FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES —)
FIRST REGULAR SESSION

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

3319

House Bill No.

EXPLANATORY NOTE

Republic Act No. 7160, otherwise known as the Local Government

Code of the Philippines was enacted in 1991, almost 20 years ago. It is high
time that amendments to this law are enacted to make it more appropriate to
the current situation prevailing in the Philippines.

‘Some amendments proposed by this bill are as follows:

4
2.

3

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The increase in the LGUs allotment from 40 % to 60%;

The exemption of certain municipalities from requirements of cityhood
subject to some conditions;

The integration of solid waste management collection and disposal as
a basic service;

The modification of the composition of the local development council;

. The deduction of the cost of devolved functions, including the cost of

city hospitals, less capital outlays, from the Internal Revenue Allotment
before it is divided among the local government units;

‘The amendment of the basis of amounts stipulated in Section 393 of
the Local Government Code so that the benefits intended for barangay
officials can be adjusted to present level, and reflect the original
intention of the law;

The professionalization of the delivery of various basic social services
by making the qualifications of these social welfare and development
officers equivalent and comparable with their counterparts in the local
government units. Setting certain parameters as to who would qualify
as social welfare and development officers and making mandatory their
appointment in municipal governments are steps in the right direction;
The rationalization of the computation of the IRA to LGUs by replacing
as a basis for determining the share of each province, city or
municipality “equal sharing’ with “revenue capacity,” and insuring that
LGUs with lower tax base will get bigger shares under this revenue
capacity criterion;


9. The allowance of an increase in the number of barangay tanods in
proportion to the population of the barangay as approved by the
municipal or city council;

10.The inclusion of the local treasurer, local budget officer and the local
planning and development coordinator in the Local Health Board.

All these amendments are necessary to improve the services that an
LGU provides for the betterment of the lives of their constituents.

In view of the foregoing, immediate passage of this bill is eamestly
requested. <

RUFUS B. RODRIGUEZ

MAXIMO B. Uo sce JR.


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES —)
FIRST REGULAR SESSION

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No._ 3319

AN ACT
PROVIDING FOR OMNIBUS AMENDMENTS TO REPUBLIC ACT NO.
7160, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF
1991.

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

SECTION 1. Section 17 of Republic Act No. 7160 is hereby amended to read
as follows:

“Section 17. Basic Services and Facilities. a) 0000000000

“(b) Such basic services and facilities include, but are not limited to
the following
(1) 30010000000000000000000000000K"
“(2) For a Municipality:
‘vi) INTEGRATED solid = WASTE
COLLECTION AND disposal system or
environmental management system and
services or facilities related to general hygiene
and sanitation
* 300000000000000000000000002000X'
“(xii) INTEGRATED SOLID WASTE
COLLECTION AND DISPOSAL SYSTEM OR
ENVIRONMENT MANAGEMENT SYSTEM
AND SERVICES OR FACILITIES RELATED
TO GENERAL HYGIENE AND SANITATION”

SEC. 2. Section 102 of Republic Act No. 7160 is hereby amended to read as
follows

SEC. 102. Creation and Composition. —


(a) There shall be established a local health board in every province, city
‘or municipality. The composition of the local health board shall be as
follows:

(1) The provincial health board shall be headed by the
governor as chairman, the provincial health officer as
vice-chairman, the chairman of the committee on health
of the Sangguniang Panlalawigan, THE PROVINCIAL
TREASURER, THE PROVINCIAL PLANNING AND
DEVELOPMENT COORDINATOR, a representative
from the private sector or non-governmental
organizations involved in health services, and a
representative of the Department of Health in the
province, as members;

(2) The city health board shall be headed by the city mayor
as chairman, the city health officer as vice-chairman,
and the chairman of the committee on health of the
Sangguniang Panlungsod, THE CITY TREASURER,
THE CITY BUDGET OFFICER, THE CITY PLANNING
AND DEVELOPMENT COORDINATOR,
representative from the private sector or non-
governmental organizations involved in health services,
and a representative of the Department of Health in the
city, as members; and

(3) The municipal health board shall be headed by the
municipal mayor as chairman, the municipal health
officer as vice-chairman, and the chairman of the
committee on health of the Sangguniang Bayan, THE
MUNICIPAL TREASURER, THE MUNICIPAL
BUDGET OFFICER, THE MUNICIPAL PLANNING
AND DEVELOPMENT COORDINATOR, a
representative from the private sector or non-
governmental organizations involved in health services,
and a representative of the Department of Health in the
municipality, as members

XXX OK OK

SEC. 3. Section 107 of Republic Act No. 7160 is hereby amended to read as
follows:

“SEC. 107. Composition of Local Development Councils. - The
composition of the local development council shall be as follows:
(a) The barangay development council shall be headed by the
punong barangay and shall be composed of the following
members:
(1) Members of the sangguniang barangay;
(2) Representatives of nongovernmental organizations
operating in the barangay, who shall constitute not [less]
MORE than one fourth (1/4) of the members of the fully
organized council,
(3) Arepresentative of the congressman.


(b) The city or municipal development council shall be headed
by the mayor and shall be composed of the following members:
(a) [All punong barangays} LIGA NG MGA
BARANGAY OFFICERS in the city or municipality;
(2) The chairman of the committee on appropriations of
the sangguniang panlungsod or sangguniang bayan;
(3) The congressman or his representative; and
(4) Representatives of nongovernmental organizations
operating in the city or municipality, as the case may be, who
shall constitute not [less] MORE than one-fourth (1/4) of the
members of the fully organized council.
(©) The provincial development council shall be headed by the
governor and shall be composed of the following members:
(1) [All mayors of component cities and municipalities;]
PRESIDENT AND VICE PRESIDENT OF THE LEAGUE OF
MUNICIPALITIES, MAYORS OF COMPONENT CITIES
AND A MAYOR REPRESENTING THE LEGISLATIVE
DISTRICT TO BE APPOINTED BY THE PRESIDENT OF
THE LEAGUE OF MUNICIPALITY;
(2) The chairman of the committee on appropriations of
the sangguniang panlalawigan;
(3) __ The congressman or his representative; and
(4) Representatives of nongovernmental organizations
‘operating in the province, who shall constitute not [less]
MORE than one-fourth (1/4) of the members of the fully
organized council

SEC. 4. Section 284 of Republic Act No. 7160 is hereby amended to read as
follows:
“Section 284. — Allotment of Internal Revenue Taxes — Local
Government Units shall have a share in the national internal
revenue taxes based in the collection of the third fiscal year
preceding the current fiscal year as follows
a. ON the first year of the effectivity of this Code, thirty
percent (30%);
b. On the second year, thirty five percent (35%) [and].
c. On the third year UNTIL SEVENTH YEAR [and
thereafter], forty percent (40%);
D. ON THE EIGHT YEAR, FIFTY PERCENT (50%); AND
—. ON THE NINTH YEAR AND THEREAFTER, SIXTY
PERCENT (60%)
BRKT

SEC. 5. Section 285 of Republic Act No. 7160 is hereby amended to read as
follows:

"SECTION 285. ALLOCATION TO LOCAL GOVERNMENT
UNITS. THE SHARE OF THE LOCAL GOVERNMENT UNITS IN
THE INTERNAL REVENUE ALLOTMENT SHALL BE
ALLOCATED, AFTER DEDUCTING THEREFROM THE COST OF


DEVOLVED FUNCTIONS AND PERSONNEL, AND THE COST
OF CITY-FUNDED HOSPITALS, EXCLUDING CAPITAL
OUTLAYS, INCREASED AT THE RATE OF TEN PERCENT
(10%) PER ANNUM FROM THE EFFECTIVITY OF THIS CODE.
THE TOTAL COST SO DEDUCTED SHALL BE DISTRIBUTED
AND DIRECTLY REMITTED TO THE LOCAL GOVERNMENT
UNITS CONCERNED AND THE NET OR BALANCE OF THE
INTERNAL REVENUE ALLOTMENT SHALL BE ALLOCATED IN
THE FOLLOWING MANNER:

a) Provinces - Twenty-three percent (23%);
b)Cities  - | Twenty-three percent (23%);
¢) Municipalities - Thirty-four percent (34%);

d) Barangays - | Twenty percent (20%);

Provided, however, that the shares of each province, city and
municipality shall be determined on the basis of the following
formula:
a) Population - {Fifty percent (50%)] FIFTY FIVE PERCENT
(55%)
b) Land Area - [Twenty-five percent (25%)] TWENTY
PERCENT (20%)
©) {Equal Sharing] REVENUE CAPACITY - Twenty- five
percent (25 %)

Provided, further, that the share of each barangay with a population
of not less than one hundred (100) inhabitants shall not be less
than Eighty Thousand pesos (P80,000.000) per annum chargeable
against the twenty percent (20%) share of the barangay from the
internal revenue allotment, and the balance to be allocated on the
basis of the following formula:

a) On the year of the effectivity of this Code:

1) Population - Forty percent (40%); and
2)Equal sharing - Sixty percent (60%)

b) On the second year:
1) Population - Fifty percent (50%); and
2)Equal sharing - Fifty percent (50%)

¢) On the third year
1) Population - Sixty percent (60%); and
2)Equal sharing - Forty percent (40%)

Provided, finally, that the financial requirements of barangays
created by local government units after the effectivity of this Code
shall be the responsibility of the local government units concerned.”

SEC. 6. Section 286 of Republic Act 7160 is hereby amended to read
follows:

“Section 286. Automatic [Release] RETENTION of Shares- a) The
share of each local government unit shall be [release] RETAINED


AUTOMATICALLY BY THE CONCERNED LOCAL
GOVERNMENT UNIT, without need of any further action, (directly
to] By the provincial, city, municipal or barangay treasurer, as the
case maybe, on a quarterly basis within five (5) days after the end
of each quarter, and which shall be subject to any lien or holdback
that may be imposed by the national government for whatever
purpose.
b) xxx...”

SEC. 7. Section 393 of Republic Act 7160 is hereby amended to read
follows:

SEC. 393. Benefits of Barangay Officials. - (a) Barangay Officials,
including barangay tanods and members of the lupong
tagapamayapa, shall receive honoraria, allowances and such other
emoluments as may be authorized by law or barangay, municipal or
city ordinance in accordance with the provisions of this Code, but
in no case shall it be less than [one thousand pesos (P1,000.00)]
TWO THOUSAND PESOS (P2,000.00) per month for the punong
barangay and [Six hundred pesos (P600.00)] ONE THOUSAND
EIGHT HUNDRED (P1,800.00) per month for the sangguniang
barangay members, barangay treasurer and barangay secretary:
Provided, however, That the annual appropriations for personal
services shall be subject to the budgetary limitations prescribed
under Title Five, Book 11 of this Code.

(b) The punong barangay, the sangguniang barangay members,

the barangay treasurer, and the barangay secretary, shall, also:
(1) be entitled to Christmas bonus of at least [One
Thousand pesos (P1,000.00)] TWO THOUSAND PESOS
(P2,000.00) each, the funds for which shall be taken from
the general fund of the barangay or from such other funds
appropriated by the national government for the purpose;
(2) be entitled, during their incumbency to insurance
coverage which shall include, but shall not limit to temporary
and permanent disability, double indemnity, accident
insurance, death and burial benefits, in accordance with
Republic Act Numbered sixty-nine hundred forty-two
(Republic Act No. 6942), entitled “An Act Increasing the
Insurance Benefits of Local Government Officials and
Providing Funds Therefor’;

(3) _be entitled to free medical care including subsistence,
medicines, and medical attendance in any government
hospital or institution: Provided, That such hospital care
shall include surgery or surgical expenses, medicines, x-
rays, laboratory fees and other hospital expenses.

In case of extreme urgency where there is no
available government hospital or institution, the barangay
official concerned may submit himself for immediate medical

»


attendance to the nearest private clinic, hospital or institution
and the expense not exceeding [Five thousand pesos
(P5,000.00)] TEN THOUSAND PESOS (P10,000.00) that
may be incurred therein shall be chargeable against the
funds of the barangay concemed;

(4) be exempted during their incumbency from paying
tuition and matriculation fees for their legitimate dependent
children attending state colleges or universities. He may
likewise avail of such educational benefits in a state college
or university located within the province/city to which the
barangay belongs; and

(5) __ be entitled to appropriate civil service eligibility on the
basis of the number of years of service to the barangay,
Pursuant to the rules and regulations issued by the Civil
Service Commission.

(©) Elective barangay officials shall have preference in
appointments to any government position or in any government-
owned or controlled corporations, including their subsidiaries, after
their tenure of office, subject to the requisite qualifications and the
provisions of the immediately preceding paragraph; and

(d) All duly appointed members of the barangay tanod brigades, or
their equivalent, which shall number IN PROPORTION TO THE
POPULATION OF BARANGAY AS APPROVED BY THE
CITY/MUNICIPAL COUNCIL [not more than twenty (20) in each
barangay], shall be granted insurance or other benefits during their
incumbency, chargeable to the barangay or the city or municipal
government to which the barangay belongs

SEC. 8. Section 450 of Republic Act 7160 is hereby amended to read as
follows:

“Sec, 450. Requisites for Creation. — (a) A municipality or a cluster

of barangays may be converted into a component city if it has an
average annual income, as certified by the Department of Finance,
of at least two (2) consecutive years based on 1991 constant
prices, and if it has either of the following requisites:”

“(i) a contiguous territory of at least one hundred (100)
square kilometers, as certified by the Lands Management
Bureau; or”

“(i)) a population of not less than one hundred fifty
thousand (150,000) inhabitants, as certified by the National
Statistics Office.”

“Provided, that the creation thereof shall not reduce
the land area, population, and income of the original unit of
units at the time of said creation to less than he minimum
requirement prescribed herein:



“PROVIDED, FURTHER, THAT THE CAPITAL
TOWN OF A PROVINCE SHALL BE EXEMPTED FROM
THE AVERAGE ANNUAL INCOME REQUIREMENT OF
ONE HUNDRED MILLION PESOS (P100,000,000.00) AS
PROVIDED FOR IN PAR. (a) HEREOF TO BE QUALIFIED
FOR CONVERSION INTO A CITY;”

“PROVIDED, FINALLY, THAT CAPITAL TOWNS OF
PROVINCES WHERE THERE IS NO EXISTING CITY
SHALL HAVE A PRIORITY FOR CONVERSION INTO A
COMPONENT CITY.”

“(b) The territorial jurisdiction of a newly-created city shall be
properly identified by metes and bounds. The requirement on land
area shall not apply where the city proposed to be created is
composed of one (1) or more islands. The territory need not be
contiguous if it comprises two (2) or more islands.”

*(c) The average annual income shall include the income accruing
to the general fund, exclusive of special funds, transfers and non-
recurring income."

SEC. 9. Section 468 of Republic Act 7160 is hereby amended to read

follows:

“SEC. 468. Powers, Duties, Functions and Compensation.-
*(A)20000000000000000000000000K;

"(1 ¥990%3000H000000000000000XX;

(2) 900030000000000000000000%X;

*(3)_2000000000000000000000HXXX;

“(4) Approve ordinances which shall ensure the efficient

and effective delivery of basic services and facilities as

provided for under Section 17 of this Code and in addition to

said services and facilities shall:
(I) 30000000000%20000000000000%;
“(ii). Subject to applicable laws, facilitate or provide
for the establishment and maintenance of waterworks
system or district waterworks for supplying water to
inhabitants of component cities and municipalities:
AND COORDINATE BASIC SERVICES OF
COMPONENT CITIES AND MUNICIPALITIES FOR
THE INTEGRATED SOLID WASTE COLLECTION
AND DISPOSAL, AND WHEN NECESSARY,
FACILITATE OR PROVIDE FOR THE
ESTABLISHMENT OF SAID BASIC SERVICE AND
FACILITY IN A COMPONENT UNIT,

SEC. 10. Section 483 of Republic Act 7160 is hereby amended to read as

follows:


“SEC 483. Qualifications, Powers and Duties, (a) No person shall
be appointed social welfare and development officer unless he/SHE
is a citizen of the Philippines, a resident of the local government
unit concemed, of good moral character [] AND a duly licensed
social worker [or a holder of college degree preferably in sociology
or any other related course from a recognized college or university,
and a first grade civil service eligible or its equivalent]. He/SHE
must have acquired experience in the practice of social work for at
least five (5) years in the case of the provincial or city social welfare
and development officer, and three (3) years in the case of the
municipal social welfare and development officer.

The appointment of a social welfare and development officer
is mandatory for the provincial, [and] city [] and [optional for]
municipal government.”

SEC. 11. Separability Clause. - Any portion or provision of this Act that may
be declared unconstitutional or invalid shall not have the effect of nullifying
other portions and provisions hereof as long as such remaining portion or
provision can still subsist and be given effect in their entirety

SEC. 12. Repealing Clause. - Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule or regulation
contrary to or inconsistent with the provisions of this Act is hereby repealed,
modified or amended accordingly

SEC. 13. Effectivity. — This Act shall take effect fifteen (15) days after its
Publication in at least two (2) newspapers of general circulation.

Approved,