NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
s. B. No. 775
I,
■v'T Aemt'ot ■
72 JUL19 P6--42
Introduced by Senator SONNY ANGARA
AN ACT
TO RATIONALIZE THE FUNCTIONAL ASSIGNMENTS OF LOCAL 
GOVERNMENT UNITS BY AMENDING CERTAIN PROVISIONS IN REPUBLIC 
ACT NO. 7160, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE 
OF 1991"
EXPLANATORY NOTE
Republic Act No. 7160 or the Local Government Code of 1991 has devolved to 
all local gove.rnment units (LGUs) the administration of basic services, including 
agriculture, environmental protection, health, maintenance of public works and 
highways, social welfare, and tourism. The law was enacted to empower local 
government units LGUs with the end in view of improving the delivery of services to 
the public, thereby becoming eTective instruments of both local and national 
development.
However, since after more than three decades since the passage of the Local 
Government Code, studies have shown minimal improvement with regard to local 
services delivery, with the exception of some cities. LGUs have often complained 
that there is a mismatch between the devolved functions aid the intergovernmental 
fiscal transfers and revenue raising powers provided to them under the Code. This, 
even after the effectivity of the Mandanas Ruling.
The problem is not simply solved by bridging the finance gap. All things being 
equal, i.e., capacity of LGUs to implement projects, there is an equally great 
mismatch in the functions of local public goods and services and the level of the 
LGUs. Many functions devolved to LGUs like the Barangay and Municipality have


clear externality effects or benefits outside the boundaries of the LGUs. For example, 
health objectives and programs are more national than local although their 
implementation can be local. As such, the devolved functions do not have the 
explicit or implicit incentives built in.
Consequently, there is a need to qualify what functions should be left to the 
national government, what should be shared, and what should be fully devolved, 
based on a clear understanding of who are included in the LGU's scope of 
beneficiaries so that they will have juilt in incentive mechanisms that will encourage 
the LGUs to make the investment or finance the function. The delineation of 
functions is not only between the LGUs and the National Government but likewise 
among LGUs at different levels.
In view of the foregoing, approval of this bill is earnestly requested.
SONNY ANGARA


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
72 JUL 19 P6;42
u;t.:
SENATE 
s. B. No. 775
Introduced bv Senator SONNY ANGARA
AN ACT
TO RATIONALIZE THE FUNCTIONAL ASSIGNMENTS OF LOCAL 
GOVERNMENT UNITS BY AMENDING CERTAIN PROVISIONS IN 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:
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SECTION 1. Section 3 (a) of Republic Act No. 7160, otherwise known as the
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Local Government Code of 1991, hereinafter referred to as the "Code", is hereby
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amended to read as follows:
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"Sec. 3. Operative Principles of Decentralization. - The formulation and
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implementation of policies and measures on local autonomy shall be
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guided by the following operative principles:
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(a) There shall be an effective allocation BETWEEN THE NATIONAL
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GOVERNMENT AND among the different local government units of
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their respective powers, functions, responsibilities, and resources
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INTO NATIONAL GOVERNMENT, FULLY-DEVOLVED, AND
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SHARED FUNCTIONS BASED ON THE SCOPE OF BENEFITS,
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EFFECTS OR IMPACTS EXTERNAL TO THE LOCAL
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GOVERNMENT UNIT AND RESPONSBILITY FOR THE SETTING
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OF POLICIES AND STANDARD, PLANNING AND
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PROGRAMMING, IMPLEMENTATION AND EXECUTION, AND
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ORIGIN AND OWNERSHIP OF THE FUNDING SOURCE;
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(b) X X X
xxx;
SEC. 2. Section 17 of the san.e Code is hereby amended to read as follows: 
"Sec. 17. Basic Services and Faciiities. - (a) Local government units 
shall endeavor to be self-reliant and shall continue exercising the 
powers and discharging the duties and functions currently vested upon 
them. They shall also discharge the functions and responsibilities of 
national agencies and offices devolved to them pursuant to this Code. 
Local government units shall likewise exercise such other powers and 
discharge such other functions and responsibilities as are necessary, 
appropriate, or incidental to efficient and effective provisions of the 
basic services and facilities enumerated herein.
(b) Such basic services and facilities include, but are not limited to, the 
following:
(1) For a Ba ran gay:
[(13—Agricultural—support—services—wb+eh—include—planting 
ma-t-erials-distributien—system-and-opcrotion of farm produce
collection and buying stations;
(i+3—Health—and—social—welfare—services—which—include
maintenance of barangay-beolth center and day-care center;]
[(Hi}] (I) Services and facilities related to general hygiene and 
sanitation, beautification, and solid waste collection;
[(tv)] (II) Maintenance of katarungang pambarangay;
[(v)- Maintenance of barangay-r-oads-and bridges and water
[(¥^1 (ni) Infrastructure facilities such as multi-purpose hall, 
multipurpose pavement, plaza, sports center, and other similar 
facilities;
[(vH}l (IV) Information and reading center; and 
[("^l (V) Satellite or public market, where viable;


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(2) For a Municipality:
(i) Extension and on-site research services and facilities related 
to agriculture and fishery activities which include dispersal of 
livestock and poultry, fingerlings, and other seedling materials 
for aquaculture; palay, corn, and vegetable seed farms; 
medicinal plant gardens; fruit tree, coconut, and other kinds of 
seedling nurseries; demonstration farms, quality control of 
copra and improvement and development of local distribution 
channels, preferably through cooperatives; interbarangay 
irrigation system; water and soil resource utilization and 
conservation projects; and enforcement of fishery laws in 
municipal waters including the conservation of mangroves;
(ii) Pursuant to national policies and subject to supervision, 
control and review of the DENR, implementation of community- 
based forestry projects which include integrated social forestry 
programs and siniilar projects; management and control of 
communal forests with an area not exceeding fifty (50) square 
kilometers; establishment of tree parks, greenbelts, and similar 
forest development projects WHOSE IMPLEMENTATON MAY 
BE SHARED WITH THE PROVINCE ANP/OR A NATIONAL 
GOVERNMENT AGENCY;
(iii) Subject to the provisions of Title Five, Book I of this Code, 
health services which include the implementation of programs 
and projects on primary health care, maternal and child care, 
and communicable and non-communicable disease control 
services, access to secondary and tertiary health services; 
purchase of medicines, medical supplies, and equipment needed 
to carry out the services herein enumerated WHOSE 
IMPLEMENTATION MAY BE SHAPED WITH THE 
PROVINCE AND/OR A NATIONAL GOVERNMENT 
AGENCY;


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(iv) Social welfare services which include programs and projects 
on child and youth welfare, family and community welfare, 
women's welfare, welfare of the elderly and disabled persons; 
community-based rehabilitation programs for vagrants, beggars, 
street children, scavengers, juvenile delinquents, and victims of 
drug abuse; livelihood and other pro-poor projects; nutrition 
services; and family planning services;
(v) Information services which include investments and job 
placement information systems, tax and marketing information 
systems, and maintenance of a public library;
(vi) Solid waste disposal system or environmental management 
system and services or facilities related to general hygiene and 
sanitation WHOSE IMPLEMENTATION MAY BE SHARED 
WITH THE PROVINCE OR THROUGH INTER-LGU 
COOPERATION;
XXX
(XIII) MAINTENANCE OF BARANGAY ROADS AND 
BRIDGES AND WATER SUPPLY SYSTEMS;
(XIV) HEALTH AND SOCIAL WELFARE SERVICES WHICH 
INCLUDE MAINTENANCE OF BAH AN GAY HEALTH 
CENTER AND DAY-CARE CENTER; AND
(XV) 
AGRICULTURAL SUPPORT SERVICES WHICH 
INCLUDE PLANTING MATERIALS DISTRIBUTION 
SYSTEM AND OPERATION OF FARM PRODUCE 
COLLECTION aND BUYING STATIONS WHOSE 
IMPLEMENTATION MAY BE SHARED WITH THE 
BARANGAY.
(3) Fora Province:
XXX
(4) For a City:
XXX
(C) XXX


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XXX
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(f) Ihe national goven.ment or the next higher level of local
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government unit may provide or augment the basic services and
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facilities assigned to a lower level of local government unit when such
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services or facilities are not made available or, if made available, are
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inadequate to meet the requirements of its inhabitants BASED ON
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GUIDELINES ISSUED BY THE DEPARTMENT OF THE INTERIOR
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AND LOCAL GOVERNMENT.
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(g) XXX
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XXX
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SEC. 3. Repealing Clause. - All general and special laws, acts, city charters,
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executive orders, presidential proclamations, issuances, rules and regulations, or
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parts thereof which are contrary to or inconsistent with any of the provisions of this
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Act are hereby repealed, amended, or modified accordingly.
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SEC. 4. Separability Clause. - If any portion or provision of this Act is
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subsequently declared invalid or unconstitutional, other provisions hereof which are
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not affected thereby shall remain in full force and effect.
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SEC. 5. Effectivity Clause. - This Act shall take effect fifteen (15) days after
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its publication in the Official Gazette or in a newspaper of general circulation.
Approved,