All lawful expenditures and obligationsincurredduringafiscalyearshallbetakenupintheaccountsofthatyear.

SEC.351.GeneralLiabilityforUnlawfulExpenditures.‐ExpendituresoffundsoruseofpropertyinviolationofthisTitleandotherlawsshallbeapersonalliabilityoftheofficialoremployeeresponsibletherefor.

SEC.352.Postingof theSummaryof IncomeandExpenditures. ‐Local treasurers,accountants,budgetofficersandotheraccountableofficersshall,withinthirty(30)days fromtheendofeach fiscalyear,post inat least three (3)publiclyaccessibleand conspicuous places in the local government unit a summary of all revenuescollected and funds received including the appropriations and disbursements ofsuchfundsduringtheprecedingfiscalyear.

Page 163: Local Government Code of 1991 (RA 7160)

SEC.353.TheOfficialFiscalYear.‐Theofficialfiscalyearoflocalgovernmentunitsshall be the period beginning with the first day of January and ending with thethirty‐firstdayofDecemberofthesameyear.

SEC. 354.Administrative Issuances;BudgetOperationsManual. ‐TheSecretaryofBudget and Management jointly with the Chairman of the Commission on Auditshall, within one (1) year from the effectivity of this Code, promulgate a BudgetOperationsManualforlocalgovernmentunitstoimproveandsystematizemethods,techniques, and procedures employed in budget preparation, authorization,execution,andaccountability.

TITLEVI.‐PROPERTYANDSUPPLYMANAGEMENTINTHELOCALGOVERNMENTUNITS

SEC.355.Scope.‐ThisTitleshallgoverntheprocurement,care,utilization,custody,anddisposalofsupplies,asdefinedherein,bylocalgovernmentunitsandtheotheraspectsofsupplymanagementatthelocallevels.

SEC.356.GeneralRule inProcurementorDisposal.‐Exceptasotherwiseprovidedherein, acquisition of supplies by local government units shall be throughcompetitivepublicbidding.Supplieswhichhavebecomeunserviceableornolongerneeded shall be sold,whenever applicable, atpublic auction, subject to applicablerulesandregulations.

SEC.357.DefinitionofTerms.‐WhenusedinthisTitle,theterm‐

(a) "Lowest Complying and Responsible Bid" refers to the proposal of one whooffers the lowest price,meets all the technical specifications and requirements ofthe supplies desired and, as a dealer in the line of supplies involved,maintains aregularestablishment,andhascompliedconsistentlywithpreviouscommitments;

(b) "Suitable Substitute" refers to that kind of article which would servesubstantially the same purpose or produce substantially the same results as thebrand,type,ormakeofarticleoriginallydesiredorrequisitioned;

Page 164: Local Government Code of 1991 (RA 7160)

(c) "Supplies" includes everything, except real property,whichmaybeneeded inthe transactionofpublicbusinessor in thepursuitofanyundertaking,project,oractivity, whether in the nature of equipment, furniture, stationary materials forconstructionorpersonalpropertyofanysort,includingnon‐personalorcontractualservicessuchastherepairandmaintenanceofequipmentandfurniture,aswellastrucking,hauling,janitorial,security,andrelatedservices;and

(d)"TermsandConditions"refertootherrequirementsnotaffectingthetechnicalspecificationsand requirementsof the required suppliesdesired suchasbonding,termsofdeliveryandpayment,andrelatedpreferences.

SEC.358.RequirementofRequisition.‐Anyorderforsuppliesshallbefilledbytheprovincial or city general services officer or themunicipal or barangay treasurerconcerned,as thecasemaybe, foranyofficeordepartmentofa localgovernmentunitonlyuponwrittenrequisitionashereinafterprovided.

SEC. 359. Officers Having Authority to Draw Requisitions. ‐ Requisitions shall bepreparedbytheheadofofficeordepartmentneedingthesupplies,whoshallcertifyas to their necessity for official use and specify the project or activitywhere thesuppliesaretobeused.

SEC. 360. Certification by the Local Budget Officer, Accountant, and Treasurer. ‐Everyrequisitionmustbeaccompaniedbyacertificatesignedby the localbudgetofficer,thelocalaccountant,andthelocaltreasurershowingthatanappropriationthereforexists, theestimatedamountofsuchexpenditurehasbeenobligated,andthefundsareavailableforthepurpose,respectively.

SEC.361.ApprovalofRequisitions.‐Approvaloftherequisitionbytheheadofofficeor department concerned who has administrative control of the appropriationagainstwhichtheproposedexpenditure ischargeable isdeemedsufficient,exceptincaseofrequisitionforsuppliestobecarriedinstockwhichshallbeapprovedbythe local chief executive concerned: Provided, That such supplies are listed orincluded in theannualprocurementplanand themaximumquantity thereofdoesnot exceed the estimated consumption corresponding to a programmed three‐month period: Provided, further, That nothing herein contained shall be held asauthorizingthepurchaseoffurnitureandequipmentforstockpurposes.

Page 165: Local Government Code of 1991 (RA 7160)

SEC.362.CallforBids.‐Whenprocurementistobemadebylocalgovernmentunits,theprovincialorcitygeneralservicesofficerorthemunicipalorbarangaytreasurershallcallbidsforopenpubliccompetition.Thecallforbidsshallshowthecompletespecificationsandtechnicaldescriptionsoftherequiredsuppliesandshallembodyalltermsandconditionsofparticipationandaward,termsofdeliveryandpayment,and all other covenants affecting the transaction. In all calls for bids, the right towaive any defect in the tender as well as the right to accept the bid mostadvantageoustothegovernmentshallbereserved.Innocase,however,shallfailureto meet the specifications or technical requirements of the supplies desired bewaived.

SEC. 363. Publicationof Call forBids. ‐ The call forbids shall be given thewidestpublicitypossible,sending,bymailorotherwise,anyknownprospectiveparticipantinthelocality,ofcopiesofthecallandbypostingcopiesofthesameinatleastthree(3) publicly accessible and conspicuous places in the provincial capitol or city,municipal, or barangay hall, as the case may be. The notice of the bidding maylikewise be published in a newspaper of general circulation in the territorialjurisdiction of the local government unit concerned when the provincial or citygeneralservicesofficerorthemunicipalorbarangaytreasurer,asthecasemaybe,deemsitnecessaryinordertoobtainthelowestresponsibleandcomplyingbid.Theopeningofbidsshallonlybemadeinthepresenceoftheprovincialorcityauditororhisdulyauthorizedrepresentativewhoshallinitialandsecurecopiesofthebidsandcertifytheabstractofthebidding.

SEC. 364. The Committee on Awards. ‐ There shall be in every province, city ormunicipality a committee on awards to decide thewinning bids and questions ofawardsonprocurementanddisposalofproperty.TheCommitteeonAwardsshallbecomposedofthe localchiefexecutiveaschairman,the local treasurer, the localaccountant,thelocalbudgetofficer,thelocalgeneralservicesofficer,andtheheadofofficeordepartmentforwhoseusethesuppliesarebeingprocured,asmembers.Incaseaheadofofficeordepartmentwouldsitinadualcapacity,amemberofthesanggunianelectedfromamongitsmembersshallsitasamember.Thecommitteeon awards at the barangay level shall be the sangguniang barangay. No nationalofficialshallsitasamemberofthecommitteeonawards.Theresultsofthebiddingshallbemadepublicbyconspicuouslypostingthesameintheprovincialcapitolorcity,municipal,orbarangayhall.

SEC.365.RuleonAwards.‐Awardsintheprocurementofsuppliesshallbegiventothelowestcomplyingandresponsiblebidwhichmeetsallthetermsandconditionsofthecontractorundertaking.

Page 166: Local Government Code of 1991 (RA 7160)

SEC.366.ProcurementWithoutPublicBidding. ‐Procurementof suppliesmaybemadewithoutthebenefitofpublicbiddingunderanyofthefollowingmodes:

(a)Personalcanvassofresponsiblemerchants;

(b)Emergencypurchase;

(c)Negotiatedpurchase;

(d)Directpurchasefrommanufacturersorexclusivedistributors;and

(e)Purchasefromothergovernmententities.

SEC. 367. Procurement through Personal Canvass. ‐ Upon approval by theCommittee on Awards, procurement of supplies may be effected after personalcanvassofatleastthree(3)responsiblesuppliersinthelocalitybyacommitteeofthree(3)composedofthelocalgeneralservicesofficerorthemunicipalorbarangaytreasurer, as the case may be, the local accountant, and the head of office ordepartment for whose use the supplies are being procured. The award shall bedecidedbytheCommitteeonAwards.PurchasesunderthisSectionshallnotexceedtheamountsspecifiedhereunder forall items inanyone(1)month foreach localgovernmentunit:

ProvincesandCitiesandMunicipalitieswithintheMetropolitanManilaArea:

*FirstandSecondClass‐Onehundredfiftythousandpesos(P150,000.00)

*ThirdandFourthClass‐Onehundredthousandpesos(P100,000.00)

*FifthandSixthClass‐Fiftythousandpesos(P50,000.00)

Municipalities:

Page 167: Local Government Code of 1991 (RA 7160)

*FirstClass‐Sixtythousandpesos(P60,000.00)

*SecondandThirdClass‐Fortythousandpesos(P40,000.00)

*FourthClassandBelow‐Twentythousandpesos(P20,000.00)

SEC. 368. Emergency Purchase. ‐ In cases of emergency where the need for thesupplies is exceptionally urgent or absolutely indispensable and only to preventimminentdangerto,orlossof,lifeorproperty,localgovernmentunitsmay,throughthe local chief executive concerned, make emergency purchases or place repairorders,regardlessofamount,withoutpublicbidding .DeliveryofpurchaseordersorutilizationofrepairorderspursuanttothisSectionshallbemadewithinten(10)days after placement of the same. Immediately after the emergency purchase orrepair order is made, the chief of office or department making the emergencypurchaseorrepairordershalldrawaregularrequisitiontocoverthesamewhichshallcontainthefollowing:

(a) A complete description of the supplies acquired or the work done or to beperformed;

(b)Bywhomfurnishedorexecuted;

(c)Dateofplacingtheorderandthedateandtimeofdeliveryorexecution;

(d)Theunitpriceandthetotalcontractprice;

(e)Abriefandconciseexplanationofthecircumstanceswhyprocurementwasofsuchurgencythat thesamecouldnotbedonethroughtheregularcoursewithoutinvolvingdangerto,orlossof,lifeorproperty;

(f) A certification of the provincial or city general services or the municipal orbarangay treasurer, as the case may be, to the effect that the price paid orcontractedforwasthelowestatthetimeofprocurement;and

Page 168: Local Government Code of 1991 (RA 7160)

(g)Acertificationofthelocalbudgetofficerastotheexistenceofappropriationsforthepurpose, the localaccountantas to theobligationof theamount involved,andthe local treasurer as to the availability of funds. The goods or services procuredunder thisSectionmustbeutilizedoravailedofwithin fifteen(15)days fromthedate of delivery or availability. Without prejudice to criminal prosecution underapplicable laws, the local chief executive, the head of department, or the chief ofofficemaking theprocurementshallbeadministratively liable foranyviolationofthisSectionandshallbeagroundforsuspensionordismissalfromservice.

SEC.369.NegotiatedPurchase.‐(a)Incaseswherepublicbiddingshavefailedfortwo(2)consecutive timesandnosuppliershavequalified toparticipateorwin inthe biddings, local government units may, through the local chief executiveconcerned, undertake the procurement of supplies by negotiated purchase,regardlessofamount,withoutpublicbidding:Provided,however,Thatthecontractcovering thenegotiatedpurchaseshallbeapprovedby thesanggunianconcerned.DeliveryofpurchaseordersorutilizationofrepairorderspursuanttothisSectionshallbemadewithinseven(7)daysafterplacementofthesame.Immediatelyafterthenegotiatedpurchaseorrepairorderismade,thelocalchiefexecutiveconcernedshalldrawaregularrequisitiontocoverthesamewhichshallcontainthefollowing:

(1) A complete description of the supplies acquired or the work done or to beperformed;

(2)Bywhomfurnishedorexecuted;

(3)Dateofplacingtheorderandthedateandtimeofdeliveryorexecution;

(4)Theunitpriceandthetotalcontractprice;

(5) A certification of the provincial or city general services or the municipal orbarangay treasurer, as the case may be, to the effect that the price paid orcontractedforwasthelowestatthetimeofprocurement;

(6)Acertificationtotheeffectthatthepricepaidorcontractedforwasthelowestatthetimeofprocurement;and

Page 169: Local Government Code of 1991 (RA 7160)

(7)Acertificationof the localbudgetofficeras to theexistenceofappropriationsfor the purpose, the local accountant as to the obligation of the amount involved,andthelocaltreasurerastotheavailabilityoffunds.

(b) In case of repeat orders for regular supplies, procurement may be made bynegotiated purchase: Provided, That the repeat order is made within three (3)months from the last procurement of the same item: Provided, further, That thesametermsandconditionsofsaleareobtainedforthesaidrepeatorder.

SEC. 370. Procurement from Duly LicensedManufacturer. ‐ Procurement may bemadedirectly fromduly licensedmanufacturers in cases of supplies of Philippinemanufactureororiginandincasetherearetwo(2)ormoremanufacturersof therequiredsupplies,canvassoftheknownmanufacturersshallbeconductedtoobtainthelowestpriceforthequalityofthesaidsupplies.

SEC. 371. Procurement from Exclusive Philippine Agents or Distributors. ‐Procurement may, in the case of supplies of foreign origin, preferably be madedirectlyfromtheexclusiveorreputablePhilippinedistributorsoragents,subjecttothefollowingconditions:

(a)ThatthePhilippinedistributorhasnosubdealerssellingatlowerprices;and

(b) That no suitable substitutes of substantially the same quality are available atlowerprices.

SEC. 372. Procurement from Government Entities. ‐ Procurement may be madedirectly fromgovernmententitiesproducingtherequiredsupplies, includingunitsoragenciesofforeigngovernmentswithwhichthePhilippinesmaintainsdiplomaticrelations.Inthelattercase,priorauthorityfromtheOfficeofthePresidentshallberequired.

SEC.373.AnnualProcurementProgram.‐(a)Onorbeforethefifteenth(15th)dayof July each year, the local chief executive shall prepare an annual procurementprogram for the ensuing fiscal year which shall contain an itemized list of the

Page 170: Local Government Code of 1991 (RA 7160)

estimatedquantityofsuppliesneededforsuchyear,acompletedescriptionthereofastokind,quality,estimatedcost,andbalanceonhand:Provided,however,Thatthetotalestimatedcostoftheapprovedannualprocurementprogramshallnotexceedthe total appropriations authorized for the acquisition of supplies. The localgovernment units may augment the supplies and equipment provided by theSupremeCourttothelowercourtslocatedintheirrespectivejurisdictions.

(b)Exceptinemergencycasesorwhereurgentindispensableneedscouldnothavebeenreasonablyanticipated,nopurchaseofsuppliesshallbemadeunlessincludedin,orcoveredby,theapprovedprocurementprogram.

(c)Theconversionofexcesscashintosuppliesstockisherebyprohibitedexcepttotheextentof thekindandquantityspecified in theapprovedannualprocurementplan.AviolationofthisSectionshallbeagroundforsuspensionordismissalofanyofficialoremployeeresponsibletherefor.

SEC.374.EstablishmentofanArchivalSystem.‐Everylocalgovernmentunitshallprovide for the establishment of an archival system to ensure the safety andprotectionofallgovernmentproperty,publicdocumentsorrecordssuchasrecordsof births, marriages, property inventory, land assessments, land ownership, taxpayments,taxaccounts,andbusinesspermits,andsuchotherrecordsordocumentsofpublic interest in thevariousdepartments andofficesof theprovincial, city, ormunicipalgovernmentconcerned.

SEC. 375. Primary and Secondary Accountability for Government Property. ‐ (a)Eachheadofdepartmentorofficeofaprovince,city,municipalityorbarangayshallbe primarily accountable for all government property assigned or issued to hisdepartment or office. The person or persons entrusted with the possession orcustodyofgovernmentpropertyundertheaccountabilityofanyheadofdepartmentorofficeshallbeimmediatelyaccountabletosuchofficer.

(b) The head of a department or office primarily accountable for governmentpropertymayrequireanyperson inpossessionof thepropertyorhavingcustodyand control thereof underhim to keep such records andmake reports asmaybenecessaryforhisowninformationandprotection.

Page 171: Local Government Code of 1991 (RA 7160)

(c) Buildings and other physical structures shall be under the accountability andresponsibility of the provincial or city general services officer or the municipalmayororpunongbarangay,asthecasemaybe.

(d) Every officer primarily accountable for government property shall keep acompleterecordofallpropertiesunderhischargeandrenderhisaccountsthereforsemiannually to the provincial or city general services officer or the municipalmayororpunongbarangay,asthecasemaybe.

SEC. 376. Responsibility for Proper Use and Care of Government Property. ‐ Theperson inactualphysicalpossessionofgovernmentpropertyorentrustedwith itscustody and control shall be responsible for its proper use and care and shallexerciseduediligenceintheutilizationandsafekeepingthereof.

SEC. 377.Measureof LiabilityofPersonsAccountable forGovernmentProperty. ‐(a)Thepersonimmediatelyaccountableforgovernmentpropertyshallbeliableforits money value in case of the illegal, improper or unauthorized use ormisapplication thereof, by himself or any other person forwhose acts hemay beresponsible,andheshallbeliableforall loss,damage,ordeteriorationoccasionedbynegligenceinthekeepingoruseofsuchpropertyunlessitisprovedthathehasexercisedduediligenceandcareintheutilizationandsafekeepingthereof.

(b)Unlessheregistershisobjectioninwriting,anaccountablepersonshallnotberelievedfromliabilitybyreasonofhishavingactedunderthedirectionofasuperiorofficer inusingpropertywithwhichhe ischargeable;buttheofficerdirectinganyillegal,unauthorizedor improperuseofpropertyshall firstberequiredtoanswertherefor.

(c)Incasesofloss,damage,ordeteriorationofgovernmentpropertyarisingfrom,or attributable to, negligence in security, the head of the security agency shall beheldliabletherefor.

SEC.378.Credit forLossOccurring inTransitorDuetoCasualty. ‐Whena lossofgovernmentpropertyoccurswhilethesameisintransitoriscausedbyfire,theft,forcemajeure,orothercasualty,theofficeraccountabletherefororhavingcustodythereof shall immediately notify the provincial or city auditor concerned withinthirty (30) days from the date the loss occurred or for such longer period as the

Page 172: Local Government Code of 1991 (RA 7160)

provincial,cityormunicipalauditor,asthecasemaybe,mayintheparticularcaseallow,andheshallpresenthisapplicationforrelief,withtheavailableevidenceinsupport thereof.Anofficerwho fails tocomplywith this requirementshallnotberelieved of liability or allowed credit for any such loss in the settlement of hisaccounts. A provincial, city or municipal auditor shall not allow credit for theselossesunlesssoexpresslyauthorizedbytheChairmanoftheCommissiononAudit,tobeexercisedonlyifthelossisnotinexcessoffiftythousandpesos(P=50,000.00).In any case when the allowance of credit is not within the competence of theprovincial, city or municipal auditor, the application and evidence, with therecommendationof the auditor concerned, shall be forwarded to theChairmanoftheCommissiononAuditforhisappropriateaction.

SEC. 379. Property Disposal. ‐ When property of any local government unit hasbecomeunserviceableforanycauseorisnolongerneeded,itshall,uponapplicationof the officer accountable therefor, be inspected and appraised by the provincial,cityormunicipalauditor,asthecasemaybe,orhisdulyauthorizedrepresentativeor that of the Commission on Audit and, if found valueless or unusable, shall bedestroyedinthepresenceoftheinspectingofficer.Iffoundvaluable,thesameshallbe sold at public auction to the highest bidder under the supervision of thecommitteeonawardsandinthepresenceoftheprovincial,cityormunicipalauditororhisdulyauthorizedrepresentative.Noticeofthepublicauctionshallbepostedinat leastthree(3)publiclyaccessibleandconspicuousplaces,andif theacquisitioncostexceedsOnehundredthousandpesos(P=100,000.00)inthecaseofprovincesandcities,andFiftythousand(P=50,000.00)inthecaseofmunicipalities,noticeofauction shall be published at least two (2) timeswithin a reasonable period in anewspaperofgeneralcirculationinthelocality.

SEC. 380. Negotiated Sale of Property. ‐ Property no longer needed may also bedisposedofataprivatesaleatsuchpriceasmaybedeterminedbythecommitteeon awards, subject to the approval of the Commission on Audit or its dulyauthorized representative when the acquisition or transfer cost of the propertyexceedsFiftythousandpesos(P=50,000.00)inthecaseofprovincesandcities,andTwenty‐fivethousand(P=25,000.00)inthecaseofmunicipalitiesandbarangays.Incaseofrealproperty,thedisposalshallbesubjecttotheapprovaloftheCommissiononAuditregardlessofthevalueorcostinvolved.

SEC.381.TransferWithoutCost. ‐Propertywhichhasbecomeunserviceableor isno longer needed may be transferred without cost to another office, agency,subdivision or instrumentality of the national government or another localgovernmentunit at an appraised valuationdeterminedby the local committeeonawards.Suchtransfershallbesubjecttotheapprovalofthesanggunianconcerned

Page 173: Local Government Code of 1991 (RA 7160)

making the transfer and by the head of the office, agency, subdivision,instrumentalityorlocalgovernmentunitreceivingtheproperty.

SEC.382.TaxExemptionPrivilegesofLocalGovernmentUnits.‐Localgovernmentunitsshallbeexempt fromthepaymentofdutiesandtaxes for the importationofheavy equipment or machineries which shall be used for the construction,improvement, repair, andmaintenance of roads, bridges and other infrastructureprojects, as well as garbage trucks, fire trucks, and other similar equipment:Provided, however,That such equipmentormachineries shall not bedisposedof,eitherbypublicauctionornegotiatedsaleashereinaboveprovided,withinfive(5)years from the importation thereof. In case the machinery or equipment is soldwithin the five‐year period, the purchasers or recipients shall be considered theimporters thereof, and shall be liable for duties and taxes computed on the bookvalueofsuchimportation.

SEC.383. ImplementingRulesandRegulations. ‐TheChairmanoftheCommissionon Audit shall promulgate the rules and regulations necessary to effectivelyimplement the provisions of this Title, including requirements as to testing,inspection,andstandardizationofsupplyandproperty.

BOOKIII

LOCALGOVERNMENTUNITS

TITLEONE.‐THEBARANGAY

CHAPTER1‐ROLEANDCREATIONOFTHEBARANGAY

SEC.384.RoleoftheBarangay.‐Asthebasicpoliticalunit,thebarangayservesasthe primary planning and implementing unit of government policies, plans,programs, projects, and activities in the community, and as a forumwherein thecollective views of the peoplemaybe expressed, crystallized and considered, andwheredisputesmaybeamicablysettled.

SEC. 385. Manner of Creation. ‐ A barangay may be created, divided, merged,abolished, or its boundary substantially altered, by lawor by an ordinance of thesangguniang panlalawigan or sangguniang panlungsod, subject to approval by amajorityofthevotescastinaplebiscitetobeconductedbytheComelecinthelocalgovernment unit or units directly affected within such period of time as may bedetermined by the law or ordinance creating said barangay. In the case of the

Page 174: Local Government Code of 1991 (RA 7160)

creationofbarangaysbythesangguniangpanlalawigan,therecommendationofthesangguniangbayanconcernedshallbenecessary.

SEC. 386. Requisites for Creation. ‐ (a) A barangay maybe created out of acontiguous territory which has apopulation of at least two thousand (2,000)inhabitants ascertified by the National Statistics Office except in cities andmunicipalitieswithinMetroManilaandothermetropolitanpoliticalsubdivisionsorinhighlyurbanizedcitieswheresuchterritoryshallhaveacertifiedpopulationofatleastfivethousand(5,000)inhabitants:Provided,Thatthecreationthereofshallnotreduce the population of the original barangay or barangays to less than theminimumrequirementprescribedherein.

Toenhance thedeliveryofbasic services in the indigenouscultural communities,barangays may be created in such communities by an Act of Congress,notwithstandingtheaboverequirement.

(b)Theterritorial jurisdictionofthenewbarangayshallbeproperlyidentifiedbymetesandboundsorbymoreorlesspermanentnaturalboundaries.Theterritoryneednotbecontiguousifitcomprisestwo(2)ormoreislands.

(c) The governor or citymayormay prepare a consolidation plan for barangays,based on the criteria prescribed in this Section,within his territorial jurisdiction.The plan shall be submitted to the sangguniang panlalawigan or sangguniangpanlungsod concerned for appropriate action. In the case ofmunicipalitieswithinthe Metropolitan Manila area and other metropolitan political subdivisions, thebarangay consolidation plan shall be prepared and approved by the sangguniangbayanconcerned.

CHAPTER2‐BARANGAYOFFICIALSANDOFFICES

SEC.387.ChiefOfficialsandOffices.‐(a)Thereshallbeineachbarangayapunongbarangay, seven (7) sangguniang barangay members, the sangguniang kabataanchairman,abarangaysecretary,andabarangaytreasurer.

(b)Thereshallalsobeineverybarangayalupongtagapamayapa.Thesangguniangbarangaymayformcommunitybrigadesandcreatesuchotherpositionsorofficesasmaybedeemednecessarytocarryoutthepurposesofthebarangaygovernment

Page 175: Local Government Code of 1991 (RA 7160)

inaccordancewiththeneedsofpublicservice,subjecttothebudgetarylimitationsonpersonalservicesprescribedunderTitleFive,BookIIofthisCode.

SEC. 388. Persons in Authority. ‐ For purposes of the Revised Penal Code, thepunong barangay, sangguniang barangay members, and members of the lupongtagapamayapa in each barangay shall be deemed as persons in authority in theirjurisdictions,whileotherbarangayofficials andmemberswhomaybedesignatedbylaworordinanceandchargedwiththemaintenanceofpublicorder,protectionand security of life andproperty, or themaintenance of a desirable andbalancedenvironment, and any barangay member who comes to the aid of persons inauthority,shallbedeemedagentsofpersonsinauthority.

CHAPTER3‐THEPUNONGBARANGAY

SEC.389.ChiefExecutive:Powers,Duties,andFunctions.‐(a)Thepunongbarangay,asthechiefexecutiveofthebarangaygovernment,shallexercisesuchpowersandperformsuchdutiesandfunctions,asprovidedbythisCodeandotherlaws.

(b)Forefficient,effectiveandeconomicalgovernance,thepurposeofwhichisthegeneralwelfareof thebarangayand its inhabitantspursuant toSection16of thisCode,thepunongbarangayshall:

(1)Enforcealllawsandordinanceswhichareapplicablewithinthebarangay;

(2)Negotiate,enterinto,andsigncontractsforandinbehalfofthebarangay,uponauthorizationofthesangguniangbarangay;

(3)Maintainpublicorderinthebarangayand,inpursuancethereof,assistthecityormunicipalmayorandthesanggunianmembersintheperformanceoftheirdutiesandfunctions;

(4) Call and preside over the sessions of the sangguniang barangay and thebarangayassembly,andvoteonlytobreakatie;(5)Uponapprovalbyamajorityof

Page 176: Local Government Code of 1991 (RA 7160)

all the members of the sangguniang barangay, appoint or replace the barangaytreasurer,thebarangaysecretary,andotherappointivebarangayofficials;

(6)Organizeand leadanemergencygroupwhenever thesamemaybenecessaryfor themaintenanceofpeaceandorderoronoccasionsofemergencyorcalamitywithinthebarangay;

(7) In coordination with the barangay development council, prepare the annualexecutiveandsupplementalbudgetsofthebarangay;

(8)Approvevouchersrelatingtothedisbursementofbarangayfunds;

(9)Enforcelawsandregulationsrelatingtopollutioncontrolandprotectionoftheenvironment;

(10)AdministertheoperationoftheKatarungangPambarangayinaccordancewiththeprovisionsofthisCode;

(11)Exercisegeneralsupervisionovertheactivitiesofthesangguniangkabataan;

(12) Ensure the delivery of basic services asmandated under Section 17 of thisCode;

(13) Conduct an annual palarong barangaywhich shall feature traditional sportsanddisciplines included innational and internationalgames, in coordinationwiththeDepartmentofEducation,CultureandSports;

(14)Promotethegeneralwelfareofthebarangay;and

(15)Exercise suchotherpowers andperform suchotherduties and functions asmaybeprescribedbylaworordinance.

Page 177: Local Government Code of 1991 (RA 7160)

(b)Intheperformanceofhispeaceandorderfunctions,thepunongbarangayshallbe entitled to possess and carry the necessary firearm within his territorialjurisdiction,subjecttoappropriaterulesandregulations.

CHAPTER4‐THESANGGUNIANGBARANGAY

SEC. 390. Composition. ‐ The sangguniang barangay, the legislative body of thebarangay, shallbe composedof thepunongbarangayaspresidingofficer, and theseven(7)regularsangguniangbarangaymemberselectedatlargeandsangguniangkabataanchairman,asmembers.

SEC. 391. Powers, Duties, and Functions. ‐ (a) The sangguniang barangay, as thelegislativebodyofthebarangay,shall:

(1) Enact ordinances as may be necessary to discharge the responsibilitiesconferredupon it by lawor ordinance and to promote the generalwelfare of theinhabitantstherein;

(2) Enact tax and revenue ordinances, subject to the limitations imposed in thisCode;

(3) Enact annual and supplemental budgets in accordancewith the provisions ofthisCode;

(4)Provide for theconstructionandmaintenanceofbarangay facilitiesandotherpublicworksprojectschargeabletothegeneralfundofthebarangayorsuchotherfundsactuallyavailableforthepurpose;

(5)Submittothesangguniangpanlungsodorsangguniangbayansuchsuggestionsorrecommendationsasitmayseefitfortheimprovementofthebarangayorforthewelfareoftheinhabitantsthereof;

Page 178: Local Government Code of 1991 (RA 7160)

(6) Assist in the establishment, organization, and promotion of cooperativeenterprises that will improve the economic condition and well‐being of theresidents;

(7) Regulate the use of multi‐purpose halls, multi‐ purpose pavements, grain orcopra dryers, patios and other post‐harvest facilities, barangay waterworks,barangay markets, parking areas or other similar facilities constructed withgovernment funds within the jurisdiction of the barangay and charge reasonablefeesfortheusethereof;

(8)Solicitoracceptmonies,materialsandvoluntarylaborforspecificpublicworksandcooperativeenterprisesofthebarangayfromresidents,landowners,producersandmerchantsinthebarangay;moniesfromgrants‐in‐aid,subsidies,contributions,and revenues made available to the barangays from national, provincial, city ormunicipalfunds;andmoniesfromotherprivateagenciesandindividuals:Provided,however,Thatmoniesorpropertiesdonatedbyprivateagenciesandindividualsforspecificpurposesshallaccruetothebarangayastrustfund;

(9) Solicit or accept, in any or all the foregoing public works and cooperativeenterprises, such cooperation as ismade available by national, provincial, city, ormunicipal agencies established by law to render financial, technical, and advisoryassistance to barangays and to barangay residents: Provided, however, That insolicitingoracceptingsuchcooperation,thesangguniangbarangayneednotpledgeanysumofmoneyforexpenditure inexcessofamountscurrently inthebarangaytreasuryorencumberedforotherpurposes;

(10)Provide compensation, reasonableallowancesorperdiemsaswell as travelexpenses forsangguniangbarangaymembersandotherbarangayofficials, subjectto the budgetary limitations prescribed under Title Five, Book II of this Code:Provided, however, That no increase in the com‐ pensation or honoraria of thesangguniangbarangaymembersshalltakeeffectuntilaftertheexpirationofthefulltermofallmembersofthesangguniangbarangayapprovingsuchincrease;

(11)Holdfund‐raisingactivitiesforbarangayprojectswithouttheneedofsecuringpermits from any national or local office or agency. The proceeds from suchactivitiesshallbetax‐exemptandshallaccruetothegeneralfundofthebarangay:Provided, That in the appropriation thereof, the specific purpose for which suchfund‐raisingactivityhasbeenheldshallbefirstsatisfied:Provided,further,Thatno

Page 179: Local Government Code of 1991 (RA 7160)

fund‐raisingactivitiesshallbeheldwithinaperiodofsixty(60)days immediatelypreceding and after a national or local election, recall, referendum, or plebiscite:Provided,finally,Thatsaidfund‐raisingactivitiesshallcomplywithnationalpolicystandardsandregulationsonmorals,health,andsafetyofthepersonsparticipatingtherein. The sangguniang barangay, through the punong barangay, shall render apublicaccountingofthefundsraisedatthecompletionoftheprojectforwhichthefund‐raisingactivitywasunder‐taken;

(12) Authorize the punong barangay to enter into contracts in behalf of thebarangay, subject to the provisions of this Code; (13) Authorize the barangaytreasurertomakedirectpurchasesinanamountnotexceedingOnethousandpesos(P1,000.00)atanyonetimefortheordinaryandessentialadministrativeneedsofthebarangay;

(14)PrescribefinesinamountsnotexceedingOnethousandpesos(P1,000.00)forviolationofbarangayordinances;

(15) Provide for the administrative needs of the lupong tagapamayapa and thepangkatngtagapagkasundo;

(16) Provide for the organization of community brigades, barangay tanod, orcommunityserviceunitsasmaybenecessary;

(17)Organizeregularlectures,programs,orforaoncommunityproblemssuchassanitation,nutrition,literacy,anddrugabuse,andconveneassembliestoencouragecitizenparticipationingovernment;

(18) Adopt measures to prevent and control the proliferation of squatters andmendicantsinthebarangay;

(19)Providefortheproperdevelopmentandwelfareofchildreninthebarangaybypromoting and supporting activities for the protection and total development ofchildren,particularlythosebelowseven(7)yearsofage;

Page 180: Local Government Code of 1991 (RA 7160)

(20)Adoptmeasurestowardsthepreventionanderadicationofdrugabuse,childabuse,andjuveniledelinquency;

(21) Initiate the establishment of a barangay high school, whenever feasible, inaccordancewithlaw;

(22) Provide for the establishment of a non‐formal education center in thebarangay whenever feasible, in coordination with the Department of Education,CultureandSports,;

(23)Provideforthedeliveryofbasicservices;and

(24)Exercise suchotherpowers andperform suchotherduties and functions asmaybeprescribedbylaworordinance.

SEC. 392. Other Duties of Sangguniang Barangay Members. ‐ In addition to theirduties asmembers of the sangguniang barangay, sangguniang barangaymembersmay:

(a)Assistthepunongbarangayinthedischargeofhisdutiesandfunctions;

(b)Actaspeaceofficersinthemaintenanceofpublicorderandsafety;and

(c)Performsuchotherdutiesandfunctionsasthepunongbarangaymaydelegate.

SEC.393.BenefitsofBarangayOfficials.‐(a)Barangayofficials,includingbarangaytanods and members of the lupong tagapamayapa, shall receive honoraria,allowances,andsuchotheremolumentsasmaybeauthorizedbylaworbarangay,municipalorcityordinanceinaccordancewiththeprovisionsofthisCode,butinnocase shall it be less than One thousand pesos (P=1,000.00) per month for thepunongbarangayandSixhundredpesos(P=600.00)permonthforthesangguniangbarangay members, barangay treasurer, and barangay secretary: Provided,

Page 181: Local Government Code of 1991 (RA 7160)

however, That the annual appropriations for personal services shall be subject tothebudgetarylimitationsprescribedunderTitleFive,BookIIofthisCode;

(b) The punong barangay, the sangguniang barangay members, the barangaytreasurer,andthebarangaysecretaryshallalso:

(1) Be entitled to Christmas bonus of at least One thousand pesos (P=1,000.00)each, the funds forwhichshallbe taken fromthegeneral fundof thebarangayorfromsuchotherfundsappropriatedbythenationalgovernmentforthepurpose;

(2)Beentitled,duringtheirincumbency,toinsurancecoveragewhichshallinclude,butshallnotbe limited to temporaryandpermanentdisability,double indemnity,accident insurance, death and burial benefits, in accordance with Republic ActNumberedSixty‐ninehundredforty‐two(R.A.No.6942),entitled"AnActIncreasingthe Insurance Benefits of Local Government Officials and Providing FundsTherefor";

(3)Beentitled to freemedical care includingsubsistence,medicines,andmedicalattendanceinanygovernmenthospitalorinstitution:Provided,Thatsuchhospitalcareshall includesurgeryor surgicalexpenses,medicines,X‐rays, laboratory fees,andotherhospitalexpenses;

In case of extreme urgency where there is no available government hospital orinstitution, the barangay official concerned may submit himself for immediatemedical attendance to the nearest private clinic, hospital or institution and theexpenses not exceeding Five thousand pesos (P=5,000.00) that may be incurredthereinshallbechargeableagainstthefundsofthebarangayconcerned;

(4) Be exempted during their incumbency from paying tuition andmatriculationfeesfortheirlegitimatedependentchildrenattendingstatecollegesoruniversities.Hemay likewise avail of such educational benefits in a state collegeoruniversitylocatedwithintheprovinceorcitytowhichthebarangaybelongs;and

(5)Beentitledtoappropriatecivilserviceeligibilityonthebasisofthenumberofyearsofservicetothebarangay,pursuanttotherulesandregulationsissuedbytheCivilServiceCommission.

Page 182: Local Government Code of 1991 (RA 7160)

(c) Elective barangay officials shall have preference in appointments to anygovernment position or in any government‐owned or ‐controlled corporations,including their subsidiaries, after their tenure of office, subject to the requisitequalificationsandtheprovisionsoftheimmediatelyprecedingparagraph.

(d)Alldulyappointedmembersofthebarangaytanodbrigades,ortheirequivalent,whichshallnumbernotmorethantwenty(20) ineachbarangay,shallbegrantedinsuranceorotherbenefitsduringtheirincumbency,chargeabletothebarangayorthecityormunicipalgovernmenttowhichthebarangaybelongs.

CHAPTER5‐APPOINTIVEBARANGAYOFFICIALS

SEC.394.BarangaySecretary:Appointment,Qualifications,PowersandDuties.‐(a)The barangay secretary shall be appointed by the punong barangay with theconcurrence of the majority of all the sangguniang barangay members. TheappointmentofthebarangaysecretaryshallnotbesubjecttoattestationbytheCivilServiceCommission.

(b) The barangay secretary shall be of legal age, a qualified voter and an actualresidentofthebarangayconcerned.

(c) No person shall be appointed barangay secretary if he is a sangguniangbarangaymember, a government employee, or a relative of the punong barangaywithinthefourthcivildegreeofconsanguinityoraffinity.

(d)Thebarangaysecretaryshall:

(1) Keep custody of all records of the sangguniang barangay and the barangayassemblymeetings;

(2)Prepareandkeeptheminutesofallmeetingsofthesangguniangbarangayandthebarangayassembly;

Page 183: Local Government Code of 1991 (RA 7160)

(3)Preparealistofmembersofthebarangayassembly,andhavethesamepostedinconspicuousplaceswithinthebarangay;

(4) Assist in the preparation of all necessary forms for the conduct of barangayelections,initiatives,referendaorplebiscites,incoordinationwiththeComelec;

(5) Assist the municipal civil registrar in the registration of births, deaths, andmarriages;

(6) Keep an updated record of all inhabitants of the barangay containing thefollowing items of information: name, address, place and date of birth, sex, civilstatus, citizenship, occupation, and such other items of information as may beprescribedbylaworordinances;

(7)Submitareportontheactualnumberofbarangayresidentsasoftenasmayberequiredbythesangguniangbarangay;and

(8)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

SEC.395.BarangayTreasurer:Appointment,Qualifications,PowersandDuties.‐(a)The barangay treasurer shall be appointed by the punong barangay with theconcurrence of the majority of all the sangguniang barangay members. TheappointmentofthebarangaytreasurershallnotbesubjecttoattestationbytheCivilServiceCommission.

(b) The barangay treasurer shall be of legal age, a qualified voter, and an actualresidentofthebarangayconcerned.

(c) No person shall be appointed barangay treasurer if he is a sangguniangbarangaymember, a government employee, or a relative of the punong barangaywithinthefourthcivildegreeofconsanguinityoraffinity.

Page 184: Local Government Code of 1991 (RA 7160)

(d)Thebarangaytreasurershallbebondedinaccordancewithexistinglawsinanamount to be determined by the sangguniang barangay but not exceeding Tenthousandpesos(P=10,000.00),premiumsforwhichshallbepaidbythebarangay.

(e)Thebarangaytreasurershall:

(1)Keepcustodyofbarangayfundsandproperties;

(2) Collect and issue official receipts for taxes, fees, contributions, monies,materials,andallotherresourcesaccruingtothebarangaytreasuryanddepositthesame in the account of the barangay as provided underTitle Five, Book II of thisCode;

(3) Disburse funds in accordance with the financial procedures provided in thisCode;

(4)Submittothepunongbarangayastatementcoveringtheactualandestimatesofincome and expenditures for the preceding and ensuing calendar years,respectively,subjecttotheprovisionsofTitleFive,BookIIofthisCode;

(5)Renderawrittenaccounting reportofallbarangay fundsandpropertyunderhiscustodyat theendofeachcalendaryear,andensure thatsuchreportshallbemade available to themembers of the barangay assembly and other governmentagenciesconcerned;

(6)Certifyastotheavailabilityoffundswhenevernecessary;

(7)Planandattendtotheruralpostalcircuitwithinhisjurisdiction;and

(8)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

Page 185: Local Government Code of 1991 (RA 7160)

SEC.396.OtherAppointiveOfficials.‐Thequalifications,duties,andfunctionsofallotherbarangayofficialsappointedbythepunongbarangayshallbegovernedbytheprovisionsofthisCodeandotherlawsorbybarangayordinances.

CHAPTER6‐BARANGAYASSEMBLY

SEC. 397. Composition; Meetings. ‐ (a) There shall be a barangay assemblycomposedofallpersonswhoareactualresidentsofthebarangayforatleastsix(6)months, fifteen (15) years of age or over, citizens of the Philippines, and dulyregisteredinthelistofbarangayassemblymembers.

(b)Thebarangayassemblyshallmeetatleasttwiceayeartohearanddiscussthesemestralreportofthesangguniangbarangayconcerningitsactivitiesandfinancesaswellasproblemsaffecting thebarangay. Itsmeetingsshallbehelduponcallofthepunongbarangayorofatleastfour(4)membersofthesangguniangbarangay,oruponwrittenpetitionofatleastfivepercent(5%)oftheassemblymembers.

(c)Nomeetingofthebarangayassemblyshalltakeplaceunlessawrittennoticeisgivenone(1)weekpriortothemeetingexceptonmattersinvolvingpublicsafetyorsecurity, in which case notice within a reasonable time shall be sufficient. Thepunong barangay, or in his absence, the sangguniang barangaymember acting aspunongbarangay,oranyassemblymemberselectedduringthemeeting,shallactaspresidingofficer inallthemeetingsoftheassembly.Thebarangaysecretary,or inhis absence, any member designated by the presiding officer to act as secretary,shalldischargethedutiesofsecretaryofthebarangayassembly.

SEC.398.PowersoftheBarangayAssembly.‐Thebarangayassemblyshall:

(a)Initiatelegislativeprocessesbyrecommendingtothesangguniangbarangaytheadoptionofmeasures for thewelfareof thebarangayand thecityormunicipalityconcerned;

(b)Decideon theadoptionof initiativeasa legalprocesswhereby the registeredvotersofthebarangaymaydirectlypropose,enact,oramendanyordinance;and

Page 186: Local Government Code of 1991 (RA 7160)

(c) Hear and pass upon the semestral report of the sangguniang barangayconcerningitsactivitiesandfinances.

CHAPTER7‐KATARUNGANGPAMBARANGAY

SEC.399.LupongTagapamayapa. ‐(a)There isherebycreatedineachbarangayalupongtagapamayapa,hereinafterreferredtoasthelupon,composedofthepunongbarangay as chairman and ten (10) to twenty (20)members. The lupon shall beconstitutedeverythree(3)yearsinthemannerprovidedherein.

(b) Any person actually residing or working in the barangay, not otherwiseexpresslydisqualifiedby law, andpossessing integrity, impartiality, independenceofmind,senseoffairness,andreputationforprobity,maybeappointedamemberofthelupon.

(c) A notice to constitute the lupon, which shall include the names of proposedmemberswhohaveexpressed theirwillingness to serve, shallbepreparedby thepunong barangay within the first fifteen (15) days from the start of his term ofoffice.Suchnoticeshallbeposted in three(3)conspicuousplaces in thebarangaycontinuouslyforaperiodofnotlessthanthree(3)weeks;

(d)Thepunongbarangay,takingintoconsiderationanyoppositiontotheproposedappointment or any recommendations for appointments asmay have beenmadewithin the period of posting, shall within ten (10) days thereafter, appoint asmembersthosewhomhedeterminestobesuitabletherefor.Appointmentsshallbein writing, signed by the punong barangay, and attested to by the barangaysecretary.

(e)Thelistofappointedmembersshallbepostedinthree(3)conspicuousplacesinthebarangayfortheentiredurationoftheirtermofoffice;and

(f) In barangays where majority of the inhabitants are members of indigenousculturalcommunities, localsystemsofes throughtheircouncilsofdatusoreldersshallberecognizedwithoutprejudicetotheapplicableprovisionsofthisCode.

Page 187: Local Government Code of 1991 (RA 7160)

SEC.400.OathandTermofOffice. ‐Uponappointment, each luponmember shalltakeanoathofofficebeforethepunongbarangay.Heshallholdofficeuntilanewlupon is constituted on the third year following his appointment unless soonerterminatedbyresignation,transferofresidenceorplaceofwork,orwithdrawalofappointmentbythepunongbarangaywiththeconcurrenceofthemajorityofallthemembersofthelupon.

SEC.401.Vacancies.‐Shouldavacancyoccurintheluponforanycause,thepunongbarangayshallimmediatelyappointaqualifiedpersonwhoshallholdofficeonlyfortheunexpiredportionoftheterm.

SEC. 402. Functions of the Lupon. ‐ The lupon shall: (a) Exercise administrativesupervisionovertheconciliationpanelsprovidedherein;

(b)Meetregularlyonceamonthtoprovideaforumforexchangeofideasamongitsmembersandthepubliconmattersrelevanttotheamicablesettlementofdisputes,and toenablevariousconciliationpanelmembers tosharewithoneanother theirobservationsandexperiencesineffectingspeedyresolutionofdisputes;and

(c)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

SEC.403.SecretaryoftheLupon.‐Thebarangaysecretaryshallconcurrentlyserveasthesecretaryofthe lupon.Heshallrecordtheresultsofmediationproceedingsbeforethepunongbarangayandshallsubmitareportthereontothepropercityormunicipal courts. He shall also receive and keep the records of proceedingssubmittedtohimbythevariousconciliationpanels.

SEC. 404. Pangkat ng Tagapagkasundo. ‐ (a) There shall be constituted for eachdisputebroughtbeforetheluponaconciliationpaneltobeknownasthepangkatngtagapagkasundo, hereinafter referred to as the pangkat, consisting of three (3)memberswhoshallbechosenbythepartiestothedisputefromthelistofmembersofthelupon.Shouldthepartiesfailtoagreeonthepangkatmembership,thesameshallbedeterminedbylotsdrawnbytheluponchairman.

Page 188: Local Government Code of 1991 (RA 7160)

(b) The three (3) members constituting the pangkat shall elect from amongthemselvesthechairmanandthesecretary.Thesecretaryshallpreparetheminutesof thepangkatproceedingsandsubmitacopydulyattestedtobythechairmantothe lupon secretary and to the proper city ormunicipal court. He shall issue andcausetobeservednoticestothepartiesconcerned.Theluponsecretaryshallissuecertifiedtruecopiesofanypublicrecordinhiscustodythatisnotbylawotherwisedeclaredconfidential.

SEC.405.VacanciesinthePangkat.‐Anyvacancyinthepangkatshallbechosenbythepartiestothedisputefromamongtheotherluponmembers.Shouldthepartiesfailtoagreeonacommonchoice,thevacancyshallbefilledbylottobedrawnbytheluponchairman.

SEC. 406. Character of Office and Service of Lupon Members. ‐ (a) The luponmembers, while in the performance of their official duties or on the occasionthereof, shall be deemed as persons in authority, as defined in the Revised PenalCode.

(b) The lupon or pangkatmembers shall serve without compensation, except asprovidedfor inSection393andwithoutprejudiceto incentivesasprovidedfor inthisSectionandinBookIVofthisCode.TheDepartmentof theInteriorandLocalGovernmentshallprovideforasystemofgrantingeconomicorotherincentivestothe lupon or pangkat members who adequately demonstrate the ability tojudiciously and expeditiously resolve cases referred to them. While in theperformanceof their duties, the luponor pangkatmembers,whether in public orprivateemployment,shallbedeemedtobeonofficialtime,andshallnotsufferfromany diminution in compensation or allowance from said employment by reasonthereof.

SEC.407.LegalAdviceonMattersInvolvingQuestionsofLaw.‐Theprovincial,citylegalofficerorprosecutororthemunicipallegalofficershallrenderlegaladviceonmattersinvolvingquestionsoflawtothepunongbarangayoranyluponorpangkatmemberwhenevernecessaryintheexerciseofhisfunctionsintheadministrationofthekatarungangpambarangay.

SEC.408.SubjectMatterforAmicableSettlement;ExceptionThereto.‐Theluponofeachbarangayshallhaveauthoritytobringtogetherthepartiesactuallyresidinginthesamecityormunicipalityforamicablesettlementofalldisputesexcept:

Page 189: Local Government Code of 1991 (RA 7160)

(a) Where one party is the government, or any subdivision or instrumentalitythereof;

(b)Whereonepartyisapublicofficeroremployee,andthedisputerelatestotheperformanceofhisofficialfunctions;

(c)Offensespunishablebyimprisonmentexceedingone(1)yearorafineexceedingFivethousandpesos(P5,000.00);

(d)Offenseswherethereisnoprivateoffendedparty;

(e) Where the dispute involves real properties located in different cities ormunicipalities unless the parties thereto agree to submit their differences toamicablesettlementbyanappropriatelupon;

(f)Disputesinvolvingpartieswhoactuallyresideinbarangaysofdifferentcitiesormunicipalities,exceptwheresuchbarangayunitsadjoineachotherandthepartiestheretoagreetosubmittheirdifferencestoamicablesettlementbyanappropriatelupon;

(g) Such other classes of disputes which the President may determine in theinterestofjusticeorupontherecommendationoftheSecretaryofJustice.Thecourtinwhichnon‐criminalcasesnotfallingwithintheauthorityoftheluponunderthisCodearefiledmay,atanytimebeforetrial,motuproprioreferthecasetotheluponconcernedforamicablesettlement.

SEC. 409. Venue. ‐ (a) Disputes between persons actually residing in the samebarangay shall be brought for amicable settlement before the lupon of saidbarangay.

Page 190: Local Government Code of 1991 (RA 7160)

(b)Thoseinvolvingactualresidentsofdifferentbarangayswithinthesamecityormunicipalityshallbebrought in thebarangaywhere therespondentoranyof therespondentsactuallyresides,attheelectionofthecomplainant.

(c)Alldisputes involvingrealpropertyoranyinterestthereinshallbebrought inthebarangaywheretherealpropertyorthelargerportionthereofissituated.

(d)Thosearisingattheworkplacewherethecontendingpartiesareemployedoratthe institutionwhere such parties are enrolled for study, shall be brought in thebarangaywheresuchworkplaceorinstitutionis located.Objectionstovenueshallberaisedinthemediationproceedingsbeforethepunongbarangay;otherwise,thesameshallbedeemedwaived.Any legalquestionwhichmayconfront thepunongbarangay in resolvingobjections tovenueherein referred tomaybe submitted totheSecretaryofJustice,orhisdulydesignatedrepresentative,whoserulingthereonshallbebinding.

SEC. 410. Procedure forAmicable Settlement. ‐ (a)Whomay initiateproceeding ‐Uponpaymentoftheappropriatefilingfee,anyindividualwhohasacauseofactionagainst another individual involving anymatterwithin the authority of the luponmaycomplain,orallyorinwriting,totheluponchairmanofthebarangay.

(b) Mediation by lupon chairman ‐ Upon receipt of the complaint, the luponchairmanshallwithinthenextworkingdaysummontherespondent(s),withnoticeto the complainant(s) for them and their witnesses to appear before him for amediation of their conflicting interests. If he fails in his mediation effort withinfifteen(15)daysfromthefirstmeetingofthepartiesbeforehim,heshallforthwithsetadate for theconstitutionof thepangkat inaccordancewith theprovisionsofthisChapter.

(c) Suspension of prescriptive period of offenses ‐ While the dispute is undermediation, conciliation, or arbitration, the prescriptive periods for offenses andcauseofactionunderexistinglawsshallbeinterrupteduponfilingofthecomplaintwith thepunongbarangay.Theprescriptiveperiods shall resumeuponreceiptbythe complainant of the complaint or the certificate of repudiation or of thecertification to file action issued by the lupon or pangkat secretary: Provided,however,Thatsuchinterruptionshallnotexceedsixty(60)daysfromthefilingofthecomplaintwiththepunongbarangay.

Page 191: Local Government Code of 1991 (RA 7160)

(d)Issuanceofsummons;hearing;groundsfordisqualification‐Thepangkatshallconvenenotlaterthanthree(3)daysfromitsconstitution,onthedayandhoursetbytheluponchairman,tohearbothpartiesandtheirwitnesses,simplifyissues,andexploreallpossibilitiesforamicablesettlement.Forthispurpose,thepangkatmayissue summons for thepersonal appearanceof parties andwitnessesbefore it. Intheeventthatapartymovestodisqualifyanymemberofthepangkatbyreasonofrelationship, bias, interest, or any other similar grounds discovered after theconstitutionof thepangkat, themattershallberesolvedbytheaffirmativevoteofthemajorityofthepangkatwhosedecisionshallbefinal.Shoulddisqualificationbedecidedupon,theresultingvacancyshallbefilledashereinprovidedfor.

(e) Period to arrive at a settlement ‐ The pangkat shall arrive at a settlement orresolution of the dispute within fifteen (15) days from the day it convenes inaccordancewiththissection.Thisperiodshall,atthediscretionofthepangkat,beextendible for another periodwhich shall not exceed fifteen (15) days, except inclearlymeritoriouscases.

SEC. 411. Form of Settlement. ‐ All amicable settlements shall be in writing, in alanguage or dialect known to the parties, signed by them, and attested to by theluponchairmanor thepangkatchairman,as thecasemaybe.Whentheparties tothedisputedonotusethesamelanguageordialect,thesettlementshallbewritteninthelanguageordialectknowntothem.

SEC. 412. Conciliation. ‐ (a) Pre‐condition to Filing of Complaint in Court. ‐ Nocomplaint,petition,action,orproceedinginvolvinganymatterwithintheauthorityof the lupon shall be filedor instituteddirectly in court or anyother governmentoffice for adjudication, unless there has been a confrontation between the partiesbeforetheluponchairmanorthepangkat,andthatnoconciliationorsettlementhasbeenreachedascertifiedbytheluponsecretaryorpangkatsecretaryasattestedtobytheluponorpangkatchairmanorunlessthesettlementhasbeenrepudiatedbythepartiesthereto.

(b)WherePartiesMayGoDirectlytoCourt.‐Thepartiesmaygodirectlytocourtinthefollowinginstances:

(1)Wheretheaccusedisunderdetention;(2)Whereapersonhasotherwisebeendeprivedofpersonallibertycallingforhabeascorpusproceedings;

Page 192: Local Government Code of 1991 (RA 7160)

(3) Where actions are coupled with provisional remedies such as preliminaryinjunction, attachment, delivery of personal property, and support pendente lite;and

(4)Wheretheactionmayotherwisebebarredbythestatuteoflimitations.

(c)Conciliationamongmembersofindigenousculturalcommunities.‐Thecustomsand traditions of indigenous cultural communities shall be applied in settlingdisputesbetweenmembersoftheculturalcommunities.

SEC.413.Arbitration.‐(a)Thepartiesmay,atanystageoftheproceedings,agreeinwritingthattheyshallabidebythearbitrationawardoftheluponchairmanorthepangkat.Suchagreementtoarbitratemayberepudiatedwithinfive(5)daysfromthe date thereof for the same grounds and in accordance with the procedurehereinafterprescribed.Thearbitrationaward shallbemadeafter the lapseof theperiodforrepudiationandwithinten(10)daysthereafter.

(b)Thearbitrationawardshallbeinwritinginalanguageordialectknowntotheparties.Whenthepartiestothedisputedonotusethesamelanguageordialect,theawardshallbewritteninthelanguageordialectknowntothem.

SEC. 414. Proceedings Open to the Public; Exception. ‐ All proceedings forsettlement shall be public and informal: Provided, however, That the luponchairmanorthepangkatchairman,asthecasemaybe,maymotupropriooruponrequestofaparty,excludethepublicfromtheproceedingsintheinterestofprivacy,decency,orpublicmorals.

SEC. 415. Appearance of Parties in Person. ‐ In all katarungang pambarangayproceedings,thepartiesmustappearinpersonwithouttheassistanceofcounselorrepresentative, except forminorsand incompetentswhomaybeassistedby theirnext‐of‐kinwhoarenotlawyers.

SEC. 416. Effect of Amicable Settlement and Arbitration Award. ‐ The amicablesettlementandarbitrationawardshallhavetheforceandeffectofafinaljudgmentof a court upon the expiration of ten (10) days from the date thereof, unlessrepudiationofthesettlementhasbeenmadeorapetitiontonullifytheawardhas

Page 193: Local Government Code of 1991 (RA 7160)

been filedbefore thepropercityormunicipalcourt.However, thisprovisionshallnotapplytocourtcasessettledbytheluponunderthelastparagraphofSection408of thisCode, inwhichcasethecompromisesettlementagreeduponbythepartiesbeforetheluponchairmanorthepangkatchairmanshallbesubmittedtothecourtanduponapprovalthereof,havetheforceandeffectofajudgmentofsaidcourt.

SEC. 417. Execution. ‐ The amicable settlement or arbitration award may beenforced by execution by the lupon within six (6) months from the date of thesettlement.Afterthelapseofsuchtime,thesettlementmaybeenforcedbyactionintheappropriatecityormunicipalcourt.

SEC.418.Repudiation.‐Anypartytothedisputemay,withinten(10)daysfromthedate of the settlement, repudiate the same by filing with the lupon chairman astatementtothateffectsworntobeforehim,wheretheconsentisvitiatedbyfraud,violence,orintimidation.Suchrepudiationshallbesufficientbasisfortheissuanceofthecertificationforfilingacomplaintashereinaboveprovided.

SEC. 419. Transmittal of Settlement and Arbitration Award to the Court. ‐ Thesecretaryoftheluponshalltransmitthesettlementorthearbitrationawardtotheappropriatecityormunicipalcourtwithinfive(5)daysfromthedateoftheawardorfromthelapseoftheten‐dayperiodrepudiatingthesettlementandshallfurnishcopiesthereoftoeachofthepartiestothesettlementandtheluponchairman.

SEC. 420. Power toAdministerOaths. ‐ Thepunongbarangay, as chairmanof thelupong tagapamayapa, and themembers of the pangkat are hereby authorized toadminister oaths in connectionwith anymatter relating to all proceedings in theimplementationofthekatarungangpambarangay.

SEC.421.Administration;RulesandRegulations.‐Thecityormunicipalmayor,asthe case may be, shall see to the efficient and effective implementation andadministration of the katarungang pambarangay. The Secretary of Justice shallpromulgatetherulesandregulationsnecessarytoimplementthisChapter.

SEC. 422. Appropriations. ‐ Such amount as may be necessary for the effectiveimplementation of the katarungang pambarangay shall be provided for in theannualbudgetofthecityormunicipalityconcerned.

Page 194: Local Government Code of 1991 (RA 7160)

CHAPTER8‐SANGGUNIANGKABATAAN

SEC.423.CreationandElection.‐(a)Thereshallbeineverybarangayasangguniangkabataan to be composed of a chairman, seven (7) members, a secretary, and atreasurer.

(b)Asangguniangkabataanofficialwho,duringhistermofoffice,shallhavepassedtheageoftwenty‐one(21)yearsshallbeallowedtoservetheremainingportionofthetermforwhichhewaselected.

SEC.424.KatipunanngKabataan.‐Thekatipunanngkabataanshallbecomposedofall citizens of the Philippines actually residing in the barangay for at least six (6)months,whoarefifteen(15)butnotmorethantwenty‐one(21)yearsofage,andwho are duly registered in the list of the sangguniang kabataan or in the officialbarangaylistinthecustodyofthebarangaysecretary.

SEC.425.MeetingsoftheKatipunanngKabataan.‐Thekatipunanngkabataanshallmeet at least once every three (3) months, or at the call of the chairman of thesangguniangkabataanoruponwrittenpetitionofat leastone‐twentieth(1/20)ofitsmembers,todecideonimportantissuesaffectingtheyouthofthebarangay.

SEC. 426. Powers and Functions of the SangguniangKabataan. ‐ The sangguniangkabataanshall:

(a)PromulgateresolutionsnecessarytocarryouttheobjectivesoftheyouthinthebarangayinaccordancewiththeapplicableprovisionsofthisCode;

(b) Initiateprogramsdesigned toenhance the social, political, economic, cultural,intellectual,moral,spiritual,andphysicaldevelopmentofthemembers;

(c)Holdfund‐raisingactivities,theproceedsofwhichshallbetax‐exemptandshallaccruetothegeneralfundofthesangguniangkabataan:Provided,however,Thatintheappropriationthereof,thespecificpurposeforwhichsuchactivityhasbeenheldshallbefirstsatisfied;

Page 195: Local Government Code of 1991 (RA 7160)

(d)Createsuchbodiesorcommitteesasitmaydeemnecessarytoeffectivelycarryoutitsprogramsandactivities;

(e) Submit annual and end‐of‐term reports to the sangguniang barangay on theirprojectsandactivitiesforthesurvivalanddevelopmentoftheyouthinthebarangay;

(f)Consultandcoordinatewithallyouthorganizations in thebarangay forpolicyformulationandprogramimplementation;

(g) Coordinate with the appropriate national agency for the implementation ofyouthdevelopmentprojectsandprogramsatthenationallevel;

(h)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasthesangguniangbarangaymaydetermineordelegate;and

(i)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

SEC.427.MeetingsoftheSangguniangkabataan.‐Thesangguniangkabataanshallmeet regularly once amonth on the date, time, and place to be fixed by the saidsanggunian.Specialmeetingsmaybecalledbythesangguniangkabataanchairmanoranythree(3)ofitsmembersbygivingwrittennoticetoallmembersofthedate,time,place, andagendaof themeeting at least one (1)day in advance.Noticesofregular or special meetings shall be furnished the punong barangay and thesangguniang barangay . A majority of the members of the sangguniang kabataanshallconstituteaquorum.

SEC.428.Qualifications.‐AnelectiveofficialofthesangguniangkabataanmustbeacitizenofthePhilippines,aqualifiedvoterofthekatipunanngkabataan,aresidentofthebarangayforatleastone(1)yearimmediatelypriortoelection,atleastfifteen(15)yearsbutnotmorethantwenty‐one(21)yearsofageonthedayofhiselection,abletoreadandwriteFilipino,English,orthelocaldialect,andmustnothavebeenconvictedofanycrimeinvolvingmoralturpitude.

Page 196: Local Government Code of 1991 (RA 7160)

SEC.429.TermofOffice.‐Thesangguniangkabataanchairmanandmembersshallhold office for a period of three (3) years, unless sooner removed for cause asprovidedbylaw,permanentlyincapacitated,dieorresignfromoffice.

SEC.430.SangguniangKabataanChairman.‐Theregisteredvotersofthekatipunanng kabataan shall elect the chairman of the sangguniang kabataan who shallautomaticallyserveasanex‐officiomemberofthesangguniangbarangayuponhisassumptiontooffice.Assuch,heshallexercisethesamepowers,dischargethesameduties and functions, and enjoy the same privileges as the regular sangguniangbarangaymembers,andshallbethechairmanofthecommitteeonyouthandsportsdevelopmentinthesaidsanggunian.

SEC.431.PowersandDutiesoftheSangguniangKabataanChairman.‐Inadditiontothe duties which may be assigned to him by the sangguniang barangay, thesangguniangkabataanchairmanshall:

(a) Call and preside over all meetings of the katipunan ng kabataan and thesangguniangkabataan;

(b) Implement policies, programs, and projects within his jurisdiction incoordinationwiththesangguniangbarangay;

(c)Exercisegeneral supervisionover theaffairsandactivitiesof thesangguniangkabataan and the official conduct of its members, and such other officers of thesangguniangkabataanwithinhisjurisdiction;

(d)With the concurrence of the sangguniang kabataan, appoint from among themembersofthesangguniangkabataan,thesecretaryandtreasurer,andsuchotherofficersasmaybedeemednecessary;and

(e)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

Page 197: Local Government Code of 1991 (RA 7160)

SEC. 432. SangguniangKabataan Secretary. ‐ The sangguniang kabataan secretaryshall:

(a)Keepallrecordsofthekatipunanngkabataanandsangguniangkabataan;

(b)Prepareandkeeptheminutesofallmeetingsofthekatipunanngkabataanandsangguniangkabataan;

(c) Prepare all forms necessary for the conduct of registrations, elections,initiatives,referenda,orplebiscites,incoordinationwiththebarangaysecretaryandtheComelec;and

(d)Performsuchotherdutiesanddischargesuchotherfunctionsasthechairmanofthesangguniangkabataanmayprescribeordirect.

SEC.433.SangguniangKabataanTreasurer. ‐Thesangguniangkabataan treasurershall:

(a) Take custody of all sangguniang kabataan property and funds not otherwisedepositedwiththecityormunicipaltreasurer;

(b) Collect and receive contributions, monies, materials, and all other resourcesintendedforthesangguniangkabataanandkatipunanngkabataan;

(c) Disburse funds in accordance with an approved budget of the sangguniangkabataan;

(d)Certifytotheavailabilityoffundswhenevernecessary;

Page 198: Local Government Code of 1991 (RA 7160)

(e)Submittothesangguniangkabataanandtothesangguniangbarangaycertifiedand detailed statements of actual income and expenditures at the end of everymonth;and

(f)Performsuchotherdutiesanddischargesuchotherfunctionsasthechairmanofthe

SEC.434.PrivilegesofSangguniangKabataanOfficials.‐Thesangguniangkabataanchairman shall have the same privileges enjoyed by othersangguniang barangayofficials under this Code subject to such requirements and limitations providedherein. During their incumbency, sangguniang kabataan officials shall be exemptfrom payment of tuition and matriculation fees while enrolled in public tertiaryschools, including state colleges and universities. The national government shallreimburse said college or university the amount of the tuition andmatriculationfees:Provided,That,toqualifyfortheprivilege,thesaidofficialsshallenrollinthestatecollegeoruniversitywithinornearesttheirareaofjurisdiction.

SEC.435.SuccessionandFillingofVacancies.‐(a)Incaseasangguniangkabataanchairman refuses to assume office, fails to qualify, is convicted of a felony,voluntarily resigns, dies, is permanently incapacitated, is removed from office, orhas been absent without leave for more than three (3) consecutive months, thesangguniangkabataanmemberwhoobtained thenexthighestnumberofvotes intheelectionimmediatelyprecedingshallassumetheofficeofthechairmanfortheunexpiredportionoftheterm,andshalldischargethepowersandduties,andenjoytherightsandprivilegesappurtenanttotheoffice.Incasethesaidmemberrefusestoassumethepositionorfailstoqualify,thesanggunianmemberobtainingthenexthighestnumberofvotesshallassumethepositionofthechairmanfortheunexpiredportionoftheterm.

(b)Wheretwo(2)ormoresangguniangkabataanmembersobtainedthesamenexthighestnumberofvotes,theothersangguniangkabataanmembersshallconductanelectiontochoosethesuccessortothechairmanfromamongthesaidmembers.

(c) After the vacancy shall have been filled, the sangguniang kabataan chairmanshall call a special election to complete themembership of said sanggunian. Suchsangguniang kabataan member shall hold office for the unexpired portion of thetermofthevacantseat.

Page 199: Local Government Code of 1991 (RA 7160)

(d)Incaseofsuspensionofthesangguniangkabataanchairman,thesuccessor,asdetermined in subsections (a) and (b) of this Section shall assume the positionduringtheperiodofsuchsuspension.

CHAPTER9‐PEDERASYONNGMGASANGGUNIANGKABATAAN

SEC. 436. Pederasyon ng mga Sangguniang Kabataan. ‐ (a) There shall be anorganization of all the pederasyon ngmga sangguniang kabataan to be known asfollows:

(1)inmunicipalities,pambayangpederasyonngmgasangguniangkabataan;

(2)incities,panlungsodnapederasyonngmgasangguniangkabataan;

(3)inprovinces,panlalawigangpederasyonngmgasangguniangkabataan;

(4) in special metropolitan political subdivisions, pangmetropolitang pederasyonngmgasangguniangkabataan;and

(5)onthenationallevel,pambansangpederasyonngmgasangguniangkabataan.

(b) The pederasyon ng mga sangguniang kabataan shall, at all levels, elect fromamongthemselves thepresident,vice‐presidentandsuchotherofficersasmaybenecessaryandshallbeorganizedinthefollowingmanner:

(1) The panlungsod and pambayang pederasyon shall be composed of thesangguniang kabataan chairmen of barangays in the city or municipality,respectively;

(2) The panlalawigang pederasyon shall be composed of presidents of thepanlungsodandpambayangpederasyon;

Page 200: Local Government Code of 1991 (RA 7160)

(3) The pangmetropolitang pederasyon shall be composed of presidents of thepanlungsodandpambayangpederasyon;

(c) The elected presidents of the pederasyon at the provincial, highly urbanizedcity, andmetropolitanpolitical subdivision levels shall constitute thepambansangkatipunanngmgasangguniangkabataan.

SEC. 437. Constitution and By‐Laws. ‐ The term of office, manner of election,removal and suspension of the officers of the pederasyon ng mga sangguniangkabataan at all levels shall be governed by the constitution and by‐laws of thepederasyoninconformitywiththeprovisionsofthisCodeandnationalpoliciesonyouth.

SEC. 438.Membership in the Sanggunian. ‐ (a)A sangguniang kabataan chairmanshall,uponcertificationofhiselectionbytheComelecandduringhistenureofofficeiselectedaspederasyonpresident,serveasanex‐officiomemberofthesanggunianpanlalawigan,sangguniangpanlungsod,andsangguniangbayan,asthecasemaybe,withoutneedoffurtherappointment.

(b) The vice‐president of the pederasyon whose president has been elected aspresidentofahigherpederasyonshallserveasex‐officiomemberofthesanggunianconcernedwithoutneedoffurtherappointment.

(c) The pederasyon president or vice‐president, as the casemay be, shall be thechairman of the committee on youth and sports development of the sanggunianconcerned.

CHAPTER10‐LINGGONGKABATAAN

SEC.439.ObservanceofLinggongKabataan.‐(a)Everybarangay,municipality,cityand province shall, in coordination with the pederasyon ng mga sangguniangkabataan at all levels, conduct an annual activity to be known as the Linggo ngKabataanonsuchdateasshallbedeterminedbytheOfficeofthePresident.

(b) The observance of the Linggo ng Kabataan shall include the election of thecounterpartsofalllocalelectiveandappointiveofficials,aswellasheadsofnational

Page 201: Local Government Code of 1991 (RA 7160)

offices or agencies stationed or assigned in the territorial jurisdiction of the localgovernment unit, among in‐school and community youth residing in the localgovernmentunitconcernedfromagesthirteen(13)toseventeen(17).Duringsaidweek, they shallholdofficeasboyandgirlofficialsandshallperformsuchdutiesandconductsuchactivitiesasmaybeprovidedintheordinanceenactedpursuanttothisChapter.

TITLETWO.‐THEMUNICIPALITY

CHAPTER1‐ROLEANDCREATIONOFTHEMUNICIPALITY

SEC. 440. Role of the Municipality. ‐ The municipality, consisting of a group ofbarangays,servesprimarilyasageneralpurposegovernmentforthecoordinationand delivery of basic, regular and direct services and effective governance of theinhabitantswithinitsterritorialjurisdiction.

SEC. 441. Manner of Creation. ‐ A municipality may be created, divided, merged,abolished, or its boundary substantially altered only by an Act of Congress andsubjecttotheapprovalbyamajorityofthevotescastinaplebiscitetobeconductedbytheComelecinthelocalgovernmentunitorunitsdirectlyaffected.Exceptasmayotherwise be provided in the said Act, the plebiscite shall be held within onehundredtwenty(120)daysfromthedateofitseffectivity.

SEC. 442. Requisites for Creation. ‐ (a)Amunicipalitymay be created if it has anaverage annual income, as certified by the provincial treasurer, of at least Twomillion five hundred thousand pesos (P=2,500,000.00) for the last two (2)consecutive years based on the 1991 constant prices; a population of at leasttwenty‐five thousand (25,000) inhabitants as certified by the National StatisticsOffice;andacontiguousterritoryofatleastfifty(50)squarekilometersascertifiedby the Lands Management Bureau: Provided, That the creation thereof shall notreduce the land area, population or income of the original municipality ormunicipalitiesat the timeofsaidcreationto less thantheminimumrequirementsprescribedherein.

(b) The territorial jurisdiction of a newly‐created municipality shall be properlyidentifiedbymetesandbounds.Therequirementonlandareashallnotapplywherethemunicipalityproposedtobecreatediscomposedofone(1)ormoreislands.Theterritoryneednotbecontiguousifitcomprisestwo(2)ormoreislands.

Page 202: Local Government Code of 1991 (RA 7160)

(c)hTheaverageannual incomeshall includethe incomeaccruing to thegeneralfund of themunicipality concerned, exclusive of special funds, transfers and non‐recurringincome.

(d)MunicipalitiesexistingasofthedateoftheeffectivityofthisCodeshallcontinueto exist and operate as such. Existing municipal districts organized pursuant topresidential issuances or executive orders andwhich have their respective set ofelectivemunicipalofficialsholdingofficeat the timeof theeffectivityof thisCodeshallhenceforthbeconsideredasregularmunicipalities.

CHAPTER2‐MUNICIPALOFFICIALSINGENERAL

SEC. 443. Officials of the Municipal Government. ‐ (a) There shall be in eachmunicipality a municipal mayor, a municipal vice‐mayor, sangguniang bayanmembers,asecretarytothesangguniangbayan,amunicipaltreasurer,amunicipalassessor,amunicipalaccountant,amunicipalbudgetofficer,amunicipalplanningand development coordinator, a municipal engineer/building official, a municipalhealthofficerandamunicipalcivilregistrar.

(b) In addition thereto, the mayor may appoint a municipal administrator, amunicipal legal officer, a municipal agriculturist, a municipal environment andnatural resources officer, a municipal social welfare and development officer, amunicipalarchitect,andamunicipalinformationofficer.

(c)Thesangguniangbayanmay:

(1)Maintainexistingofficesnotmentionedinsubsections(a)and(b)hereof;

(2)Createsuchotherofficesasmaybenecessarytocarryoutthepurposesofthemunicipalgovernment;or

(3)Consolidatethe functionsofanyofficewiththoseofanother in the interestofefficiencyandeconomy.

Page 203: Local Government Code of 1991 (RA 7160)

(d) Unless otherwise provided herein, heads of departments and offices shall beappointedby themunicipalmayorwith the concurrenceof themajorityof all thesangguniangbayanmembers,subjecttocivilservicelaw,rulesandregulations.Thesangguniangbayanshallacton theappointmentwithin fifteen(15)days fromthedateofitssubmission;otherwise,thesameshallbedeemedconfirmed.

(e) Elective and appointive municipal officials shall receive such compensation,allowances and other emoluments as may be determined by law or ordinance,subjecttothebudgetarylimitationsonpersonalservicesasprescribedinTitleFive,BookTwoof thisCode:Provided,Thatno increase incompensationof themayor,vice‐mayor, and sangguniang bayan members shall take effect until after theexpirationofthefulltermofalltheelectivelocalofficialsapprovingsuchincrease.

CHAPTER3‐OFFICIALSANDOFFICESCOMMONTOALLMUNICIPALITIES

ArticleOne.‐TheMunicipalMayor

SEC. 444. The Chief Executive: Powers,Duties, Functions andCompensation. ‐ (a)The municipal mayor, as the chief executive of the municipal government, shallexercise such powers and perform such duties and functions as provided by thisCodeandotherlaws.

(b)Forefficient,effectiveandeconomicalgovernancethepurposeofwhich is thegeneralwelfareofthemunicipalityanditsinhabitantspursuanttoSection16ofthisCode,themunicipalmayorshall:

(1)Exercisegeneral supervisionandcontroloverallprograms,projects, services,andactivitiesofthemunicipalgovernment,andinthisconnection,shall:

(i) Determine the guidelines of municipal policies and be responsible to thesangguniangbayanfortheprogramofgovernment;

(ii)Directtheformulationofthemunicipaldevelopmentplan,withtheassistanceofthemunicipaldevelopmentcouncil,anduponapprovalthereofbythesangguniangbayan,implementthesame;

Page 204: Local Government Code of 1991 (RA 7160)

(iii) At the opening of the regular session of the sangguniang bayan for everycalendar year and, as may be deemed necessary, present the program ofgovernment and propose policies and projects for the consideration of thesangguniangbayanas the generalwelfareof the inhabitants and theneedsof themunicipalgovernmentmayrequire;

(iv) Initiateandpropose legislativemeasurestothesangguniangbayanand, fromtimetotimeasthesituationmayrequire,providesuchinformationanddataneededor requested by said sanggunian in the performance of its legislative functions;AppointallofficialsandemployeeswhosesalariesandwagesarewhollyormainlypaidoutofmunicipalfundsandwhoseappointmentsarenototherwiseprovidedforinthisCode,aswellasthosehemaybeauthorizedbylawtoappoint;

(vi)Uponauthorizationbythesangguniangbayan,representthemunicipalityinallitsbusinesstransactionsandsignonitsbehalfallbonds,contracts,andobligations,andsuchotherdocumentsmadepursuanttolaworordinance;

(vii) Carry out such emergencymeasures asmay be necessary during and in theaftermathofman‐madeandnaturaldisastersandcalamities;

(viii) Determine, according to law or ordinance, the time, manner and place ofpaymentofsalariesorwagesoftheofficialsandemployeesofthemunicipality;

(ix)Allocateandassignofficespacetomunicipalandotherofficialsandemployeeswho,bylaworordinance,areentitledtosuchspaceinthemunicipalhallandotherbuildingsownedorleasedbythemunicipalgovernment;

(x)Ensure that all executiveofficials andemployeesof themunicipality faithfullydischargetheirdutiesandfunctionsasprovidedbylawandthisCode,andcausetobeinstitutedadministrativeorjudicialproceedingsagainstanyofficialoremployeeof themunicipalitywhomayhavecommittedanoffense intheperformanceofhisofficialduties;

(xi)Examinethebooks,recordsandotherdocumentsofalloffices,officials,agentsoremployeesofthemunicipalityandinaidofhisexecutivepowersandauthority,require all national officials and employees stationed in or assigned to the

Page 205: Local Government Code of 1991 (RA 7160)

municipalitytomakeavailabletohimsuchbooks,records,andotherdocumentsintheircustody,exceptthoseclassifiedbylawasconfidential;

(xii) Furnish copies of executive ordersissued by him to the provincial governorwithinseventy‐two(72)hoursaftertheirissuance:Provided,ThatmunicipalitiesofMetropolitanManila Area and that of anymetropolitan political subdivision shallfurnish copies of said executive orders to the metropolitan authority councilchairmanandtotheOfficeofthePresident;

(xiii) Visit component barangays of the municipality at least once every six (6)monthstodeepenhisunderstandingofproblemsandconditionstherein,listenandgive appropriate counsel to local officials and inhabitants, inform the componentbarangayofficialsandinhabitantsofgeneral lawsandordinanceswhichespeciallyconcern them, and otherwise conduct visits and inspections to the end that thegovernanceofthemunicipalitywillimprovethequalityoflifeoftheinhabitants;

(xiv)Actonleaveapplicationsofofficialsandemployeesappointedbyhimandthecommutationofthemonetaryvalueofleavecreditsaccordingtolaw;

(xv) Authorize official trips outside of themunicipality ofmunicipal officials andemployeesforaperiodnotexceedingthirty(30)days;

(xvi) Call upon any national official or employee stationed in or assigned to themunicipality to advise him on matters affecting the municipality and to makerecommendationsthereon,ortocoordinateintheformulationandimplementationofplans,programsandprojects,andwhenappropriate,initiateanadministrativeorjudicial action against a national government official or employeewhomay havecommittedanoffenseintheperformanceofhisofficialdutieswhilestationedinorassignedtothelocalgovernmentunitconcerned;

(xvii)Subjecttoavailabilityoffunds,authorizepaymentofmedicalcare,necessarytransportation, subsistence, hospital or medical fees of municipal officials andemployees who are injured while in the performance of their official duties andfunctions;

(xviii)Solemnizemarriages,anyprovisionoflawtothecontrarynotwithstanding;

Page 206: Local Government Code of 1991 (RA 7160)

(xix)Conductapalarongbayan,incoordinationwiththeDepartmentofEducation,CultureandSports,asanannualactivitywhichshall featuretraditionalsportsanddisciplinesincludedinnationalandinternationalgames;and

(xx) Submit to the provincial governor the following reports: an annual reportcontainingasummaryofallmatterspertainingtothemanagement,administrationand development of the municipality and all information and data relativeto itspolitical, social and economic conditions; and supplemental reports whenunexpected events and situations arise at any time during the year, particularlywhenman‐madeornaturaldisastersorcalamitiesaffectthegeneralwelfareofthemunicipality, province, region or country. Mayors of municipalities of theMetropolitanManilaAreaandothermetropolitanpoliticalsubdivisionsshallsubmitsaidreports totheirrespectivemetropolitancouncilchairmenandtotheOfficeofthePresident;

(2)Enforceall lawsandordinancesrelativetothegovernanceofthemunicipalityandtheexerciseofitscorporatepowersprovidedforunderSection22ofthisCode,implement all approvedpolicies, programs, projects, services and activities of themunicipality and, in addition to the foregoing, shall: Ensure that the acts of themunicipality's component barangays andof its officials and employees arewithinthescopeoftheirprescribedpowers,functions,dutiesandresponsibilities;

(ii) Call conventions, conferences, seminars or meetings of any elective andappointive officials of the municipality, including provincial officials and nationalofficialsandemployeesstationedinorassignedtothemunicipalityatsuchtimeandplace and on such subject as he may deem important for the promotion of thegeneralwelfareofthelocalgovernmentunitanditsinhabitants;

(iii) Issuesuchexecutiveordersasarenecessary for theproperenforcementandexecutionoflawsandordinances;

(iv)Beentitledtocarrythenecessaryfirearmwithinhisterritorialjurisdiction;

(v) Act as the deputized representative of the National Police Commission,formulate the peace and order plan of the municipality and upon its approval,

Page 207: Local Government Code of 1991 (RA 7160)

implementthesameandexercisegeneralandoperationalcontrolandsupervisionoverthelocalpoliceforcesinthemunicipalityinaccordancewithR.A.No.6975;

(vi)Callupontheappropriatelawenforcementagenciestosuppressdisorder,riot,lawless violence, rebellion or sedition or to apprehend violators of the lawwhenpublic interest so requiresand themunicipalpolice forcesare inadequate tocopewiththesituationortheviolators;

(3)Initiateandmaximizethegenerationofresourcesandrevenues,andapplythesame to the implementation of development plans, program objectives andprioritiesasprovidedforunderSection18ofthisCode,particularlythoseresourcesand revenues programmed for agro‐industrial development and country‐widegrowthandprogress,andrelativethereto,shall:

(i)Requireeachheadofanofficeordepartmenttoprepareandsubmitanestimateof appropriations for the ensuing calendar year, in accordance with the budgetpreparationprocessunderTitleFive,BookIIofthisCode;

(ii) Prepare and submit to the sanggunian for approval the executive andsupplemental budgets of the municipality for the ensuing calendar year in themannerprovidedforunderTitleFive,BookIIofthisCode;

(iii)Ensurethatalltaxesandotherrevenuesofthemunicipalityarecollected,andthat municipal funds are applied in accordance with law or ordinance tothepaymentofexpensesandsettlementofobligationsofthemunicipality;

(iv)Issuelicensesandpermitsandsuspendorrevokethesameforanyviolationoftheconditionsuponwhichsaidlicensesorpermitshadbeenissued,pursuanttolaworordinance;

(v)Issuepermits,withoutneedofapprovalthereforfromanynationalagency,fortheholdingofactivitiesforanycharitableorwelfarepurpose,excludingprohibitedgamesofchanceorshowscontrarytolaw,publicpolicyandpublicmorals;

Page 208: Local Government Code of 1991 (RA 7160)

(vi)Requireownersofillegallyconstructedhouses,buildingsorotherstructurestoobtainthenecessarypermit,subjecttosuchfinesandpenaltiesasmaybeimposedbylaworordinance,ortomakenecessarychangesintheconstructionofthesamewhensaidconstructionviolatesanylaworordinance,ortoorderthedemolitionorremovalofsaidhouse,buildingorstructurewithintheperiodprescribedbylaworordinance;

(vii) Adopt adequatemeasures to safeguard and conserve land,mineral, marine,forest, and other resources of the municipality; provide efficient and effectivepropertyandsupplymanagementinthemunicipality;andprotectthefunds,credits,rightsandotherpropertiesofthemunicipality;and

(viii) Instituteor cause tobe instituted administrativeor judicial proceedings forviolation of ordinances in the collection of taxes, fees or charges, and for therecoveryoffundsandproperty;andcausethemunicipalitytobedefendedagainstall suits to ensure that its interests, resources and rights shall be adequatelyprotected;

(4)EnsurethedeliveryofbasicservicesandtheprovisionofadequatefacilitiesasprovidedforunderSection17ofthisCodeand,inadditionthereto,shall:

(i) Ensure that the construction and repair of roads and highways funded by thenational government shall be, as far as practicable, carried out in a spatiallycontiguous manner and in coordination with the construction and repair of theroadsandbridgesofthemunicipalityandtheprovince;and

(ii)Coordinate the implementationof technicalservicesrenderedbynationalandprovincial offices, including public works and infrastructure programs in themunicipality;and

(5)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

(c)Duringhis incumbency, themunicipalmayorshallholdoffice inthemunicipalhall.

Page 209: Local Government Code of 1991 (RA 7160)

(d) The municipal mayor shall receive a minimum monthly compensationcorrespondingtoSalaryGradetwenty‐seven(27)asprescribedunderR.A.No.6758andtheimplementingguidelinesissuedpursuantthereto.

ArticleTwo.‐TheViceMayor

SEC.445.Powers,DutiesandCompensation.‐(a)Thevice‐mayorshall:

(1)Bethepresidingofficerofthesangguniangbayanandsignallwarrantsdrawnonthemunicipaltreasuryforallexpendituresappropriatedfortheoperationofthesangguniangbayan;

(2) Subject to civil service law, rules and regulations, appoint all officials andemployeesofthesangguniangbayan,exceptthosewhosemannerofappointmentisspecificallyprovidedinthisCode;

(3)AssumetheofficeofthemunicipalmayorfortheunexpiredtermofthelatterintheeventofpermanentvacancyasprovidedforinSection44,BookIofthisCode;

(4) Exercise the powers and perform the duties and functions of the municipalmayor incasesof temporaryvacancyasprovided for inSection46,Book Iof thisCode;and,

(5)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

(b)Thevice‐mayor shall receiveamonthly compensationcorresponding toSalaryGrade twenty five (25) as prescribed under R.A. No. 6758 and the implementingguidelinesissuedpursuantthereto.

ArticleThree.‐TheSangguniangBayan

Page 210: Local Government Code of 1991 (RA 7160)

SEC. 446. Composition. ‐ (a) The sangguniang bayan, the legislative body of themunicipality,shallbecomposedofthemunicipalvice‐mayorasthepresidingofficer,theregularsanggunianmembers,thepresidentofthemunicipalchapteroftheligangmgabarangay,thepresidentofthepambayangpederasyonngmgasangguniangkabataan,andthesectoralrepresentatives,asmembers.

(b) In addition thereto, there shall be three (3) sectoral representatives: one (1)fromthewomen;and,asshallbedeterminedbythesanggunianconcernedwithinninety(90)dayspriortotheholdingoflocalelections,one(1)fromtheagriculturalorindustrialworkers;andone(1)fromtheothersectors,includingtheurbanpoor,indigenousculturalcommunities,ordisabledpersons.

(c)Theregularmembersofthesangguniangbayanandthesectoralrepresentativesshallbeelectedinthemannerasmaybeprovidedforbylaw.

SEC. 447. ‐ Powers, Duties, Functions and Compensation. ‐ (a) The sangguniangbayan, as the legislativebodyof themunicipality, shall enact ordinances, approveresolutionsandappropriatefundsforthegeneralwelfareofthemunicipalityanditsinhabitants pursuant to Section 16 of this Code and in the proper exercise of thecorporatepowersofthemunicipalityasprovidedforunderSection22ofthisCode,andshall:

(1)Approveordinancesandpassresolutionsnecessaryforanefficientandeffectivemunicipalgovernment,andinthisconnectionshall:

(i) Review all ordinances approved by the sangguniang barangay and executiveorders issuedby thepunongbarangay todeterminewhether thesearewithin thescopeoftheprescribedpowersofthesanggunianandofthepunongbarangay;

(ii) Maintain peace and order by enacting measures to prevent and suppresslawlessness,disorder, riot,violence,rebellionorseditionand imposepenalties fortheviolationofsaidordinances;

(iii)ApproveordinancesimposingafinenotexceedingTwothousandfivehundredpesos(P=2,500.00)oranimprisonmentforaperiodnotexceedingsix(6)months,orbothinthediscretionofthecourt,fortheviolationofamunicipalordinance;

Page 211: Local Government Code of 1991 (RA 7160)

(iv)Adoptmeasurestoprotecttheinhabitantsofthemunicipalityfromtheharmfuleffects of man‐made or natural disasters and calamities and to provide reliefservicesandassistanceforvictimsduringandintheaftermathofsaiddisastersorcalamitiesandtheirreturntoproductivelivelihoodfollowingsaidevents;

(v) Enact ordinances intended to prevent, suppress and impose appropriatepenalties for habitual drunkenness in public places, vagrancy, mendicancy,prostitution, establishmentandmaintenanceofhousesof ill repute, gamblingandotherprohibitedgamesofchance,fraudulentdevicesandwaystoobtainmoneyorproperty, drug addiction, maintenance of drug dens, drug pushing, juveniledelinquency, the printing, distribution or exhibition of obscene or pornographicmaterials or publications, and such other activities inimical to the welfare andmoralsoftheinhabitantsofthemunicipality;

(vi) Protect the environment and impose appropriate penalties for acts whichendangertheenvironment,suchasdynamitefishingandotherformsofdestructivefishing, illegal logging and smuggling of logs, smuggling of natural resourcesproductsandofendangeredspeciesoffloraandfauna,slashandburnfarming,andsuch other activities which result in pollution, acceleration of eutrophication ofriversandlakes,orofecologicalimbalance;

(vii) Subject to the provisions of this Code and pertinent laws, determine thepowersanddutiesofofficialsandemployeesofthemunicipality;

(viii) Determine the positions and the salaries, wages, allowances and otheremoluments and benefits of officials and employees paid wholly or mainly frommunicipal fundsandprovideforexpendituresnecessaryfortheproperconductofprograms,projects,services,andactivitiesofthemunicipalgovernment;

(ix) Authorize the payment of compensation to a qualified person not in thegovernmentservicewho fillsupa temporaryvacancyorgranthonorariumtoanyqualifiedofficialoremployeedesignatedtofillatemporaryvacancyinaconcurrentcapacity,attherateauthorizedbylaw;

Page 212: Local Government Code of 1991 (RA 7160)

(x)Provideamechanismandtheappropriate fundstherefor, toensurethesafetyandprotectionofallmunicipalgovernmentproperty,publicdocuments,orrecordssuch as those relating to property inventory, land ownership, records of births,marriages,deaths,assessments,taxation,accounts,businesspermits,andsuchotherrecords and documents of public interest in the offices and departments of themunicipalgovernment;

(xi)When the financesof themunicipalgovernmentallow,provide foradditionalallowances and other benefits to judges, prosecutors, public elementary and highschoolteachers,andothernationalgovernmentofficialsstationedinorassignedtothemunicipality;

(xii) Provide for legal assistance tobarangayofficialswho, in theperformanceoftheirofficialdutiesorontheoccasionthereof,havetoinitiatejudicialproceedingsordefendthemselvesagainstlegalaction;and,(xiii)Provideforgroupinsuranceoradditionalinsurancecoverageforbarangayofficials,includingmembersofbarangaytanodbrigadesandotherserviceunits,withpublicorprivateinsurancecompanies,whenthefinancesofthemunicipalgovernmentallowsaidcoverage.

(2)Generateandmaximizetheuseofresourcesandrevenuesforthedevelopmentplans,programobjectivesandprioritiesof themunicipalityasprovided forunderSection18ofthisCodewithparticularattentiontoagro‐industrialdevelopmentandcountrysidegrowthandprogress,andrelativethereto,shall:

(i)Approvetheannualandsupplementalbudgetsofthemunicipalgovernmentandappropriate funds for specific programs, projects, services and activities of themunicipality, or for other purposes not contrary to law, in order to promote thegeneralwelfareofthemunicipalityanditsinhabitants;

(ii)SubjecttotheprovisionsofBookIIofthisCodeandapplicablelawsanduponthemajority vote of all themembers of the sangguniang bayan, enact ordinanceslevyingtaxes,feesandcharges,prescribingtheratesthereofforgeneralandspecificpurposes,andgrantingtaxexemptions,incentivesorreliefs;

(iii)SubjecttotheprovisionsofBookIIofthisCodeanduponthemajorityvoteofall the members of the sangguniang bayan, authorize the municipal mayor tonegotiateandcontractloansandotherformsofindebtedness;

Page 213: Local Government Code of 1991 (RA 7160)

(iv)SubjecttotheprovisionsofBookIIofthisCodeandapplicablelawsanduponthemajority vote of all themembers of the sangguniang bayan, enact ordinancesauthorizing the floating of bonds or other instruments of indebtedness, for thepurposeofraisingfundstofinancedevelopmentprojects;

(v) Appropriate funds for the construction and maintenance or the rental ofbuildings for the use of the municipality and, upon the majority vote of all themembers of the sangguniang bayan, authorize the municipal mayor to lease toprivate parties such public buildings held in a proprietary capacity, subject toexistinglaws,rulesandregulations;

(vi) Prescribe reasonable limits and restraints on the use of propertywithin thejurisdictionofthemunicipality;

(vii)Adoptacomprehensivelanduseplanforthemunicipality:Provided,Thattheformulation,adoption,ormodificationofsaidplanshallbeincoordinationwiththeapprovedprovincialcomprehensivelanduseplan;

(viii) Reclassify land within the jurisdiction of the municipality, subject to thepertinentprovisionsofthisCode;

(ix) Enact integrated zoning ordinances in consonance with the approvedcomprehensive land use plan, subject to existing laws, rules and regulations;establish fire limits or zones, particularly in populous centers; and regulate theconstruction, repairormodificationofbuildingswithinsaid fire limitsorzones inaccordancewiththeprovisionsoftheFireCode;

(x) Subject tonational law,process andapprove subdivisionplans for residential,commercial, or industrial purposes and other development purposes, and collectprocessingfeesandothercharges,theproceedsofwhichshallaccrueentirelytothemunicipality: Provided, however, That, where approval by a national agency orofficeisrequired,saidapprovalshallnotbewithheldformorethanthirty(30)daysfromreceiptof theapplication.Failure toacton theapplicationwithin theperiodstatedaboveshallbedeemedasapprovalthereof;

Page 214: Local Government Code of 1991 (RA 7160)

(xi)SubjecttotheprovisionsofBookIIofthisCode,granttheexclusiveprivilegeofconstructingfishcorralsorfishpens,orthetakingorcatchingofbangusfry,prawnfryorkawag‐kawagorfryofanyspeciesorfishwithinthemunicipalwaters;

(xii)With the concurrence of at least two‐thirds (2/3) of all themembers of thesangguniangbayan,granttaxexemptions,incentivesorreliefstoentitiesengagedincommunitygrowth‐inducingindustries,subjecttotheprovisionsofChapter5,TitleI,BookIIofthisCode;

(xiii)Grantloansorprovidegrantstootherlocalgovernmentunitsortonational,provincial and municipal charitable, benevolent or educational institutions:Provided, That said institutions are operated and maintained within themunicipality;

(xiv)Regulatethenumberingofresidential,commercialandotherbuildings;and,

(xv)Regulatetheinspection,weighingandmeasuringofarticlesofcommerce.

(3) Subject to the provisions of Book II of this Code, grant franchises, enactordinances authorizing the issuance of permits or licenses, or enact ordinanceslevying taxes, fees and charges upon such conditions and for such purposesintendedtopromotethegeneralwelfareoftheinhabitantsofthemunicipality,andpursuanttothislegislativeauthorityshall:

(i) Fix and impose reasonable fees and charges for all services rendered by themunicipalgovernmenttoprivatepersonsorentities;

(ii) Regulate any business, occupation, or practice of profession or callingwhichdoes not require government examination within the municipality and theconditionsunderwhichthelicenseforsaidbusinessorpracticeofprofessionmaybeissuedorrevoked;

Page 215: Local Government Code of 1991 (RA 7160)

(iii)Prescribe the termsandconditionsunderwhichpublicutilitiesownedby themunicipality shall be operated by themunicipal government or leased to privatepersonsorentities,preferablycooperatives;

(iv) Regulate the display of and fix the license fees for signs, signboards, orbillboards at the place or places where the profession or business advertisedtherebyis,inwholeorinpart,conducted;

(v) Any law to the contrary notwithstanding, authorize and license theestablishment, operation, and maintenance of cockpits, and regulate cockfightingandcommercialbreedingofgamecocks:Provided,Thatexistingrightsshouldnotbeprejudiced;

(vi)SubjecttotheguidelinesprescribedbytheDepartmentofTransportationandCommunications, regulate the operation of tricycles and grant franchises for theoperationthereofwithintheterritorialjurisdictionofthemunicipality;

(vii)Uponapprovalbyamajorityvoteofallthemembersofthesangguniangbayan,grant a franchise to any person, partnership, corporation, or cooperative toestablish, construct, operate and maintain ferries, wharves, markets orslaughterhouses,orsuchothersimilaractivitieswithinthemunicipalityasmaybeallowedbyapplicable laws:Provided,That,cooperativesshallbegivenpreferenceinthegrantofsuchafranchise.

(4)Regulate activities relative to theuse of land, buildings and structureswithinthemunicipalityinordertopromotethegeneralwelfareandforsaidpurposeshall:

(i)Declare,preventorabateanynuisance;

(ii) Require that buildings and the premises thereof and any land within themunicipalitybekept andmaintained in a sanitary condition; imposepenalties forany violation thereof, or upon failure to comply with said requirement, have thework done and require the owner, administrator or tenant concerned to pay theexpensesof the same;or require the fillingupofany landorpremises toagradenecessaryforpropersanitation;

Page 216: Local Government Code of 1991 (RA 7160)

(iii) Regulate the disposal of clinical and otherwastes fromhospitals, clinics andothersimilarestablishments;

(iv) Regulate the establishment, operation andmaintenance of cafes, restaurants,beerhouses,hotels,motels, inns,pensionhouses, lodginghouses,andothersimilarestablishments,includingtouristguidesandtransports;

(v) Regulate the sale, giving away or dispensing of any intoxicating malt, vino,mixedorfermentedliquorsatanyretailoutlet;

(vi)Regulatetheestablishmentandprovidefortheinspectionofsteamboilersorany heating device in buildings and the storage of inflammable and highlycombustiblematerialswithinthemunicipality;

(vii)Regulatetheestablishment,operation,andmaintenanceofentertainmentoramusement facilities, including theatrical performances, circuses, billiard pools,publicdancingschools,publicdancehalls,saunabaths,massageparlors,andotherplacesofentertainmentoramusement;regulatesuchothereventsoractivitiesforamusement or entertainment, particularly those which tend to disturb thecommunityor annoy the inhabitants, or require the suspensionor suppressionofthe same; or, prohibit certain forms of amusement or entertainment in order toprotectthesocialandmoralwelfareofthecommunity;

(viii)Providefortheimpoundingofstrayanimals;regulatethekeepingofanimalsinhomesoraspartofabusiness,andtheslaughter,saleordispositionofthesame;andadoptmeasurestopreventandpenalizecrueltytoanimals;and

(ix)Regulatetheestablishment,operation,andmaintenanceoffuneralparlorsandtheburialorcremationofthedead,subjecttoexistinglaws,rulesandregulations.

(5)Approveordinanceswhichshallensuretheefficientandeffectivedeliveryofthebasic services and facilities as provided for under Section 17 of this Code, and inadditiontosaidservicesandfacilities,shall:

Page 217: Local Government Code of 1991 (RA 7160)

(i) Provide for the establishment, maintenance, protection, and conservation ofcommunal forests andwater sheds, tree parks, greenbelts, mangroves, and othersimilarforestdevelopmentprojects;

(ii) Establish markets, slaughterhouses or animal corrals and authorize theoperationthereof,andregulatetheconstructionandoperationofprivatemarkets,talipapasorothersimilarbuildingsandstructures;

(iii) Authorize the establishment,maintenance and operation of ferries,wharves,and other structures, andmarine and seashore or offshore activities intended toaccelerateproductivity;

(iv)Regulatethepreparationandsaleofmeat,poultry,fish,vegetables,fruits,freshdairyproducts,andotherfoodstuffsforpublicconsumption;

(v)Regulatetheuseofstreets,avenues,alleys,sidewalks,bridges,parksandotherpublicplacesandapprovetheconstruction, improvement,repairandmaintenanceofthesame;establishbusandvehiclestopsandterminalsorregulatetheuseofthesamebyprivately‐ownedvehicleswhichservethepublic;regulategaragesandtheoperation of conveyances for hire; designate stands to be occupied by publicvehicleswhennot inuse; regulate theputtingupof signs, signposts, awningsandawningpostsonthestreets;andprovideforthelighting,cleaningandsprinklingofstreetsandpublicplaces;

(vi) Regulate traffic on all streets and bridges, prohibit the putting up ofencroachmentsorobstacles thereon,and,whennecessary in the interestofpublicwelfare,authorizetheremovalofencroachmentsandillegalconstructionsinpublicplaces;

(vii) Subject to existing laws, provide for the establishment, operation,maintenance,andrepairofanefficientwaterworkssystemtosupplywaterfortheinhabitants; regulate the construction, maintenance, repair and use of hydrants,pumps,cisternsandreservoirs;protectthepurityandquantityofthewatersupplyof the municipality and, for this purpose, extend the coverage of appropriateordinances over all territory within the drainage area of said water supply and

Page 218: Local Government Code of 1991 (RA 7160)

within one hundred (100) meters of the reservoir, conduit, canal, aqueduct,pumping station, or watershed used in connection with the water service; andregulatetheconsumption,useorwastageofwater;

(viii)Regulatethedrillingandexcavationofthegroundforthelayingofwater,gas,sewer, and other pipes and the construction, repair and maintenance of publicdrains, sewers, cesspools, tunnels and similar structures; regulate the placing ofpolesandtheuseofcrosswalks,curbs,andgutters;adoptmeasurestoensurepublicsafetyagainstopencanals,manholes,livewiresandothersimilarhazardstolifeandproperty;and,regulatetheconstructionanduseofprivatewaterclosets,priviesandothersimilarstructuresinbuildingsandhomes;

(ix)Regulatetheplacing,stringing,attaching,installing,repairandconstructionofall gasmains, electric, telegraph and telephonewires, conduits,meters and otherapparatus; and, provide for the correction, condemnation or removal of the samewhenfoundtobedangerous,defectiveorotherwisehazardoustothewelfareoftheinhabitants;

(x)Subject to theavailabilityof fundsand toexisting laws, rulesand regulations,establish and provide for the operation of vocational and technical schools andsimilar post‐secondary institutions and, with the approval of the Department ofEducation, Culture and Sports, fix and collect reasonable fees and other schoolchargesonsaidinstitutions,subjecttoexistinglawsontuitionfees;

(xi)Establishascholarshipfundforpoorbutdeservingstudentsresidingwithinthemunicipalityinschoolslocatedwithinitsjurisdiction;

(xii) Approve measures and adopt quarantine regulations to prevent theintroductionandspreadofdiseases;

(xiii) Provide for an efficient and effective system of solid waste and garbagecollectionanddisposalandprohibitlitteringandtheplacingorthrowingofgarbage,refuseandotherfilthandwastes;

(xiv)Provideforthecareofpaupers,theaged,thesick,personsofunsoundmind,disabledpersons,abandonedminors,juveniledelinquents,drugdependents,abused

Page 219: Local Government Code of 1991 (RA 7160)

children and other needy and disadvantaged persons, particularly children andyouthbeloweighteen(18)yearsofageand,subjecttoavailabilityoffunds,establishand provide for the operation of centers and facilities for said needy anddisadvantagedpersons;

(xv) Establish and provide for the maintenance and improvement of jails anddetention centers, institute sound jail management programs, and appropriatefundsforthesubsistenceofdetaineesandconvictedprisonersinthemunicipality;

(xiv)Establishamunicipalcouncilwhosepurposeisthepromotionofcultureandthearts,coordinatewithgovernmentagenciesandnon‐governmentalorganizationsand, subject to the availability of funds, appropriate funds for the support anddevelopmentofthesame;and

(xvii) Establish amunicipal council for the elderlywhich shall formulate policiesand adopt measures mutually beneficial to the elderly and to the community;provide incentives for non‐governmental agencies and entities and, subject to theavailability of funds, appropriate funds to support programs and projects for thebenefitoftheelderly;and

(6)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

(b) The members of the sangguniang bayan shall receive a minimum monthlycompensationcorrespondingtoSalaryGradetwenty‐four(24)asprescribedunderR.A.6758andtheimplementingguidelinesissuedpursuantthereto:Provided,That,inmunicipalities in theMetropolitanManilaAreaandothermetropolitanpoliticalsubdivisions,membersofthesangguniangbayanshallreceiveaminimummonthlycompensationcorrespondingtoSalarygradetwenty‐five(25).

TITLETHREE.‐THECITY

CHAPTER1‐ROLEANDCREATIONOFTHECITY

SEC.448.Roleof theCity. ‐Thecity, consistingofmoreurbanizedanddevelopedbarangays, serves as a general‐purpose government for the coordination anddelivery of basic, regular, and direct services and effective governance of theinhabitantswithinitsterritorialjurisdiction.

Page 220: Local Government Code of 1991 (RA 7160)

SEC.449.MannerofCreation.‐Acitymaybecreated,divided,merged,abolished,orits boundary substantially altered, only by an Act of Congress, and subject toapproval by a majority of the votes cast in a plebiscite to be conducted by theComelec in the local government unit or units directly affected. Except as mayotherwisebeprovidedinsuchAct,theplebisciteshallbeheldwithinonehundredtwenty(120)daysfromthedateofitseffectivity.

SEC.450.RequisitesforCreation.‐(a)Amunicipalityoraclusterofbarangaysmaybeconvertedintoacomponentcityif ithasanaverageannualincome,ascertifiedbytheDepartmentofFinance,ofatleastTwentymillionpesos(P20,000,000.00)forthelasttwo(2)consecutiveyearsbasedon1991constantprices,andifithaseitherofthefollowingrequisites:

(i) a contiguous territory of at least one hundred (100) square kilometers, ascertifiedbytheLandsManagementBureau;or,

(ii)apopulationofnotlessthanonehundredfiftythousand(150,000)inhabitants,as certified by the National Statistics Office: Provided, That, the creation thereofshallnotreducethelandarea,population,andincomeoftheoriginalunitorunitsatthetimeofsaidcreationtolessthantheminimumrequirementsprescribedherein.

(b)Theterritorialjurisdictionofanewly‐createdcityshallbeproperlyidentifiedbymetes and bounds. The requirement on land area shall not apply where the cityproposedtobecreatediscomposedofone(1)ormoreislands.Theterritoryneednotbecontiguousifitcomprisestwo(2)ormoreislands.

(c) The average annual income shall include the income accruing to the generalfund,exclusiveofspecialfunds,transfers,andnon‐recurringincome.

SEC.451.Cities,Classified. ‐A citymayeitherbe componentorhighlyurbanized:Provided, however, That the criteria established in this Code shall not affect theclassificationandcorporatestatusofexistingcities. Independentcomponentcitiesare those component cities whose charters prohibit their voters from voting forprovincialelectiveofficials. Independentcomponentcities shallbe independentoftheprovince.

Page 221: Local Government Code of 1991 (RA 7160)

SEC. 452. Highly Urbanized Cities. ‐ (a) Citieswith aminimumpopulation of twohundred thousand (200,000) inhabitants, as certified by the National StatisticsOffice, and with the latest annual income of at least Fifty Million Pesos(P=50,000,000.00)basedon1991constantprices,ascertifiedbythecitytreasurer,shallbeclassifiedashighlyurbanizedcities.

(b) Cities which do not meet the above requirements shall be consideredcomponent cities of the province in which they are geographically located. If acomponentcityislocatedwithintheboundariesoftwo(2)ormoreprovinces,suchcity shall be considered a component of the province of which it used to be amunicipality.

(c)Qualifiedvotersofhighlyurbanizedcitiesshallremainexcludedfromvotingforelective provincial officials. Unless otherwise provided in the Constitution or thisCode,qualifiedvotersof independentcomponentcities shallbegovernedby theirrespective charters, as amended, on the participation of voters in provincialelections. Qualified voters of cities who acquired the right to vote for electiveprovincialofficialspriortotheclassificationofsaidcitiesashighly‐urbanizedafterthe ratification of the Constitution and before the effectivity of this Code, shallcontinuetoexercisesuchright.

SEC. 453. Duty to Declare Highly Urbanized Status. ‐ It shall be the duty of thePresidenttodeclareacityashighlyurbanizedwithinthirty(30)daysafteritshallhave met the minimum requirements prescribed in the immediately precedingsection, upon proper application therefor and ratification in a plebiscite by thequalifiedvoterstherein.

CHAPTER2‐CITYOFFICIALSINGENERAL

SEC.454.OfficialsoftheCityGovernment.‐(a)Thereshallbeineachcityamayor,avice‐mayor, sangguniang panlungsod members, a secretary to the sangguniangpanlungsod,acitytreasurer,acityassessor,acityaccountant,acitybudgetofficer,acityplanninganddevelopmentcoordinator,acityengineer,acityhealthofficer,acitycivilregistrar,acityadministrator,acitylegalofficer,acityveterinarian,acitysocialwelfareanddevelopmentofficer,andacitygeneralservicesofficer.

Page 222: Local Government Code of 1991 (RA 7160)

(b) In addition thereto, the city mayor may appoint a city architect, a cityinformationofficer,acityagriculturist,acitypopulationofficer,acityenvironmentandnaturalresourcesofficer,andacitycooperativesofficer.Theappointmentofacitypopulationofficer shallbeoptional in the city:Provided,however,That citieswhichhaveexistingpopulationofficesshallcontinuetomaintainsuchofficesforaperiodoffive(5)yearsfromthedateoftheeffectivityofthisCode,afterwhichsaidofficesshallbecomeoptional.

(c)Thesangguniangpanlungsodmay:

(1)Maintainexistingofficesnotmentionedinsubsections(a)and(b)hereof;

(2)Createsuchotherofficesasmaybenecessarytocarryoutthepurposesofthecitygovernment;or

(3)Consolidatethe functionsofanyofficewiththoseofanother in the interestofefficiencyandeconomy.

(d) Unless otherwise provided herein, heads of departments and offices shall beappointed by the city mayor with the concurrence of the majority of all thesangguniang panlungsod members, subject to civil service law, rules andregulations. The sangguniang panlungsod shall act on the appointment withinfifteen (15) days from the date of its submission, otherwise the same shall bedeemedconfirmed.

(e) Elective and appointive city officials shall receive such compensation,allowances, and other emoluments as may be determined by law or ordinance,subject to the budgetary limitations on personal services prescribed under TitleFive,BookIIofthisCode:Provided,That,noincreaseincompensationofthemayor,vice‐mayor and sangguniangpanlungsodmembers shall take effect until after theexpirationofthefulltermofthesaidlocalofficialsapprovingsuchincrease.

CHAPTER3‐OFFICIALSANDOFFICESCOMMONTOALLCITIES

ArticleOne.‐TheCityMayor

Page 223: Local Government Code of 1991 (RA 7160)

SEC.455.ChiefExecutive;Powers,DutiesandCompensation.‐(a)Thecitymayor,aschiefexecutiveofthecitygovernment,shallexercisesuchpowersandperformsuchdutiesandfunctionsasprovidedbythisCodeandotherlaws.

(b)Forefficient,effectiveandeconomicalgovernancethepurposeofwhich is thegeneralwelfareof thecityand its inhabitantspursuant toSection16of thisCode,thecitymayorshall:

(1)Exercise general supervision and control over all programs, projects, services,andactivitiesofthecitygovernment,andinthisconnection,shall:

(i)Determinetheguidelinesofcitypoliciesandberesponsibletothesangguniangpanlungsodfortheprogramofgovernment;

(ii)Directtheformulationofthecitydevelopmentplan,withtheassistanceofthecity development council, and upon approval thereof by the sangguniangpanlungsod,implementthesame;

(iii)Presenttheprogramofgovernmentandproposepoliciesandprojectsfortheconsiderationofthesangguniangpanlungsodattheopeningoftheregularsessionofthesangguniangpanlungsodeverycalendaryearandasoftenasmaybedeemednecessary as the general welfare of the inhabitants and the needs of the citygovernmentmayrequire;

(iv)Initiateandproposelegislativemeasurestothesangguniangpanlungsodandasoften asmaybedeemednecessary, provide such information anddataneededorrequestedbysaidsanggunianintheperformanceofitslegislativefunctions;

(v) Appoint all officials and employees whose salaries and wages are wholly ormainlypaidoutofcityfundsandwhoseappointmentsarenototherwiseprovidedforinthisCode,aswellasthosehemaybeauthorizedbylawtoappoint;

Page 224: Local Government Code of 1991 (RA 7160)

(vi) Represent the city in all its business transactions and sign in its behalf allbonds,contracts,andobligations,andsuchotherdocumentsuponauthorityofthesangguniangpanlungsodorpursuanttolaworordinance;

(vii)Carry out such emergencymeasures asmay be necessary during and in theaftermathofman‐madeandnaturaldisastersandcalamities;

(viii)Determinethetime,mannerandplaceofpaymentofsalariesorwagesoftheofficialsandemployeesofthecity,inaccordancewithlaworordinance;

(ix)Allocateandassignofficespacetocityandotherofficialsandemployeeswho,by laworordinance,areentitledtosuchspace inthecityhallandotherbuildingsownedorleasedbythecitygovernment;

(x)Ensurethatallexecutiveofficialsandemployeesofthecityfaithfullydischargetheir duties and functions as provided by law and this Code, and cause to beinstitutedadministrativeorjudicialproceedingsagainstanyofficialoremployeeofthe city who may have committed an offense in the performance of his officialduties;

(xi)Examinethebooks,recordsandotherdocumentsofalloffices,officials,agentsoremployeesofthecityand,inaidofhisexecutivepowersandauthority,requireallnational officials and employees stationed in or assigned to the city to makeavailabletohimsuchbooks,records,andotherdocumentsintheircustody,exceptthoseclassifiedbylawasconfidential;

(xii)Furnishcopiesofexecutiveordersissuedbyhim,totheprovincialgovernorinthe case of component city mayors, to the Office of the President in the case ofhighly‐urbanizedcitymayors,andtotheirrespectivemetropolitancouncilchairmenin the case of mayors of cities in the Metropolitan Manila Area and othermetropolitan political subdivisions, within seventy‐two (72) hours after theirissuance;

(xiii)Visit componentbarangaysof the city at least once every six (6)months todeepenhisunderstandingofproblemsandconditions, listenandgiveappropriatecounsel to local officials and inhabitants, inform the componentbarangayofficials

Page 225: Local Government Code of 1991 (RA 7160)

andinhabitantsofgenerallawsandordinanceswhichespeciallyconcernthem,andotherwiseconductvisitsand inspections toensure that thegovernanceof thecitywillimprovethequalityoflifeoftheinhabitants;

(xiv)Actonleaveapplicationsofofficialsandemployeesappointedbyhimandthecommutationofthemonetaryvalueoftheirleavecreditsinaccordancewithlaw;

(xv)Authorizeofficialtripsofcityofficialsandemployeesoutsideofthecityforaperiodnotexceedingthirty(30)days;

(xvi)Calluponanynationalofficialoremployeestationedinorassignedtothecitytoadvisehimonmattersaffectingthecityandtomakerecommendationsthereon;coordinatewithsaidofficialoremployeeintheformulationandimplementationofplans,programsandprojects;and,whenappropriate, initiateanadministrativeorjudicial action against a national government official or employeewhomay havecommittedanoffenseintheperformanceofhisofficialdutieswhilestationedinorassignedtothecity;

(xvii) Authorize payment formedical care, necessary transportation, subsistence,hospitalormedicalfeesofcityofficialsandemployeeswhoareinjuredwhileintheperformanceoftheirofficialdutiesandfunctions,subjecttoavailabilityoffunds;

(xviii)Solemnizemarriage,anyprovisionoflawtothecontrarynotwithstanding;

(xix)Conductanannualpalarongpanlungsod,whichshallfeaturetraditionalsportsanddisciplines included innational and internationalgames, in coordinationwiththeDepartmentofEducation,CultureandSports;and,

(xx)Submittotheprovincialgovernor,inthecaseofcomponentcities;totheOfficeof the President, in the case of highly‐urbanized cities; to their respectivemetropolitan authority council chairmenand to theOffice of thePresident, in thecase of cities of the Metropolitan Manila Area and other metropolitan politicalsubdivisions, the following reports: an annual report containing a summary of allmatterspertinent to themanagement,administrationanddevelopmentof thecityandallinformationanddatarelativetoitspolitical,socialandeconomicconditions;andsupplementalreportswhenunexpectedeventsandsituationsariseatanytime

Page 226: Local Government Code of 1991 (RA 7160)

during the year, particularly when man‐made or natural disasters or calamitiesaffectthegeneralwelfareofthecity,province,regionorcountry;

(2)EnforcealllawsandordinancesrelativetothegovernanceofthecityandintheexerciseoftheappropriatecorporatepowersprovidedforunderSection22ofthisCode,implementallapprovedpolicies,programs,projects,servicesandactivitiesofthecityand,inadditiontotheforegoing,shall:

(i)Ensure that the actsof the city's componentbarangays andof its officials andemployeesarewithinthescopeoftheirprescribedpowers,dutiesandfunctions;

(ii) Call conventions, conferences, seminars, or meetings of any elective andappointiveofficialsofthecity,includingprovincialofficialsandnationalofficialsandemployeesstationedinorassignedtothecity,atsuchtimeandplaceandonsuchsubjectashemaydeemimportant forthepromotionofthegeneralwelfareof thelocalgovernmentunitanditsinhabitants;

(iii) Issuesuchexecutiveorders for the faithfulandappropriateenforcementandexecutionoflawsandordinances;

(iv)Beentitledtocarrythenecessaryfirearmwithinhisterritorialjurisdiction;

(v) Act as the deputized representative of the National Police Commission,formulatethepeaceandorderplanofthecityanduponitsapproval,implementthesame;andassuchexercisegeneralandoperationalcontrolandsupervisionoverthelocalpoliceforcesinthecity,inaccordancewithR.A.No.6975;

(vi)Callupontheappropriatelawenforcementagenciestosuppressdisorder,riot,lawless violence, rebellion or sedition, or to apprehend violators of the lawwhenpublicinterestsorequiresandthecitypoliceforcesareinadequatetocopewiththesituationortheviolators;

(3)Initiateandmaximizethegenerationofresourcesandrevenues,andapplythesame to the implementation of development plans, program objectives and

Page 227: Local Government Code of 1991 (RA 7160)

prioritiesasprovidedforunderSection18ofthisCode,particularlythoseresourcesandrevenuesprogrammedforagro‐industrialdevelopmentandcountrysidegrowthandprogressand,relativethereto,shall:

(i)Requireeachheadofanofficeordepartmenttoprepareandsubmitanestimateof appropriations for the ensuing calendar year, in accordance with the budgetpreparationsprocessunderTitleFive,BookIIofthisCode;

(ii) Prepare and submit to the sanggunian for approval the executive andsupplemental budgets of the city for the ensuing calendar year in the mannerprovidedforunderTitleFive,BookIIofthisCode;

(iii)Ensurethatalltaxesandotherrevenuesofthecityarecollected,andthatcityfundsareapplied to thepaymentofexpensesandsettlementofobligationsof thecity,inaccordancewithlaworordinance;

(iv)Issuelicensesandpermitsandsuspendorrevokethesameforanyviolationoftheconditionsuponwhichsaidlicensesorpermitshadbeenissued,pursuanttolaworordinance;

(v)Issuepermits,withoutneedofapprovalthereforfromanynationalagency,fortheholdingofactivitiesforanycharitableorwelfarepurpose,excludingprohibitedgamesofchanceorshowscontrarytolaw,publicpolicyandpublicmorals;

(vi)Requireownersofillegallyconstructedhouses,buildingsorotherstructurestoobtainthenecessarypermit,subjecttosuchfinesandpenaltiesasmaybeimposedbylaworordinance,ortomakenecessarychangesintheconstructionofthesamewhensaidconstructionviolatesanylaworordinance,ortoorderthedemolitionorremovalofsaidhouse,buildingorstructurewithintheperiodprescribedbylaworordinance;

(vii) Adopt adequatemeasures to safeguard and conserve land,mineral, marine,forest,andotherresourcesofthecity;provideefficientandeffectivepropertyandsupply management in the city; and protect the funds, credits, rights and otherpropertiesofthecity;and

Page 228: Local Government Code of 1991 (RA 7160)

(viii) Instituteor cause tobe instituted administrativeor judicial proceedings forviolation of ordinances in the collection of taxes, fees or charges, and for therecoveryoffundsandproperty;andcausethecitytobedefendedagainstallsuitstoensurethatitsinterests,resourcesandrightsshallbeadequatelyprotected;

(4)EnsurethedeliveryofbasicservicesandtheprovisionofadequatefacilitiesasprovidedforunderSection17ofthisCodeand,inadditionthereto,shall:

(i) Ensure that the construction and repair of roads andhighways fundedby thenational government shall be, as far as practicable, carried out in a spatiallycontiguous manner and in coordination with the construction and repair of theroadsandbridgesofthecity,andinthecaseofcomponentcities,ofthecityandoftheprovince;and

(ii)Coordinatetheimplementationoftechnicalservices,includingpublicworksandinfrastructureprograms,renderedbynationalofficesinthecaseofhighlyurbanizedandindependentcomponentcities,andbynationalandprovincialofficesinthecaseofcomponentcities;and

(5)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

(c)Duringhisincumbency,thecitymayorshallholdofficeinthecityhall.

(d)ThecitymayorshallreceiveaminimummonthlycompensationcorrespondingtoSalaryGradeThirty(30)asprescribedunderR.A.No.6758andtheimplementingguidelinesissuedpursuantthereto.

ArticleTwo.‐TheCityVice‐Mayor

SEC.456.Powers,DutiesandCompensation.‐(a)Thecityvice‐mayorshall:

Page 229: Local Government Code of 1991 (RA 7160)

(1)Be the presiding officer of the sangguniangpanlungsod and sign allwarrantsdrawnonthecitytreasuryforallexpendituresappropriatedfortheoperationofthesangguniangpanlungsod;

(2) Subject to civil service law, rules and regulations, appoint all officials andemployees of the sangguniang panlungsod, except those whose manner ofappointmentisspecificallyprovidedinthisCode;

(3)Assumetheofficeofthecitymayorfortheunexpiredtermofthe latter intheeventofpermanentvacancyasprovidedforinSection44,BookIofthisCode;

(4)ExercisethepowersandperformthedutiesandfunctionsofthecitymayorincasesoftemporaryvacancyasprovidedforinSection46,BookIofthisCode;and

(5)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

(b) The city vice‐mayor shall receive a monthly compensation corresponding toSalaryGradetwentyeight(28)forahighlyurbanizedcityandSalaryGradetwentysix (26) for a component city, as prescribed under R.A. No. 6758 and theimplementingguidelinesissuedpursuantthereto.

ArticleThree.‐TheSangguniangPanlungsod

SEC.457.Composition.‐(a)Thesangguniangpanlungsod,thelegislativebodyofthecity, shall be composed of the city vice‐mayor as presiding officer, the regularsanggunianmembers,thepresidentofthecitychapteroftheligangmgabarangay,thepresidentofthepanlungsodnapederasyonngmgasangguniangkabataan,andthesectoralrepresentatives,asmembers.

(b) In addition thereto, there shall be three (3) sectoral representatives: one (1)fromthewomen;and,asshallbedeterminedbythesanggunianconcernedwithinninety (90) days prior to the holding of the local elections, one (1) from theagriculturalorindustrialworkers;andone(1)fromtheothersectors,includingtheurbanpoor,indigenousculturalcommunities,ordisabledpersons.

Page 230: Local Government Code of 1991 (RA 7160)

(c) The regular members of the sangguniang panlungsod and the sectoralrepresentativesshallbeelectedinthemannerasmaybeprovidedforbylaw.

SEC. 458. ‐ Powers, Duties, Functions and Compensation. ‐ (a) The sangguniangpanlungsod, as the legislative body of the city, shall enact ordinances, approveresolutions and appropriate funds for the general welfare of the city and itsinhabitants pursuant to Section 16 of this Code and in the proper exercise of thecorporatepowersofthecityasprovidedforunderSection22ofthisCode,andshall:

(1)Approveordinancesandpassresolutionsnecessaryforanefficientandeffectivecitygovernment,andinthisconnection,shall:

(i) Review all ordinances approved by the sangguniang barangay and executiveorders issuedby thepunongbarangay todeterminewhether thesearewithin thescopeoftheprescribedpowersofthesanggunianandofthepunongbarangay;

(ii) Maintain peace and order by enacting measures to prevent and suppresslawlessness,disorder, riot,violence,rebellionorseditionand imposepenalties fortheviolationofsaidordinances;

(iii) Approve ordinances imposing a fine not exceeding Five thousand pesos(P5,000.00)oranimprisonmentforaperiodnotexceedingone(1)year,orbothinthediscretionofthecourt,fortheviolationofacityordinance;

(iv)Adoptmeasurestoprotecttheinhabitantsofthecityfromtheharmfuleffectsofman‐madeornaturaldisastersandcalamities,andtoprovidereliefservicesandassistanceforvictimsduringandintheaftermathofsaiddisastersorcalamitiesandtheirreturntoproductivelivelihoodfollowingsaidevents;

(v) Enact ordinances intended to prevent, suppress and impose appropriatepenalties for habitual drunkenness in public places, vagrancy, mendicancy,prostitution, establishmentandmaintenanceofhousesof ill repute, gamblingandotherprohibitedgamesofchance,fraudulentdevicesandwaystoobtainmoneyorproperty, drug addiction, maintenance of drug dens, drug pushing, juvenile

Page 231: Local Government Code of 1991 (RA 7160)

delinquency, the printing, distribution or exhibition of obscene or pornographicmaterials or publications, and such other activities inimical to the welfare andmoralsoftheinhabitantsofthecity;

(vi) Protect the environment and impose appropriate penalties for acts whichendangertheenvironment,suchasdynamitefishingandotherformsofdestructivefishing, illegal logging and smuggling of logs, smuggling of natural resourcesproductsandofendangeredspeciesoffloraandfauna,slashandburnfarming,andsuch other activities which result in pollution, acceleration of eutrophication ofriversandlakes,orofecologicalimbalance;

(vii) Subject to the provisions of this Code and pertinent laws, determine thepowersanddutiesofofficialsandemployeesofthecity;

(viii) Determine the positions and the salaries, wages, allowances and otheremolumentsandbenefitsofofficialsandemployeespaidwhollyormainlyfromcityfundsandprovideforexpendituresnecessaryfortheproperconductofprograms,projects,services,andactivitiesofthecitygovernment;

(ix) Authorize the payment of compensation to a qualified person not in thegovernmentservicewho fillsupa temporaryvacancyorgranthonorariumtoanyqualifiedofficialoremployeedesignatedtofillatemporaryvacancyinaconcurrentcapacity,attherateauthorizedbylaw;

(x)Provideamechanismandtheappropriate fundstherefor, toensurethesafetyandprotectionofallcitygovernmentproperty,publicdocuments,orrecordssuchas those relating to property inventory, land ownership, records of births,marriages,deaths,assessments,taxation,accounts,businesspermits,andsuchotherrecordsanddocumentsofpublicinterestintheofficesanddepartmentsofthecitygovernment;

(xi) When the finances of the city government allow, provide for additionalallowances and other benefits to judges, prosecutors, public elementary and highschoolteachers,andothernationalgovernmentofficialsstationedinorassignedtothecity;

Page 232: Local Government Code of 1991 (RA 7160)

(xii)Providelegalassistancetobarangayofficialswho,intheperformanceoftheirofficial duties or on the occasion thereof, have to initiate judicial proceedings ordefendthemselvesagainstlegalaction;and

(xiii)Provideforgroupinsuranceoradditionalinsurancecoverageforallbarangayofficials, including members of barangay tanod brigades and other service units,with public or private insurance companies, when the finances of the citygovernmentallowsaidcoverage;

(2)Generateandmaximizetheuseofresourcesandrevenuesforthedevelopmentplans,programobjectivesandprioritiesofthecityasprovidedforunderSection18ofthisCode,withparticularattentiontoagro‐industrialdevelopmentandcity‐widegrowthandprogress,andrelativethereto,shall:

(i) Approve the annual and supplemental budgets of the city government andappropriatefundsforspecificprograms,projects,servicesandactivitiesofthecity,orforotherpurposesnotcontrarytolaw,inordertopromotethegeneralwelfareofthecityanditsinhabitants;

(ii)SubjecttotheprovisionsofBookIIofthisCodeandapplicablelawsanduponthe majority vote of all the members of the sangguniang panlungsod, enactordinanceslevyingtaxes,feesandcharges,prescribingtheratesthereofforgeneralandspecificpurposes,andgrantingtaxexemptions,incentivesorreliefs;

(iii)SubjecttotheprovisionsofBookIIofthisCodeanduponthemajorityvoteofall the members of the sangguniang panlungsod, authorize the city mayor tonegotiateandcontractloansandotherformsofindebtedness;

(iv)SubjecttotheprovisionsofBookIIofthisCodeandapplicablelawsanduponthe majority vote of all the members of the sangguniang panlungsod, enactordinancesauthorizingthefloatingofbondsorotherinstrumentsofindebtedness,forthepurposeofraisingfundstofinancedevelopmentprojects;

(v) Appropriate funds for the construction and maintenance or the rental ofbuildingsfortheuseofthecity;and,uponthemajorityvoteofallthemembersofthe sangguniang panlungsod, authorize the citymayor to lease to private parties

Page 233: Local Government Code of 1991 (RA 7160)

suchpublicbuildingsheld inaproprietarycapacity, subject toexisting laws,rulesandregulations;

(vi) Prescribe reasonable limits and restraints on the use of propertywithin thejurisdictionofthecity;

(vii)Adoptacomprehensivelanduseplanforthecity:Provided,Thatinthecaseofcomponentcities,theformulation,adoptionormodificationofsaidplanshallbeincoordinationwiththeapprovedprovincialcomprehensivelanduseplan;

(viii) Reclassify land within the jurisdiction of the city, subject to the pertinentprovisionsofthisCode;

(ix) Enact integrated zoning ordinances in consonance with the approvedcomprehensive land use plan, subject to existing laws, rules and regulations;establish fire limits or zones, particularly in populous centers; and regulate theconstruction, repairormodificationofbuildingswithinsaid fire limitsorzones inaccordancewiththeprovisionsoftheFireCode;

(x)Subject tonational law,processandapprovesubdivisionplans forresidential,commercial,orindustrialpurposesandotherdevelopmentpurposes,andtocollectprocessingfeesandothercharges,theproceedsofwhichshallaccrueentirelytothecity: Provided, however, That where approval of a national agency or office isrequired, saidapproval shallnotbewithheld formore than thirty (30)days fromreceiptoftheapplication.Failuretoactontheapplicationwithintheperiodstatedaboveshallbedeemedasapprovalthereof;

(xi)SubjecttotheprovisionsofBookIIofthisCode,granttheexclusiveprivilegeofconstructingfishcorralsorfishpens,orthetakingorcatchingofbangusfry,prawnfryorkawag‐kawag,orfryofanyspeciesorfishwithinthecitywaters;

(xii)With the concurrence of at least two‐thirds (2/3) of all themembers of thesangguniang panlungsod, grant tax exemptions, incentives or reliefs to entitiesengaged in community growth‐inducing industries, subject to the provisions ofChapter5,TitleI,BookIIofthisCode;

Page 234: Local Government Code of 1991 (RA 7160)

(xiii)Grantloansorprovidegrantstootherlocalgovernmentunitsortonational,provincial, and city charitable, benevolent or educational institutions: Provided,That,saidinstitutionsareoperatedandmaintainedwithinthecity;

(xiv)Regulatethenumberingofresidential,commercialandotherbuildings;and,

(xv)Regulatetheinspection,weighingandmeasuringofarticlesofcommerce.

(3) Subject to the provisions of Book II of this Code, enact ordinances grantingfranchisesandauthorizingtheissuanceofpermitsorlicenses,uponsuchconditionsandforsuchpurposesintendedtopromotethegeneralwelfareoftheinhabitantsofthecityandpursuanttothislegislativeauthorityshall:

(i)Fixandimposereasonablefeesandchargesforallservicesrenderedbythecitygovernmenttoprivatepersonsorentities;

(ii)Regulateorfixlicensefeesforanybusinessorpracticeofprofessionwithinthecity and the conditions under which the license for said business or practice ofprofessionmayberevokedandenactordinanceslevyingtaxesthereon;

(iii) Provide for and set the terms and conditions under which public utilitiesowned by the city shall be operated by the city government, and prescribe theconditions under which the same may be leased to private persons or entities,preferablycooperatives;

(iv) Regulate the display of and fix the license fees for signs, signboards, orbillboards at the place or places where the profession or business advertisedtherebyis,inwholeorinpart,conducted;

(v) Any law to the contrary notwithstanding, authorize and license theestablishment, operation, and maintenance of cockpits, and regulate cockfighting

Page 235: Local Government Code of 1991 (RA 7160)

andcommercialbreedingofgamecocks:Provided,Thatexistingrightsshouldnotbeprejudiced;

(vi)SubjecttotheguidelinesprescribedbytheDepartmentofTransportationandCommunications, regulate the operation of tricycles and grant franchises for theoperationthereofwithintheterritorialjurisdictionofthecity;

(vii)Upon approval by a majority vote of all the members of the sangguniangpanlungsod: grant a franchise to any person, partnership, corporation, orcooperative to do business within the city; establish, construct, operate andmaintain ferries, wharves, markets or slaughterhouses; or undertake such otheractivities within the city as may be allowed by existing laws: Provided, That,cooperativesshallbegivenpreferenceinthegrantofsuchafranchise.

(4)Regulate activities relative to theuse of land, buildings and structureswithinthecityinordertopromotethegeneralwelfareandforsaidpurposeshall:

(i)Declare,preventorabateanynuisance;

(ii)Requirethatbuildingsandthepremisesthereofandanylandwithinthecitybekept and maintained in a sanitary condition; impose penalties for any violationthereof;or,uponfailuretocomplywithsaidrequirement,havetheworkdoneattheexpenseoftheowner,administratorortenantconcerned;orrequirethefillingupofanylandorpremisestoagradenecessaryforpropersanitation;

(iii) Regulate the disposal of clinical and otherwastes fromhospitals, clinics andothersimilarestablishments;

(iv) Regulate the establishment, operation and cafes, restaurants, beerhouses,hotels, motels, inns, pension houses, lodging houses, and other similarestablishments,includingtouristguidesandtransports;

(v) Regulate the sale, giving away or dispensing of any intoxicating malt, vino,mixedorfermentedliquorsatanyretailoutlet;

Page 236: Local Government Code of 1991 (RA 7160)

(vi)Regulatetheestablishmentandprovidefortheinspectionofsteamboilersorany heating device in buildings and the storage of inflammable and highlycombustiblematerialswithinthecity;

(vii)Regulatetheestablishment,operation,andmaintenanceofanyentertainmentoramusement facilities, including theatricalperformances, circuses,billiardpools,publicdancingschools,publicdancehalls,saunabaths,massageparlors,andotherplacesforentertainmentoramusement;regulatesuchothereventsoractivitiesforamusement or entertainment, particularly those which tend to disturb thecommunityor annoy the inhabitants, or require the suspensionor suppressionofthe same; or, prohibit certain forms of amusement or entertainment in order toprotectthesocialandmoralwelfareofthecommunity;

(viii)Providefortheimpoundingofstrayanimals;regulatethekeepingofanimalsinhomesoraspartofabusiness,andtheslaughter,saleordispositionofthesame;andadoptmeasurestopreventandpenalizecrueltytoanimals;and,

(ix)Regulatetheestablishment,operationandmaintenanceoffuneralparlorsandtheburialorcremationofthedead,subjecttoexistinglaws,rulesandregulations.

(5)Approveordinanceswhichshallensuretheefficientandeffectivedeliveryofthebasic services and facilities as provided for under Section 17 of this Code, and inadditiontosaidservicesandfacilities,shall:

(i) Provide for the establishment, maintenance, protection, and conservation ofcommunal forests andwater sheds, tree parks, greenbelts, mangroves, and othersimilarforestdevelopmentprojects;

(ii) Establish markets, slaughterhouses or animal corrals and authorize theoperation thereof by the city government; and regulate the construction andoperationofprivatemarkets,talipapasorothersimilarbuildingsandstructures;

Page 237: Local Government Code of 1991 (RA 7160)

(iii)Authorize the establishment, maintenance and operation by the citygovernment of ferries, wharves, and other structures intended to accelerateproductivityrelatedtomarineandseashoreoroffshoreactivities;

(iv)Regulatethepreparationandsaleofmeat,poultry,fish,vegetables,fruits,freshdairyproducts,andotherfoodstuffsforpublicconsumption;

(v)Regulatetheuseofstreets,avenues,alleys,sidewalks,bridges,parksandotherpublicplacesandapprovetheconstruction, improvement,repairandmaintenanceofthesame;establishbusandvehiclestopsandterminalsorregulatetheuseofthesamebyprivately‐ownedvehicleswhichservethepublic;regulategaragesandtheoperation of conveyances for hire; designate stands to be occupied by publicvehicleswhennot inuse; regulate theputtingupof signs, signposts, awningsandawningpostsonthestreets;andprovideforthelighting,cleaningandsprinklingofstreetsandpublicplaces;

(vi)Regulatetrafficonallstreetsandbridges;prohibitencroachmentsorobstaclesthereonand,whennecessaryintheinterestofpublicwelfare,authorizetheremovalofencroachmentsandillegalconstructionsinpublicplaces;

(vii)Subjecttoexistinglaws,establishandprovideforthemaintenance,repairandoperationofanefficientwaterworkssystemtosupplywaterfortheinhabitantsandto purify the source of thewater supply; regulate the construction,maintenance,repairanduseofhydrants,pumps,cisternsandreservoirs;protect thepurityandquantityofthewatersupplyofthecityand,forthispurpose,extendthecoverageofappropriate ordinances over all territory within the drainage area of said watersupply and within one hundred (100) meters of the reservoir, conduit, canal,aqueduct,pumpingstation,orwatershedusedinconnectionwiththewaterservice;andregulatetheconsumption,useorwastageofwaterandfixandcollectchargestherefor;

(viii)Regulatethedrillingandexcavationofthegroundforthelayingofwater,gas,sewer, and other pipes and the construction, repair and maintenance of publicdrains, sewers, cesspools, tunnels and similar structures; regulate the placing ofpolesandtheuseofcrosswalks,curbs,andgutters;adoptmeasurestoensurepublicsafetyagainstopencanals,manholes,livewiresandothersimilarhazardstolifeandproperty;andregulatetheconstructionanduseofprivatewaterclosets,priviesandothersimilarstructuresinbuildingsandhomes;

Page 238: Local Government Code of 1991 (RA 7160)

(ix)Regulatetheplacing,stringing,attaching,installing,repairandconstructionofall gasmains, electric, telegraph and telephonewires, conduits,meters and otherapparatus; and provide for the correction, condemnation or removal of the samewhenfoundtobedangerous,defective,orotherwisehazardoustothewelfareoftheinhabitants;

(x)Subject to theavailabilityof fundsand toexisting laws, rulesand regulations,establish and provide for the operation of vocational and technical schools andsimilar post‐secondary institutions and, with the approval of the Department ofEducation, Culture and Sports and subject to existing law on tuition fees, fix andcollectreasonable tuition feesandotherschoolcharges ineducational institutionssupportedbythecitygovernment;

(xi) Establish a scholarship fund for the poor but deserving students in schoolslocatedwithinitsjurisdictionorforstudentsresidingwithinthecity;

(xii) Approve measures and adopt quarantine regulations to prevent theintroductionandspreadofdiseases;

(xiii) Provide for an efficient and effective system of solid waste and garbagecollection and disposal; prohibit littering and the placing or throwing of garbage,refuseandotherfilthandwastes;

(xiv)Provideforthecareofdisabledpersons,paupers,theaged,thesick,personsofunsoundmind, abandonedminors, juvenile delinquents, drug dependents, abusedchildren and other needy and disadvantaged persons, particularly children andyouth below eighteen (18) years of age; and, subject to availability of funds,establishandprovidefortheoperationofcentersandfacilities forsaidneedyanddisadvantagedpersons;

(xv) Establish and provide for the maintenance and improvement of jails anddetentioncenters,instituteasoundjailmanagement,andappropriatefundsforthesubsistenceofdetaineesandconvictedprisonersinthecity;

Page 239: Local Government Code of 1991 (RA 7160)

(xvi) Establish a City councilwhose purpose is the promotion of culture and thearts, coordinate with government agencies and non‐governmental organizationsand, subject to the availability of funds, appropriate funds for the support anddevelopmentofthesame;and

(xvii) Establish a City council for the elderly which shall formulate policies andadoptmeasuresmutually beneficial to the elderly and to the community; provideincentives for non‐governmental agencies and entities and, subject to theavailability of funds, appropriate funds to support programs and projects for thebenefitof theelderly;and(6)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

(b)Themembersofthesangguniangpanlungsodofcomponentcitiesshallreceiveaminimummonthly compensation corresponding to Salary Grade twenty‐five (25)and members of the sangguniang panlungsod of highly‐ urbanized cities shallreceiveaminimummonthlycompensationcorresponding toSalaryGrade twenty‐seven(27),asprescribedunderR.A.6758andtheimplementingguidelinesissuedpursuantthereto.

TITLEFOUR.‐THEPROVINCE

CHAPTER1‐ROLEANDCREATIONOFTHEPROVINCE

SEC. 459. Role of the Province. ‐ The province, composed of a cluster ofmunicipalities, or municipalities and component cities, and as a political andcorporateunit of government, serves as adynamicmechanism fordevelopmentalprocessesandeffectivegovernanceof localgovernmentunitswithin its territorialjurisdiction.

SEC. 460. Manner of Creation. ‐ A province may be created, divided, merged,abolished, or its boundary substantially altered, only by an Act of Congress andsubjecttoapprovalbyamajorityofthevotescastinaplebiscitetobeconductedbytheComelec in the local governmentunitorunitsdirectly affected.Theplebisciteshallbeheldwithinonehundredtwenty(120)daysfromthedateofeffectivityofsaidAct,unlessotherwiseprovidedtherein.

SEC.461.RequisitesforCreation.‐(a)Aprovincemaybecreatedifithasanaverageannual income,ascertifiedby theDepartmentofFinance,ofnot less thanTwenty

Page 240: Local Government Code of 1991 (RA 7160)

million pesos (P=20,000,000.00) based on 1991 constant prices and either of thefollowingrequisites:

(i) a contiguous territory of at least two thousand (2,000) square kilometers, ascertifiedbytheLandsManagementBureau;or,

(ii)apopulationofnotlessthantwohundredfiftythousand(250,000)inhabitantsascertifiedbytheNationalStatisticsOffice:

Provided,That,thecreationthereofshallnotreducethelandarea,population,andincome of the original unit or units at the time of said creation to less than theminimumrequirementsprescribedherein.

(b)Theterritoryneednotbecontiguousifitcomprisestwo(2)ormoreislandsorisseparatedbyacharteredcityorcitieswhichdonotcontributetothe incomeoftheprovince.

(c) The average annual income shall include the income accruing to the generalfund,exclusiveofspecialfunds,trustfunds,transfers,andnon‐recurringincome.

SEC. 462. Existing Sub‐Provinces. ‐ Existing sub‐ provinces are hereby convertedintoregularprovincesuponapprovalbyamajorityofthevotescastinaplebiscitetobeheldinthesaidsubprovincesandtheoriginalprovincesdirectlyaffected.Theplebiscite shall be conducted by the Comelec simultaneously with the nationalelectionsfollowingtheeffectivityofthisCode.

Thenewlegislativedistrictscreatedasaresultofsuchconversionshallcontinuetobe represented in Congress by the duly‐elected representatives of the originaldistrictsoutofwhichsaidnewprovincesordistrictswerecreateduntil theirownrepresentativesshallhavebeenelected inthenextregularcongressionalelectionsandqualified.

The incumbent elected officials of the said sub‐ provinces converted into regularprovincesshallcontinuetoholdofficeuntilJune30,1992.Anyvacancyoccurringin

Page 241: Local Government Code of 1991 (RA 7160)

theofficesoccupiedbysaidincumbentelectedofficials,orresultingfromexpirationof their termsofoffice in caseof anegativevote in theplebiscite results, shallbefilledbyappointmentbythePresident.Theappointeesshallholdofficeuntil theirsuccessors shall have been elected in the regular local elections following theplebiscitementionedhereinandqualified.Aftereffectivityof suchconversion, thePresident shall fill up the position of governor of the newly‐created provincethroughappointment if nonehas yetbeenappointed to the sameashereinbeforeprovided, and shall also appoint a vice‐governor and the other members of thesangguniang panlalawigan, all of whom shall likewise hold office until theirsuccessorsshallhavebeenelectedinthenextregularlocalelectionsandqualified.

All qualified appointive officials and employees in the career service of the saidsubprovincesatthetimeoftheirconversionintoregularprovincesshallcontinueinofficeinaccordancewithcivilservicelaw,rulesandregulations.

CHAPTER2‐PROVINCIANOFFICIALSINGENERAL

SEC. 463. Officials of the Provincial Government. ‐ (a) There shall be in eachprovinceagovernor,avice‐governor,membersof thesangguniangpanlalawigan,asecretary to the sangguniang panlalawigan, a provincial treasurer, a provincialassessor,aprovincialaccountant,aprovincialengineer,aprovincialbudgetofficer,a provincial planning and development coordinator, a provincial legal officer, aprovincialadministrator,aprovincialhealthofficer,aprovincialsocialwelfareanddevelopmentofficer,aprovincialgeneralservicesofficer,aprovincialagriculturist,andaprovincialveterinarian.

(b)Inadditionthereto,thegovernormayappointaprovincialpopulationofficer,aprovincial natural resources and environment officer, a provincial cooperativeofficer,aprovincialarchitect,andaprovincialinformationofficer.Theappointmentof a provincial population officer shall be optional in the province: Provided,however, That provinceswhich have existing population offices shall continue tomaintainsuchofficesforaperiodoffive(5)yearsfromthedateoftheeffectivityofthisCode,afterwhichsaidofficesshallbecomeoptional.

(c)Thesangguniangpanlalawiganmay:

(1)Maintainexistingofficesnotmentionedinsubsections(a)and(b)hereof;

Page 242: Local Government Code of 1991 (RA 7160)

(2)Createsuchotherofficesasmaybenecessarytocarryoutthepurposesoftheprovincialgovernment;or

(3)Consolidatethe functionsofanyofficewiththoseofanother in the interestofefficiencyandeconomy;

(d) Unless otherwise provided herein, heads of departments and offices shall beappointed by the governor with the concurrence of the majority of all thesangguniang panlalawigan members, subject to civil service law, rules andregulations. The sangguniang panlalawigan shall act on the appointment withinfifteen (15) days from the date of its submission; otherwise the same shall bedeemedconfirmed;

(e) Elective and appointive provincial officials shall receive such compensation,allowances, and other emoluments as may be determined by law or ordinance,subject to the budgetary limitations on personal services prescribed under TitleFive, Book II of this Code: Provided, That, no increase in compensation shall takeeffectuntilaftertheexpirationofthefulltermofalltheelectiveofficialsapprovingsuchincrease.

SEC.464.ResidenceandOffice. ‐During the incumbencyof thegovernor,he shallhavehisofficialresidenceinthecapitaloftheprovince.Allelectiveandappointiveprovincial officials shall hold office in the provincial capital: Provided, That, uponresolution of the sangguniang panlalawigan, elective and appointive provincialofficialsmayholdofficeinanycomponentcityormunicipalitywithintheprovinceforaperiodofnotmorethanseven(7)daysforanygivenmonth.

CHAPTER3‐OFFICIALSANDOFFICESCOMMONTOALLPROVINCES

ArticleOne.TheProvincialGovernor

SEC.465.TheChiefExecutive:Powers,Duties,Functions, andCompensation. ‐ (a)Theprovincialgovernor,as thechiefexecutiveof theprovincialgovernment,shallexercise such powers and perform such duties and functions as provided by thisCodeandotherlaws.

Page 243: Local Government Code of 1991 (RA 7160)

(b)Forefficient,effectiveandeconomicalgovernancethepurposeofwhich is thegeneralwelfare of the province and its inhabitants pursuant to Section 16 of thisCode,theprovincialgovernorshall:

(1)Exercisegeneral supervisionandcontroloverallprograms,projects, services,andactivitiesoftheprovincialgovernment,andinthisconnection,shall:

(i) Determine the guidelines of provincial policies and be responsible to thesangguniangpanlalawiganfortheprogramofgovernment;

(ii)Directtheformulationoftheprovincialdevelopmentplan,withtheassistanceoftheprovincialdevelopmentcouncil,anduponapprovalthereofbythesangguniangpanlalawigan,implementthesame;

(iii)Present theprogramofgovernmentandproposepoliciesandprojects for theconsiderationofthesangguniangpanlalawiganattheopeningoftheregularsessionof the sangguniang panlalawigan every calendar year and as often as may bedeemed necessary as the generalwelfare of the inhabitants and the needs of theprovincialgovernmentmayrequire;

(iv)Initiateandproposelegislativemeasurestothesangguniangpanlalawiganandasoftenasmaybedeemednecessary,providesuchinformationanddataneededorrequestedbysaidsanggunianintheperformanceofitslegislativefunctions;

(v) Appoint all officials and employees whose salaries and wages are wholly ormainly paid out of provincial funds and whose appointments are not otherwiseprovidedforinthisCode,aswellasthosehemaybeauthorizedbylawtoappoint;

(vi)Representtheprovinceinallitsbusinesstransactionsandsigninitsbehalfallbonds,contracts,andobligations,andsuchotherdocumentsuponauthorityofthesangguniangpanlalawiganorpursuanttolaworordinance;

(vii) Carry out such emergencymeasures asmay be necessary during and in theaftermathofman‐madeandnaturaldisastersandcalamities;

Page 244: Local Government Code of 1991 (RA 7160)

(viii)Determinethetime,mannerandplaceofpaymentofsalariesorwagesoftheofficialsandemployeesoftheprovince,inaccordancewithlaworordinance;

(ix)Allocateandassignofficespacetoprovincialandotherofficialsandemployeeswho, by lawor ordinance, are entitled to such space in theprovincial capitol andotherbuildingsownedorleasedbytheprovincialgovernment;

(x) Ensure that all executive officials and employees of the province faithfullydischargetheirdutiesandfunctionsasprovidedbylawandthisCode,andcausetobeinstitutedadministrativeorjudicialproceedingsagainstanyofficialoremployeeof the province who may have committed an offense in the performance of hisofficialduties;

(xi)Examinethebooks,recordsandotherdocumentsofalloffices,officials,agentsor employees of the province and, in aid of his executive powers and authority,require all national officials and employees stationed in the province to makeavailabletohimsuchbooks,records,andotherdocumentsintheircustody,exceptthoseclassifiedbylawasconfidential;

(xii)FurnishcopiesofexecutiveordersissuedbyhimtotheOfficeofthePresidentwithinseventy‐two(72)hoursaftertheirissuance;

(xiii)Visitcomponentcitiesandmunicipalitiesof theprovinceat leastonceeverysix(6)monthstodeepenhisunderstandingofproblemsandconditions,listenandgiveappropriate counsel to local officials and inhabitants, inform theofficials andinhabitantsofcomponentcitiesandmunicipalitiesofgeneral lawsandordinanceswhich especially concern them, and otherwise conduct visits and inspections toensure that the governance of the provincewill improve the quality of life of theinhabitants;

(xiv)Actonleaveapplicationsofofficialsandemployeesappointedbyhimandthecommutationofthemonetaryvalueofleavecreditsinaccordancewithlaw;

Page 245: Local Government Code of 1991 (RA 7160)

(xv) Authorize official trips of provincial officials and employees outside of theprovinceforaperiodnotexceedingthirty(30)days;

(xvi) Call upon any national official or employee stationed in or assigned to theprovince to advise him on matters affecting the province and to makerecommendations thereon; coordinate with said official or employee in theformulation and implementation of plans, programs and projects; and whenappropriate, initiate an administrative or judicial action against a nationalgovernment official or employee who may have committed an offense in theperformanceofhisofficialdutieswhilestationedinorassignedtotheprovince;

(xvii) Authorize payment formedical care, necessary transportation, subsistence,hospitalormedicalfeesofprovincialofficialsandemployeeswhoareinjuredwhilein the performance of their official duties and functions, subject to availability offunds;

(xviii) Represent the province in inter‐provincial or regional sports councils orcommittees,andcoordinatetheeffortsofcomponentcitiesormunicipalitiesintheregionalornationalpalaroorsportsdevelopmentactivities;

(xix) Conduct an annual palarong panlalawigan, which shall feature traditionalsportsanddisciplinesincludedinnationalandinternationalgames,incoordinationwiththeDepartmentofEducation,CultureandSports;and,

(xx) Submit to theOfficeof thePresident the following reports: anannual reportcontaininga summaryofallmatterspertinent to themanagement, administrationand development of the province and all information and data relative to itspolitical, social and economic conditions; and supplemental reports whenunexpected events and situations arise at any time during the year, particularlywhenman‐madeornaturaldisastersorcalamitiesaffectthegeneralwelfareoftheprovince,regionorcountry;

(2)EnforcealllawsandordinancesrelativetothegovernanceoftheprovinceandtheexerciseoftheappropriatecorporatepowersprovidedforunderSection22ofthis Code, implement all approved policies, programs, projects, services andactivitiesoftheprovinceand,inadditiontotheforegoing,shall:

Page 246: Local Government Code of 1991 (RA 7160)

(i)Ensurethattheactsofthecomponentcitiesandmunicipalitiesoftheprovinceandof itsofficialsandemployeesarewithinthescopeof theirprescribedpowers,dutiesandfunctions;

(ii) Call conventions, conferences, seminars, or meetings of any elective andappointive officials of the province and its component cities and municipalities,includingnationalofficialsandemployeesstationedinorassignedtotheprovince,at such time and place and on such subject as he may deem important for thepromotionofthegeneralwelfareoftheprovinceanditsinhabitants;

(iii) Issuesuchexecutiveorders for the faithfulandappropriateenforcementandexecutionoflawsandordinances;

(iv)Beentitledtocarrythenecessaryfirearmwithinhisterritorialjurisdiction;

(v)IncoordinationwiththemayorsofcomponentcitiesandmunicipalitiesandtheNationalPoliceCommission,formulatethepeaceandorderplanoftheprovinceanduponitsapproval,implementthesameinaccordancewithR.A.No.6975;

(vi) Call upon the appropriate national law enforcement agencies to suppressdisorder,riot,lawlessviolence,rebellionorseditionortoapprehendviolatorsofthelawwhenpublicinterestsorequiresandthepoliceforcesofthecomponentcityormunicipalitywhere thedisorder or violation is happening are inadequate to copewiththesituationortheviolators;

(3)Initiateandmaximizethegenerationofresourcesandrevenues,andapplythesame to the implementation of development plans, program objectives andprioritiesasprovidedforunderSection18ofthisCode,particularlythoseresourcesand revenues programmed for agro‐industrial development and country‐widegrowthandprogressand,relativethereto,shall:

(i)Requireeachheadofanofficeordepartmenttoprepareandsubmitanestimateof appropriations for the ensuing calendar year, in accordance with the budgetpreparationprocessunderTitleFive,BookIIofthisCode;(ii)Prepareandsubmitto

Page 247: Local Government Code of 1991 (RA 7160)

the sanggunian for approval the executive and supplemental budgets of theprovincefortheensuingcalendaryearinthemannerprovidedforunderTitleFive,BookIIofthisCode;

(iii)Ensurethatalltaxesandotherrevenuesoftheprovincearecollected,andthatprovincial funds are applied to the payment of expenses and settlement ofobligationsoftheprovince,inaccordancewithlaworordinance;

(iv)Issuelicensesandpermitsandsuspendorrevokethesameforanyviolationoftheconditionsuponwhichsaidlicensesorpermitshadbeenissued,pursuanttolaworordinance;

(v) Adopt adequate measures to safeguard and conserve land, mineral, marine,forest and other resources of the province, in coordination with the mayors ofcomponent cities andmunicipalities; provide efficient and effective property andsupplymanagementintheprovince;andprotectthefunds,credits,rights,andotherpropertiesoftheprovince;and;

(vi) Institute or cause to be instituted administrative or judicial proceedings forviolation of ordinances in the collection of taxes, fees or charges, and for therecoveryof fundsandproperty;andcausetheprovincetobedefendedagainstallsuitstoensurethatitsinterests,resourcesandrightsshallbeadequatelyprotected.

(4)EnsurethedeliveryofbasicservicesandtheprovisionofadequatefacilitiesasprovidedforunderSection17ofthisCode,andinadditionthereto,shall:

(i) Ensure that the construction and repair of roads andhighways fundedby thenational government shall be, as far as practicable, carried out in a spatiallycontiguous manner and in coordination with the construction and repair of theroads and bridges of the province and of its component cities andmunicipalities;and,

(ii)Coordinatetheimplementationoftechnicalservicesbynationalofficesfortheprovince and its component cities andmunicipalities, including publicworks andinfrastructureprogramsoftheprovincialgovernmentanditscomponentcitiesandmunicipalities;

Page 248: Local Government Code of 1991 (RA 7160)

(5)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

(c) The provincial governor shall receive a minimum monthly compensationcorresponding toSalaryGrade thirty (30)prescribedunderR.A.No.6758and theimplementingguidelinesissuedpursuantthereto.

ArticleTwo.‐TheProvincialVice‐Governor

SEC.466.Powers,Duties,andCompensation.‐(a)Thevice‐governorshall:

(1)Bethepresidingofficerofthesangguniangpanlalawiganandsignallwarrantsdrawnontheprovincialtreasuryforallexpendituresappropriatedfortheoperationofthesangguniangpanlalawigan;

(2) Subject to civil service law, rules and regulations, appoint all officials andemployees of the sangguniang panlalawigan, except those whose manner ofappointmentisspecificallyprovidedinthisCode;

(3) Assume the office of the governor for the unexpired termof the latter in theeventofpermanentvacancyasprovidedforinSection44,BookIofthisCode;

(4)Exercise thepowers andperform theduties and functions of the governor incasesoftemporaryvacancyasprovidedforinSection46,BookIofthisCode;and

(5)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

(b) The vice‐governor shall receive a monthly compensation corresponding toSalary Grade twenty‐eight (28) as prescribed under R.A. No. 6758 and theimplementingguidelinesissuedpursuantthereto.

Page 249: Local Government Code of 1991 (RA 7160)

ArticleThree.‐TheSangguniangPanlalawigan

SEC.467.Composition. ‐(a)Thesangguniangpanlalawigan,the legislativebodyoftheprovince,shallbecomposedoftheprovincialvice‐governoraspresidingofficer,theregularsanggunianmembers,thepresidentoftheprovincialchapteroftheligang mga barangay, the president of the panlalawigang pederasyon ng mgasangguniang kabataan, the president of the provincial federation of sanggunianmembersofmunicipalitiesandcomponentcities,andthesectoralrepresentatives,asmembers.

(b) In addition thereto, there shall be three (3) sectoral representatives: one (1)fromthewomen;andasshallbedeterminedby thesanggunianconcernedwithinninety (90) days prior to the holding of the local elections, one (1) from theagriculturalorindustrialworkers;andone(1)fromtheothersectors,includingtheurbanpoor,indigenousculturalcommunities,ordisabledpersons.

(c) The regular members of the sangguniang panlalawigan and the sectoralrepresentativesshallbeelectedinthemannerasmaybeprovidedforbylaw.

SEC. 468. Powers, Duties, Functions and Compensation. ‐ (a) The sangguniangpanlalawigan, as the legislative body of the province, shall enact ordinances,approveresolutionsandappropriate funds for thegeneralwelfareof theprovinceanditsinhabitantspursuanttoSection16ofthisCodeandintheproperexerciseofthecorporatepowersoftheprovinceasprovidedforunderSection22ofthisCode,andshall:

(1)Approveordinancesandpassresolutionsnecessaryforanefficientandeffectiveprovincialgovernmentand,inthisconnection,shall:

(i) Review all ordinances approved by the sanggunians of component cities andmunicipalitiesandexecutiveorders issuedbythemayorsofsaidcomponentunitsto determinewhether these arewithin the scopeof theprescribedpowers of thesanggunianandofthemayor;

(ii) Maintain peace and order by enacting measures to prevent and suppresslawlessness,disorder, riot,violence,rebellionorseditionand imposepenalties fortheviolationofsaidordinances;

Page 250: Local Government Code of 1991 (RA 7160)

(iii) Approve ordinances imposing a fine not exceeding Five thousand pesos(P=5,000.00)orimprisonmentnotexceedingone(1)year,orbothinthediscretionofthecourt,fortheviolationofaprovincialordinance;

(iv) Adoptmeasures to protect the inhabitants of the province from the harmfuleffects of man‐made or natural disasters and calamities, and to provide reliefservicesandassistanceforvictimsduringandintheaftermathofsaiddisastersandcalamitiesandtheirreturntoproductivelivelihoodfollowingsaidevents;

(v) Enact ordinances intended to prevent, suppress and impose appropriatepenalties for habitual drunkenness in public places, vagrancy, mendicancy,prostitution, establishmentandmaintenanceofhousesof ill repute, gamblingandotherprohibitedgamesofchance,fraudulentdevicesandwaystoobtainmoneyorproperty, drug addiction, maintenance of drug dens, drug pushing, juveniledelinquency, the printing, distribution or exhibition of obscene or pornographicmaterials or publications, and such other activities inimical to the welfare andmoralsoftheinhabitantsoftheprovince;

(vi) Protect the environment and impose appropriate penalties for acts whichendangertheenvironment,suchasdynamitefishingandotherformsofdestructivefishing, illegal logging and smuggling of logs, smuggling of natural resourcesproductsandofendangeredspeciesoffloraandfauna,slashandburnfarming,andsuch other activities which result in pollution, acceleration of eutrophication ofriversandlakes,orofecologicalimbalance;

(vii) Subject to the provisions of this Code and pertinent laws, determine thepowersanddutiesofofficialsandemployeesoftheprovince;

(viii) Determine the positions and the salaries, wages, allowances and otheremoluments and benefits of officials and employees paid wholly or mainly fromprovincial fundsandprovideforexpendituresnecessaryfortheproperconductofprograms,projects,services,andactivitiesoftheprovincialgovernment;

(ix) Authorize the payment of compensation to a qualified person not in thegovernmentservicewhofillsupatemporaryvacancy,orgranthonorariumtoany

Page 251: Local Government Code of 1991 (RA 7160)

qualifiedofficialoremployeedesignatedtofillatemporaryvacancyinaconcurrentcapacity,attherateauthorizedbylaw;

(x)Provideamechanismandtheappropriate fundstherefor, toensurethesafetyandprotectionofallprovincialgovernmentproperty,publicdocuments,orrecordssuch as those relating to property inventory, land ownership, records of births,marriages,deaths,assessments,taxation,accounts,businesspermits,andsuchotherrecords and documents of public interest in the offices and departments of theprovincialgovernment;and

(xi)When the financesof theprovincial government allow, provide for additionalallowances and other benefits to judges, prosecutors, public elementary and highschoolteachers,andothernationalgovernmentofficialsstationedorassignedtotheprovince.

(2)Generateandmaximizetheuseofresourcesandrevenuesforthedevelopmentplans, program objectives and priorities of the province as provided for underSection 18 of this Code, with particular attention to agro‐industrial developmentandcountry‐widegrowthandprogressandrelativethereto,shall:

(i)Enacttheannualandsupplementalappropriationsoftheprovincialgovernmentandappropriatefundsforspecificprograms,projects,servicesandactivitiesoftheprovince,orforotherpurposesnotcontrarytolaw,inordertopromotethegeneralwelfareoftheprovinceanditsinhabitants;

(ii)SubjecttotheprovisionsofBookIIofthisCodeandapplicablelawsanduponthe majority vote of all the members of the sangguniang panlalawigan, enactordinanceslevyingtaxes,feesandcharges,prescribingtheratesthereofforgeneralandspecificpurposes,andgrantingtaxexemptions,incentivesorreliefs;

(iii)SubjecttotheprovisionsofBookIIofthisCodeandapplicablelawsanduponthemajorityvoteofallthemembersofthesangguniangpanlalawigan,authorizetheprovincial governor to negotiate and contract loans and other forms ofindebtedness;

Page 252: Local Government Code of 1991 (RA 7160)

(iv)SubjecttotheprovisionsofBookIIofthisCodeandapplicablelawsanduponthe majority vote of all the members of the sangguniang panlalawigan, enactordinancesauthorizingthefloatingofbondsorotherinstrumentsofindebtedness,forthepurposeofraisingfundstofinancedevelopmentprojects;

(v) Appropriate funds for the construction and maintenance or the rental ofbuildingsfortheuseoftheprovince;anduponthemajorityvoteofallthemembersof the sangguniang panlalawigan, authorize the provincial governor to lease toprivate parties such public buildings held in a proprietary capacity, subject toexistinglaws,rulesandregulations;

(vi) Prescribe reasonable limits and restraints on the use of propertywithin thejurisdictionoftheprovince;

(vii) Review the comprehensive land use plans and zoning ordinances ofcomponentcitiesandmunicipalitiesandadoptacomprehensiveprovinciallanduseplan,subjectto

(viii)Adoptmeasures to enhance the full implementationof thenational agrarianreformprogramincoordinationwiththeDepartmentofAgrarianReform;

(3)SubjecttotheprovisionsofBookIIofthisCode,grantfranchises,approvetheissuanceofpermitsorlicenses,orenactordinanceslevyingtaxes,feesandchargesupon such conditions and for such purposes intended to promote the generalwelfareoftheinhabitantsoftheprovince,andpursuanttothislegislativeauthority,shall:

(i) Fix and impose reasonable fees and charges for all services rendered by theprovincialgovernmenttoprivatepersonsorentities;and

(ii)Regulateand fix the license fees for suchactivitiesasprovided forunder thisCode.

Page 253: Local Government Code of 1991 (RA 7160)

(4)Approveordinanceswhichshallensuretheefficientandeffectivedeliveryofthebasic services and facilities asprovided forunder Section17of thisCode, and, inadditiontosaidservicesandfacilities,shall:

(i)Adoptmeasuresandsafeguardsagainstpollutionandforthepreservationofthenatural ecosystem in the province, in consonance with approved standards onhumansettlementsandenvironmentalsanitation;

(ii) Subject to applicable laws, facilitate or provide for the establishment andmaintenanceofawaterworkssystemordistrictwaterworksforsupplyingwatertoinhabitantsofcomponentcitiesandmunicipalities;

(iii)Subjecttotheavailabilityoffundsandtoexistinglaws,rulesandregulations,providefortheestablishmentandoperationofvocationalandtechnicalschoolsandsimilar post‐secondary institutions; and, with the approval of the Department ofEducation, Culture and Sports and subject to existing laws on tuition fees, fixreasonable tuition fees and other school charges in educational institutionssupportedbytheprovincialgovernment;

(iv) Establish a scholarship fund for the poor but deserving students in schoolslocatedwithinitsjurisdictionorforstudentsresidingwithintheprovince;

(v)Approvemeasuresandadoptquarantineregulationstopreventtheintroductionandspreadofdiseaseswithinitsterritorialjurisdiction;

(vi)Provide for thecareofpaupers, theaged, thesick,personsofunsoundmind,abandoned minors, abused children, disabled persons, juvenile delinquents, drugdependents,andotherneedyanddisadvantagedpersons,particularlychildrenandyouthbeloweighteen(18)yearsofage;subjecttoavailabilityoffunds,establishandsupport the operation of centers and facilities for said needy and disadvantagedpersons;andfacilitateeffortstopromotethewelfareoffamiliesbelowthepovertythreshold,thedisadvantaged,andtheexploited;

(vii) Establish and provide for the maintenance and improvement of jails anddetention centers, institute a sound jail management program, and appropriatefundsforthesubsistenceofdetaineesandconvictedprisonersintheprovince;

Page 254: Local Government Code of 1991 (RA 7160)

(viii)Establishaprovincialcouncilwhosepurposeisthepromotionofcultureandthearts,coordinatewithgovernmentagenciesandnon‐governmentalorganizationsand, subject to the availability of funds, appropriate funds for the support anddevelopmentofthesame;

(ix)Establishaprovincialcouncilfortheelderlywhichshallformulatepoliciesandadoptmeasuresmutuallybeneficialtotheelderlyandtotheprovince;andsubjecttotheavailabilityoffunds,appropriatefundstosupportprogramsandprojectsfortheelderly;andprovide incentives fornon‐governmentalagenciesandentities tosupporttheprogramsandprojectsoftheelderly;and

(5)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

(b) The members of the sangguniang panlalawigan shall receive a minimummonthly compensation corresponding to Salary Grade twenty‐seven (27) asprescribed under R.A. 6758 and the implementing guidelines issued pursuantthereto.

TITLEFIVE. ‐APPOINTIVELOCALOFFICIALSCOMMONTOALLMUNICIPALITIES,CITIESANDPROVINCES

ArticleOne.‐SecretarytotheSanggunian

SEC.469.Qualifications,PowersandDuties. ‐ (a)Thereshallbeasecretary to thesanggunianwhoshallbeacareerofficialwiththerankandsalaryequaltoaheadofdepartmentoroffice.

(b)NopersonshallbeappointedsecretarytothesanggunianunlessheisacitizenofthePhilippines,aresidentofthelocalgovernmentunitconcerned,ofgoodmoralcharacter, a holder of a college degree preferably in law, commerce or publicadministrationfromarecognizedcollegeoruniversity,andafirstgradecivilserviceeligible or its equivalent. The appointment of a secretary to the sanggunian ismandatoryforprovincial,cityandmunicipalgovernments.

Page 255: Local Government Code of 1991 (RA 7160)

(c)Thesecretarytothesanggunianshalltakechargeoftheofficeofthesecretarytothesanggunianandshall:

(1)Attendmeetingsofthesanggunianandkeepajournalofitsproceedings;

(2)Keepthesealofthelocalgovernmentunitandaffixthesamewithhissignaturetoallordinances,resolutions,andotherofficialactsofthesanggunianandpresentthesametothepresidingofficerforhissignature;

(3)Forwardtothegovernorormayor,asthecasemaybe, forapproval,copiesofordinancesenactedbythesangguniananddulycertifiedbythepresidingofficer,inthemannerprovidedinSection54underBookIofthisCode;

(4)Forwardtothesanggunianpanlungsodorbayanconcerned, inthecaseof thesangguniangbarangay,andtothesangguniangpanlalawiganconcerned,inthecaseofthesangguniangpanlungsodofcomponentcitiesorsangguniangbayan,copiesofduly approved ordinances, in the manner provided in Sections 56 and 57 underBookIofthisCode;

(5) Furnish, upon request of any interested party, certified copies of records ofpubliccharacterinhiscustody,uponpaymenttothetreasurerofsuchfeesasmaybeprescribedbyordinance;

(6)Recordinabookkeptforthepurpose,allordinancesandresolutionsenactedoradoptedbythesanggunian,withthedatesofpassageandpublicationthereof;

(7) Keep his office and all non‐confidential records therein open to the publicduringtheusualbusinesshours;

(8)Translateintothedialectusedbythemajorityoftheinhabitantsallordinancesandresolutions immediatelyafter theirapproval, andcause thepublicationof thesame togetherwith the original version in themanner providedunder this Code;and

Page 256: Local Government Code of 1991 (RA 7160)

(9)Take custodyof the local archivesand,whereapplicable, the local libraryandannuallyaccountforthesame;and

(d)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinancerelativetohisposition.

ArticleTwo.‐TheTreasurer

SEC.470.Appointment,Qualifications,Powers,andDuties.‐(a)Thetreasurershallbe appointedby the Secretaryof Finance froma list of at least three (3) ranking,eligiblerecommendeesofthegovernorormayor,asthecasemaybe,subjecttocivilservicelaw,rulesandregulations.

(b)Thetreasurershallbeundertheadministrativesupervisionofthegovernorormayor,asthecasemaybe,towhomheshallreportregularlyonthetaxcollectioneffortsinthelocalgovernmentunit;

(c)NopersonshallbeappointedtreasurerunlessheisacitizenofthePhilippines,aresidentofthelocalgovernmentunitconcerned,ofgoodmoralcharacter,aholderof a college degree preferably in commerce, public administration or law from arecognized college or university, and a first grade civil service eligible or itsequivalent.Hemusthaveacquiredexperienceintreasuryoraccountingserviceforat least five (5)years in the caseof the cityorprovincial treasurer, and three (3)yearsinthecaseofthemunicipaltreasurer.Theappointmentofatreasurershallbemandatoryforprovincial,cityandmunicipalgovernments;

(d) The treasurer shall take charge of the treasury office, perform the dutiesprovidedforunderBookIIofthisCode,andshall:

(1)Advise thegovernorormayor, as the casemaybe, the sanggunian, andotherlocal government and national officials concerned regarding disposition of localgovernmentfunds,andonsuchothermattersrelativetopublicfinance;

Page 257: Local Government Code of 1991 (RA 7160)

(2) Take custody of and exercise proper management of the funds of the localgovernmentunitconcerned;

(3)Takechargeofthedisbursementofall localgovernmentfundsandsuchotherfunds the custody of whichmay be entrusted to him by law or other competentauthority;

(4) Inspect private commercial and industrial establishments within thejurisdiction of the local government unit concerned in relation to theimplementationoftaxordinances,pursuanttotheprovisionsunderBookIIofthisCode;

(5)Maintainandupdatethetaxinformationsystemofthelocalgovernmentunit;

(6) In the case of theprovincial treasurer, exercise technical supervision over alltreasuryofficesofcomponentcitiesandmunicipalities;and

(e)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

SEC.471.AssistantTreasurer.‐(a)AnassistanttreasurermaybeappointedbytheSecretaryofFinancefromalistofatleastthree(3)ranking,eligiblerecommendeesofthegovernorormayor,subjecttocivilservicelaw,rulesandregulations.

(b) No person shall be appointed assistant treasurer unless he is a citizen of thePhilippines, a resident of the local government unit concerned, of good moralcharacter, a holder of a college degree preferably in commerce, publicadministration,orlawfromarecognizedcollegeoruniversity,andafirstgradecivilservice eligible or its equivalent. He must have acquired at least five (5) yearsexperience in the treasury or accounting service in the case of the city orprovincialassistant treasurer, and three (3) years in the case of the municipalassistanttreasurer.Theappointmentofanassistanttreasurershallbeoptionalforprovincial,cityandmunicipalgovernments;

Page 258: Local Government Code of 1991 (RA 7160)

(c)Theassistanttreasurershallassistthetreasurerandperformsuchdutiesasthelattermay assign to him. He shall have authority to administer oaths concerningnoticesandnotificationstothosedelinquentinthepaymentoftherealpropertytaxand concerning official matters relating to the accounts of the treasurer orotherwisearisingintheofficesofthetreasurerandtheassessor.

ArticleThree.‐TheAssessor

SEC. 472 . Qualifications, Powers and Duties. ‐ (a) No person shall be appointedassessorunlessheisacitizenofthePhilippines,aresidentofthelocalgovernmentunitconcerned,ofgoodmoralcharacter,aholderofacollegedegreepreferablyincivil or mechanical engineering, commerce, or any other related course from arecognized college or university, and a first grade civil service eligible or itsequivalent.Hemusthaveacquiredexperienceinrealpropertyassessmentworkorin any related field for at least five (5) years in the case of the city or provincialassessor,andthree(3)yearsinthecaseofthemunicipalassessor.Theappointmentofanassessorshallbemandatoryforprovincial,cityandmunicipalgovernments.

(b) The assessor shall take charge of the assessor's office, perform the dutiesprovidedforunderBookIIofthisCode,andshall:

(1)Ensurethatalllawsandpoliciesgoverningtheappraisalandassessmentofrealpropertiesfortaxationpurposesareproperlyexecuted;

(2) Initiate, review,andrecommendchanges inpoliciesandobjectives,plansandprograms,techniques,proceduresandpracticesinthevaluationandassessmentofrealpropertiesfortaxationpurposes;

(3)Establishasystematicmethodofrealpropertyassessment;

(4)Installandmaintainarealpropertyidentificationandaccountingsystem,

(5)Prepare, installandmaintainasystemoftaxmapping,showinggraphicallyallpropertysubjecttoassessmentandgatheralldataconcerningthesame;

Page 259: Local Government Code of 1991 (RA 7160)

(6) Conduct frequent physical surveys to verify and determine whether all realpropertieswithintheprovinceareproperlylistedintheassessmentrolls;

(7) Exercise the functions of appraisal and assessment primarily for taxationpurposesofallrealpropertiesinthelocalgovernmentunitconcerned;

(8) Prepare a schedule of the fair market value for the different classes of realproperties,inaccordancewithTitleTwounderBookIIofthisCode;

(9) Issue, upon request of any interested party, certified copies of assessmentrecords of real property and all other records relative to its assessment, uponpaymentofaservicechargeorfeetothetreasurer;

(10)Submiteverysemesterareportofallassessments,aswellascancellationsandmodifications of assessments to the local chief executive and the sanggunianconcerned;

(11) In the case of the assessor of a component city or municipality attend,personallyorthroughanauthorizedrepresentative,allsessionsofthelocalboardofassessment appeals whenever his assessment is the subject of the appeal, andpresentorsubmitanyinformationorrecordinhispossessionasmayberequiredbytheboard;and,

(12) In the case of the provincial assessor, exercise technical supervision andvisitorial functions over all component city and municipal assessors, coordinatewith component city or municipal assessors in the conduct of tax mappingoperationsandall other assessment activities, andprovideall formsof assistancetherefor: Provided, however, That, upon full provision by the component city ormunicipality concerned to its assessor's office of the minimum personnel ,equipment, and funding requirements as may be prescribed by the Secretary ofFinance,suchfunctionsshallbedelegatedtothesaidcityormunicipalassessor;and

(c)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

Page 260: Local Government Code of 1991 (RA 7160)

SEC.473.AssistantAssessor. ‐ (a)Nopersonshallbeappointedassistantassessorunless he is a citizen of the Philippines, a resident of the local government unitconcerned,ofgoodmoralcharacter,aholderofacollegedegreepreferablyincivilor mechanical engineering, commerce, or any related course from a recognizedcollegeoruniversity,andafirstgradecivilserviceeligibleoritsequivalent.Hemusthaveacquiredexperienceinassessmentorinanyrelatedfieldforatleastthree(3)yearsinthecaseofthecityorprovincialassistantassessor,andone(1)yearinthecase of the city or provincial assistant assessor. The appointment of an assistantassessorshallbeoptionalforprovincial,cityandmunicipalgovernments.

(b)Theassistantassessorshallassisttheassessorandperformsuchotherdutiesasthelattermayassigntohim.Heshallhavetheauthoritytoadministeroathsonalldeclarationsofrealpropertyforpurposesofassessment.

ArticleFour.‐TheAccountant

SEC. 474. Qualifications, Powers and Duties. ‐ (a) No person shall be appointedaccountant unless he is a citizen of the Philippines, a resident of the localgovernment unit concerned, of good moral character, and a certified publicaccountant.Hemusthaveacquiredexperienceinthetreasuryoraccountingserviceforatleastfive(5)yearsinthecaseoftheprovincialorcityaccountant,andthree(3)yearsinthecaseofthemunicipalaccountant.Theappointmentofanaccountantismandatoryfortheprovincial,cityandmunicipalgovernments.

(b) The accountant shall take charge of both the accounting and internal auditservicesofthelocalgovernmentunitconcernedandshall:

(1) Install and maintain an internal audit system in the local government unitconcerned;

(2)Prepareandsubmitfinancialstatementstothegovernorormayor,asthecasemaybe,andtothesanggunianconcerned;

(3) Apprise the sanggunian and other local government officials on the financialconditionandoperationsofthelocalgovernmentunitconcerned;

Page 261: Local Government Code of 1991 (RA 7160)

(4) Certify to the availability of budgetary allotment to which expenditures andobligationsmaybeproperlycharged;

(5) Review supporting documents before preparation of vouchers to determinecompletenessofrequirements;

(6) Prepare statements of cash advances, liquidation, salaries, allowances,reimbursementsandremittancespertainingtothelocalgovernmentunit;

(7)Preparestatementsof journalvouchersand liquidationof thesameandotheradjustmentsrelatedthereto;

(8)Postindividualdisbursementstothesubsidiaryledgerandindexcards;

(9)Maintainindividualledgersforofficialsandemployeesofthelocalgovernmentunitpertainingtopayrollsanddeductions;

(10) Record and post in index cards details of purchased furniture, fixtures, andequipment,includingdisposalthereof,ifany;

(11) Account for all issued requests for obligations and maintain and keep allrecordsandreportsrelatedthereto;

(12) Prepare journals and the analysis of obligations and maintain and keep allrecordsandreportsrelatedthereto;and

(13)Exercise suchotherpowers andperform suchotherduties and functions asmaybeprovidedbylaworordinance.

(c) The incumbent chief accountant in the office of the treasurer shall be givenpreferenceintheappointmenttothepositionofaccountant.

Page 262: Local Government Code of 1991 (RA 7160)

ArticleFive.‐TheBudgetOfficer

SEC. 475. Qualifications, Powers and Duties. ‐ (a) No person shall be appointedbudget officer unless he is a citizen of the Philippines, a resident of the localgovernmentunit concerned,of goodmoral character, aholderof a collegedegreepreferably in accounting, economics, public administration or any related coursefromarecognizedcollegeoruniversity,andafirstgradecivilserviceeligibleoritsequivalent.Hemusthaveacquiredexperience in governmentbudgetingor in anyrelated field for at least five (5) years in the case of the provincial or city budgetofficer,andatleastthree(3)yearsinthecaseofthemunicipalbudgetofficer.Theappointment of a budget officer shall be mandatory for the provincial, city, andmunicipalgovernments.(b)Thebudgetofficershalltakechargeofthebudgetofficeandshall:

(1)Prepareforms,orders,andcircularsembodyinginstructionsonbudgetaryandappropriationmattersforthesignatureofthegovernorormayor,asthecasemaybe;

(2) Review and consolidate the budget proposals of different departments andofficesofthelocalgovernmentunit;

(3) Assist the governor or mayor, as the case may be, in the preparation of thebudgetandduringbudgethearings;

(4)Studyandevaluatebudgetary implicationsofproposed legislationandsubmitcommentsandrecommendationsthereon;

(5) Submit periodic budgetary reports to the Department of Budget andManagement; (6)Coordinatewith the treasurer,accountant,and theplanninganddevelopmentcoordinatorforthepurposeofbudgeting;

(7) Assist the sanggunian concerned in reviewing the approved budgets ofcomponentlocalgovernmentunits;

Page 263: Local Government Code of 1991 (RA 7160)

(8)Coordinatewiththeplanninganddevelopmentcoordinatorintheformulationofthelocalgovernmentunitdevelopmentplan;and

(c)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

(d)Theappropriations forpersonalservicesof thebudgetofficerprovidedundertheDepartmentofBudgetandManagementshall,uponeffectivityof thisCode,betransferredtothelocalgovernmentunitconcerned.Thereafter,theappropriationsforpersonalservicesofthebudgetofficershallbeprovidedforinfullinthebudgetofthelocalgovernmentunit.

ArticleSix.‐ThePlanningandDevelopmentCoordinator

SEC. 476. Qualifications, Powers and Duties. ‐ (a) No person shall be appointedplanning and development coordinator unless he is a citizen of the Philippines, aresidentofthelocalgovernmentunitconcerned,ofgoodmoralcharacter,aholderofacollegedegreepreferably inurbanplanning,developmentstudies,economics,publicadministration,oranyrelatedcoursefromarecognizedcollegeoruniversity,and a first grade civil service eligible or its equivalent. He must have acquiredexperienceindevelopmentplanningorinanyrelatedfieldforatleastfive(5)yearsin the case of the provincial or city planning and development coordinator, andthree(3)yearsinthecaseofthemunicipalplanninganddevelopmentcoordinator.Theappointmentofaplanninganddevelopmentcoordinatorshallbemandatoryforprovincial,cityandmunicipalgovernments.

(b) The planning and development coordinator shall take charge of the planninganddevelopmentofficeandshall:

(1) Formulate integrated economic, social, physical, and other development plansandpoliciesforconsiderationofthelocalgovernmentdevelopmentcouncil;

(2) Conduct continuing studies, researches, and training programs necessary toevolveplansandprogramsforimplementation;

Page 264: Local Government Code of 1991 (RA 7160)

(3) Integrate and coordinate all sectoral plans and studies undertaken by thedifferentfunctionalgroupsoragencies;

(4) Monitor and evaluate the implementation of the different developmentprograms, projects, and activities in the local government unit concerned inaccordancewiththeapproveddevelopmentplan;

(5)Preparecomprehensiveplansandotherdevelopmentplanningdocuments fortheconsiderationofthelocaldevelopmentcouncil;

(6)Analyze the incomeandexpenditurepatterns, and formulateand recommendfiscal plans and policies for consideration of the finance committee of the localgovernmentunitconcernedasprovidedunderTitleFive,BookIIofthisCode;

(7) Promote people participation in development planning within the localgovernmentunitconcerned;

(8)Exercisesupervisionandcontroloverthesecretariatofthelocaldevelopmentcouncil;and

(c)Exercisesuchotherpowersandperformsuchotherfunctionsanddutiesasmaybeprescribedbylaworordinance.

ArticleSeven.‐TheEngineer

SEC. 477. Qualifications, Powers and Duties. ‐ (a) No person shall be appointedengineerunlessheisacitizenofthePhilippines,aresidentofthelocalgovernmentunitconcerned,ofgoodmoralcharacter,andalicensedcivilengineer.Hemusthaveacquiredexperienceinthepracticeofhisprofessionforatleastfive(5)yearsinthecase of the provincial or city engineer, and three (3) years in the case of themunicipal engineer. The appointment of an engineer shall be mandatory for theprovincial,city,andmunicipalgovernments.Thecityandmunicipalengineershallalsoactasthelocalbuildingofficial.

Page 265: Local Government Code of 1991 (RA 7160)

(b)Theengineershalltakechargeoftheengineeringofficeandshall:

(1) Initiate, review and recommend changes in policies and objectives, plans andprograms,techniques,proceduresandpracticesininfrastructuredevelopmentandpublicworksingeneralofthelocalgovernmentunitconcerned;

(2) Advise the governor or mayor, as the case may be, on infrastructure, publicworks,andotherengineeringmatters;

(3) Administer, coordinate, supervise, and control the construction,maintenance,improvement,andrepairofroads,bridges,andotherengineeringandpublicworksprojectsofthelocalgovernmentunitconcerned;

(4)Provideengineeringservicestothelocalgovernmentunitconcerned,includinginvestigation and survey, engineering designs, feasibility studies, and projectmanagement;

(5) In the case of the provincial engineer, exercise technical supervision over allengineeringofficesofcomponentcitiesandmunicipalities;and

(c)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

ArticleEight.‐TheHealthOfficer

SEC. 478. Qualifications, Powers and Duties. ‐ (a) No person shall be appointedhealth officer unless he is a citizen of the Philippines, a resident of the localgovernment unit concerned, of good moral character, and a licensed medicalpractitioner.Hemusthaveacquiredexperienceinthepracticeofhisprofessionforatleastfive(5)yearsinthecaseoftheprovincialorcityhealthofficer,andthree(3)yearsinthecaseofthemunicipalhealthofficer.Theappointmentofahealthofficershallbemandatoryforprovincial,cityandmunicipalgovernments.

(b)Thehealthofficershalltakechargeoftheofficeonhealthandshall:

Page 266: Local Government Code of 1991 (RA 7160)

(1)Takechargeoftheofficeonhealthservices,supervisethepersonnelandstaffofsaidoffice,formulateprogramimplementationguidelinesandrulesandregulationsfortheoperationofthesaidofficefortheapprovalofthegovernorormayor,asthecase may be, in order to assist him in the efficient, effective and economicalimplementationof ahealth servicesprogramgeared to implementationofhealth‐relatedprojectsandactivities;

(2) Formulate measures for the consideration of the sanggunian and providetechnicalassistanceandsupport to thegovernorormayor,as thecasemaybe, incarrying out activities to ensure the delivery of basic services and provision ofadequatefacilitiesrelativetohealthservicesprovidedunderSection17ofthisCode;

(3) Develop plans and strategies and upon approval thereof by the governor ormayorasthecasemaybe,implementthesame,particularlythosewhichhavetodowithhealthprogramsandprojectswhichthegovernorormayor,isempoweredtoimplementandwhichthesanggunianisempoweredtoprovideforunderthisCode;

(4)Inadditiontotheforegoingdutiesandfunctions,thehealthofficershall:

(i)Formulateandimplementpolicies,plans,programsandprojectstopromotethehealthofthepeopleinthelocalgovernmentunitconcerned;

(ii) Advise the governor or mayor, as the case may be, and the sanggunian onmatterspertainingtohealth;

(iii) Execute and enforce all laws, ordinances and regulations relating to publichealth;

(iv)Recommendtothesanggunian,throughthelocalhealthboard,thepassageofsuchordinancesashemaydeemnecessaryforthepreservationofpublichealth;

Page 267: Local Government Code of 1991 (RA 7160)

(v) Recommend the prosecution of any violation of sanitary laws, ordinances orregulations;

(vi)Directthesanitaryinspectionofallbusinessestablishmentssellingfooditemsor providing accommodations such as hotels, motels, lodging houses, pensionhouses,andthelike,inaccordancewiththeSanitationCode;

(vii)Conducthealthinformationcampaignsandrenderhealthintelligenceservices;

(viii) Coordinate with other government agencies and non‐governmentalorganizationsinvolvedinthepromotionanddeliveryofhealthservices;and

(ix) In the case of the provincial health officer, exercise general supervision overhealthofficersofcomponentcitiesandmunicipalities;and

(5) Be in the frontline of health services delivery, particularly during and in theaftermathofman‐madeandnaturaldisastersandcalamities;and

(c)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

ArticleNine.‐TheCivilRegistrar

SEC.479.Qualifications,PowersandDuties.‐(a)NopersonshallbeappointedcivilregistrarunlessheisacitizenofthePhilippines,aresidentofthelocalgovernmentunit concerned, of good moral character, a holder of a college degree from arecognized college or university, and a first grade civil service eligible or itsequivalent.Hemusthaveacquiredexperienceincivilregistryworkforatleastfive(5)yearsinthecaseofthecitycivilregistrarandthree(3)yearsinthecaseofthemunicipalcivilregistrar.Theappointmentofacivilregistrarshallbemandatoryforcityandmunicipalgovernments.

Page 268: Local Government Code of 1991 (RA 7160)

(b)Thecivilregistrarshallberesponsibleforthecivilregistrationprograminthelocalgovernmentunitconcerned,pursuanttotheCivilRegistryLaw,theCivilCode,andotherpertinentlaws,rulesandregulationsissuedtoimplementthem.

(c)TheCivilRegistrarshalltakechargeoftheofficeofthecivilregistryandshall:

(1) Develop plans and strategies and upon approval thereof by the governor ormayor,asthecasemaybe,implementthesame,particularlythosewhichhavetodowith civil registry programs and projects which the mayor is empowered toimplementandwhichthesanggunianisempoweredtoprovideforunderthisCode;

(2)Inadditiontotheforegoingdutiesandfunctions,thecivilregistrarshall:

(i)Acceptallregistrabledocumentsandjudicialdecreesaffectingthecivilstatusofpersons;

(ii)File,keepandpreserveinasecureplacethebooksrequiredbylaw;

(iii)Transcribeandenter immediatelyupon receipt all registrabledocuments andjudicialdecreesaffectingthecivilstatusofpersonsintheappropriatecivilregistrybooks;

(iv) Transmit to the Office of the Civil Registrar‐ General, within the prescribedperiod,duplicatecopiesofregistereddocumentsrequiredbylaw;

(v) Issuecertified transcriptsorcopiesofanycertificateorregistereddocumentsuponpaymentoftheprescribedfeestothetreasurer;

(vi) Receive applications for the issuance of a marriage license and, afterdetermining that the requirements and supporting certificates and publicationthereof for theprescribedperiodhavebeencompliedwith, issue the licenseuponpaymentoftheauthorizedfeetothetreasurer;

Page 269: Local Government Code of 1991 (RA 7160)

(vii)Coordinate with the National Statistics Office in conducting educationalcampaigns for vital registration and assist in thepreparationof demographic andotherstatisticsforthelocalgovernmentunitconcerned;and

(3)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

ArticleTen.‐TheAdministrator

SEC. 480. Qualifications, Term, Powers and Duties. ‐ (a) No person shall beappointedadministratorunlesshe is a citizenof thePhilippines, a residentof thelocal government unit concerned, of good moral character, a holder of a collegedegreepreferablyinpublicadministration,law,oranyotherrelatedcoursefromarecognized college or university, and a first grade civil service eligible or itsequivalent.Hemusthaveacquiredexperience inmanagement andadministrationworkforatleastfive(5)yearsinthecaseoftheprovincialorcityadministrator,andthree(3)yearsinthecaseofthemunicipaladministrator.Thetermofadministratoris coterminous with that of his appointing authority. The appointment of anadministrator shall be mandatory for the provincial and city governments, andoptionalforthemunicipalgovernment.

(b)Theadministratorshalltakechargeoftheofficeoftheadministratorandshall:

(1) Develop plans and strategies and upon approval thereof by the governor ormayor,asthecasemaybe,implementthesameparticularlythosewhichhavetodowiththemanagementandadministration‐relatedprogramsandprojectswhichthegovernor or mayor is empowered to implement and which the sanggunian isempoweredtoprovideforunderthisCode;

(2)Inadditiontotheforegoingdutiesandfunctions,theadministratorshall:

(i)Assistinthecoordinationoftheworkofalltheofficialsofthelocalgovernmentunit,underthesupervision,direction,andcontrolofthegovernorormayor,andforthis purpose, hemay convene the chiefs of offices and other officials of the localgovernmentunit;

Page 270: Local Government Code of 1991 (RA 7160)

(ii) Establish andmaintain a sound personnel program for the local governmentunitdesignedtopromotecareerdevelopmentandupholdthemeritprincipleinthelocalgovernmentservice;

(iii)Conductacontinuingorganizationaldevelopmentofthelocalgovernmentunitwiththeendinviewofinstitutingeffectiveadministrativereforms;

(3) Be in the frontline of the delivery of administrative support services,particularlythoserelatedtothesituationsduringandintheaftermathofman‐madeandnaturaldisastersandcalamities;

(4)Recommendtothesanggunianandadvisethegovernorandmayor,asthecasemaybe,onallothermattersrelativetothemanagementandadministrationofthelocalgovernmentunit;and

(5)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

ArticleEleven.‐TheLegalOfficer

SEC. 481. Qualifications, Term, Powers and Duties. ‐ (a) No person shall beappointedlegalofficerunlessheisacitizenofthePhilippines,aresidentofthelocalgovernment unit concerned, of good moral character, and a member of thePhilippineBar.Hemusthavepracticedhisprofession forat least five (5)years inthecaseoftheprovincialandcitylegalofficer,andthree(3)yearsinthecaseofthemunicipallegalofficer.Thetermofthelegalofficershallbecoterminouswiththatofhisappointingauthority.Theappointmentoflegalofficershallbemandatoryfortheprovincialandcitygovernmentsandoptionalforthemunicipalgovernment.

(b)Thelegalofficer,thechieflegalcounselofthelocalgovernmentunit,shalltakechargeoftheofficeoflegalservicesandshall:

(1)Formulatemeasuresfortheconsiderationofthesanggunianandprovidelegalassistanceandsupporttothegovernorormayor,asthecasemaybe,incarryingout

Page 271: Local Government Code of 1991 (RA 7160)

thedeliveryofbasic servicesandprovisionsof adequate facilities asprovided forunderSection17ofthisCode;

(2) Develop plans and strategies and upon approval thereof by the governor ormayor,asthecasemaybe,implementthesame,particularlythosewhichhavetodowithprogramsandprojectsrelatedtolegalserviceswhichthegovernorormayorisempowered to implementandwhich thesanggunian isempowered toprovide forunderthisCode.

(3)Inadditiontotheforegoingdutiesandfunctions,thelegalofficershall:

(i)Representthelocalgovernmentunitinallcivilactionsandspecialproceedingswhereinthelocalgovernmentunitoranyofficialthereof,inhisofficialcapacity,isaparty: Provided, That, in actions or proceedings where a component city ormunicipality is a party adverse to the provincial government or to anothercomponentcityormunicipality,aspeciallegalofficermaybeemployedtorepresenttheadverseparty;

(ii) When required by the governor, mayor or sanggunian, draft ordinances,contracts, bonds, leases and other instruments, involving any interest of the localgovernmentunit;andprovidecommentsandrecommendationsonanyinstrumentsalreadydrawn;

(iii)Renderhisopinioninwritingonanyquestionoflawwhenrequestedtodosobythegovernor,mayor,orsanggunian;

(iv) Investigate or cause to be investigated any local official or employee foradministrativeneglectormisconduct inoffice,andrecommendappropriateactiontothegovernor,mayororsanggunian,asthecasemaybe;

(v)Investigateorcausetobeinvestigatedanyperson,firmorcorporationholdinganyfranchiseorexercisinganypublicprivilegeforfailuretocomplywithanytermor condition in the grant of such franchise or privilege, and recommendingappropriateactiontothegovernor,mayororsanggunian,asthecasemaybe;

Page 272: Local Government Code of 1991 (RA 7160)

(vi)Whendirectedbythegovernor,mayor,orsanggunian,initiateandprosecuteinthe interest of the local government unit concerned any civil action on any bond,leaseorothercontractuponanybreachorviolationthereof;and

(vii)Reviewandsubmitrecommendationsonordinancesapprovedandexecutiveordersissuedbycomponentunits;

(3)Recommendmeasurestothesanggunianandadvisethegovernorormayorasthecasemaybeonallothermattersrelatedtoupholdingtheruleoflaw;

(4)Be in the frontline of protectinghuman rights andprosecuting any violationsthereof,particularlythosewhichoccurduringandintheaftermathofman‐madeornaturaldisastersorcalamities;and

(5)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

ArticleTwelve.‐TheAgriculturist

SEC. 482. Qualifications, Powers and Duties. ‐ (a) No person shall be appointedagriculturist unless he is a citizen of the Philippines, a resident of the localgovernmentunitconcerned,ofgoodmoralcharacter,aholderofacollegedegreeinagricultureoranyrelatedcoursefromarecognizedcollegeoruniversity,andafirstgradecivilserviceeligibleoritsequivalent.Hemusthavepracticedhisprofessioninagricultureoracquiredexperienceinarelatedfieldforatleastfive(5)yearsinthecaseof theprovincial and city agriculturist, and three (3) years in the caseof themunicipalagriculturist.Thepositionoftheagriculturistshallbemandatoryfortheprovincialgovernmentandoptionalforthecityandmunicipalgovernments.

(b) The agriculturist shall take charge of the office for agricultural services, andshall:

(1)Formulatemeasures for theapprovalof thesanggunianandprovide technicalassistanceandsupporttothegovernorormayor,asthecasemaybe,incarryingoutsaidmeasures to ensure the delivery of basic services and provision of adequate

Page 273: Local Government Code of 1991 (RA 7160)

facilities relative to agricultural services as provided for under Section 17 of thisCode;

(2) Develop plans and strategies and upon approval thereof by the governor ormayor,asthecasemaybe,implementthesame,particularlythosewhichhavetodowith agricultural programs and projects which the governor or mayor isempoweredtoimplementandwhichthesanggunianusempoweredtoprovideforunderthisCode;

(3)Inadditiontotheforegoingdutiesandfunctions,theagriculturistshall:

(i) Ensure that maximum assistance and access to resources in the production,processingandmarketingofagriculturalandaqua‐culturalandmarineproductsareextendedtofarmers,fishermenandlocalentrepreneurs;

(ii)Conductorcausetobeconductedlocation‐specificagriculturalresearchesandassist in making available the appropriate technology arising out of anddisseminating information on basic research on crops, preventive and control ofplant diseases and pests, and other agricultural matters which will maximizeproductivity;

(iii) Assist the governor ormayor, as the casemay be, in the establishment andextensionservicesofdemonstrationfarmsoraqua‐cultureandmarineproducts;

(iv)Enforcerulesandregulationsrelatingtoagricultureandaquaculture;

(v) Coordinate with government agencies and non‐ governmental organizationswhich promote agricultural productivity through appropriate technologycompatiblewithenvironmentalintegrity;

(4)Be in the frontlineofdeliveryofbasicagricultural services,particularly thoseneededforthesurvivaloftheinhabitantsduringandintheaftermathofman‐madeandnaturaldisasters;(5)Recommendtothesanggunianandadvisethegovernorormayor, as the casemay be, on all othermatters related to agriculture and aqua‐

Page 274: Local Government Code of 1991 (RA 7160)

culturewhichwill improve the livelihoodand livingconditionsof the inhabitants;and

(c)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

ArticleThirteen.‐TheSocialWelfareandDevelopmentOfficer

SEC. 483. Qualifications, Powers and Duties. ‐ (a) No person shall be appointedsocialwelfare and development officer unless he is a citizen of the Philippines, aresident of the local government unit concerned, of goodmoral character, a dulylicensedsocialworkeroraholderofacollegedegreepreferablyinsociologyoranyotherrelatedcoursefromarecognizedcollegeoruniversity,andafirstgradecivilserviceeligibleoritsequivalent.Hemusthaveacquiredexperienceinthepracticeof socialwork forat least five (5)years in thecaseof theprovincialorcitysocialwelfare anddevelopmentofficer, and three (3) years in the caseof themunicipalsocial welfare and development officer. The appointment of a social welfare anddevelopmentofficerismandatoryforprovincialandcitygovernments,andoptionalformunicipalgovernment.

(b) The socialwelfare and development officer shall take charge of the office onsocialwelfareanddevelopmentservicesandshall:

(1)Formulatemeasures for theapprovalof thesanggunianandprovide technicalassistanceandsupporttothegovernorormayor,asthecasemaybe,incarryingoutmeasurestoensurethedeliveryofbasicservicesandprovisionofadequatefacilitiesrelativetosocialwelfareanddevelopmentservicesasprovidedforunderSection17ofthisCode;

(2) Develop plans and strategies and upon approval thereof by the governor ormayor,asthecasemaybe,implementthesameparticularlythosewhichhavetodowith social welfare programs and projects which the governor or mayor isempowered to implementandwhich thesanggunian isempowered toprovide forunderthisCode;

(3) Inadditiontothe foregoingduties, thesocialwelfareanddevelopmentofficershall:

Page 275: Local Government Code of 1991 (RA 7160)

(i) Identify thebasicneedsof theneedy, thedisadvantagedand the impoverishedanddevelopand implementappropriatemeasures toalleviate theirproblemsandimprovetheirlivingconditions;

(ii) Provide relief and appropriate crisis intervention for victims of abuse andexploitation and recommend appropriate measures to deter further abuse andexploitation;

(iii) Assist the governor or mayor, as the case may be, in implementing thebarangaylevelprogramforthetotaldevelopmentandprotectionofchildrenuptosix(6)yearsofage;

(iv)Facilitatetheimplementationofwelfareprogramsforthedisabled,elderly,andvictims of drug addiction, the rehabilitation of prisoners and parolees, thepreventionofjuveniledelinquencyandsuchotheractivitieswhichwouldeliminateorminimizetheill‐effectsofpoverty;

(v) Initiateandsupportyouthwelfareprograms thatwill enhance the roleof theyouthinnation‐building;

(vi) Coordinate with government agencies and non‐ governmental organizationswhich have for their purpose the promotion and the protection of all needy,disadvantaged,underprivilegedorimpoverishedgroupsorindividuals,particularlythoseidentifiedtobevulnerableandhigh‐risktoexploitation,abuseandneglect;

(4)Beinthefrontlineofservicedelivery,particularlythosewhichhavetodowithimmediate reliefduringandassistance in theaftermathofman‐madeandnaturaldisasterandnaturalcalamities;

(5)Recommendto thesanggunianandadvise thegovernorormayor,as thecasemay be, on all other matters related to social welfare and development serviceswhichwillimprovethelivelihoodandlivingconditionsoftheinhabitants;and

Page 276: Local Government Code of 1991 (RA 7160)

(c)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

ArticleFourteen.‐TheEnvironmentandNaturalResourcesOfficer

SEC. 484. Qualifications, Powers and Duties. ‐ (a) No person shall be appointedenvironmentandnaturalresourcesofficerunlessheisacitizenofthePhilippines,aresidentofthelocalgovernmentunitconcerned,ofgoodmoralcharacter,aholderof a collegedegreepreferably in environment, forestry, agricultureor any relatedcoursefromarecognizedcollegeoruniversity,andafirstgradecivilserviceeligibleor itsequivalent.Hemusthaveacquiredexperience inenvironmentalandnaturalresourcesmanagement,conservation,andutilization,ofatleastfive(5)yearsinthecaseof theprovincialorcityenvironmentandnaturalresourcesofficer,andthree(3) years in the case of themunicipal environment and natural resources officer.The appointment of the environment andnatural resources officer is optional forprovincial,city,andmunicipalgovernments.

(b)Theenvironmentandnaturalresourcesmanagementofficershalltakechargeoftheofficeonenvironmentandnaturalresourcesandshall:

(1) Formulate measures for the consideration of the sanggunian and providetechnicalassistanceandsupport to thegovernorormayor,as thecasemaybe, incarrying out measures to ensure the delivery of basic services and provision ofadequate facilities relative to environment and natural resources services asprovidedforunderSection17ofthisCode;

(2) Develop plans and strategies and upon approval thereof by the governor ormayor,asthecasemaybe,implementthesame,particularlythosewhichhavetodowithenvironmentandnaturalresourcesprogramsandprojectswhichthegovernorormayor isempoweredto implementandwhichthesanggunianisempoweredtoprovideforunderthisCode;

(3)Inadditiontotheforegoingdutiesandfunctions,theenvironmentandnaturalresourcesofficershall:

Page 277: Local Government Code of 1991 (RA 7160)

(i) Establish, maintain, protect and preserve communal forests, watersheds, treeparks,mangroves,greenbeltsandsimilarforestprojectsandcommercialforest,likeindustrialtreefarmsandagro‐forestryprojects;

(ii)Provideextensionservicestobeneficiariesof forestdevelopmentprojectsandtechnical,financialandinfrastructureassistance;

(iii)Manage andmaintain seed banks andproduce seedlings for forests and treeparks;

(iv)Provideextensionservicestobeneficiariesofforestdevelopmentprojectsandrender assistance for natural resources‐related conservation and utilizationactivitiesconsistentwithecologicalbalance;

(v) Promote the small‐scale mining and utilization of mineral resources,particularlyminingofgold;

(vi)Coordinatewithgovernmentagenciesandnon‐governmentalorganizationsintheimplementationofmeasurestopreventandcontrolland,airandwaterpollutionwiththeassistanceoftheDepartmentofEnvironmentandNaturalResources;

(4)Be inthefrontlineof thedeliveryofservicesconcerningtheenvironmentandnaturalresources,particularlyintherenewalandrehabilitationoftheenvironmentduringandintheaftermathofman‐madeandnaturalcalamitiesanddisasters;

(5)Recommendto thesanggunianandadvise thegovernorormayor,as thecasemaybe,onallmattersrelativetotheprotection,conservation,maximumutilization,applicationofappropriatetechnologyandothermattersrelatedtotheenvironmentandnaturalresources;and

(c)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

Page 278: Local Government Code of 1991 (RA 7160)

ArticleFifteen‐TheArchitect

SEC. 485. Qualifications, Powers and Duties. ‐ (a) No person shall be appointedarchitectunlessheisacitizenofthePhilippines,aresidentofthelocalgovernmentunit concerned, of goodmoral character, a duly licensed architect. Hemust havepracticedhisprofessionforatleastfive(5)yearsinthecaseoftheprovincialorcityarchitect, and three (3) years in the case of the municipal architect. Theappointment of the architect is optional for provincial, city and municipalgovernments.

(b)Thearchitectshalltakechargeoftheofficeonarchitecturalplanninganddesignandshall:

(1) Formulate measures for the consideration of the sanggunian and providetechnicalassistanceandsupport to thegovernorormayor,as thecasemaybe, incarrying out measures to ensure the delivery of basic services and provision ofadequate facilities relative to architectural planning and design as provided forunderSection17ofthisCode;

(2) Develop plans and strategies and upon approval thereof by the governor ormayor,asthecasemaybe,implementthesame,particularlythosewhichhavetodowitharchitecturalplanninganddesignprogramsandprojectswhich thegovernorormayor isempoweredto implementandwhichthesanggunianisempoweredtoprovideforunderthisCode;

(3)Inadditiontoforegoingdutiesandfunctions,thearchitectshall:

(i) Prepare and recommend for consideration of the sanggunian the architecturalplan and design for the local government unit or a part thereof, including therenewal of slums and blighted areas, land reclamation activities, the greening ofland,andappropriateplanningofmarineandforeshoreareas;

(ii)Reviewandrecommend forappropriateactionof thesanggunian,governorormayor, as the case may be, the architectural plans and design submitted bygovernmental andnon‐governmental entities or individuals, particularly those forundeveloped,underdeveloped,andpoorly‐designedareas;and

Page 279: Local Government Code of 1991 (RA 7160)

(iii) Coordinate with government and non‐government entities and individualsinvolvedintheaestheticsandthemaximumutilizationofthelandandwaterwithinthe jurisdiction of the local government unit, compatible with environmentalintegrityandecologicalbalance.

(4)Be in the frontlineof thedeliveryof services involving architecturalplanningand design, particularly those related to the redesigning of spatial distribution ofbasicfacilitiesandphysicalstructuresduringandintheaftermathofman‐madeandnaturalcalamitiesanddisasters;

(5)Recommendto thesanggunianandadvise thegovernorormayor,as thecasemaybe,onallothermattersrelativetothearchitecturalplanninganddesignas itrelatestothetotalsocioeconomicdevelopmentofthelocalgovernmentunit;and

(c)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

ArticleSixteen.‐TheInformationOfficer

SEC. 486. Qualifications, Powers and Duties. ‐ (a) No person shall be appointedinformationofficerunlesshe is a citizenof thePhilippines, a residentof the localgovernmentunit concerned,of goodmoral character, aholderof a collegedegreepreferably in journalism, mass communication or any related course from arecognized college or university, and a first grade civil service eligible or itsequivalent.Hemusthaveexperience inwritingarticlesandresearchpapers,or inwritingforprint,televisionorbroadcastmediaofatleastthree(3)yearsinthecaseoftheprovincialorcityinformationofficer,andatleastone(1)yearinthecaseofmunicipal information officer. The appointment of the information officer isoptional for the provincial, city and municipal governments. The term of theinformationofficerisco‐terminouswiththatofhisappointingauthority.

(b)Theinformationofficershalltakechargeoftheofficeonpublicinformationandshall:

(1) Formulate measures for the consideration of the sanggunian and providetechnicalassistanceandsupport to thegovernorormayor,as thecasemaybe, inproviding the information and research data required for the delivery of basic

Page 280: Local Government Code of 1991 (RA 7160)

services and provision of adequate facilities so that the public becomes aware ofsaidservicesandmayfullyavailofthesame;

(2) Develop plans and strategies and, upon approval thereof by the governor ormayor,asthecasemaybe,implementthesame,particularlythosewhichhavetodowithpublicinformationandresearchdatatosupportprogramsandprojectswhichthe governor ormayor is empowered to implement andwhich the sanggunian isempoweredtoprovideforunderthisCode;

(3)Inadditiontotheforegoingdutiesandfunctions,theinformationofficershall:

(i)Providerelevant,adequate,andtimelyinformationtothelocalgovernmentunitanditsresidents;

(ii) Furnish information and data on local government units to governmentagenciesorofficesasmayberequiredbylaworordinance;andnon‐governmentalorganizationstobefurnishedtosaidagenciesandorganizations;

(iii)Maintaineffectiveliaisonwiththevarioussectorsofthecommunityonmattersand issues that affect the livelihood and the quality of life of the inhabitants andencouragesupportforprogramsofthelocalandnationalgovernment;

(4) Be in the frontline in providing information during and in the aftermath ofmanmadeandnaturalcalamitiesanddisasters,withspecialattentiontothevictimsthereof, to helpminimize injuries and casualties during and after the emergency,andtoacceleratereliefandrehabilitation;

(5)Recommendto thesanggunianandadvise thegovernorormayor,as thecasemaybe,onallothermattersrelative topublic informationandresearchdataas itrelatestothetotalsocioeconomicdevelopmentofthelocalgovernmentunit;and

(c)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

Page 281: Local Government Code of 1991 (RA 7160)

ArticleSeventeen.‐TheCooperativesOfficer

SEC. 487. Qualifications, Powers and Duties. ‐ (a) No person shall be appointedcooperative officer unlesshe is a citizenof thePhilippines, a resident of the localgovernmentunit concerned,of goodmoral character, aholderof a collegedegreepreferably inbusiness administrationwith special training in cooperatives or anyrelatedcoursefromarecognizedcollegeoruniversity,andafirstgradecivilserviceeligibleoritsequivalent.Hemusthaveexperienceincooperativesorganizationandmanagement of at least five (5) years in the case of the provincial or citycooperatives officer, and three (3) years in the case of municipal cooperativesofficer. The appointment of the cooperatives officer is optional for the provincialandcitygovernments.

(b)Thecooperativesofficershall takechargeof theoffice for thedevelopmentofcooperativesandshall:

(1) Formulate measures for the consideration of the sanggunian, and providetechnicalassistanceandsupport to thegovernorormayor,as thecasemaybe, incarrying out measures to ensure the delivery of basic services and provision offacilitiesthroughthedevelopmentofcooperatives,andinprovidingaccesstosuchservicesandfacilities;

(2) Develop plans and strategies and, upon approval thereof by the governor ormayor,asthecasemaybe,implementthesame,particularlythosewhichhavetodowith the integration of cooperatives principles and methods in programs andprojectswhich thegovernorormayor isempowered to implementandwhich thesanggunianisempoweredtoprovideforunderthisCode;

(3)Inadditiontotheforegoingdutiesandfunctions,thecooperativesofficershall:

(i)Assistintheorganizationofcooperatives;

(ii) Provide technical and other forms of assistance to existing cooperatives toenhancetheirviabilityasaneconomicenterpriseandsocialorganization;

Page 282: Local Government Code of 1991 (RA 7160)

(iii)Assistcooperativesinestablishinglinkageswithgovernmentagenciesandnon‐governmentorganizationsinvolvedinthepromotionandintegrationoftheconceptofcooperativesinthelivelihoodofthepeopleandothercommunityactivities;

(4) Be in the frontline of cooperatives organization, rehabilitation or viability‐enhancement, particularly during and in the aftermath of man‐made and naturalcalamities and disasters, to aid in their survival and, if necessary subsequentrehabilitation;

(5)Recommendtothesanggunian,andadvisethegovernorormayor,asthecasemay be, on all other matters relative to cooperatives development and viability‐enhancementwhichwillimprovethelivelihoodandqualityoflifeoftheinhabitants;and

(c)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

ArticleEighteen.‐ThePopulationOfficer

SEC. 488. Qualifications, Powers and Duties. ‐ (a) No person shall be appointedpopulation officer unless he is a citizen of the Philippines, a resident of the localgovernmentunit concerned,of goodmoral character, aholderof a collegedegreewith specialized training in population development from a recognized college oruniversity, and a first grade civil service eligible or its equivalent. Hemust haveexperience in the implementation of programs on population development orresponsibleparenthoodforatleastfive(5)yearsinthecaseoftheprovincialorcitypopulationofficerandthree(3)yearsinthecaseofthemunicipalpopulationofficer.

Theappointmentofapopulationofficershallbeoptional in the localgovernmentunit:Provided,however,Thatprovincesandcitieswhichhaveexistingpopulationofficesshallcontinuetomaintainsuchofficesforaperiodoffive(5)yearsfromthedateofeffectivityofthisCode,afterwhichsaidofficesshallbecomeoptional.

(b)Thepopulationofficershalltakechargeoftheofficeonpopulationdevelopmentandshall:

Page 283: Local Government Code of 1991 (RA 7160)

(1) Formulate measures for the consideration of the sanggunian and providetechnicalassistanceandsupport to thegovernorormayor,as thecasemaybe, incarrying out measures to ensure the delivery of basic services and provision ofadequate facilities relative to the integration of the population developmentprinciplesandinprovidingaccesstosaidservicesandfacilities;

(2) Develop plans and strategies and upon approval thereof by the governor ormayor,asthecasemaybe,implementthesame,particularlythosewhichhavetodowiththeintegrationofpopulationdevelopmentprinciplesandmethodsinprogramsandprojectswhichthegovernorormayor isempoweredto implementandwhichthesanggunianisempoweredtoprovideforunderthisCode;

(3)Inadditiontotheforegoingdutiesandfunctions,thepopulationofficershall:

(i)Assistthegovernorormayor,asthecasemaybe,intheimplementationoftheConstitutionalprovisionsrelativetopopulationdevelopmentandthepromotionofresponsibleparenthood;

(ii) Establish and maintain an updated data bank for program operations,development planning and an educational program to ensure the people'sparticipationinandunderstandingofpopulationdevelopment;

(iii) Implementappropriate trainingprogramsresponsive to theculturalheritageoftheinhabitants;and

(c)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

ArticleNineteen.‐TheVeterinarian

SEC. 489. Qualifications, Powers and Duties. ‐ (a) No person shall be appointedveterinarian unless he is a citizen of the Philippines, a resident of the localgovernment concerned, of good moral character, a licensed doctor of veterinarymedicine.Hemusthavepracticedhisprofession forat least three(3)years in thecase of provincial or city veterinarian and at least one (1) year in the case of the

Page 284: Local Government Code of 1991 (RA 7160)

municipalveterinarian.Theappointmentofaveterinarianofficerismandatoryfortheprovincialandcitygovernments.

(b)Theveterinarianshalltakechargeoftheofficeforveterinaryservicesandshall:

(1) Formulate measures for the consideration of the sanggunian, and providetechnicalassistanceandsupport to thegovernorormayor,as thecasemaybe, incarrying out measures to ensure the delivery of basic services and provision ofadequatefacilitiespursuanttoSection17ofthisCode;

(2) Develop plans and strategies and upon approval thereof by the governor ormayor,asthecasemaybe,implementthesame,particularlythosewhichhavetodowiththeveterinary‐relatedactivitieswhichthegovernorormayorisempoweredtoimplementandwhichthesanggunianisempoweredtoprovideforunderthisCode;

(3)Inadditiontotheforegoingdutiesandfunctions,theveterinarianshall:

(i)Advisethegovernororthemayor,asthecasemaybe,onallmatterspertainingto the slaughter of animals for human consumption and the regulation ofslaughterhouses;

(ii)Regulatethekeepingofdomesticanimals;

(iii)Regulateandinspectpoultry,milkanddairyproductsforpublicconsumption;

(iv)Enforcealllawsandregulationsforthepreventionofcrueltytoanimals;and

(v)Takethenecessarymeasurestoeradicate,preventorcureall formsofanimaldiseases;

Page 285: Local Government Code of 1991 (RA 7160)

(4) Be in the frontline of veterinary related activities, such as in the outbreak ofhighly‐contagiousanddeadlydiseases,andinsituationsresultinginthedepletionofanimals forwork and human consumption, particularly those arising from and intheaftermathofman‐madeandnaturalcalamitiesanddisasters;

(5)Recommendto thesanggunianandadvise thegovernorormayor,as thecasemaybe,onallothermattersrelativetoveterinaryserviceswhichwill increasethenumber and improve thequality of livestock, poultry andotherdomestic animalsusedforworkorhumanconsumption;and

(c)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

ArticleTwenty.‐TheGeneralServicesOfficer

SEC. 490. Qualifications, Powers and Duties. ‐ (a) No person shall be appointedgeneral services officer unless he is a citizen of the Philippines, a resident of thelocal government unit concerned, of good moral character, a holder of a collegedegreeonpublicadministration,businessadministrationandmanagement fromarecognized college or university, and a first grade civil service eligible or itsequivalent. He must have acquired experience in general services, includingmanagementofsupply,property,solidwastedisposal,andgeneralsanitation,ofatleastfive(5)yearsinthecaseoftheprovincialorcitygeneralservicesofficer,andatleast three (3) years in the case of the municipal general services officer. Theappointment of a general services officer ismandatory for theprovincial and citygovernments.

(b)Thegeneral servicesofficer shall takechargeof theofficeongeneral servicesandshall:

(1) Formulate measures for the consideration of the sanggunian and providetechnicalassistanceandsupport to thegovernorormayor,as thecasemaybe, incarrying out measures to ensure the delivery of basic services and provision ofadequate facilities pursuant to Section 17 of this Code andwhich require generalservicesexpertiseandtechnicalsupportservices;

Page 286: Local Government Code of 1991 (RA 7160)

(2) Develop plans and strategies and upon approval thereof by the governor ormayor,asthecasemaybe,implementthesame,particularlythosewhichhavetodowith the general services supportive of the welfare of the inhabitants which thegovernor or mayor is empowered to implement and which the sanggunian isempoweredtoprovideforunderthisCode;

(3) In addition to the foregoing duties and functions, the general services officershall:

(i)Takecustodyofandbeaccountableforallproperties,realorpersonal,ownedbythe local government unit and those granted to it in the form of donation,reparation,assistanceandcounterpartofjointprojects;

(ii)Withtheapprovalofthegovernorormayor,asthecasemaybe,assignbuildingor landspace to localofficialsorotherpublicofficials,whoby law,areentitled tosuchspace;

(iii) Recommend to the governor or mayor, as the case may be, the reasonablerentalratesforlocalgovernmentproperties,whetherrealorpersonal,whichwillbeleasedtopublicorprivateentitiesbythelocalgovernment;

(iv)Recommend to thegovernorormayor,as thecasemaybe, reasonable rentalrates of private properties which may be leased for the official use of the localgovernmentunit;

(v) Maintain and supervise janitorial, security, landscaping and other relatedservices inall localgovernmentpublicbuildingsandotherrealproperty,whetherownedorleasedbythelocalgovernmentunit;

(vi)Collateanddisseminateinformationregardingprices,shippingandothercostsofsuppliesandotheritemscommonlyusedbythelocalgovernmentunit;

(vii) Perform archival and recordmanagementwith respect to records of officesanddepartmentsofthelocalgovernmentunit;and

Page 287: Local Government Code of 1991 (RA 7160)

(viii) Perform all other functions pertaining to supply and propertymanagementheretofore performed by the local government treasurer; and enforce policies onrecordscreation,maintenance,anddisposal;

(4)Beinthefrontlineofgeneralservicesrelatedactivities,suchasthepossibleorimminentdestructionordamagetorecords,supplies,properties,andstructuresandtheorderlyandsanitaryclearingupofwastematerialsordebris,particularlyduringandintheaftermathofman‐madeandnaturalcalamitiesanddisasters;

(5)Recommendto thesanggunianandadvise thegovernorormayor,as thecasemaybe,onallothermattersrelativetogeneralservices;and

(c)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsasmaybeprescribedbylaworordinance.

TITLESIX.‐LEAGUESOFLOCALGOVERNMENTUNITSANDELECTIVEOFFICIALS

CHAPTERI‐LEAGUESOFLOCALGOVERNMENTUNITS

ArticleOne.‐LigangMgaBarangay

SEC.491.PurposeofOrganization.‐Thereshallbeanorganizationofallbarangaystobeknownastheligangmgabarangayfortheprimarypurposeofdeterminingtherepresentationof theLiga in thesanggunians, and forventilating, articulatingandcrystallizing issues affecting barangay government administration and securing,throughproperandlegalmeans,solutionsthereto.

SEC. 492. Representation, Chapters, National Liga. ‐ Every barangay shall berepresentedinsaidligabythepunongbarangay,orinhisabsenceorincapacity,byasanggunianmemberdulyelected for thepurposeamong itsmembers,whoshallattendallmeetingsordeliberationscalledbythedifferentchaptersoftheliga.Theligashallhavechaptersatthemunicipal,city,provincialandmetropolitanpoliticalsubdivisionlevels.Themunicipalandcitychaptersoftheligashallbecomposedofthe barangay representatives of municipal and city barangays, respectively. Thedulyelectedpresidentsof componentmunicipal and city chapters shall constitutethe provincial chapter or themetropolitan political subdivision chapter. The dulyelectedpresidentsofhighly‐urbanizedcities,provincialchapters, theMetropolitan

Page 288: Local Government Code of 1991 (RA 7160)

ManilachapterandmetropolitanpoliticalsubdivisionchaptersshallconstitutetheNationalLigangmgaBarangay.

SEC. 493. Organization. ‐ The liga at the municipal, city, provincial, metropolitanpoliticalsubdivision,andnationallevelsdirectlyelectapresident,avice‐president,andfive(5)membersoftheboardofdirectors.Theboardshallappointitssecretaryand treasurer and create such other positions as it may deem necessary for themanagement of the chapter. A secretary‐general shall be elected from among themembersofthenationalligaandshallbechargedwiththeoveralloperationoftheligaonthenationallevel.Theboardshallcoordinatetheactivitiesofthechaptersoftheliga.

SEC. 494. Ex‐OfficioMembership in Sanggunians. ‐ The duly elected presidents ofthe ligaat themunicipal,cityandprovincial levels, includingthecomponentcitiesandmunicipalitiesofMetropolitanManila,shallserveasex‐officiomembersofthesangguniang bayan, sangguniang panlungsod, sangguniang panlalawigan,respectively.Theyshallserveassuchonlyduringtheirtermofofficeaspresidentsof the liga chapters, which in no case shall be beyond the term of office of thesanggunianconcerned.

SEC.495.Powers,FunctionsandDutiesoftheLiga.‐TheLigashall:

(a)Giveprioritytoprogramsdesignedforthetotaldevelopmentofthebarangaysand in consonance with the policies, programs and projects of the nationalgovernment;

(b)Assistintheeducationofbarangayresidentsforpeople'sparticipationinlocalgovernment administration in order to promote united and concerted action toachievecountry‐widedevelopmentgoals;

(c) Supplement the efforts of government in creating gainful employmentwithinthebarangay;

(d)Adoptmeasurestopromotethewelfareofbarangayofficials;

Page 289: Local Government Code of 1991 (RA 7160)

(e)Serveasa forumof thebarangays inorderto forge linkageswithgovernmentandnon‐governmentalorganizationsandtherebypromotethesocial,economicandpoliticalwell‐beingofthebarangays;and

(f)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionswhichwill bring about stronger ties betweenbarangays andpromote thewelfare of thebarangayinhabitants.

ArticleTwo.‐LeagueofMunicipalities

SEC. 496. Purpose of Organization. ‐ There shall be an organization of allmunicipalities tobeknownas leagueofmunicipalities for theprimarypurposeofventilating, articulating and crystallizing issues affecting municipal governmentadministration, and securing, through proper and legal means, solutions thereto.Theleagueshallformprovincialchapterscomposedoftheleaguepresidentsforallcomponentmunicipalitiesoftheprovince.

SEC.497.Representation.‐Everymunicipalityshallberepresentedintheleaguebythemunicipalmayororinhisabsence,bythevice‐mayororasanggunianmemberduly elected for the purpose by themembers, who shall attend all meetings andparticipateinthedeliberationsoftheleague.

SEC.498.Powers,FunctionsandDutiesoftheLeagueofMunicipalities.‐Theleagueofmunicipalitiesshall:

(a) Assist the national government in the formulation and implementation of thepolicies,programsandprojectsaffectingmunicipalitiesasawhole;

(b)Promotelocalautonomyatthemunicipallevel;

(c)Adoptmeasures for the promotion of thewelfare of allmunicipalities and itsofficialsandemployees;

Page 290: Local Government Code of 1991 (RA 7160)

(d)Encouragepeople'sparticipationinlocalgovernmentadministrationinordertopromote united and concerted action for the attainment of country‐widedevelopmentgoals;

(e)Supplementtheeffortsofthenationalgovernmentincreatingopportunitiesforgainfulemploymentwithinthemunicipalities;

(f) Give priority to programs designed for the total development of themunicipalities in consonance with the policies, programs and projects of thenationalgovernment;

(g) Serveasa forum for crystallizingandexpressing ideas, seeking thenecessaryassistanceofthenationalgovernment,andprovidingtheprivatesectoravenuesforcooperationinthepromotionofthewelfareofthemunicipalities;and

(h)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsastheleaguemayprescribeforthewelfareofthemunicipalities.

ArticleThree.‐LeagueofCities

SEC.499.PurposeofOrganization.‐Thereshallbeanorganizationofallcitiestobeknown as the League of Cities for the primary purpose of ventilating, articulatingand crystallizing issues affecting city government administration, and securing,throughproperandlegalmeans,solutionsthereto.TheLeaguemayformchaptersattheprovinciallevelforthecomponentcitiesofaprovince.Highly‐urbanizedcitiesmayalso formachapterof theLeague.TheNationalLeagueshallbecomposedofthe presidents of the league of highly‐urbanized cities and the presidents of theprovincialchaptersoftheleagueofcomponentcities.

SEC.500.Representation.‐Everycityshallberepresentedintheleaguebythecitymayor or in his absence, by the city vice‐mayor or a sanggunian member dulyelected for the purpose by the members, who shall attend all meetings andparticipateinthedeliberationsoftheleague.

SEC.501.Powers,FunctionsandDutiesoftheLeagueofCity.‐Theleagueofcitiesshall:

Page 291: Local Government Code of 1991 (RA 7160)

(a)Assist the national government in the formulation and implementation of thepolicies,programsandprojectsaffectingcitiesasawhole;

(b)Promotelocalautonomyatthecitylevel;

(c)Adoptmeasuresforthepromotionofthewelfareofallcitiesanditsofficialsandemployees;

(d)Encouragepeople'sparticipationinlocalgovernmentadministrationinordertopromote united and concerted action for the attainment of country‐widedevelopmentgoals;

(e)Supplementtheeffortsofthenationalgovernmentincreatingopportunitiesforgainfulemploymentthecities;

(f) Give priority to programs designed for the total development of cities inconsonancewiththepolicies,programsandprojectsofthenationalgovernment;

(g) Serveasa forum for crystallizingandexpressing ideas, seeking thenecessaryassistanceofthenationalgovernmentandprovidingtheprivatesectoravenuesforcooperationinthepromotionofthewelfareofthecities;and

(h)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsastheleaguemayprescribeforthewelfareofthecities.

ArticleFour.‐LeagueofProvinces

SEC.502.PurposeofOrganization.‐Thereshallbeanorganizationofallprovincesto be known as the League of Provinces for the primary purpose of ventilating,articulating and crystallizing issues affecting provincial andmetropolitan politicalsubdivision government administration, and securing, through proper and legalmeans, solutions thereto. For this purpose, theMetropolitanManilaArea and any

Page 292: Local Government Code of 1991 (RA 7160)

metropolitanpoliticalsubdivisionshallbeconsideredasseparateprovincialunitsoftheleague.

SEC.503.Representation.‐Everyprovinceshallberepresentedintheleaguebytheprovincial governor or in his absence, by the provincial vice‐governor or asanggunianmemberdulyelectedforthepurposebythemembers,whoshallattendallmeetingsandparticipateinthedeliberationsoftheleague.

SEC.504.Powers,FunctionsandDutiesoftheLeagueofProvinces.‐Theleagueofprovincesshall:

(a)Assist the national government in the formulation and implementation of thepolicies,programsandprojectsaffectingprovincesasawhole;

(b)Promotelocalautonomyattheprovinciallevel;

(c)Adoptmeasuresforthepromotionofthewelfareofallprovincesanditsofficialsandemployees;

(d)Encouragepeoplesparticipationinlocalgovernmentadministrationinordertopromote united and concerted action for the attainment of countrywidedevelopmentgoals;

(e)Supplementtheeffortsofthenationalgovernmentincreatingopportunitiesforgainfulemploymentwithintheprovince;

(f)Giveprioritytoprogramsdesignedforthetotaldevelopmentoftheprovincesinconsonancewiththepolicies,programsandprojectsofthenationalgovernment;

(g) Serveasa forum for crystallizingandexpressing ideas, seeking thenecessaryassistanceofthenationalgovernmentandprovidingtheprivatesectoravenuesforcooperationinthepromotionofthewelfareoftheprovinces;and

Page 293: Local Government Code of 1991 (RA 7160)

(h)Exercisesuchotherpowersandperformsuchotherdutiesandfunctionsastheleague may prescribe for the welfare of the provinces andmetropolitan politicalsubdivisions.

ArticleFive.‐ProvisionsCommontoallLeagues

SEC. 505. Funding. (a) All leagues shall derive its funds from contributions ofmember local government units and from fund‐raising projects and activitieswithout the necessity of securing permits therefor: Provided, That the proceedsfrom said fund‐raising projects and activities shall be used primarily to fund theprojects for which the said proceeds have been raised, subject to the pertinentprovisionofthisCodeandthepertinentprovisionsoftheOmnibusElectionCode.

(b)Allfundsofleaguesshallbedepositedastrustfundswithitstreasurerandshallbe disbursed in accordance with the board of director's resolutions, subject topertinent accounting and auditing rules and regulations: Provided, That thetreasurershallbebondedinanamounttobedeterminedbytheboardofdirectors.Thefundsofachaptershallbedepositedaschapterfundsandfundsofthenationalleagueshallbedepositedasnationalfunds.

SEC. 506. Organizational Structure. ‐ To ensure the effective and efficientadministration, the leagues for municipalities, cities and provinces shall electchapter‐levelandnational‐levelboardsofdirectorsandasetofofficersheadedbythepresident.Asecretary‐generalshallbechosenfromamongthenational leaguememberstomanagethedaytodayoperationandactivitiesofthenational league.The board of directors on the chapter or national level may create such otherpositionsasmaybedeemednecessaryforthemanagementof thechaptersandofthenationalleague.Thenationalboardofdirectorsoftheleaguesformunicipalities,citiesorprovincesshallcoordinateprograms,projectsandactivitiesofchapterandthenational‐levelleague.

SEC.507.‐ConstitutionandBy‐lawsoftheLigaandtheLeagues.‐Allothermattersnothereinotherwiseprovidedforaffectingtheinternalorganizationoftheleaguesoflocalgovernmentunitsshallbegovernedbytheirrespectiveconstitutionandby‐lawswhichareherebymadesuppletorytotheprovisionofthisChapter:Provided,That said Constitution and By‐laws shall always conform to the provisions of theConstitutionandexistinglaws.

Page 294: Local Government Code of 1991 (RA 7160)

CHAPTER2‐LEAGUESANDFEDERATIONSOFLOCALELECTIVEOFFICIALS

SEC.508. ‐Organization ‐ (a)Vice‐governor,vice‐mayors, sanggunianmembersofbarangays,municipalities,componentcities,highly‐urbanizedcitiesandprovinces,and other elective local officials of local government units, including those of theMetropolitan Manila area and any metropolitan political subdivisions, may formtheirrespective leaguesor federation,subjecttoapplicableprovisionsof thisTitleandpertinentprovisionsofthisCode;

(b) Sanggunian members of component cities and municipalities shall form aprovincial federationandelectaboardofdirectorsandasetofofficersheadedbythepresident.Thedulyelectedpresidentoftheprovincialfederationofsanggunianmembers of component cities andmunicipalities shall be an ex‐officiomember ofthe sangguniang panlalawigan concerned and shall serve as such only during histermof office aspresidentof theprovincial federationof sanggunianmembersofcomponentcitiesandmunicipalities,which innocaseshallbebeyondthetermofofficeofthesanggunianpanlalawiganconcerned.

SEC. 509. Constitution and By‐laws. ‐ The leagues or federations shall adopt aConstitution and by‐laws which shall govern their internal organization andoperation:Provided,ThatsaidConstitutionandby‐lawsshallalwaysconformtotheprovisionoftheConstitutionandexistinglaws.

SEC. 510. Funding. ‐ The leagues and federations may derive their funds fromcontributions of individual league or federation members or from fund‐raisingprojectsoractivities.The localgovernmentunitconcernedmayappropriate fundstosupport the leaguesor federationorganizedpursuant to thisSection,subject totheavailabilityoffunds.

BOOKIV

MISCELLANEOUSANDFINALPROVISIONS

TITLEONE.‐PENALPROVISIONS

SEC. 511. Posting and Publication of Ordinances with Penal Sanctions. ‐ (a)ordinances with penal sanctions shall be posted at prominent places in theprovincial capitol, city, municipal or barangay hall, as the case may be, for aminimum period of three (3) consecutive weeks. Such ordinances shall also bepublished in a newspaper of general circulation, where available, within theterritorialjurisdictionofthelocalgovernmentunitconcerned,exceptinthecaseofbarangayordinances.Unlessotherwiseprovidedtherein,saidordinancesshalltake

Page 295: Local Government Code of 1991 (RA 7160)

effect on the day following its publication, or at the end of the period of posting,whicheveroccurslater.

(b) Any public officer or employee who violates an ordinance may be metedadministrativedisciplinaryaction,withoutprejudicetothefilingoftheappropriatecivilorcriminalaction.

(c)ThesecretarytothesanggunianconcernedshalltransmitofficialcopiesofsuchordinancestothechiefexecutiveofficeroftheOfficialGazettewithinseven(7)daysfollowing theapprovalof thesaidordinance forpublicationpurposes.TheOfficialGazette may publish ordinances with penal sanctions for archival and referencepurposes.

SEC. 512. Withholding of Benefits Accorded to Barangay Officials. ‐ Willful andmaliciouswithholding of any of the benefits accorded to barangay officials underSection393hereofshallbepunishedwithsuspensionordismissalfromofficeoftheofficialoremployeeresponsibletherefor.

SEC. 513. Failure to Post and Publish the Itemized Monthly Collections andDisbursements.‐Failurebythelocaltreasurerorthelocalchiefaccountanttopostthe itemizedmonthly collections and disbursements of the local government unitconcernedwithin ten (10)days following theendof everymonthand for at leasttwo (2) consecutiveweeks at prominent places in themain office building of thelocal government unit concerned, its plaza and main street, and to publish saiditemizationinanewspaperofgeneralcirculation,whereavailable,intheterritorialjurisdiction of such unit, shall be punished by a fine not exceeding Five hundredpesos (P=500.00)orby imprisonmentnot exceedingone (1)month, orboth suchfineandimprisoment,atthediscretionofthecourt.

SEC. 514. Engaging in Prohibited Business Transactions or Possessing IllegalPecuniaryInterest.‐Anylocalofficialandanypersonorpersonsdealingwithhimwho violate the prohibitions provided in Section 89 of Book I hereof, shall bepunishedwithimprisonmentforsixmonthsandonedaytosixyears,orafineofnotless than Three thousand pesos (P=3,000.00) normore than Ten thousand pesos(P=10,000.00),orbothsuchimprisonmentandfine,atthediscretionofthecourt.

Page 296: Local Government Code of 1991 (RA 7160)

SEC.515.RefusalorFailureofAnyPartyorWitnesstoAppearbeforetheLuponorPangkat. ‐ Refusal or willful failure of any party or witness to appear before theluponorpangkatincompliancewithasummonsissuedpursuanttotheprovisionsontheKatarungangPambarangayunderChapter7,TitleOneofBookIIIofthisCodemaybe punishedby the city ormunicipal court as for indirect contempt of courtuponapplicationfiledtherewithbytheluponchairman,thepangkatchairman,orbyany of the contending parties. Such refusal or willful failure to appear shall bereflected in the records of the lupon secretary or in the minutes of the pangkatsecretaryandshallbar the complainantwho fails toappear, fromseeking judicialrecourse for the samecauseof action, and the respondentwhorefuses toappear,from filing any counterclaim arising out of, or necessarily connected with thecomplaint. A pangkat member who serves as such shall be entitled to anhonorarium,theamountofwhichistobedeterminedbythesanggunianconcerned,subjecttotheprovisionsinthisCodecitedabove.

SEC. 516. Penalties for Violation of Tax ordinances. ‐ The sanggunian of a localgovernmentunit isauthorizedtoprescribefinesorotherpenaltiesforviolationoftax ordinances but in no case shall such fines be less than One thousand pesos(P=1,000.00) nor more than Five thousand pesos (P=5000.00), nor shallimprisonmentbelessthanone(1)monthnormorethansix(6)months.Suchfineorother penalty, or both, shall be imposed at the discretion of the court. Thesangguniang barangay may prescribe a fine of not less than One hundred pesos(P=100.00)normorethanOnethousandpesos(P=1,000.00).

SEC.517.OmissionofPropertyfromAssessmentorTaxRollsbyOfficersandOtherActs. ‐ Any officer chargedwith the duty of assessing real propertywhowillfullyfails toassess,orwho intentionallyomits fromtheassessmentor taxrollanyrealproperty which he knows to be taxable, or who willfully or negligentlyunderassesses any real property, orwho intentionally violates or fails to performany duty imposed upon him by law relating to the assessment of taxable realpropertyshall,uponconviction,bepunishedbyafineofnotlessthanOnethousandpesos (P1,000.00) nor more than Five thousand pesos (P5000.00), or byimprisonmentofnotlessthanone(1)monthnormorethansix(6)months,orbothsuchfineandimprisonment,atthediscretionofthecourt.Thesamepenaltyshallbeimposed upon any officer chargedwith the duty of collecting the tax due on realproperty who willfully or negligently fails to collect the tax and institute thenecessaryproceedingsforthecollectionofthesame.AnyotherofficerrequiredbythisCodetoperformactsrelatingtotheadministrationoftherealpropertytaxortoassist the assessor or treasurer in such administration, who willfully fails todischargesuchdutiesshall,uponconvictionbepunishedbyafineofnot lessthanFive hundred pesos (P500.00) normore than Five thousand pesos (P5000.00) orimprisonmentofnotlessthanone(1)monthnormorethansix(6)months,orbothsuchfineandimprisonment,atthediscretionofthecourt.

Page 297: Local Government Code of 1991 (RA 7160)

SEC. 518. Government Agents Delaying Assessment of Real Property andAssessmentAppeals. ‐ Any government officialwho intentionally anddeliberatelydelays the assessment of real property or the filing of any appeal against itsassessment shall, upon conviction, be punished by a fine of not less than Fivehundred pesos (P500.00) nor more than Five thousand pesos (P5000.00), or byimprisonmentofnotlessthanone(1)monthnormorethansix(6)months,orbothsuchfineandimprisonment,atthediscretionofthecourt.

SEC. 519. Failure to Dispose of Delinquent Real Property at Public Auction. ‐ ThelocaltreasurerconcernedwhofailstodisposeofdelinquentrealpropertyatpublicauctionincompliancewiththepertinentprovisionsofthisCode,andanyotherlocalgovernment official whose acts hinder the prompt disposition of delinquent realpropertyatpublicauctionshall,uponconviction,besubjecttoafineofnotlessthanOnethousandpesos(P1000.00)normorethanFivethousandpesos(P5000.00),orimprisonmentofnotlessthanone(1)monthnormorethansix(6)months,orbothsuchfineandimprisonment,atthediscretionofthecourt.

SEC.520.ProhibitedActsRelatedtotheAwardofContractsUndertheProvisionsonCredit Financing. ‐ It shall be unlawful for any public official or employee in theprovincial, city, ormunicipal government, or their relativeswithin the fourth civildegreeofconsanguinityoraffinity, toenter intoorhaveanypecuniary interest inany contract for the construction, acquisition, operation, or maintenance of anyprojectawardedpursuanttotheprovisionsofTitleFourinBookIIhereof,orfortheprocurementofanysupplies,materials,orequipmentofanykindtobeusedinthesaidproject.AnypersonconvictedforviolationoftheprovisionsofsaidTitleshallbe removed fromofficeandshallbepunishableby imprisonmentofnot less thanone(1)month,normorethantwo(2)years,atthediscretionofthecourt,withoutprejudicetoprosecutionunderotherlaws.

TITLETWO.‐PROVISIONSFORIMPLEMENTATION

SEC. 521. Mandatory Review Every Five Years. ‐ Congress shall undertake amandatoryreviewofthisCodeat leastonceeveryfive(5)yearsandasoftenas itmaydeemnecessary,withtheprimaryobjectiveofprovidingamoreresponsiveandaccountablelocalgovernmentstructure.

SEC.522. InsuranceCoverage. ‐TheGovernmentService InsuranceSystem (GSIS)shall establish and administer an appropriate system under which the punong

Page 298: Local Government Code of 1991 (RA 7160)

barangay, themembers of the sangguniang barangay, the barangay secretary, thebarangaytreasurer,andthemembersof thebarangaytanodshallenjoy insurancecoverageasprovided in thisCodeandotherpertinent laws. For thispurpose, theGSISisherebydirectedtoundertakeanactuarialstudy,issuerulesandregulations,determine the premiums payable, and recommend to Congress the amount ofappropriations needed to support the system. The amount needed for theimplementationofthesaidinsurancesystemshallbeincludedintheannualGeneralAppropriationsAct.

SEC. 523. Personnel Retirement and/or Benefits. ‐ An official or employee of thenationalgovernmentorlocalgovernmentunitseparatedfromtheserviceasaresultof reorganizationeffectedunder thisCodeshall, if entitledunder the laws then inforce, receive the retirement and other benefits accruing thereunder: Provided,however, That suchbenefits shall be given fundingpriority by theDepartment ofBudget andManagement in the case of national officials and employees, and thelocalgovernmentunitconcernedinthecaseoflocalofficialsandemployees.

Wheretheemployeeconcernedisnoteligibleforretirement,heshallbeentitledtoagratuityfromthenationalgovernmentorthelocalgovernmentunitconcerned,asthecasemaybe,equivalenttoanamountnotlowerthanone(1)monthsalaryforeveryyearof serviceoverandabove themonetaryvalueof the leave credits saidemployeeisentitledtoreceivepursuanttoexistinglaws.

SEC. 524. Inventory of Infrastructure and Other Community Facilities. ‐ (a) Eachlocalgovernmentunitshallconductaperiodicinventoryofinfrastructureandothercommunity facilities and undertake the maintenance, repair, improvement, orreconstruction of these facilities through a closer cooperation among the variousagencies of the national government operating within the province, city, ormunicipalityconcerned.

(b)Noinfrastructureorcommunityprojectwithintheterritorialjurisdictionofanylocal government unit shall be undertaken without informing the local chiefexecutiveandthesanggunianconcerned.

SEC.525.RecordsandProperties.‐Allrecords,equipment,buildings,facilities,andother properties of any office or body of a local government unit abolished orreorganizedunderthisCodeshallbetransferredtotheofficeorbodytowhich itspowers,functions,andresponsibilitiesaresubstantiallydevolved.

Page 299: Local Government Code of 1991 (RA 7160)

TITLETHREE.‐TRANSITORYPROVISIONS

SEC. 526. Application of this Code to Local GovernmentUnits in the AutonomousRegions.‐ThisCodeshallapplytoallprovinces,cities,municipalitiesandbarangaysin the autonomous regionsuntil such time as the regional government concernedshallhaveenacteditsownlocalgovernmentcode.

SEC.527.PriorApprovalorClearanceonRegularandRecurringTransactions.‐Six(6)monthsaftereffectivityofthisCode,priorapprovaloforclearancefromnationalagenciesorofficesshallnolongerberequiredforregularandrecurringtransactionsandactivitiesoflocalgovernmentunits.

SEC. 528. Deconcentration of Requisite Authority and Power. ‐ The nationalgovernment shall, six (6) months after the effectivity of this Code, effect thedeconcentrationofrequisiteauthorityandpowertotheappropriateregionalofficesor field offices of national agencies or offices whose major functions are notdevolvedtolocalgovernmentunits.

SEC. 529. Tax Ordinances or Revenue Measures. ‐ All existing tax ordinances orrevenuemeasuresoflocalgovernmentunitsshallcontinuetobeinforceandeffectafter theeffectivityof thisCodeunless amendedby the sanggunian concerned,orinconsistentwith,orinviolationof,theprovisionsofthisCode.

SEC. 530. LocalWaterDistricts. ‐ All powers, functions, and attributes grantedbyPresidentialDecreeNumberedOnehundredninety‐eight(P.D.No.198),otherwiseknown as "The ProvincialWater Utility Act of 1973," to the LocalWater UtilitiesAdministration(LWUA)maybedevolvedintotototheexistinglocalwaterdistrictsshould they opt or choose to exercise, in writing, such powers, functions andattributes:Provided,ThatallobligationsofthelocalgovernmentunitconcernedtotheLWUAshallfirstbesettledpriortosaiddevolution.

SEC. 531. Debt Relief for Local Government Units. ‐ (a) Unremitted nationalcollectionsandstatutorycontributions.‐Alldebtsowedbylocalgovernmentunitsto thenationalgovernment inunremittedcontributionsto the IntegratedNationalPoliceFund, theSpecialEducationFund,andotherstatutorycontributionsaswellasinunremittednationalgovernmentsharesoftaxes,charges,andfeescollectedbythelocalgovernmentunits,areherebywrittenoffinfull.

Page 300: Local Government Code of 1991 (RA 7160)

(b)Program loans. ‐ (1)Program loans securedby local governmentunitswhichwererelenttoprivatepersons,naturalorjuridical,shalllikewisebewrittenofffromthe books of the local government units concerned: Provided, however, That thenational government agency tasked with the implementation of these programsshallcontinuetocollectfromthedebtorsbelongingtotheprivatesectorconcerned.

(2) Program loans granted to local government units by national governmentagencies andwhichwere utilized by the local units for community development,livelihood,andothersmall‐scaleprojectsareherebywrittenoffinfull.

(c) Settlement of debts due to government financing institutions (GFIs),government‐ownedandcontrolledcorporations(GOCCs),andprivateutilities.Thenational government shall assume all debts incurred or contracted by localgovernmentunitsfromGFIs,GOCCs,andprivateutilitiesthatareoutstandingasofDecember31,1988,inaccordancewiththefollowingschemes:

(1) Debts due GFIs. ‐ The national governmentmay buy outstanding obligationsincurred by local government units from government financing institutions at adiscountedrate.

(2) Debts due GOCCs. ‐ The national government may settle such obligations atdiscounted rate through offsetting, only to the extent of the obligations of localgovernments against the outstanding advancesmade by theNational Treasury inbehalfofthegovernment‐ownedandcontrolledcorporationsconcerned.

(3) Debts Due Private Utilities. ‐ The national government may settle theseobligationsatadiscountedratebyoffsettingagainsttheoutstandingobligationsofsuchprivateutilitiestogovernment‐ownedcorporations.GOCCsmayinturnoffsettheseobligationsagainsttheoutstandingadvancesmadebytheNationalTreasuryintheirbehalf.Inthecaseofobligationsowedbylocalgovernmentunitstoprivateutilitieswhich are not indebted to any GOCC or national government agency, thenationalgovernmentmayinsteadbuytheobligationsofthelocalgovernmentunitsfrom the private utilities at a discounted rate, upon concurrence by the privateutilitiesconcerned.

Page 301: Local Government Code of 1991 (RA 7160)

(d) Limitations. ‐ Obligations to the Home Development and Mutual Fund (Pag‐ibig), Medicare, and those pertaining to premium contributions and amortizationpaymentsofsalaryandpolicyloanstotheGovernmentServiceInsuranceSystemareexcludedfromthecoverageofthisSection.

(e)Recoveryschemesforthenationalgovernment.‐Localgovernmentunitsshallpay back the national governmentwhatever amountswere advanced or offset bythe national government to settle their obligations to GFIs, GOCCs, and privateutilities. The national government shall not charge interest or penalties on theoutstanding balance owed by the local government units. These outstandingobligationsshallberestructuredandanamortizationscheduleprepared,basedonthe capability of the local government unit to pay, taking into consideration theamount owed to the national government . The national government is herebyauthorizedtodeductfromthequarterlyshareofeachlocalgovernmentunitintheinternal revenue collections an amount to be determined on the basis of theamortizationscheduleofthelocalunitconcerned:Provided,Thatsuchamountshallnotexceedfivepercent(5%)ofthemonthlyinternalrevenueallotmentofthelocalgovernment unit concerned. As incentive to debtor‐local government units toincreasetheefficiencyof their fiscaladministration, thenationalgovernmentshallwriteoffthedebtofthelocalgovernmentunitconcernedattherateoffivepercent(5%) for every one percent (1%) increase in revenues generated by such localgovernment unit over that of the preceding year. For this purpose, the annualincreaseinlocalrevenuecollectionshallbecomputedstartingfromtheyear1988.

(f)Appropriations.‐SuchamountasmaybenecessarytoimplementtheprovisionsofthisSectionshallbeincludedintheannualGeneralAppropriationsAct.

SEC. 532. Elections for the SangguniangKabataan. ‐ (a) The first elections for thesangguniang kabataan to be conducted under this Code shall be held thirty (30)days after the next local elections: Provided, That, the regular elections for thesangguniang kabataan shall be held one hundred twenty (120) days after thebarangayelectionsthereafter.

(b)The amountpertaining to the tenpercent (10%)allocation for thekabataangbarangay as provided for in Section 103 of Batas Pambansa Blg. 337 is herebyreappropriatedforthepurposeoffundingthefirstelectionsmentionedabove.Thebalanceofsaidfunds,iftherebeanyafterthesaidelections,shallbeadministeredby thePresidentialCouncil forYouthAffairs for thepurposeof training thenewlyelectedsangguniangkabataanofficialsinthedischargeoftheirfunctions.

Page 302: Local Government Code of 1991 (RA 7160)

(c)Fortheregularelectionsofthesangguniangkabataan,fundsshallbetakenfromthetenpercent(10%)ofthebarangayfundsreservedforthesangguniangkabataan,asprovidedforinSection328ofthisCode.

(d) All seats reserved for the pederasyon ng mga sangguniang kabataan in thedifferentsangguniansshallbedeemedvacantuntilsuchtimethatthesangguniangkabataan chairmen shall have been elected and the respective pederasyonpresidentshavebeenselected:Provided,That,electionsforthekabataangbarangayconductedunderBatasPambansaBlg.337atanytimebetweenJanuary1,1988andJanuary1,1992shallbeconsideredasthefirstelectionsprovidedforinthisCode.Thetermofofficeofthekabataangbarangayofficialselectedwithinthesaidperiodshall be extended correspondingly to coincide with the term of office of thoseelectedunderthisCode.

SEC.533.FormulationofImplementingRulesandRegulations.‐(a)Withinone(1)month after the approval of this Code, the President shall convene the OversightCommitteeashereinprovidedfor.ThesaidCommitteeshallformulateandissuetheappropriate rules and regulations necessary for the efficient and effectiveimplementationofanyandallprovisionsofthisCode,therebyensuringcompliancewiththeprinciplesoflocalautonomyasdefinedundertheConstitution.

(b)TheCommitteeshallbecomposedofthefollowing:

(1)TheExecutiveSecretary,whoshallbetheChairman;

(2)Three(3)membersoftheSenatetobeappointedbythePresidentoftheSenate,to include the Chairman of the Committee on Local Government; (3)Three (3)membersoftheHouseofRepresentativestobeappointedbytheSpeaker,toincludetheChairmanoftheCommitteeonLocalGovernment;

(4)TheCabinet,representedbythefollowing:

(i)SecretaryoftheInteriorandLocalGovernment;

(ii)SecretaryofFinance;

Page 303: Local Government Code of 1991 (RA 7160)

(iii)SecretaryofBudgetandManagement;and

(5)One(1)representativefromeachofthefollowing:

(i)TheLeagueofProvinces;

(ii)TheLeagueofCities;

(iii)TheLeagueofMunicipalities;and

(iv)TheLigangmgaBarangay.

(c) The Committee shall submit its report and recommendation to the Presidentwithintwo(2)monthsafteritsorganization.IfthePresidentfailstoactwithinthirty(30) days from receipt thereof, the recommendation of the Oversight Committeeshallbedeemedapproved.Thereafter,theCommitteeshallsupervisethetransferofsuchpowersandfunctionsmandatedunderthisCodetothelocalgovernmentunits,togetherwiththecorrespondingpersonnel,properties,assetsandliabilitiesoftheoffices or agencies concerned, with the least possible disruptions to existingprograms and projects. The Committee shall likewise recommend thecorrespondingappropriationsnecessarytoeffectthesaidtransfer.Forthispurpose,theservicesofatechnicalstaffshallbeenlistedfromamongthequalifiedemployeesofCongress,thegovernmentoffices,andtheleaguesconstitutingtheCommittee.

(d) The funding requirements and the secretariat of the Committee shall beprovidedbytheOfficeoftheExecutiveSecretary.

(e)ThesumofFivemillionpesos(P5,000,000),whichshallbechargedagainsttheContingentFund,isherebyallottedtotheCommitteetofundtheundertakingofaninformation campaignon thisCode.TheCommittee shall formulate theguidelinesgoverningtheconductofsaidcampaign,andshalldeterminethenationalagenciesorofficestobeinvolvedforthispurpose.

TITLEFOUR.‐FINALPROVISIONS

SEC.534.RepealingClause.‐(a)BatasPambansaBlg.337,otherwiseknownastheLocalGovernmentCode,ExecutiveOrderNo.112(1987),andExecutiveOrderNo.319(1988)areherebyrepealed.

Page 304: Local Government Code of 1991 (RA 7160)

(b) Presidential Decrees Nos. 684, 1191, 1508 and such other decrees, orders,instructions,memorandaand issuances related toor concerning thebarangayareherebyrepealed.

(c) The provisions of Sections 2, 3, and 4 of Republic Act No. 1939 regardinghospital fund; Section 3, a (3) and b (2) of Republic Act No. 5447 regarding theSpecial Education Fund; Presidential Decree No. 144 as amended by PresidentialDecreesNos.559and1741;PresidentialDecreeNo.231asamended;PresidentialDecree No. 436 as amended by Presidential Decree No. 558; and PresidentialDecreesNos.381,436,464,477,526,632,752,and1136areherebyrepealedandrenderedofnoforceandeffect.

(d)PresidentialDecreeNo. 1594 is hereby repealed insofar as it governs locally‐fundedprojects.

(e)The followingprovisions arehereby repealedor amended insofar as theyareinconsistentwiththeprovisionsofthisCode:Sections2,16,and29ofPresidentialDecreeNo.704;Section12ofPresidentialDecreeNo.87,asamended;Sections52,53,66,67,68,69,70,71,72,73,and74ofPresidentialDecreeNo.463,asamended;andSection16ofPresidentialDecreeNo.972,asamended,and

(f) All general and special laws, acts, city charters, decrees, executive orders,proclamations and administrative regulations, or part or parts thereof which areinconsistentwithanyoftheprovisionsofthisCodeareherebyrepealedormodifiedaccordingly.

SEC.535.SeparabilityClause.‐If,foranyreasonorreasons,anypartorprovisionofthisCodeshallbeheld tobeunconstitutionalor invalid,otherpartsorprovisionshereofwhicharenotaffectedtherebyshallcontinuetobeinfullforceandeffect.

SEC.536.EffectivityClause. ‐ThisCodeshall takeeffecton January first,nineteenhundred ninety‐two, unless otherwise provided herein, after its completepublicationinatleastone(1)newspaperofgeneralcirculation.