EIGHTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Rodriguez _

“Introduced by Representative |

House Bill No. 3771
EXPLANATORY NOTE

Republic Act No. 7160, otherwise known as the Local Government Code of the Philippines
was enacted in 1991, almost 30 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.

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

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

3. The integration of solid waste management collection and
service;

4. The modification of the composition of the local development council;

5. 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;

6. 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;

7. 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;

8. 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

11, The inclusion among the priority areas for the Special Education Fund (SEF)
coverage the budget of the payment of electric and water bills, payment of salaries,
allowances, and other benefits of non-teaching personnel, procurement of service
vehicles for conveyance of teachers and non-teaching personnel, establishment and
maintenance of extension classes, including the creation of teacher items for said
classes, purchase of prescribed textbooks, teaching aids, and other instructional
materials,

12. The addition of a provision making mandatory the appointment of a cooperatives
officer in the provincial and city govemments;

13. Giving the Local Government Units through their Sanggunian Panlalawigan,
Panlunsod or Bayan the power to declare local holidays:

posal as a basic


44. The inclusion of a representative from the senior citizens in the Local Development
Council.

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 earnestly requested.

We
RUFUS B. Pye Zz


EIGHTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES }
First Regular Session )

HOUSE OF REPRESENTATIVES

by Representative Rufus B. Rodriguez afb

House Bill No. _3771

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 13 of Republic Act No. 7160, otherwise known as the Local
Govemment Code of 1991, is hereby amended to read as follows:
“SEC. 13. Naming of Local Govemment Units and Public Places,
Streets and Structures AND DECLARING LOCAL HOLIDAYS. —
(a) The sangguniang panialawigan may, in consultation with the
NATIONAL HISTORICAL INSTITUTE (NHI) AND LOCAL
HISTORICAL ASSOCIATIONS, IF ANY, change the name of the
following within its territorial jurisdiction
KX

“(b) The sanggunians of highly urbanized cities and of component
cities whose charters prohibit their voters from voting for provincial
elective officials, hereinafter referred to in this Code as
independent component cities, may, in consultation with the
NATIONAL HISTORICAL INSTITITE (NHI) AND LOCAL
HISTORICAL ASSOCIATIONS, IF ANY, change the name of the
following within its territorial jurisdiction

“XXX

“(c) The sanggunians of component cities and municipalities may,
in consultation with the NATIONAL HISTORICAL INSTITUTE
(NHI) AND LOCAL HISTORICAL ASSOCIATIONS, IF ANY.
change the name of the following within its territorial jurisdiction:
XXX

“THE LOCAL SANGGUNIANS, EXCEPT THE SANGGUNIANG
BARANGAY, IN CONSULTATION WITH THE NATIONAL
HISTORICAL INSTITUTE (NHI) AND LOCAL HISTORICAL
ASSOCIATIONS, IF ANY, AND THE DEPARTMENT OF LABOR
AND

EMPLOYMENT (DOLE), THROUGH AN ORDINANCE DULY
APPROVED BY THREE-FOURTHS (3/4) VOTE OF ALL THEIR
RESPECTIVE MEMBERS, MAY DECLARE NOT MORE THAN
TWO (2) SPECIAL PUBLIC HOLIDAYS, WHICH MAY EITHER
BE A WORKING OR NONWORKING HOLIDAY.

‘SEC 2. Section 17 of Republic Act No. 7160 is hereby amended to read as follows:


“Section 17. Basic Services and Facilities. a) x0ccc00 00000

“(b) Such basic services and facilities include, but are not limited to the following:

(1) 20000000000020002000000000

“(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
OOOOH IOAN
“(xili) INTEGRATED SOLID WASTE COLLECTION AND
DISPOSAL SYSTEM = OR-——_ ENVIRONMENT
MANAGEMENT SYSTEM AND SERVICES OR
FACILITIES RELATED TO GENERAL HYGIENE AND
SANITATION:”

SEC 3. 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, a 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

KKK

SEC 4. 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 nongovemmental _ 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:
(1) [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
(c) 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.

PROVIDED, THAT SENIOR CITIZENS SHOULD BE PROPERLY
REPRESENTED IN THE LOCAL DEVELOPMENT COUNCILS.

SEC 5. Section 272 of Republic Act No. 7160 is hereby amended to read as follows:
“Sec. 272. — The proceeds from the additional one percent (1%)
tax on real property accruing to the SEF shall be automatically
released to the local school boards: Provided, That in case of
provinces, the proceeds shall be divided equally between the
provincial and municipal school boards: Provided, however, That
the proceeds shall be allocated for the operation and maintenance
of public schools, INCLUDING THE PAYMENT OF ELECTRIC


AND WATER BILLS; construction and repair of school buildings,
facilities and equipment, PAYMENT OF SALARIES,
ALLOWANCES, AND OTHER BENEFITS OF TEACHING AND
NON-TEACHING PERSONNEL, PROCUREMENT OF SERVICE
VEHICLES FOR USE IN THE TRANSPORT OF TEACHERS
AND NON-TEACHING PERSONNEL, ESTABLISHMENT AND
MAINTENACE OF EXTENSION CLASSES, INCLUDING THE
CREATION OF TEACHER ITEMS FOR SAID CLASSES,
educational research, purchase of [books] PRESCRIBED
TEXTBOOKS, periodicals, TEACHING AIDS, OTHER
INSTRUCTIONAL MATERIALS, and sports development as
determined and approved by the Local Schoo! Board.

SEC 6. Section 284 of Republic Act No. 7160 is hereby amended to read as follows
“Section 284. — Allotment of Intemal Revenue Taxes — Local
Govemment 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
E. ON THE NINTH YEAR AND THEREAFTER, SIXTY PERCENT
(60%)

XxX

SEC 7. 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%)


c) [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:

4) 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%)
c) 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
concemed.”

SEC 8. Section 286 of Republic Act 7160 is hereby amended to read as 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 9. Section 287 of Republic Act 7160 is hereby amended to read as follows:
Section 287. Local Development Projects - Each local
government unit shall appropriate in its annual budget no less
than twenty percent (20%) of its annual internal revenue allotment
for development projects: PROVIDED, THAT IT SHALL BE
MANDATORY TO INCLUDE PROJECTS FOR THE BENEFIT OF
SENIOR CITIZENS. Copies of the development plans of local
government units shall be furnished the Department of Interior and
Local Government.

SEC 10. Section 393 of Republic Act 7160 is hereby amended to read as 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 fone 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 entitied 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 Govemment
Officials and Providing Funds Therefor’,

(3) be entitied 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 concemed
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 concerned;

(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

(c) Elective barangay officials shall have preference in
appointments to any government position or in any govemment-
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 11. 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
ACITY;”

“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.”

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

SEC 12. Section 468 of Republic Act 7160 is hereby amended to read as follows
“SEC. 468. Powers, Duties, Functions and Compensation.-
{(8) 3000000000000 000XXKHHHKK,

(1) 228 00OODOOOOOOOOOOOOOOOO,,

(2) X22COOOOOOOCOOOOOOOOOOOOONK,;

(3) OCOOOCOOOOCOOOCOOOOOOOOOOG,

(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:

8())_380000000000000000000000%;

“(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 13. 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 goverment 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 14. Section 487 of Republic Act No. 7160 is hereby amended to read as follows:
“Section 487. Qualifications, Powers and Duties.— (a) x
The appointment of the cooperatives officer is [optional]
MANDATORY for the provincial, [and] city AND MUNICIPAL
governments.

SEC 15. 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 16. 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 17. Effectivity. - This Act shall take effect fifteen (15) days after its publication in at
least two (2) newspapers of general circulation.

Approved