n .-. 
c 
13t" Congress of tlie Republic 
) 
of the Philippines 
1 
First Regular Session 
) 
Introduced by Senator Aquilino (2. Pimentel, Jr. 
E 
R.A. 7160, otherwise known as the Local Government Code of 1991, is 
considered by inany social and economic scientists as the "key that unloclts vast 
opportunities in the countryside." 
The Code has provided operational meaning to decentralization and devolution. 
It is a giant step in our country's journey towards full democratization. Like many great 
pieces of legislation, however, the law has to be assessed and amended to address new 
needs and recommend solutions to the burgeoning problems of local governance. Local 
governinent officials and advocates of local autonomy clamor for changes in the law to 
address matters like: (a) the inadequacy of the internal revenue shares of the locCil 
governinent units to meet the budgetary requirements of the devolved functions, 
programs and projects; (b) the continued lack of budgetary support froin the national 
governinent for tlie full implementation of devolved tertiary health services; (c) the 
interference of national government in personnel and fiscal management of the local 
government units; (d) the need to further broaden the tax base of the local government 
units and (e) tlie time frame for the revision of real property assessment. 
In response to these concerns, amendments to tlie Code are hereby introduced 
with the view of strengthening local autonomy and providing dynamism in the 
iinpleinentation of the devolved functions, programs, projects, and services. The 
development objectives of the national government should be viewed within the 
context of local autonoiny and decentralization. 
The highlights of the proposed amendments are as follows: 
Consultation with local government units on tlie planning and implementation of 
national programs and projects is emphasized and made mandatory; 
Local governme;it units shall now enjoy greater fiscal autonomy; 
Jncome'based on locally generated revenue is made a basis for the creation of a 
province, city, or a municipality; 
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The sangguniang panlalawigan, sangguniang panlungsod, and sangguniang bay an 
are authorized to declare public holidays in their respective jurisdictions; 
The Bureau of Fire Protection is now devolved to local government units; 
The following services, programs and functions are also devolved to local 
government units: 
a. Implementation of forest projects, and the execution of laws designed 
to protect the environment; 
b. The construction, supervision, and management of nationally funded 
infrastructure projects; 
c. Processing and approval of subdivision and condominium plans, 
including the issuance of licenses and the grant of authority to sell 
subdivision lots and condominium units; 
d. Iss,uance of environment compliance and clearance certificates; and 
e. Rdgulation and setting of public and private utility vehicle fees within 
Local governme!nt units are given eighteen (18) months within which to prepare and 
enact a comprehensive land use plan and zoning ordinance after agricultural land 
within their jurisdiction is reclassified into residential, commercial or industrial 
land; 
the province. 
The Barangay shall have their own Pre-qualification, Bids and Awards Committees 
(PBACs); 
The provision on Preparatory Recall Assembly, as one of the modes of instituting a 
recall of local elective officials, is repealed; 
A local executive may issue a temporary appointment or designation of an officer- 
in-charge for a period not exceeding sixty (60) days; 
Teaching and non-teaching staffs of the DECS are given non-taxable monthly fixed 
allowances chargeable against the Special Education Fund (SEF) of the different 
local government units concerned. 
Government officials who fail to comply with requirements imposed by law upon 
them in the transfer of land are now subject to sanctions; 
The 
government taxation; 
gross income of banks and other financial institutions are subject to .local 
Local government units now have a share in the tax imposed by the province on the 
business of printing and publication. 
Franchise tax coverage is expanded; 
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The barangay in municipalities are now empowered to impose business taxes on 
stores or retailers with gross sales of up to five hundred thousand pesos (P500,OOO) 
and up to one million pesos (Pl,OOO,OOO) gross sales in the case of the barangay in 
the cities and the municipalities in Metro Manila. 
For assessment purposes, the fair market value of a residential building to be 
exempted froin real property taxes is raised from one hundred seventy five 
thousand (P175,OOO) to five hundred thousand (P500,OOO) pesos. 
The revision of real property assessment will be undertaken every six (6) years 
instead of every three (3) years. 
The shares of the local government units are now based on the collection of national 
taxes, and their allotments are increased to fifty percent (50%) starting fiscal year 
2001; 
The shares in the proceeds of the utilization and development of national wealth is 
increased from 40% to 60% and retained by the collecting agency. These shall be 
remitted to the local government units concerned on a quarterly basis; 
Availment by local government units of any of the modes of credit financing shall 
not be subject to interference by any national government agency, the same being a 
curtailment of the exercise of LGU fiscal 
autonomy; 
Heavy equipment and machineries imported by local water districts registered 
under R.A. 
6938, are exempted from the payment of duties, taxes, fees and charges; 
Development plaojects implemented under the build-operate-and-transfer and other 
financing schemes may receive incentives; 
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Local government units are required to inform their constituents of LGU loan 
applications, indicating the amount, the project to be financed, the implementation 
timetable, terms of payment, and the security to be used for such loans; 
The local government units are now allowed to maintain depository accounts with 
any private commercial bank licensed by the Bangko Sentral ng Pilipinas (BSP). 
T U  
Barangay sanggunian members are now entitled to retirement benefits; 
Barangay tanod brigades or their equivalent are entitled to monthly allowances; 
Income requirement for the creation of a province, city, or municipality is increased 
and shall be based on locally generated income; 
Local executives shall now appoint treasurers and assistant treasurers; 
Provinces, cities, and first class municipalities are now required to appoint and hire 
environment and natural resources officers, cooperative officers, buildings and 
grounds officers, and human resources development officers. 
Fire protection officers for cities and municipalities are required to be appointed; 
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Fishing cooperatives shall be allowed to operate commercial fishing vessels in 
municipal waters; 
The power to issue environmental compliance and clearance certificates in certain 
industries is now vested in governors and city mayors; 
K F 
SCEL 
Penal sanction is now imposed for the violation of provisions of the Local 
Government Code. 
This bill is designed to strengthen local government units, assuring the growth 
and development of self-reliant and dynamic communities throughout the country. 
The approval of this bill is urgently requested. 
4 


13‘1’ Congress of thd Republic 
) 
of the Philippines 
) 
First Regular Session 
1 
T E  
Introduced by Senator Aquilino Q. Pimentel, Jr. 
EN LOCAL GOVE 
1300K ONE - GENERAL PROVISIONS 
. Section 2 of Republic Act No. 7160, otherwise known as the Local 
Government Code of 1991, hereinafter referred to as the Code, is hereby amended to 
read as follows: 
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ec 
(a) It is hereby declared [the] A policy of the State TO ENSURE that [the] ITS 
territorial and political subdivisions [of the State shall] enjoy genuine and meaningful 
local autonomy to enable them to attain [their fullest] FULL development as self-reliant 
communities and [make them more] BECOME effective partners in the attainment of 
national goals. 
(6) Towards this end, the State shall provide for a more responsive and 
accountable local government structure instituted through a system of decentralization 
[whereby] WHERE local government units [shall be given] 
ARE GRANTED more 
powers, authority, responsibilities [,I and resources. The process of decentralization 
shall proceed from the [National] CENTRAL Government to the local government units. 


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[(b)] (C) It is aiso [the] A policy of the State to [ensure the accountability of 18 
local government units through the institution ofl 
INSTITUTE effective 
mechanisms [of] F,OR recall, initiative and referendum, TO ENSURE THAT LOCAL 
, 
ELECTIVE OFFICIALS ARE MORE ACCOUNTABLE TO THE PEOPLE. 
[(c)] (D) It is likewise [the] A policy of the State to require all [national] 
CENTRAL GOVERNMENT agencies and offices to conduct [periodic consultations] 
PUBLIC HEARINGS AND CONSULT with THE 
[appropriate] PROPER local 
government units, non-governmental and people's organizations, and other concerned 
sectors of the community, before any [project or] program OR PROJECT is APPROVED 
FOR implement[ed]ATION BY CENTRAL GOVERNMENT AGENCIES, OFFICES OR 
GOVERNMENTOWNED OR CONTROLLED CORPORATIONS, in their respective 
jurisdictions. 
(E) THE STATE SHALL EMPOWER LOCAL GOVERNMENT UNITS TO 
REGULATE OR PROHIBIT GAMBLING AND OTHER ACTIVITIES THAT MAY 
ADVERSELY AFFECT THE MORALS, WELL-BEING AND GOOD ORDER OF 
INHABITANTS IN THEIR COMMUNITIES. 
. Section 3 of the Code is hereby amended to read as follows: 
. - The formulation and 
implementation of policies and measures on local autonomy shall be guided 
by the 
following operative principles: 
(a) xxx 
(b) xxx 
(c) [Subject to civil service law, rules and regulations,] [I]Local officials and 
employees WHO ARE paid wholly [or mainly] from local funds, 
shall, UNLESS 
OTHERWISE PROVIDED UNDER THIS CODE, be appointed [or removed] BY THE 
GOVERNOR, MAYOR, OR PUNONG BARANGAY OR BY THE VICE-GOVERNOR OR 
VICE-MAYOR AS THE CASE MAY BE according to merit and fitness, AND MAY 
ONLY BE REMOVED FOR CAUSE, SUBJECT TO CIVIL SERVICE LAW, RULES AND 
REGULATIONS [by the appropriate appointing authority]; 


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(d) xxx 
(e) xxx 
(f) xxx 
(9) xxx 
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(h) xxx 
(i) Local government units shall share with the [National] CENTRAL Government 
the responsibility [in the management and maintenance ofl TO MAINTAIN SOUND 
ecological balance [within] IN their RESPECTIVE territorial [al]ES [jurisdiction], subject 
to the provisions of this Code [and national policies]; 
(j) xxx 
(k) The realization of local autonomy shall be facilitated through improved 
coordination of [national] CENTRAL government [policies and] programs AND 
POLICIES, and TO extenD[sion oq adequate technical and material assistance to less 
developed and deserving local government units; 
(I) The [participation of the] private sector [in local governance, particularly, in 
the delivery of basic services] shall be encouraged TO PARTICIPATE AS PARTNERS 
IN LOCAL GOVERNANCE, ESPECIALLY IN THE DELIVERY OF BASIC SERVICES, 
to ensure the [viability] EFFECTIVENESS of local autonomy as an [alternative strategy] 
INSTRUMENT for sustainable development; [and] 
(m) The [National] CENTRAL Government shall ensure that decentralization 
contributes to the continuing improvement of the performance of local government units 
and the quality of [community] life IN THEIR COMMUNITIES; AND 
(N) LOCAL GOVERNMENT UNITS SHALL ENJOY FISCAL AUTONOMY, AND 
SHALL EXERCISE PRIMARY AUTHORITY TO ALLOCATE, UTILIZE AND DISPOSE 
OF FUNDS GENERATED BY THEM OR ALLOTTED TO THEM, SUBJECT TO THE 
PROVISIONS OF THIS CODE AND OTHER APPLICABLE LAWS. 
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3. Section 7 of the Code is hereby amended to read as follows: 
n. - As a general rule, the creation of 
a local government unit or its conversion from one level to another level shall be based 
on verifiable indicators of viability and projected capacity to provide services, to wit: 


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(a) Income - MONEY RECElVED FROM REGULAR LOCAL REVENL?E 
SOURCES, SHARE FROM NATIONAL TAXES, AND OTHER NON-REGULAR LOCAL 
REVENUE. FOR THE PURPOSE OF CREATION OR CONVERSION OF A 
LOCAL 
GOVERNMENT UNIT, [It] INCOME must be sufficient, based on acceptable standards, 
to provide for all essential government facilities [and], services and special functions 
commensurate with the size of its population, as expected of the local government unit 
concerned[.] AND SHALL BE BASED ONLY ON REVENUES GENERATED LOCALLY, 
(b) Population. - It shall be determined as the total number of inhabitants within 
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territorial jurisdiction of the local government unit concerned; [and] 
(c) Land Area. - It must be continuous, unless it comprises two (2) or more 
islands or is separated by a local government unit independent of the others; properly 
identified by metes and bounds with technical descriptions; and sufficient to provide for 
such basic services and facilities to meet the requirements of its populace[.]; AND 
(D) TAX COLLECTION EFFICIENCY - IN CASE OF A CONVERSION OF A 
MUNICIPALITY INTO A COMPONENT OR INDEPENDENT CITY OR FROM 
COMPONENT CITY AND INDEPENDENT COMPONENT CITY INTO A HIGHLY 
URBANIZED CITY, THE LOCAL GOVERNMENT UNIT CONCERNED MUST HAVE 
AN AVERAGE OF, AT LEAST, EIGHTYPERCENT (80%) REAL PROPERTY TAX 
COLLECTION EFFICIENCY AND SEVENTY PER CENT (70%) COLLECTION OF 
OTHER LOCAL TAXES EVERY YEAR IN THE THREE (3) IMMEDIATELY 
PRECEDING YEARS. 
TAX COLLECTION EFFICIENCY IS MEASURED AS THE 
RATIO OF ACTUAL TAX REVENUES COLLECTED TO THE AMOUNT OF TAXES 
THAT ARE DUE AND COLLECTIBLE. 
[Compliance with the foregoing indicators shall be attested to by the Department 
of Finance (DOF), the National Statistics Office (NSO), and the Lands Management 
Bureau (LMB) of the Department of Environment and Natural Resources (DENR).] THE 
FOLLOWING CENTRAL GOVERNMENT AGENCIES SHALL ATTEST TO THE 
VIABILITY 
OF A LOCAL GOVERNMENT UNIT UNDER THE FOREGOING 
INDICATORS, TO WIT: 
1 
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b 
(1) THE DEPARTMENT OF FINANCE (DOF), AS TO INCOME 
AND THE COMMISSION ON AUDIT (COA) AS TO TAX COLLECTION 
EFFICIENCY, IN THE CASE OF THE CREATION OF A PROVINCE OR 
THE CONVERSION OF A METROPOLITAN MANILA MUNICIPALITY 
INTO A CITY. IN THE CASE OF THE CREATION OF A MUNICIPALITY, 
CITY OR CONVERSION OF AN INDEPENDENT OR COMPONENT CITY 
INTO HIGHLY URBANIZED STATUS, THE PROVINCIAL TREASURER 
CONCERNED SHALL CERTIFY AS TO THE INCOME AND TAX 
COLLECTION EFFICIENCY OF THE LOCAL GOVERNMENT UNIT. 
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NATIONAL STATISTICS OFFICE (NSO), AS TO 
(3) THE LAND MANAGEMENT BUREAU (LMB) AND BUREAU OF 
FISHERIES bND AQUATIC RESOURCES (BFAR), AS TO LAND AREA. 
. Section 13 of the Code Is hereby amended to read as follows: 
sangguniang panlalawigan, [may] in consultation with the [Philippine Historical 
Commission (PHC)] NATIONAL HISTORICAL INSTITUTE ("I) 
AND 
LOCAL 
HISTORICAL ASSOCIATIONS, IF ANY, MAY NAME OR change the name of the 
following within its territorial jurisdiction: 
(I) 
Component cities and municipalities, upon [the] recommendation of the 
sanggunian concerned; 
(2) xxx 
(3) xxx 
(4) xxx 
(5) xxx 
(b) The sanggunian[s] 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 [Philippine Historical Commission] NATIONAL HISTORICAL 
INSTITUTE, AND LOCAL HISTORICAL ASSOCIATIONS, IF ANY, MAY NAME OR 
change the name of the following within its territorial jurisdiction: 
(1) City barangays, upon [the] recommendation of the sangguniang barangay 
concerned; 
(1) xxx 
(2)xxx 
(3)xxx 
(4)xxx 
(c) The sanggunian[s] of component cities and municipalities, [ may ] in 
consultation with the [Philippine Historical Commission] NATIONAL HISTORICAL 
INSTITUTE, AND LOCAL HISTORICAL ASSOCIATIONS, IF ANY, MAY NAME OR 
change the name of the following within its territorial jurisdiction: 
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City and municipal barangays, upon [the] recommendation of the 
sangguniang barangay concerned; 
1 
xxx 
xxx 
xxx 
)xxx 
(d) xxx 
(e) xxx 
(f) xxx 
(9) xxx 
THE SANGGUNIANG PANLALAWIGAN, PANLUNGSOD OR BAYAN, UPON 
CONSULTATION WITH THE NATIONAL HISTORICAL INSTITUTE AND LOCAL 
HISTORICAL ASSOCIATIONS, IF ANY, AND THE DEPARTMENT OF LABOR AND 
EMPLOYMENT (DOLE), THROUGH AN ORDINANCE DULY APPROVED BY THREE- 
FOURTHS (314) VOTE OF ALL THEIR RESPECTIVE MEMBERS, MAY DECLARE 


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WORKING OR NON WORKING SPECIAL PUBLIC HOLIDAYS TO COMMEMORATE 
SIGNIFICANT HISTORIC EVENTS IN THE LOCALITY 
. Section 14 of the Code is hereby amended to read as follows: 
. - [When a new local 
government unit is created, its] THE corporate existence OF A NEWLY CREATED 
LOCAL GOVERNMENT UNIT shall commence upon the [election] EFFECTIVITY OF 
THE LAW OR ORDINANCE CREATING IT, [and qualification of its chief executive and 
a majority of the members of its sanggunian,] unless [some] other [time] BASIS is [fixed 
therefor by the law or ordinance creating it] PROVIDED THEREIN. 
. Section 17 (a) (b) (1) (i), (ii), (iii), (iv), (v), (vi), (vii), (viii), 2(i), (ii), 
(iii), (iv), (v), (vi), (vii), (viii), (x), (xi)) (xii), (xiii) (b), 3 (i), (iii), (iv), (v), (vi)>(vii>, (viii), (x), 4 
(i), (ii) (c), (e), (h), (i) (j) of the same Code are hereby amended to read as follows: 
. - (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 
the 
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discharge 
POWERS, functions and responsibilities of [national] CENTRAL GOVERNMENT 
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 
[provision of 
the 
basic services and facilities enumerated herein] LOCAL 
GOVERNANCE. 
(b) Such [basic] services and facilities include, but are not limited to, the 
following: 
(1 ) For a Barangay: 
(i) Agricultural suppot? services which include THE DISTRIBUTION 
OF 
planting 
materials [distribution system] 
and 
operation AND 


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MAINTENANCE of [farm produce] collection and buying stations FOR 
(VI 
REHABIL 
systems. 
THE FOL 
FARM PRODUCTS; 
(ii) Health and [social welfare services which include maintenance 
of barangay health center, and] day-care centers, AND OTHER SOCIAL 
WELFARE 
SERVICES; 
(iii) [Services and facilities related to general hygiene and] 
CO M M U N ITY ACT1 0 N S FOR CLEAN LI N ESS, sanitation, beaut if icat io n 
and SYSTEMATIC COLLECTION AND DISPOSAL OF [solid] wastes 
[ co I lection] ; 
(iv) [Maintenance of katarungang pambarangay] MEDIATION AND 
CONCILIATION SERVICES 
UNDER 
THE 
BARANGAY JUSTICE 
SYSTEM; 
CON STRU CTI 0 N , 
Maintenance , 
REPAIR 
AND 
TATION of barangay roads [and], bridges, and water supply 
.OWING ARE BARANGAY ROADS: 
1. 
THOSE CONSTRUCTED BY THE BARANGAY OUT OF ITS OWN 
FUNDS; 
2. 
THOSE CONSTRUCTED BY HIGHER LOCAL GOVERNMENT 
UNITS OR CENTRAL GOVERNMENT AND TURNED OVER TO 
1 THE BARANGAY; AND 
3. 
THOSE 
CONSTRUCTED 
BY 
PRIVATE 
PERSONS 
AS 
PREVIOUSLY APPROVED BY THE SANGGUNIAN CONCERNED 
AND ARE 
OFFICIALLY DONATED TO THE 
BARANGAY 
CONCERNED. FUNDS FOR THE MAINTENANCE, REPAIR AND 
REHABILITATION 
OF 
BARANGAY 
ROADS 
SHALL 
BE 
DEVOLVED TO THE BARANGAY CONCERNED; 
(vi) [Infrastructure facilities such as m] Multi-purpose hall, multi-purpose 
pavement, plaza, sports center and other similar INFRASTRUCTURE 
facilities; 


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(vii) Information and reading centers; and 
(viii) Satellite or public markets, where viable. 
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(2) For a Municipality: 
(i) Extensiod and on-site research services and facilities related to agriculture 
INCLUDING ANIMAL 'HEALTH, and fishery activities which include dispersal of 
livestock and poultry, fingerlings, and other seeding materials for aquaculture; palay, 
corn, and vegetable seed farms; medicinal plant 
gardens; fruit tree, coconut, and 
other kinds of seedling nurseries[;] AND demonstration farms; quality control of copra 
and improvement and development of local distribution channels, preferably through 
cooperatives; inter-barangay irrigation systems; water and soil resource utilization and 
conservation projects; and enforcement of fishery laws AND ORDINANCES in 
municipal waters [including] ESPECIALLY the conservation of mangroves; 
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(ii) [Pursuant to national policies and subject to supervision, control and review of 
the DENR,] [illmplementation of 
community-based forestry projects which include 
integrated social forestry programs and similar 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. 
(iii) [Subject to the provisions of Title Five Book I of this Code,] [h]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, 
SUBJECT TO THE,PROVlSlONS OF TITLE FIVE, BOOK I OF THIS CODE; 
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(iv) Social whare services which include programs and projects on child, 
[and] youth AND SPECIAL CHILDREN 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; 


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(v) Information services [which include] ON investment[s] and job [placement 
information systems] OPPORTUNITIES, tax and market[ing] information [systems], and 
[maintenance of a] public Iibrar[y]IES AND OTHER SIMILAR FACILITIES; 
(vi) [Solid] [w]Waste disposal systems or environmental management systems 
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and services or facilities related to general hygiene and sanitation; 
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(vii) Municipal buildings, cultural centers, public [parks including] AND freedom 
parks, playgrounds', [and] sports facilities and equipment, and other similar [facilities] 
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S ERVl C E§ ; 
(viii) Infrastructure facilities intended primarily to service the needs of the 
residents [of] WITHIN the municipality and which are funded [out ofl BY CENTRAL, 
PROVINCIAL OR municipal [funds] GOVERNMENT BUDGETS SHALL INCLUDE 
[including, but not limited to,] municipal roads and bridges; [school buildings, and other 
facilities for] public elementary and secondary school[s] BUILDINGS AND SIMILAR 
STRUCTURES, AND PUBLIC LIBRARIES; CRISES CENTERS, clinics, health centers 
and other [health] facilities necessary to carry out health services; communal irrigation, 
small water impounding [projects] and [other] similar projects; fish ports AND 
WHARVES; artesian wells, spring development, rainwater collectors and water supply 
systems; RECLAMATION, seawall[s], dike[s], drainage [and], sewerage, and flood 
control PROJECTS; traffic signals [and], road signs[;], and similar facilities[;]. THE 
FOLLOWING ARE MUNICIPAL ROADS: 
1. 
THOSE CONSTRUCTED BY THE 
OWN FUNDS; 
MUNICIPALITY OUT OF ITS 
L. 
3. 
THOSE CONSTRUCTED BY HIG iER LOCAL GOVERNMENT 
A 
UNITS OR CENTRAL GOVERNMENT AND TURNED OVER TO 
T H E  MUNICIPALITY; AND 
THOSE 
CONSTRUCTED 
BY 
PRIVATE 
PERSONS 
AS 
PREVIOUSLY APPROVED BY THE SANGGUNIAN CONCERNED 
AND ARE OFFICIALLY DONATED TO OR TAKEN OVER BY THE 
MUNICIPALITY CONCERNED; 
(ix) xxx 


(x) Public cerneter[y]lES. 
(xi) Tourism facilities and tourist attractions, including [the] acquisition of 
LANDS AND equipment FOR THE PURPOSE; regulation and supervision of business 
concessions RELATED TO THE TOURISM INDUSTRY[;] and security [services] for 
such SERVICES and facilities; [and] 
(xii) Sites for police [and fire] stations and substations and [the] municipal 
1 
jails; 
(XIII) ,FIRE PROTECTION SERVICE; AND 
(iv) [Subject to the provisions of Title Five, Book I of this Code,] [h]Health 
services which include THE ESTABLISHMENT, OPERATION AND MAINTENANCE OF 
hospitals and other tertiary health services; PROCUREMENT OF 
DRUGS, 
MEDICINES, HOSPITAL SUPPLIES AND EQUIPMENT, MEDICINES, MEDICAMENTS 
1 
AND EQUIPMENT;: AND INTEGRATION AND MONITORING OF HEALTH-RELATED 


PROJECTS AND SERVICES IN THE PROVINCE, SUBJECT TO THE PROVISIONS 
OF TITLE FIVE, BOOK I OF THIS CODE. 
THE PROCUREMENT OF DRUGS, MEDICINES, HOSPITAL SUPPLIES 
returnees and 
AND EQUIPMENT, MEDICINES, MEDICAMENTS AND 
CENTRAL 
GOVERNMENT 
FOR 
DISTRIBUTION 
TO 
MUNICIPALITIES AND 
BARANGAY 
MAY 
BE 
DONE 
CONSULTATION WITH THE LEAGUES OF PROVINCES, C 
AND BARANGAY, RESPECTIVELY; 
PURCHASE 
MEDICINES 
AND 
DRUGS 
evacuees; relief operations, and population development [services]; 
EQUIPMENT BY THE 
PROVl NCES, 
C IT1 ES, 
ONLY 
AFTER 
DUE 
TIES I MUNICIPAL IT1 ES 
BY 
THE 
CENTRAL 
areas, and [other] similar facilities; 
(vii) PUBLIC WORKS AND [I]infrastructure [facilities] PROJECTS 
intended to service the needs of the residents [of] WITHIN the province [which are] 
WHETHER funded [out of] BY CENTRAL OR provincial [funds] GOVERNMENT 
BUDGETS including [, but not limited to,] provincial roads, NATIONAL ROADS, [and] 
bridges, PORTS, inter-municipal [waterworks] WATER SYSTEMS, drainage, sewerage, 
flood control, and irrigation systems, INTER-MUNICIPAL reclamation projects and 
other similar facilities. THE FOLLOWING ARE PROVINCIAL ROADS: 
I. THOSE CONSTRUCTED BY THE PROVINCE OUT OF ITS OWN 
FUNDS; 
2. 
THOSE CONSTRUCTED BY CENTRAL GOVERNMENT OR BY 
THE COMPONENT CITY, MUNICIPALITY OR BARANGAY AND 
TURNED OVER TO THE PROVINCE; AND 
3. 
THOSE 
CONSTRUCTED 
BY 
PRIVATE 
PERSONS 
AS 
PREVIOUSLY APPROVED BY THE SANGGUNIAN CONCERNED 
, AND ARE OFFICIALLY DONATED TO OR TAKEN OVER BY THE 
, PROVINCE CONCERNED; 
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(viii) [Programs and projects for] [IILow-cost housing and other mass 
dwelling PROGRAMS AND PROJECTS, except those funded by the Social Security 
System (SSS), Government Service Insurance System (GSIS), and the Home 
Development Mutual Fund (HDMF): Provided, That national funds for these programs 
and projects shall be equitably allocated among the regions in proportion to the ratio of 
the homeless to the population; 
(ix) xxx 
(x) Upgrading and modernization of tax information and collection services 
AND OTHER SYSTEMS AND PROCESSES through the use of [computer hardware 
and software] INFORMATION TECHNOLOGY and other means; 
(xi) [I n te r-m u n i ci pa I] [t]Te lecom m u n icat io ns AN D TRANS P 0 RTAT IO N 
services AND FACILITIES, subject to national policy guidelines; and 
(4) For a City: 
All the services and facilities [of the municipality and province] WHICH 
PROVINCES ANd MUNICIPALITIES MAY DELIVER AND PROVIDE MAY ALSO 
APPLY TO CITIES[, and in addition thereto, the following:] 
[(i) Adequate communications and transportation facilities;] 
[(ii) Support for education, police and fire services and facilities;] 
(c) [Notwithstanding the provisions ofl UNLESS OTHERWISE 
PROVIDEDUNDER subsection (b) hereof, public works and infrastructure projects and 
other facilities, programs and services funded by the [National] CENTRAL Government 
under the General Appropriations Act, other special laws, pertinent executive orders 
and those wholly or partially funded from foreign sources, are not [covered under this 
Section] DEVOLVED TO THE LOCAL GOVERNMENT UNITS, except in those cases 
where the local government unit concerned is duly designated as the implementing 
agency for such projects, facilities, programs and services. 
(d) xxx 
(e) [National] CENTRAL GOVERNMENT agencies or offices concerned 
shall 


, 
devolve to local government units the POWERS AND responsibilit[y]lES TO DELIVER 
AND PROVIDE [for the provision of] basic AND OTHER services and facilities, AND 
THE FUNCTIONS AND PROGRAMS enumerated in this Section, within six (6) months 
after the effectivity of this Code, AS AMENDED. 
(9) xxx 
(h) Regional, PROVINCIAL, CITY, MUNICIPAL AND DISTRICT offices of 
[national] CENTRAL GOVERNMENT agencies or offices whose functions are devolved 
to local government units as provided herein shall be phased out within one ( A )  year 
from 
the approval of this Code, AS AMENDED. Said [national] CENTRAL GOVERNMENT 
agencies and offices may establish such field units as may be necessary for monitoring 
purposes and providing technical assistance to local government units. The properties, 
equipment, and other assets of these regional offices shall be distributed to the local 
government units in the region in accordance with the rules and regulations issued by 
the Oversight Committee created under this Code 
(i) The devolution contemplated in this Code shall include the transfer to 
local government units of the FUNDS, records, equipment, and other assets and 
personnel of [national] CENTRAL GOVERNMENT agencies and offices corresponding 
I 
, 
1 
to the devolved powers, functions, and responsibilities. 
Personnel of said [national] CENTRAL GOVERNMENT agencies or 
offices shall be absorbed by the local government units to which they belong or in 
whose areas they are assigned to the extent that it is administratively viable as 
determined by the said oversight committee: Provided, That the rights accorded to such 
personnel pursuant to civil service law, rules and regulations shall not be impaired: 
Provided, further, That regional directors who are career executive service officers and 
other officers of similar rank in the said regional offices who cannot be absorbed by the 
local government unit shall be retained by the [National] CENTRAL Government, 
without any diminution of rank, salary or tenure. 


1 
1 
MUNICIPAL AND! DISTRICT 
OFFICES WHOSE 
FUNCTIONS HAVE BEEN 
DEVOLVED OR PHASED OUT AS HEREIN PROVIDED, §HALL SUBMIT A REPORT 
TO CONGRESS REGARDING THE STATUS OF 
THEIR 
COMPLIANCE 
WITH 
THE DEVOLUTION HEREIN MANDATED ON OR BEFORE JULY OF EVERY 
CALENDAR YEAR. 
SUCH A REPORT SHALL BE USED BY CONGRESS TO 
DETERMINE THEIR RESPECTIVE BUDGET§. 
[(j)] (K) 
To ensure 
the active participation 
of the private sector in local 
governance, local government units may, by ordinance, sell, lease, encumber, or 
otherwise dispose of public economic enterprises owned by them on their propriety 
capacity . 
I 
. Section 20, Paragraphs (a) and (c) of the Code is hereby 
amended to read as follows: 
(a) A city or municipality, [may, through an] BY ordinance passed by the 
sanggunian after conducting public hearings for the purpose, MAY authorize the 
reclassification of agricultural lands and provide for the manner of their utilization or 
disposition in the following cases: (I) when the land ceases to be economically 
feasible and sound for agricultural purposes as determined by the Department of 
I 
Agriculture [or] AND (2) where the land shall have substantially greater economic value 
for residential, commercial, or industrial purposes, as determined by the sanggunian 
concerned: 
Provided, That such reclassification shall be limited to the following 
percentage of the total agricultura! land area at the time of the passage of [the 
ordinance] THIS CODE, AS AMENDED. 
(I) 
For highly urbanized and independent component cities, fifteen 
percent (1 5%); 
For component cities and first to third class municipalities, ten 
percent (loo/,); and 
For fourth to sixth class municipalities, five percent (5%): Provided, 
(2) 
(3) 


~ 
i further, That agricultural lands distributed to agrarian reform 
beneficiaries pursuant to Republic Act Numbered Sixty-six hundred 
fifty-seven 
(R.A. No. 6657), otherwise 
known 
as 
"The 
Comprehensive Agrarian Reform Law", shall not be affected by the 
said reclassification and the conversion of such lands into other 
i 
I 
purposes shall be governed by Section 65 of said Act. 
(b) xxx 
(c) NOTWITHSTANDING ANY LAW TO THE CONTRARY, [The] local 
government units shall [, in conformity with existing laws, continue to prepare] 
RECLASSIFY 
THEIR 
RESPECTIVE AGRICULTURAL 
LAND 
AREAS 
INTO 
INDUSTRIAL, COMMERCIAL AND RESIDENTIAL AND TO BE INCLUDED IN their 
respective comprehensive land use plans enacted through zoning ordinances WITHIN 
EIGHTEEN (18) MONTHS FROM APPROVAL OF THIS CODE, AS AMENDED, [which 
shall be the primary and dominant basis for the future use of land resources,] AND MAY 
BE REVIEWED EVERY FIVE YEARS THEREAFTER; [Provided, That] [t]The 
requirements for 
food 
production, human settlements, 
and 
industrial 
AND 
COMMERCIAL expansion shall be taken into consideration in the preparation of such 
plans. 
(d)xxx 
(e)xxx 
,I Section 25 of the Code is hereby amended to read as follows: 
ervision over 
. - (a) Consistent with the basic policy on local autonomy, the 
President shall exercise general supervision over local government units to ensure that 
their acts are within the scope of their prescribed powers and functions. 
The President shall exercise supervisory authority over provinces, highly 
urbanized cities, independent component cities; through the province with respect to 
component cities and municipalities; and through the city and municipality with respect 
to barangays. 


(b) [National] CENTRAL GOVERNMENT agencies and offices with project 
implementation functions shall coordinate with one another and with the local 
government units concerned in the discharge of these functions. They shall ensure the 
participation of local government units both in the planning and implementation of said 
national projects 
FOR THIS PURPOSE ALL CENTRAL GOVERNMENT AGENCIES 
1 
SHALL FURNISH ,COPIES OF THEIR NATIONAL PROGRAMS, PROJECTS AND 
i 
I 
I 
PLANS TO THE 'LOCAL GOVERNMENT UNIT CONCERNED WITHIN WHOSE 
BOUNDARIES THE 
PROGRAMS, PROJECTS AND 
PLANS ARE 
TO 
BE 
IMPLEMENTED. 
(c) xxx 
(d) xxx 
. Section 26 of the Code is hereby amended to read as follows: 
enanc 
ical 
, - 
It shall be the duty of every [national] 
CENTRAL GOVERNMENT agency or government-owned or -controlled corporation 
authorizing or involved in the planning and implementation of any project or program 
that may cause pollution, climatic change, depletion of non renewable resources, loss of 
cropland, rangeland, or forest cover, and extinction of animal or plant species, to HOLD 
ACTUAL CONSULTATIONS with the local government units, non-governmental 
organizations, and other sectors concerned; and TO explain the goals and objectives of 
"& 
the project or program, its impact upon the people and the community in terms of 
environmental or ecological balance, and the measures that will be undertaken to 
prevent or minimize the adverse effects thereof. 
THE 
CONSULTATION REQUIREMENT AS 
PROVIDED HEREIN 
1 
APPLIES ALSO TO PRIVATE FIRMS OR ENTITIES. 
I . Section 27 of this Code is hereby amended to read as follows: 
rior 
ulfa ti 
. - No project or program OF 
THE CENTRAL GOVERNMENT AGENCIES OR 
PRIVATE SECTOR THAT 
CRITICALLY IMPACTS ON THE ENVIRONMENT shall be implemented [by 


? 
government author,ities unless] WITHOUT the consultations [mentionedIPROVIDED 
FOR in Sections 2 [(c)](D), [and] 26 hereof [are complied with], and THE prior approval 
OF THE MAJORITY OF THE MEMBERS IN A RESOLUTION of the sanggunian 
concerned [is obtained]; Provided, That occupants in areas where such projects are to 
be implemented shall not be evicted unless appropriate relocation sites have been 
provided, in accordance with the provisions of the Constitution AND EXISTING LAWS. 
I 
14. Section 28 of this Code is hereby amended to read as follows: 
cal Chi 
e units of the 
extent of operational supervision and control of local 
chief executives over the police force, and jail management personnel assigned in their 
respective jurisdictions shall be governed by the provisions of Republic Act Numbered 
Sixty-nine seventy-five (R.A. No. 6975), otherwise known as "The Department of the 
Interior and Local Government Act of 1990", and the rules AS AMENDED and 
regulations issued pursuant thereto. 
, Section 37 of the same Code is hereby amended to read as 
follows: 
r 
(Local 
. - (a) There is hereby created a [local] pre-qualification, bids and awards 
committee in every province, city, [and] municipality, AND BARANGAY [which] THAT 
shall be primarily responsible for the conduct of 
pre qualification of contractors, 
bidding, evaluation of bids, and [the] recommendation of awards concerning local 
infrastructure projects. 
The governor, or the city or municipal mayor, shall act as [the] chairman 
OF THE COMMITTEE, with the following as members: 
1 
(1) 
~ The chairman of the appropriations committee of the sanggunian 
concerned; 
(2) 
I 
~ A representative of the minority party in the sanggunian concerned, 
if any, or if there be none, one (I) chosen by said sanggunian from among its members; 


(3) 
The focal treasurer; 
(4) 
Two (2) representatives of non-governmental organizations that are 
represented in the local development council concerned, to be 
chosen by the organizations themselves; [and] 
(5) 
[Any! A PRACTICING certified public accountant from the private 
sector, to be designated by the local chapter of the Philippine 
Institute of Certified Public Accountants, if any; AND 
(6) 
THE LEGAL OFFICER OF THE LOCAL GOVERNMENT UNIT 
I 
' CONCERNED, IF ANY. 
THE IPUNONG 
BARANGAY SHALL ACT AS CHAIRMAN OF THE 
I 
BARANGAY PRE-QUALIFICATION, BIDS AND AWARDS COMMITTEE, WITH THE 
I 
FOLLOWING AS 
EMBERS: 
(1) 
A REPRESENTATIVE OF THE SANGGUNIANG BARANGAY 
CHOSEN FROM AMONG THE MEMBERS; 
1 
(2) THE BARANGAY TREASURER; AND 
(3) ONE (1) REPRESENTATIVE CHOSEN BY THE NON 
GOVERNMENTAL OR PEOPLE'S ORGANIZATION FROM AMONG ITS 
REPRESENTATIVES IN THE BARANGAY DEVELOPMENT COUNCIL. 
Representatives of the Commission on Audit shall observe the proceedings of 
such A committee and THE COMMISSION ON AUDIT shall certify THEREAFTER that 
the rules and procedures for pre-qualification, bids and awards have been complied 
with. 
THE PROCEEDINGS OF THE BARANGAY COMMITTEE SHALL BE 
OBSERVED AND CERTIFIED TO BY THE MUNICIPAL TREASURER, AND/OR BY 
THE AUTHORIZED REPRESENTATIVES OF THE LATTER, RESPECTIVELY. THE 
FOLLOWING CONTRACTS INVOLVING INFRASTRUCTURE PROJECTS ARE 
SUBJECT TO PUBLIC BIDDING, TO WIT: 
(I) THOSE AMOUNTING TO TEN MILLION (PlO,OOO,OOO) PESOS 
' OR MORE IN THE CASE OF PROVINCES, HIGHLY URBANIZED 


AND 
I ND EF EN DENT 
COMPONENT 
CITIES 
AND 
MUNICIPALITIES WITHIN THE METROPOLITAN MANILA AREA, 
THOSE AMOUNTING TO FIVE MILLION (PS,OOO,OOO 00) PESOS 
OR MORE IN THE CASE OF COMPONENT CITIES AND FIRST 
CLASS MU N IC I PALlTlES , 
THOSE AMOUNTING TO THREE MILLION (P3,000,000) PESOS 
OR MORE IN THE CASE OF 
SECOND TO SIXTH CLASS 
MU NlCl PALITIES, AND 
(2) 
(3) 
(4) 
ANY AMOUNT IN THE CASE OF THE BARANGAY, LOCAL 
GOVERNMENT UNITS SHALL NOT SPLIT CONTRACTS FOR 
INFRASTRUCTURE PROJECTS OR FOR THE ACQUISITION 
AND PROCUREMENT OF SUPPLIES, GOODS, EQUIPMENT 
;AND SERVICES SUBJECT OF THE ABOVE PROVISIONS FOR 
ITHE PURPOSE OF EVADING THE MAXIMUM LIMITATIONS 
I 
' SPECIFIED THEREIN. 
I 
(b) Xxx 
(c) xxx 
. Section 38 of the Code is hereby 'amended as follows: 
, - (a) There is hereby created a 
local technical committee in every province, city and municipality to provide technical 
assistance to the local pre-qualification, bids and awards committees. 
It shall be 
composed of the provincial, city or municipal engineer, the local planning and 
development coordinator, and such other officials designated by the local pre- 
qualification, bids and awards committee. 
THE CITY OR MUNICIPAL TECHNICAL COMMITTEE SHALL PROVIDE 
TECHNICAL ASSISTANCE TO THE BARANGAY PRE- QUALIFICATION, BIDS AND 
AWARDS COMMITTEE IN THE LOCAL GOVERNMENT UNIT CONCERNED, UPON 
REQUEST OF THE LATTER. 


1 
L 
(b) The chairman of the local technical committee shall be designated by the 
local pre-qualification, bids and awards committee and shall attend its meeting in order 
to present the reports and recommendations of the local technical committee. 
. Section 46 of the Code is hereby 'amended as follows: 
P 
the governor, OR city or municipal mayor [, or punong 
barangay] is temporarily incapacitated to perform his duties for physical or legal reasons 
such as, but not limited to, leave of absence, travel abroad, and suspension from office, 
the vice-governor, city or municipal vice-mayor [or the highest ranking sangguniang 
barangay member] shall automatically exercise the powers and perform the duties 
and functions of the local chief executive concerned, except the power to appoint, 
suspend, or dismiss employees which can only be exercised if the period of temporary 
incapacity exceeds thirty (30) days. 
IF A TEMPORARY VACANCY OCCURS IN THE OFFICE OF THE GOVERNOR 
OR MAYOR, VICE-GOVERNOR OR VICE-MAYOR, THE HIGHEST RANKING 
SANGGUNIAN MEMBER OR, IN THE CASE OF HIS/HER INABILITY, THE SECOND 
HIGHEST RANKING SANGGUNIAN MEMBER SHALL BECOME THE GOVERNOR, 
1 
I 
I 
VICE-GOVERNOR, MAYOR OR VICE 
MAYOR, AS THE CASE MAY BE. 
SUBSEQUENT 
VACANCIES 
IN 
THE 
SAID 
OFFICE 
SHALL 
BE 
FILLED 
AUTOMATICALLY BY THE OTHER SANGGUNIAN MEMBERS ACCORDING TO 
THEIR RANKING AS DEFINED HEREIN. 
IN CASE OF TEMPORARY INCAPACITY OF THE PUNONG BARANGAY TO 
PERFORM HIS/HER DUTIES FOR PHYSICAL OR LEGAL REASONS, SUCH AS BUT 
NOT LIMITED TO, LEAVE OF ABSENCE, TRAVEL ABROAD, AND SUSPENSION 
FROM OFFICE, THE HIGHEST RANKING SANGGUNIAN MEMBER SHALL 
AUTOMATICALLY ASSUME THE POWERS, DUTIES AND FUNCTIONS OF THE 
PUNONG BARANGAY, EXCEPT THE POWER TO APPOINT, SUSPEND, OR 
DISMISS EMPLOYEES WHICH CAN ONLY BE EXERCISED IF THE PERIOD OF 
TEMPORARY 
INCAPACITY 
EXCEEDS THIRTY 
(30) 
DAYS 
SUBSEQUENT 
I 
, 


I 
L 
I 
I 
VACANCIES IN TljE SAID OFFICE SHALL BE FILLED AUTOMATICALLY BY THE 
OTHER SANGGU~IAN MEMBERS ACCORDING TO THEIR RANKING AS DEFINED 
HEREIN. 
. Section 47 of the Code is hereby amended to read as follows: 
. - (a) Leaves of absence of 
local elective officials shall be approved as follows: 
(I) 
Leaves of absence of the governor and the mayor of a highly 
urbanized 
city or and independent component city shall be approved by the President or 
his duly authorized representative; 
(2) Leaves of absence of a vice-governor or a city or municipal vice-mayor 
shall be approved by the local chief executive concerned[: Provided, That]. [t]The 
leaves of absence of the members of the sanggunian and its employees shall be 
approved by the vice-governor or city or municipal vice-mayor concerned; 
(3) Leaves of absence of the component city or municipal mayor shall be 
approved by the governor; and 
(4) Leaves of absence of a punong barangay shall be approved the city or 
municipal mayor[: Provided, That]. [IILeaves of absence of sangguniang 
barangay members shall be approved by the punong barangay. 
I 
I 
(b) Whimever the application for leave of absence hereinabove specified 
is not acted upon within [five (5)] THREE (3) working days after receipt thereof, the 
application for leave of absence shall be deemed approved. 
. Subparagraph 49 of the Code is hereby amended by adding a 
new subparagraph to be known as subparagraph “C” which shall read as follows: 
r. - 
(a) xxx 
(b) xxx 


I 
, 
(C) 
THE 
VICE-GOVERNOR, 
VICE-MAYOR 
OR 
ANY 
ACTING 
PRESIDING OFFICER MAY TEMPORARILY RELINQUISH THE CHAIR TO THE 
MAJORITY FLOOR LEADER OR TO ANY 
MEMBER CHOSEN 
BY THE 
SANGGUNIAN, T6 PROPOSE OR DEFEND AN ORDINANCE OR A RESOLUTION, 
OR TO PARTICIPATE IN A DEBATE OR DISCUSSION ON THE FLOOR OF THE 
SANGG U N IAN. 
I 
(D) ISSUE SUBPOENA DUCES TECUM AND AD TESTIFICANDUM 
WHEN AUTHORIZED BY A RESOLUTION OF THE SANGGUNIAN CONCERNED. 
n 60 of the Code is hereby amended to read as follows: 
Y 
, - An elective local official 
may be discipline, suspended or removes from office on any of the following grounds: 
(a)xxx 
(b)xxx 
(c) xxx 
(d)xxx 
(9) Application for, or acquisition of, foreign citizenship or residence or the 
status of an immigrant of another country; [and] 
(H) 
FAILURE 
OR 
REFUSAL 
OF 
THE 
PUNONG-BARANGAY, 
MUNICIPAL OR CITY MAYOR, AND PROVINCIAL GOVERNOR CONCERNED TO 
CONVENE THE MEETINGS OF THE LOCAL DEVELOPMENT COUNCIL AND 
OTHER LOCAL SPECIAL BODIES IS SUBJECT TO DISCIPLINARY ACTION AS 
PROVIDED FOR IN THIS CODE; 
I 
I 
1 
[(h)] (j) Such other grounds as may be provided in this Code and other 
laws. 
An elective local official may be removed from office on the grounds enumerated 
above by order of the proper court. 


1 
I 
. Section 61 of the Code is hereby amended to read as follows: 
verified] AN ADMINISTRATIVE complaint against [any erring] A local elective official 
[shall be prepared as follows] MUST BE VERIFIED AND FILED WITH: 
(a)xxl 
(b)[A complaint against any elective official of a municipality shall be filed 
before the sangguniang panlalawigan whose decision may be appealed to the Office of 
the President] TH L SANGGUNIANG PANLALAWIGAN, WHOSE DECISIONS ON 
QUESTIONS OF FACT IS FINAL AND EXECUTORYl WHEN THE COMPLAINT IS 
AGAINST AN OFFICIAL OF A COMPONENT CITY OR A MUNICIPALITY. 
(c )[A complaint against any elective barangay official shall be filed before 
the sangguniang panlungsod or sangguniang bayan concerned whose decision shall be 
final and executory.] THE SANGGUNIANG PANLUNGSOD OR SANGGUNIANG 
BAYAN CONCERNED, WHOSE DECISION ON QUESTIONS OF FACT IS FINAL AND 
EXECUTORY, WHEN THE COMPLAINT IS AGAINST A BARANGAY OFFICIAL. 
tion 63 of the Code is hereby amended to read as follows: 
, - (a) Preventive suspension may 
be imposed: 
(I) 
By the President, if the respondent is an elective official of a province, a 
highly urbanized or an independent component city; or MUNICIPALITY WITHIN THE 
METROPOLITAN MANILA AREA 
(2) By the governor, if the respondent is an elective official of a component city 
, 
~ 
or municipa1ity;or i 
1 
(3)By the mayor, if the respondent is an elective official of the barangay. 
A LOCAL ELECTIVE OFFICIAL WHO IS CHARGED CRIMINALLY MAY 
I 
BE PREVENTIVE~Y SUSPENDED ONLY BY THE COURT THAT HAS ACQUIRED 
JURISDICTION OVER THE PERSON OF THE ACCUSED. THE PREVENTIVE 
SUSPENSION SHALL NOT EXCEED A PERIOD OF TWO (2) MONTHS. 


* 
1 
a 
Section 70 of the Code is hereby amended by deleting 
members of the municipalities and component cities; 
concerned during 
elected, 
he election in which the local official sought to be recalled was 


I 
I 
IN PROVINCES OR 
CITIES WHICH 
HAVE MORE THAN 
ONE (1) 
CONGRESSIONAL DISTRICT, AT 
LEAST TEN 
PERCENT (10%) OF THE 
PETITIONERS SHALL COME FROM EACH CONGRESSIONAL DISTRICT THEREIN. 
A PETITION OF A RECALL OF AN ELECTIVE SANGGUNIAN KABATAAN 
OFFICIAL MAY BE VALIDLY COMMENCED BY PETITION OF AT LEAST TEN 
PERCENT (10%) OF THE TOTAL NUMBER OF VOTERS REGISTERED IN THE 
ROSTER OF THE KATIPUNAN NG KABATAAN DURING THE ELECTION IN WHICH 
THE SANGGUNIAN KABATAAN SOUGHT TO BE RECALLED WAS ELECTED IN 
THE LOCALITY. 
(1) 
xxx 
(2) 
xxx 
, Section 71 of the Code is hereby amended to read as follows: 
I!. - Upon the filing of a valid [resolution or] 
petition for recall with the [appropriate] PROPER local office of the Comelec, the 
Commission or its duly authorized representative shall set the date of the election on 
recall, which shall not be later than thirty (30) days after the filing of the [resolution or] 
petition [for recall] in the case of [the] barangay, city, or municipal officials, and forty- 
five (45) days in the case of provincial officials. The official [or officials] sought to be 
recalled shall automatically be considered [as] A duly registered candidate [or 
candidates] to the pertinent position[s] and, like other candidates, shall be entitled to be 
voted upon. 
. Section 77 of the Code is hereby amended to read as follows: 
es 
- The chief executive of every local government unit shall be responsible for human 
resource [and] development in his unit and shall take all personnel actions [in 
accordance with] PURSUANT TO the Constitutional provisions [on civil service, 
pertinent] AND laws[, and rules and regulations thereon,] including such policies, 
guidelines and standards as the Civil Service Commission may [establish] 
, 


, 
b 
1 
PROMULGATE[: Provided, That]. [t]The locd chief executive may employ emergency 
or casual employees or laborers paid on the daily wage or piecework basis and hired 
through job orders for local projects authorized by the sanggunian concerned, without 
need of approval or attestation [ made ] by the Civil Service Commission[: Provided, 
further, That] [t]The period of employment of emergency or casual laborers AND 
EMPLOYEES as provided in this Section shall not exceed six (6) months. WHEN A 
CASUAL OR CONTRACTUAL EMPLOYEE WHO HAD CONSECUTIVELY SERVED 
AS SUCH FOR FIVE (5) YEARS IS HIRED AGAIN, THE EMPLOYEE SHALL BE 
EXTENDED A PERMANENT APPOINTMENT SlJBJECT TO CIVIL SERVICE LAW, 
RULES AND REGULATIONS. 
3. Section 79 of the same Code is hereby amended to read as 
fo I lo ws : 
. - (A) No person shall be 
I 
appointed in the career service of the local government if he is related within the fourth 
civil degree of consanguinity or affinity to the appointing or recommending authority. 
THIS PROHIBITION SHALL NOT APPLY TO PROMOTIONAL APPOINTMENTS 
WHERE THE RELATIVES TO BE APPOINTED ARE NEXT IN RANK AND QUALIFIED 
TO BE APPOINTED TO THE POSITIONS CONCERNED. 
(B) NO APPOINTMENT, IN A TEMPORARY CAPACITY, OR DESIGNATION AS 
OFFICER-IN-CHARGE, TO A VACANT REGULAR POSITION SHALL BE EXTENDED 
FOR MORE THAN SIXTY (60) DAYS. AT THE EXPIRATION OF THE PERIOD, THE 
APPOINTMENT IS DEEMED TERMINATED AND THE OFFICER NEXT IN RANK, 
SHALL AUTOMATICALLY ASSUME THE POSITION AS OFFICER-IN-CHARGE 
UNTIL A QUALIFIED REPLACEMENT IS PERMANENTLY APPOINTED. 
CTI 
. Section 80 of the Code is hereby amended to read as follows: 
(a) Xxx 
(b) xxx 


(c) The personnel selection board shall be headed by the local chid executive, 
and its members shall De determined by resolution of the sanggunian 
concerned. A representative of the Civil Service Commission, if any, and the 
personnel officer of the local government unit concerned shall be ex officio 
members of the board. 
THE POWERS AND FUNCTIONS OF THE HEAD OF THE SELECTION BOARD 
SHALL NOT BE DELEGATED. NO APPOINTMENT TO A PERMANENT OR 
TEMPORARY POSITION SHALL BE EXTENDED BY THE CHIEF EXECUTIVE 
WITHOUT THE ENDORSEMENT OF THE PROPER SELECTION BOARD. 
THE SANGGUNIAN MAY CREATE A SELECTION BOARD FOR ITS OWN 
PERSONNEL, WITH ITS OFFICIAL PRESIDING OFFICER AS CHAIRMAN WITH A 
REPRESENTATIVE OF A CIVIL SERVICE COMMISSION AS EX-OFFICIO MEMBER. 
. Section 81 of this code is hereby amended to read as follows: 
n o f L  
mployees. - The 
compensation of local officials and personnel shall be determined by the sanggunian 
concerned[: Provid&, That]. [t]The increase in compensation of elective local officials 
j 
shall take effect only after the terms of office of those approving such increase shall 
have expired[: Provided, further, That]. SUBJECT TO THE PROVISION ABOVE 
I 
STATED, the increase in compensation of the appointive officials and employees shall 
take effect as provided in the ordinance authorizing such increase[: Provided, however, 
That said]. THE increases shall not exceed the limitations on budgetary allocations for 
personal services provided under Title Five Book II of this Code[: Provided, finally, 
That]. [s]Such compensation SHALL [may] be based upon the pertinent provisions of 
Republic Act Numbered Sixty-seveq fifty-eight (R.A. 6758), otherwise known as the 
"Compensation and Position Classification Act of 1989." 
ollows: 
I - In any local government 
units, administrative investigation may be conducted by a person or a committee duly 


I 
I 
authorized by the APPOINTING AUTHORITY [local chief executive]. Said person or 
committee shall co duct hearings on the cases brought against appointive local officials 
and employees and submit their findings and recommendations to the local chief 
1 
executive concerned within fifteen (15) days from the conclusion of the hearings. The 
administrative cases herein mentioned shall be decided within [ninety (go)] SIXTY (60) 
days from the time of the FILING THEREOF [respondent is formally notified of the 
charges]. 
FAILURE OF THE OFFICIALS CONDUCTING THE INVESTIGATION TO 
DECIDE THE ADMINISTRATIVE CASES WITHIN SIXTY DAYS FROM THE FILING 
THEREOF SHALL BE A GROUND FOR THE FILING OF ADMINISTRATIVE ACTION 
AGAINST THEM. 
ECTl 
. Section 99 of the Co 
to read as follows: 
. - The province, city or 
municipal school board shall USE THEIR SHARES OF THE SPECIAL EDUCATION 
FUND FOR THE DISCHARGE OF ANY OR ALL OF THE FOLLOWING FUNCTIONS 
(a) xxx 
(b) xxx 
(c) xxx 
I 
(d) Recommend changes in the names of public schools within the territorial 
jurisdiction of the local government unit for enactment by the sanggunian concerned [.I; 
, 
(E) PROVIDE FUNDS FOR THE ACQUISITION OF SCHOOL SITES, SCHOOL 
BUILDINGS, EQUIPMENT, BOOKS AND LEARNING MATERIALS AND THE LIKE, 
SUBJECT TO THE PERTINENT PROVISIONS OF THIS CODE; 
(F) GRANT OF NON-TAXABLE MONTHLY AUGMENTATION ALLOWANCES, 
WHENEVER FEASIBLE; AND 
(G) PROVIDE FUNDS FOR SCHOLARSHIPS AND ALLOWANCES WITH 
PRIORITY FOR POOR AND DESERVING STUDENTS. 
The Department of Education, Culture and Sports shall consult the local school 
board on the appointment of division superintendents, district supervisors, school 
principals, and [other school officials] TEACHING PERSONNEL TO THE END THAT 


I 
I 
I 
' QUALIFIED R E S I ~ E N T S  OF THE LOCAL GOVERNMENT UNIT CONCERNED 
1 
SHALL BE GIVEN PRIORITY. 
SUCH CONSULTATION IS PREREQUISITE TO SAID APPOINTMENTS, AND 
THE  SECRETARY^ OF THE SCHOOL BOARD CONCERNED SHALL CERTIFY TO 
I 
COMPLIANCE TH~EREWITH. FAILURE TO FOLLOW THIS PROCESS SHALL 
NULLIFY THE APPOINTMENT. 
TI 
28. 
Section I00 of the Code is hereby amended by adding 
paragraphs to read as follows: 
.s 
(a) xxx 
(b) xxx 
(c) The annual school board budget shall give priority to the following: 
(I) 
Construction, repair, and maintenance of school buildings and other 
facilities of public elementary and secondary schools, SUBJECT TO THE 
PERTINENT PROVISIONS OF THIS CODE; 
(2) Establishment and maintenance of extension classes AND NON-FORMAL 
EDUCATION AND TRAINING PROGRAMS where necessary; [and] 
(3) HOLDING OF [S]sports activities at the division, district, municipal, and 
barangay levels; 
TI 
. Section 102 of the Code is hereby amended to read as follows: 
. - (a) There shall be 
established a 
lopal health board in every province, city, or municipality, [T]the 
composition of the local health board OF WHICH shall be as follows: 
i 
(1) The provincial health board shall be headed by the governor as chairman, the 
provincial health officer as vice chairman, and the chairman of the committee 
on health of the sangguniang panlalawigan, [a] TWO (2) representatives 
from the private sector or non governmental organizations involved in health 


1 
I 
sector or 
services, and a representative of the Department of Health in the province, as 
non-governmental organizations involves in health services, and a 
members; 
(2) The city health board shall be headed by the city mayor as chairman, the city 
(3) The municipal health board shall be headed by the municipal mayor as 
chairman, the municipal health officer as vice chairman of the committee on 
health the of sangguniang bayan, [a] TWO (2) representatives 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. 
(b) The functions of the local health board shall be: 
(1) 
To propose to the 
sanggunian concerned BY 
MEANS OF 
ARESOLUTION DULY APPROVED AND in accordance with standards 
and criteria set by SECTION 17 (9) OF THIS CODE AND the Department 
of Health, annual budgetary allocations for the operation, maintenance 
and IMPROVEMENT of health facilities and services within the 
municipality, city or province, as the case may be; 
(2) 
To serve as a TECHNICAL AND an advisory committee to 
thesanggunian concerned AND THE LOCAL DEVELOPMENT COUNCIL 
on health matters such as, but not limited to, the necessity for, and 
application of, local appropriations for public health FACILITIES AND 
SERVICES [purposes]; and 
i 
(3) 
Consistent with the technical and administrative standards of the 
Department of Health, create committees which shall GUIDE [advise] local 
health agencies on matters such as but not limited to, INTER-LOCAL 
GOVERNMENT UNIT AND LOCAL GOVERNMENT 
UNITS AND 
DEPARTMENT OF HEALTH COOPERATION AND AGREEMENTS, 
I 


personnel selection and promotion, bids and awards grievance and 
complaints, personnel discipline, budget review, operations review and 
similar f u nctions . 
chairman must be 
. Section 103 of the Code is hereby amended to read as follows: 
present during meetings where budgetary proposals are [being] 
. - (a) The Board shall meet at 
I 
I 
least once a month or as often as may be necessary. 
(b) A majority of the board shall constitute a quorum, but the chairman or vice 
, - In cases of 
epidemics, pestilence, and other widespread public health dangers, the Secretary of 
Health may, upon the direction of the President, and in consultation with the local 
government unit concerned , temporarily assume direct supervision and control over 
health operations in any local government unit for the duration of the emergency, but in 
no case exceeding a cumulative period of six (6) months. With the concurrence of the 
local government unit concerned, the period for such direct national control and 
supervision may be [further] extended. 
IN CASES OF EPIDEMICS, PESTILENCES, AND OTHER WIDE SPREAD 
PUBLIC HEALTH DANGERS INVOLVING AGRICULTURE AND FISHERIES, THE 
SECRETARY OF AGRICULTURE 
MAY, UPON THE DIRECTION OF THE 
PRESIDENT, AND IN CONSULTATION WITH THE LOCAL GOVERNMENT UNIT 
CONCERNED, TEMPORARILY ASSUME DIRECT SUPERVISION AND CONTROL 
OVER HEALTH OPERATIONS IN ANY LOCAL GOVERNMENT UNIT FOR THE 
I 
DURATION OF TI- 
PERIOD OF SIX 
I 
E EMERGENCY, BUT IN NO CASE EXCEEDING A CUMULATIVE 
(6) 'MONTHS. 
WITH THE CONCURRENCE OF THE LOCAL 


r 
GOVERNMENT UNIT CONCERNED, THE PERIOD FOR SUCH DIRECT NATIONAL 
CONTROL AND SUPERVISION MAY BE EXTENDED. 
. Section 107 of the Code is hereby amended to read as follows: 
L 
t 
cils, - 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] WITH the following AS members: 
(I) Members of the sangguniang barangay; 
(2) Represeitatives of non-governmental organizations operating in the arangay, 
i 
who shal constitute not less than one fourth (1/4) of the members of the fully 
organized councils; AND 
I 
(3) A MEMBER OF CONGRESS OR AN AUTHORIZED representative [of the 
I 
congressman]. 
(b) The city or municipal development council shall be headed by the mayor, 
[and shall be composed oq WITH the following AS members: 
(I) All punong barangay[s] in the city or municipality WHERE THERE ARE 
TWENTY (20) OR LESS BARANGAY A CITY OR MUNICIPALITY WITH 
MORE THAN TWENTY (20) BARANGAY SHALL BE ENTITLED TO 
TWENTY (20) REPRESENTATIVES PLUS ONE (I) REPRESENTATIVE 
FOR EVERY ADDITIONAL TWENTY (20) BARANGAY OR FRACTION 
THEREOF DULY ELECTED BY THE PUNONG BARANGAY THEMSELVES. 
(2) The chairmen of the committees on appropriations AND PUBLIC WORKS of 
the sangguniang panlungsod or sanggunian bayan concerned; 
(3) [The congressman ] A MEMBER OF CONGRESS or [his] AN AUTHORIZED 
representative; [and] Representatives of non-governmental organizations 
operating in the city or municipality, as the case may be, who shall constitute 
not less that one-fourth (1/4) of the members of the fully organized council. 
AT LEAST TWENTY FIVE PERCENT (25%) OF THE MEMBERS OF THE 
I 
CITY OR'MUNICIPAL DEVELOPMENT SHALL CONSTITUTE A QUORUM. 


c 
i 
(c) The provincial development council shaii be headed by the governor, [and 
shall be composed of the] WITH THE following AS members: 
(I) 
All mayors of component cities and municipalities; 
(2) The chair[men] of the committees on appropriations AND PUBLIC WORMS of 
the sangguniang panlalawigan; 
(3) The congressman] ONE REPRESENTATIVE FOR EVERY MEMBER OF 
CONGRESS [or his representative]; and 
(4) Representatives of the non-governmental organizations operating in the 
province, who shall constitute not less than one-fourth (%) of the members of 
the fully organized council 
THE LEAGUE OF PROVINCES, LEAGUE OF CITIES, LEAGUE OF 
MUNICIPALITIES AND LlGA NG MGA BARANGAY SHALL MONITOR COMPLIANCE 
I 
I 
I 
WITH THIS S E C T I ~ N  
BY THEIR RESPECTIVE LOCAL GOVERNMENT UNITS AND 
I 
REPORT TO CONGRESS, THROUGH THE OVERSIGHT COMMITTEE ON 
DEVOLUTION, WITHIN NINETY (90) DAYS FROM APPROVAL OF THIS CODE, AS 
I 
I 
AMENDED, AND E~VERY JANUARY THEREAFTER. 
(d) xxx 
. Section 108 of the Code is hereby amended to read as follows: 
Within 
[a period of] sixty (60) days from the start of THE organization of local 
development councils, the non-governmental organizations, THROUGH THEIR 
RESPECTIVE FEDERATIONS OR ASSOCIATIONS, shall choose from among 
themselves their representatives to said councils. The local sanggunian concerned 
shall accredit ONLY non-governmental organizations RECOMMENDED BY THEIR 
RESPECTIVE FEDERATIONS OR ASSOCIATIONS, subject to such criteria as may be 
provided by law AND IMPLEMENTING RULES AND REGULATIONS. IN CASE THERE 
IS 
NO 
FEDERATION 
OR 
ASSOCIATION 
OF 
NON-GOVERNMENTAL 
ORGANIZATIONS IN THE LOCALITY, THE EXISTING NON-GOVERNMENTAL 


I 
ORGANlZATlONS 
SHALL 
CHOOSE 
FROM AMONG 
THEMSELVES 
THEIR 
REPRESENTATIVES TO THE COUNCIL. 
. Section 110 of the Code is hereby amended to read as follows: 
E?C 
, - 
The local development 
councils shall meet [at least once every six (6) months] FOUR (4) TIMES A YEAR: IN 
MARCH, JUNE, SEPTEMBER AND DECEMBER, or as often as may be necessary 
AND SHALL BE CONVENED BY THE PUNONG BARANGAY, MUNICIPAL OR CITY 
MAYOR AND PROVINCIAL GOVERNOR CONCERNED. 
CTJ 
. Section 112 of the Code is hereby amended to read as follows: 
s - The Local 
Development council SHALL [may] form sectoral or functional committees WHICH 
SHALL 
INCLUDE 
A 
COMMITTEE 
FOR 
SUSTAINABLE ENVIRONMENTAL 
MANAGEMENT to assist them on the performance of their functions. 
I 
I 
I 
36. Section 114 of the Code is hereby amended to read as follows. 
a) The policies, programs and 
projects proposed 
councils shall be submitted to the 
sanggunian concerned for appropriate 
action 
UNLESS OTHERWISE ADOPTED 
THROUGH LOCAL INITIATIVE. 
by the local development 
IF WITHIN THIRTY (30) CALENDAR DAYS THE POLICIES, PROGRAMS AND 
FROJECTS SUBMITTED BY THE LOCAL DEVELOPMENT COUNCIL CONCERNED 
ARE NOT MODIFIED OR DISAPPROVED BY THE SANGGUNIAN, THE SAME SHALL 
BE 
DEEMED APPROVED AND 
THE 
FUNDS 
NECESSARY 
FOR 
THEIR 
IMPLEMENTATION PURSUANT TO THE PRIORITIES SET OUT IN THE ANNUAL 
INVESTMENT PLAN SHALL THEREAFTER BE ALLOCATED BY THE SANGGUNIAN 
CONCERNED. 


I 
FAILURE ON THE PART OF THE SANGGUNIAN CQNCERNED 7"O 
I 
ALLOCATE FUN& 
SHALL RENDER THE ANNUAL BUDGET OF THE LOCAL 
GOVERNMENT CONCERNED INOPERATIVE WITHOUT PREJUDICE TO THE 
LOCAL OFFICIALS CONCERNED BEING SUBJECTED TO ADMINISTRATIVE 
SANCTIONS 
The local development plans THUS approved by their respective sanggunian 
[may] SHALL be integrated [with] INTO the development plans of the next higher level 
of local development council. 
SECTION 37. Section 7 15 of the Code is hereby amended to read as follows: 
Section 115. Budget / n ~ o r ~ a ~ i o n .  
- WITHIN JANUARY OF EVERY 
YEAR, [Tithe Department of the Budget and Management shall furnish the various local 
development councils information on financial resources and budgetary allocations OF 
NATIONAL FUNDS FOR PROGRAMS AND PROJECTS applicable to their respective 
jurisdiction lo guide them in their planning functions. 
SECTION 38. Section 116 of the Code is hereby amended to read as follows: 
Section 116. 
Organization. - There is hereby established in every 
province, city and municipality a local peace, LAW and order council, pursuant to 
~ 
Executive Order Nu:mbered Three Hundred Nine (E.O. No. 309), as amended, Series of 
I 
-, 
1988 IN ADDITION, NOT MORE THAN TWO (2) REPRESENTATIVES ELECTED-BY 
I 
THE ACCREDITED NON-GOVERNMENTAL OR PEOPLES ORGANIZATIONS MAY 
REPRESENT THE SAID ORGANIZATIONS IN THE COUNCIL. [The local peace and 
order councils shall have the same composition and functions as those prescribed by 
the sard executive order] 
SECTION 39. Section 117 of the Code is hereby amended to read as follows: 
Section 117. 
stab lis h men t 
nomic 
Zones. - The establishment by law of autonomous special economic zones in selected 


, 
I 
I 
I 
' areas of the counlry shall be subject to concurrence by the local governrnerlt units 
included therein. 
1 
ALL IDENTIFIED SPECIAL ECONOMIC ZONES ENUMERATED IN SECTION 5 
OF R A 7916, OTHERWISE KNOWN AS THE SPECIAL ECONOMIC ZONE ACT OF 
1995 WHICH HAJE NOT YET BEEN OFFICIALLY ESTABLISHED UPON THE 
APPROVAL OF THIS ACT, SHALL BE SUBJECT TO THE PROVISION ABOVE- 
MENTIONED. 
SECTION 40. Section 118 of the Code is hereby amended to read as follows: 
Section 118. Jurisdictional 
Dispute. - Boundary disputes between and among local government units shall, as 
much as possible, be settled amicably. To this end: 
(a) xxx 
(b) Boundary disputes involving two (2) or more municipalities OR COMPONENT 
CITIES within the same province shall be referred for Settlement to the sangguniang 
panlalawigan concerned. 
(c) Boundary disputes involving municipalities, or component cities of different 
provinces shall be jointly referred for settlement to the sanggunians of the provinces 
concerned. 
(d) Boundary disputes involving :q.component city or municipality on the one hand 
and a highly urbanized city on the other, or two (2) or more highly urbanized citie<"shaII 
be jointly referred foy settlement to the respective sangguniang of the parties; 
., 4 
-1 - 
~ 
I 
(ej In the eve,nt the sanggunian fails to effect an amicable settlement within sixty 
(60) days from the date the dispute was referred thereto, it shall issue a certification to 
that effect. Thereafter, the dispute shall be formally tried by the sanggunian concerned 
which shall decide the issue within sixty (60) days from [the date of the] ITS RECEIPT 
OF THE certification referred to above. 


t 
. Section 120 of the Code is hereby amended to read as follows 
, - 
Local initiative is the legal 
process whereby the registered voters of a local government unit may directly propose, 
enact, or amend any ordinance OR RESOLUTION 
I 
I . Section 121 of the Code is hereby amended to read as follows: 
- 
The power .of local initiative and referendum may be exercised by all registered voters of 
the provinces, cities, municipalities, and barangays. 
43. Section 122 of the is hereby amended to read as follows: 
- (a) Not less than one 
thousand (1,000) registered voters in case of provinces and cities, one hundred (100) 
in case of municipalities, and fifty (50) in case of barangays may file a petition with the 
sanggunian concerned proposing the adoption, enactment, repeal, or amendment of an 
ordinance . 
(b) xxx 
(c) xxx 
(d) xxx 
(e) Proponent shall have a (90) days in case of provinces and cities, sixty (60) 
days in case of municipalities, and thirty (30) days in case of barangays, from notice 
mentioned in subsection (b) hereof to collect the required number of signatures. AT 
LEAST TWO PERCENT (2%) OF THE SIGNATURES GATHERED FOR A LOCAL 
INITIATIVE IN PROVINCES, CITIES, OR MUNICIPALITIES SHALL COME FROM 
RESIDENTS OF EVERY BARANGAY THEREIN. 
I 
I . Section 125 of the Code is hereby amended to read as follows: 
bl 
. - Any proposition or 
ordinance approved through the system of initiative and referendum as herein provided 
shall not be AMENDED [repealed], modified or [amended] REPEALED by the 


sanggunian concemed within six (6) months from the date of ITS approval. 
[period shall be] 
THEREAFTER 
THE 
PROPOSITION 
OR 
ORDINANCE 
OR 
RESOLUTION 
CONCERNED 
MAY 
BE AMENDED, 
MODIFIED OR 
REPEALED 
BY THE 
SANGGUNIAN BY THE VOTE OF THREE FOURTHS (314) OF ALL ITS MEMBERS. 
[thereof, and may be amended, modified or repealed by the sanggunian within three 
(3) years thereafter by a vote of three-fourths of all its members: Provided, That] [illn 
THE case of barangays, the PROPOSITION OR ORDINANCE OR RESOLUTION 
I 
I 
eighteen (18) months FROM [after the] ITS approval [thereofl. 


1 
r 
seeks [admission 
, -When used in this Title, the term: 
(a) xxx 
(b) xxx 
I 
(c) "Amusement Places" - ARE PLACES THAT PROVIDE AMUSEMENT OR 
to] entertainment [oneselfl by 
[seeing or viewing the show] 
. Section 133, Paragraph (d), (I) and (0) of the Code are hereby 
amended to read as follows: 
io 
xi 
, - Unless othetwise provided herein, the exercise of the taxing 
powers of provinces, cities, municipalities, and barangays shall not extend to the levy of 
the following: 
~ 


(a) xxx 
(b) xxx 
(d) Customs duties AND registration fees of vessel WITH TONNAGE FIVE (5) 
TONS AND ABOVE, [and] wharfage on wharves, tonnage dues, and all other kinds of 
customs fees, charges and dues except wharfage on wharves constructed, [and] 
maintained OR OPERATED by the local government unit concerned OR BY A 
PRIVATE PERSON OR ENTITY; 
(e) xxx 
(f) xxx 
(9) xxx 
, 
(h) Excise taxes [on articles enumerated under the National Internal Revenue 
Code, as amended,] and OTHER taxes, fees or charges on petroleum products; 
( I )  Taxes[, f es or charges] for the registration of motor vehicles and for the 
issuance of all kinds of licenses or permits for the driving thereof except tricycles AND 
f 
I 
PUBLIC UTILITY JEHICLES 
OPERATING WITHIN THE PROVINCE; 
i 
(m) 
xxx 
(n) Taxes, fees or other charges, on [Countryside and Barangay Business 
Enterprises and] cooperatives duly registered under [R.A. 681 0 and] Republic Act 
Numbered Sixty-nine hundred thirty-eight 
(R. A. 6938) otherwise known as the 
"Cooperative Code of the Philippines" [respectively]; and 
(0) Taxes [, fees or charges] of any kind on the [National] CENTRAL 
Government, its agencies and instrumentalities, and local government units[.], EXCEPT 
QUASI-PUBLIC CO RPO RAT1 ONS , 
GOVERNMENT BANKS 
~ 
F I NAN C I N G AND 
INVESTMENT 
INSTITUTIONS, 
GAMBLING 
AND 
GAMING 
ENTERPRISES 
OPERATED 
BY 
THE 
CENTRAL 
GOVERNMENT 
OR 
ITS 
AGENTS 
OR 
INSTRUMENTALITIES, OR CONTRACTED OUT BY IT TO FOREIGN OR DOMESTIC 
CORPORATIONS, INDIVIDUALS OR ENTITIES, WHICH HAVE BEEN GIVEN 
PERMITS BY THE LOCAL GOVERNMENT UNITS. 


. Section 136 of the Code is hereby amended to read as follows: 
. - The 
province may impose a tax on the business of persons engaged in the printing and/or 
publication of books, cards, posters, leaflets, handbills, certificates, receipts, pamphlets, 
and others of similar nature, at a rate not exceeding fifty percent (50%) of one percent 
(I 
Oh) of the gross annual receipts for the preceding calendar year. 
In the case of a newly started business, the tax shall not exceed one-twentieth 
(1/20) of one (IYo) of the capital investment. 
In the succeeding calendar year, 
regardless of when the business started to operate, the tax shall be based on the gross 
receipts for the preceding calendar year, or any fraction thereof, as provided herein; 
I 
The receipts from the printing and/or publishing of books or other reading 
materials prescribed by the Department of Education, Culture and Sports as school 
texts or references shall be exempt from the tax herein imposed. 
I 
PROVIDED, THAT SEVENTY PERCENT (70%) OF THE PROCEEDS OF THE 
I 
TAX MENTIONED’ IN THIS SECTION SHALL ACCRUE TO THE PROVINCE AND 
I 
THIRTY PERCENT (30%) SHALL ACCRUE TO THE MUNICIPALITY WHERE THE 
BUSINESS IS LOCATED. 
I 
. Section 137 of the Code is hereby amended to read as follows. 
x. - Notwithstanding any exemption granted 
by any law or other special laws, the province may impose a tax on ANY business[es] 
enjoying a franchise GRANTED BY CONGRESS, A CENTRAL GOVERNMENT 
AGENCY OR A LOCAL GOVERNMENT UNIT, INCLUDING POWER GENERATION, 
TRANSM I SS IO N AND Dl STRl BUT10 N , TELECOMMU N CAT1 ONS, ICE PLANTS AND 
STORAGE FACILITIES, LEGAL GAMBLING OR GAMING ACTIVITIES, AND OTHER 
SIMILAR BUSINESSES, BASED ON INCOME REALIZED WITHIN ITS TERRITORIAL 
JURISDICTION, at a rate not exceeding fifty percent (50%) of one percent (1%) of 


d 
I 
1 
the gross annual 
b 
receipts for the preceding calendar year [based on the income receipt, 
n 
rea 
. - The province may levy and collect not more than ten percent (loo/,) of 
fair market value in the locality per cubic meter of ordinary stones, sand, gravel, earth, 
and other resources as defined in the Internal Revenue Code, as amended, extracted 
from public lands or from the beds of seas, lakes, rivers, streams, creeks, and other 
public waters within its territorial jurisdiction. 
The permit to extract sand, gravel, and other quarry resources shall be issued 
[exclusively] by the provincial governor [, pursuant to the ordinance of the sangguniang 
panlalawigan] UPON THE RECOMMENDATION OF THE MAYOR OF THE CITY OR 
MU N IC I PALlTY C 0 N C E RN E D . 
The proceeds of the tax on sand, gravel and other quarry resources shall be 
distributed as follows: 
(1) Province - Thirty percent (30%); 
(2) Component City or Municipality where the sand, gravel, and other quarry 
resources are extra:cted - Thirty percent (30%); and 
1 
I 
(3) Barangay where the sand, gravel, and other quarry resources are extracted - 
Forty percent (40%) 
th 
Y 
read as 
x. (a) The province may levy an annual 
professional tax on each person engaged in the exercise and practice of his profession 
requiring government examination at such REASONABLE amount and [reasonable] 
classification as the sanggunian panlalawigan may PROVIDE. [determine but shall not 
in no case exceed Three hundred pesos (P300.00).] 


~ 
I 
ucfs. - (a) The province may levy an annual fixed tax for every truck, van or any 
vehicle used by manufacturers, producers, wholesalers, dealers, or retailers in the 
delivery or distribution of distilled spirits, fermented liquors, softdrinks, cigars and 
cigarettes, and other products as may be determined by the sangguniang panlalawigan, 
to sales outlets, or consumers, whether directly or indirectly, within the province [in an 
amount not exceeding Five hundred pesos (PSOO.OO)]. 
unici 
. Section 143 of the Code is hereby amended to read as follows: 
ersi 
. - The municipality may impose taxes on 
ANY BUSINESS AT THE RATE NOT EXCEEDING TWO AND A HALF PERCENT 
(2%%) BASED ON THE GROSS SALES OR RECEIPTS IN THE PRECEDING 
CALENDAR YEAR. 
[(c) On exporters, and on] IN THE CASE OF manufacturers, millers, producers, 
wholesalers, distrikp.~tors, dealers or retailers of essential commodities enumerated 
hereunder, [at a] TFE rate SHALL not [exceeding] EXCEED one-half (1/2) of the rates 
[prescribed under subsections (a), (b) and (d) of this Section] IMPOSED BY THE 
I 
I 
MUNICIPALITY IN ACCORDANCE WITH THE PRECEEDING PARAGRAPH: 
(I) 
Rice and corn; 
(2) Wheat or cassava flour, meat, dairy products, locally manufactured, 
processed or preserved food, sugar, salt and other agricultural, marine, and 
fresh water products, whether in their original state or not; 


* 
1 
(3) Cooking oil and cooking gas; 
(8) Cement 
(4) Laundry soap, detergents, and medicine; 
(5) Agricultural implements, equipment and post-harvest facilities, fertilizers, 
pesticides, insecticides, herbicides and other farm inputs; 
(6) Poultry feeds and other animal feeds 
! 
Less than 5,000.00 
27.50 
P5,OOO.OO 01 more but less than 10,000.00 
10,000.00 o! more but less than 15,000.00 
15,000.00 01 more but less than 20,000.00 
20,000.00 or more but less than 30,000.00 
30,000.00 or more but less than 40,000.00 
61.60 
104.50 
165.00 
275.00 
385.00 
40,000.00 or more but less than 50,000.00 
550.00 


. 
I 
50,000.00 or, more but less than 75,000.00 
880.00 
400,000.00 
75,000.00 or more but less than 100,000.00 
1,320.00 
or more but less than 500,000.00 
8,250.00 
100,000.00 or more but less than 150,000.00 1,980.00 
150,000.00 or more but less than 200,000.00 
2,640.00 
200,000.00 or more but less than 250,000.00 
3,630.00 
250,000.00 or more but less than 300,000.00 
4,620.00 
750,000.00 dr more but less than 1,000,000.00 10,250.00 
1,000,000.00 or more but less than2,000,000.00 
2,000,000.00 
or more at a rate not exceeding fifty percent (50%) of one percent 
1 1,500.00 
I 
%)] 
[(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 year derived 
from interest, commissions and discounts from lending activities, income from financial 
leasing, dividends, rentals on property and profit from exchange or sale of property, 
i nsu rance p rem i um .] 
[(g) On peddlers engaged in the sale of any merchandise or article of commerce, 
at a rate not exceeding Fifty pesos (P50.00) per peddler annually.] 
[(h) On any business, not otherwise specified in the preceding paragraphs, which 
the sanggunian concerned may deem proper to tax: Provided, That on any business 
subject to the excise, value-added or percentage tax under the National Internal 
Revenue Code, as amended, the rate of tax shall not exceed two percent (2%) of gross 
sales or receipts of the preceding calendar year.] 
[The sanggunian concerned may prescribe a schedule of graduated tax rates but 
I 
i 
in no case to exceed the rates prescribed herein.] 
I 
, 


(P30,000.00)] 
in the 
ECTIO 
fO I I QWS : 
Y 
, - The sanggunian concerned may 
prescribe the terms and conditions and fix the rates for the imposition of toll fees or 
charges for the use of any public road, pier or wharf, waterway, bridge, ferry or 
telecommunication system funded and constructed by the local government unit 
concerned: Provided, That no such toll fees or charges shall be collected from 
FIVE HUNDRED THOUSAND PESOS (P500,OOO.OO) or less, 
case of BARANGAYS IN OTHER 
municipalities, at a rate not 
GOVERNMENT VEHICLES AND VEHICLES EXCLUSIVELY CARRYING officers and 
enlisted men of the Armed Forces of the Philippines and members of the Philippine 
National Police, on mission, post office personnel delivering mail, physically- 
handicapped, [and] disabled PERSONS AND SENIOR citizens [who are sixty-five (65) 
years or older]. 
When public safety and welfare so requires, the sanggunian concerned may 
discontinue the collection of the tolls, and thereafter the said facility shall be free and 
open for public use 


.I 
s: 
unl" 
, - Every inhabitant 
of the Philippines eighteen (18) years of age or over who has been regularly employed 
on a wage or salary basis for at least thirty (30) consecutive working days during any 
calendar year, or who is engaged in business or occupation, or who owns real property 
with an aggregate assessed value of One thousand pesos (Pl,OOO.OO) or more, or who 
is required by law to file an income tax return shall pay an annual community tax of Five 
pesos (P5.00) and an annual additional tax of One peso (P1.00) for every One 
thousand pesos (PI ,000.00) 
of income regardless of whether from business, exercise of 
profession, EMPLOYMENT or from property which in no case shall exceed Five 
thousand pesos (P5,OOO.OO) 
In the case!of husband and wife, the additional tax herein imposed shall be 
based upon the toial property owned by them and the total gross receipts or earnings 
I 
derived by them. 
~ 
56. Section 159 of the Code is hereby amended to read as follows: 
, - The following are exempt from the 
community tax: 
(I) 
Diplomatic and consular representatives; [and] 
(2) Transient visitors when their stay in the Philippines does not exceed three (3) 
months; 
(3) DISABLED PERSONS; AND 
(4) SENIOR CITIZENS UNLESS GAINFULLY EMPLOYED OR ENGAGED IN 
BUSINESS AND EARNING MORE THAN SIXTY THOUSAND PESOS 
(P60,OOO) ANNUALLY. 
. Section 171 of the Code is hereby amended to read as follows: 
rtin 
ff SI 
r. - The provincial, city, 
municipal or barangay treasurer may, by himself or [through] BY any of his deputies 


~ 
1 
8 
1 
r 
duly authorized in writing, examine the books, account, and other pertinent records of 
any person, partnership, corporation, or association subject to local taxes, fees and 
charges in order to ascertain, assess and collect the correct amount of tax, fees or 
charge. Such examination shall be made during regular business hours, only once 
every tax period, and shall be certified to by the examining official. Such certificate shall 
be made of record in the book of accounts of the taxpayer examined. 
In case the examination herein authorized is made by a duly authorized deputy of 
the local treasurer, the written authority of the deputy concerned shall specifically state 
the name, address, and business of the taxpayer whose books, account, and pertinent 
records are to be examined, the date and place of such examination, and the procedure 
to be followed in conducting the same 
For this purpose, the records of the revenue district office of the Bureau of 
Internal Revenue shall be made available to the local treasurer, his deputy or duly 
authorized representative. SUCH BUSINESS RECORDS SHALL BE TREATED AS 
CONFIDENTIAL UNLESS OTHERWISE ORDERED BY THE COURT 
he 
I 
I 
ion 1 
- Within ten (1 0) days after their approval, certified true copies of all provincial, city, and 
municipal tax ordinances or revenue measures shall be published in full for three (3) 
consecutive days in a DAILY newspaper PUBLISHED AND CIRCULATED LOCALLY [of 
local circulation] OR ONCE A WEEK FOR THREE CONSECUTIVE WEEKS IN THE 
CASE OF A WEEKLY NEWSPAPER PUBLISHED AND CIRCULATED LOCALLY[. 
Provided, however, That]. [illn provinces, cities, and municipalities where there are no 
newspapers THAT ARE PUBLISHED AND CIRCULATED LOCALLY [of local 
circulation], the same [may] SHALL INSTEAD be posted FOR AT LEAST ONE ( I )  
MONTH in PROVINCIAL CAPITOLS, CITY OR MUNICIPAL HALLS, ALL BARANGAY 
HALLS AND OTHER [at least two (2)] conspicuous and publicly accessible places. 


4 
. Section I 9 1  of the Code is hereby amended to read as follows: 
usf 
e the authority to 
adjust the tax rates as prescribed herein not oftener than once every five (5) years, but 
in no case shall such adjustment exceed ten percent (10%) of the rates fixed under this 
Code. 
IN THE CASE OF FIXED TAXES PRESCRIBED IN THIS CODE, THE 
MAXIMUM ALLOWABLE RATE MAY BE ADJUSTED NOT MORE THAN ONCE 
EVERY THREE (3) YEARS BASED ON THE AVERAGE ANNUAL INFLATION RATE 
AS CERTIFIED BY THE NATIONAL STATISTICS OFFICE. 
s 
. Section 195 of the Code is hereby amended to read as follows: 
. - When the local treasurer or his 
duly authorized representative finds that correct taxes, fees, or charges have not been 
paid, he shall issue a notice of assessment stating the nature of the tax, fee or charge, 
the amount of deficiency, the surcharges, interests and penalties. Within sixty (60) days 
from the receipt of the notice of assessment, the taxpayer may file a written protest with 
the local treasurer contesting the assessment; otherwise, the assessment shall become 
final and executory. The local treasurer shall decide the protest within [sixty (60)] 
THIRTY (30) days from the time of its filing. If the local treasurer finds the protest to be 
I 
wholly or partly meritorious, he shall issue a notice canceling wholly or partially the 
assessment. However, if the local treasurer finds the assessment to be wholly or partly 
correct, he shall deny the protest wholly or partly with notice to the taxpayer. The 
taxpayer shall have thirty (30) days from the receipt of the denial of the protest or from 
the lapse of the [sixty (60)] THIRTY (30) day period prescribed herein within which to 
appeal with the court of competent jurisdiction otherwise the assessment becomes 
conclusive and unappealable. 


(a) 
(b) 
agricultural purposes. 
xxx 
xxx 
. Section 204 of the Code is hereby amended to read as follows: 
or. - When 
any person, natural or juridical, by whom real property is required to be declared under 
Section 202 hereof, refuses or fails for any reason to make such declaration within the 
time prescribed, the [provincial,] city or municipal assessor shall himself declare the 
property in the name of the defaulting owner, if known, or against an unknown owner, 
as the case may be, and shall assess the property for taxation in accordance with the 
provision of this Title. No oath shall be required of a declaration thus made by the 
[provincial,] city or municipal assessor. 
I 
I 
I 
, Section 205 of the Code is hereby amended to read as follows: 
. (a) In 
every [province and] city [, including the] AND municipalit[ies]Y [within the Metropolitan 


4 
THE MUNICIPALITIES 
Manila Area,] there shall be prepared and maintained by the [provincial,] city or 
WITHIN THE PROVINCE. 
municipal assessor an assessment roll wherein shall be listed all real property, whether 
taxable or exempt, located within the territorial jurisdiction of the local government unit 
concerned. Real property shall be listed, valued and assessed in the name of the 
. Section 206 of this Code is hereby amended to read as follows: 
ro 
m Taxation. - 
Every person by or for whom real property is declared, who shall claim tax exemption 
for such property under this Title shall file with the [provincial,] city or municipal 
assessor within thirty (30) days from the date of the declaration of real property 
sufficient documentary evidence in support of such claim including corporate charters, 
title of ownership, articles of incorporation, bylaws, contracts, affidavits, certifications 
and mortgage deeds, similar documents. 
I 
If the required evidence is not submitted within the period herein prescribed, the 
property shall be listed as taxable in the assessment roll. However, if the property shall 
be proven to be tax exempt, the same shall be dropped from the assessment roll. 
. Section 207 of this Code is hereby amended to read as follows: 
, - All declarations of 
real property made under the provisions of this Title shall be kept and filed BY T H E  
PROVINCIAL, CITY OR MUNICIPAL ASSESSOR under a uniform classification system 
[to be established] DEFINED by the [provincial, city or municipal assessor] 
I 
I 
i 
DEPARTMENT OF FINANCE PURSUANT TO THE PROVISIONS OF THIS CODE 


. 
I 
r 
. Section 208 of the Code is hereby amended to read as follows: 
Any person who shall transfer real property ownership to another shall notify the 
[provincial,] city or municipal assessor concerned within sixty (60) days from the date of 
such transfer. The notification shall include the mode of transfer, the description of the 
property alienated, the name and address of the transferee. 
! 
CTI 
, . Section 21 3 of the Code is hereby amended to read as follows: 
I 
. - For the 
purpose of obt 
ation on which to base the market value of any real property, 
the assessor 
nce,] city or municipality or his deputy may summon the 
owners of the properties to be affected or persons having legal interest therein and 
witnesses, administer oaths, and take deposition concerning the properly, its ownership, 
amount, nature, and value. 
. Section 215 of this Code is hereby amended to read as follows: 
121 
oses. For 
purposes of assessment, real property shall be classified as residential, agricultural, 
commercial, industrial, mineral, timberland or special. 
[The] CitlES[y] [or] AND municipalit[y]lES [within the Metropolitan Manila Area], 
through their respective sanggunian shall have the power to classify lands as 
residential, agricultural, commercial, industrial, mineral, timberland, or special in 
accordance with their zoning ordinances. 
PROVINCES SHALL HAVE THE SAME POWER TO CLASSIFY LANDS ON 
THE BASIS OF THE ZONING ORDINANCES OF THEIR COMPONENT CITIES AND 
MU N IC1 PALlTl ES. 
CTI 
1 . Section 218, paragraph (b), sub-paragraph (1) is hereby amended 
to read as follows: 
Qi-9 
. - The assessment levels to be applied 
to the fair market vdlue of real property to determine its assessed value shall be fixed by 


4 
1 
ordinances of the sangguniang panlalawigan, sangguniang panlungsod or sangguniang 
Timberland 
bayan of a municipality [within the Metropolitan Manila area,] at the rate not exceeding 
20% 
the following: 
(a) On lands: 
CLASS 
ASSESSMENT LEVELS 
Residential 
Agricultural 
Commercial 
Industrial 
Mineral 
20% 
40% 
50% 
50% 
50% 
(b) On Buildi' gs and Other Structures: 
r 
(1) Residential 
Fair Market Value 
Over 
Not Over 
Assessment Levels 
[ P I 
75 , 000.0 
01 P 50 0 
~ 00 0.0 
0 
[ P I 
75 , 000.00]500 , 000.00 [ P300,000.0 
01 P750,oo 0.0 
0 
[ P300,OOO .00]750,000.00 [P500,000. O0]P85OI 000 .OO 
20% 
0% 
10% 
[P500 I 000.00]850 
~ 000.00 P 1 I 000,000.00 
3 0 
'/o 
xxxx 
xxxx 
. Section 21 9 of the Code is hereby amended to read as follows: 
I 
VI 
en 
. - The provincial, city or municipal assessor shall undertake a general 
revision of real property assessments within two (2) years after the effectively of this 
[Code] ACT and every [three (3)] SIX (6) years thereafter. 


, Section 220 of the Code is hereby amended to read as follows: 
. - In cases where (a) real 
property is declared and listed for taxation purposes for the first time; (b) there IS an 
ongoing general revision of property classification and assessment; or (c) a request is 
made by the person in whose name the property is declared, the provincial, city or 
municipal assessor or his duly authorized deputy shall, in accordance with the provision 
of this Chapter, make a classification, appraisal and assessment of the real property 
listed and described in the declaration irrespective of any previous assessment or 
taxpayer's valuation thereon; Provided, however, That the assessment of real property 
, 
shall not be increased oftener than once every [three (3)] SIX (6) years except in case 
of new improvements substantially increasing the value of said property or of any 
change in its actual' use. 
, Section 223 of the Code is hereby amended to read as follows: 
n 
the first time or when an existing assessment is increased or 
decreased, the [provincial,] city or municipal assessor shall within thirty (30) days give 
written notice of such new or revised assessment to the person in whose name the 
property is declared. The notice may be delivered personally or by registered mail or 
through the assistance of the punong barangay to the last known address of the person 
to be served. 
. Section 227 of the Code is hereby amended to read as follows: 
1 
. -(a) The Board of Assessment Appeal of the 
provinces or city shall be composed of the Registrar of Deeds, as Chairman, the 
CHIEF OF THE provincial or city [prosecutor] PUBLIC ATTORNEY OFFICE, and 
PROVINCIAL OR city engineer, as members, who shall serve as such in an ex-officio 
capacity without additional compensation. 
(a) xxx 


(b) xxx 
(d) In provinces and cities without a provincial or city engineer, the district 
engineer shall serve as member of the Board. In the absence of the Registrar of Deeds, 
or the CHIEF OF THE provincial or city PUBLIC ATTORNEY OFFICER [prosecutor], or 
the provincial or city engineer, or the district engineer, the persons performing their 
duties, whether in an acting capacity or as duly designated officer-in- charge shall 
automatically become the chairman or member respectively, of the said Board, as the 
case maybe. 
. Section 229 of the Code is hereby amended to read as follows: 
ctio 
The Board shall decide the appeal within [one hundred twenty (120)] SIXTY (60) days 
from the date of receipt of such appeal. The Board, after hearing, shall render its 
decision based on substantial evidence or such relevant evidence on record as a 
reasonable mind might accept as adequate to support the conclusion. 
(b) xxx 
(c) The sec(etary of the Board shall furnish the owner of the property 
or the person h a d g  legal interest therein and the [provincial or] city OR MUNICIPAL 
assessor with a cdpy of the decision of the Board. In case the [provincial or] city OR 
MUNICIPAL assessor concurs in the revision or the assessment, it shall be his duty to 
notify the owner of the property or the person having legal interest therein of such fact 
using [the] A form prescribed for the purpose. The owner of the property or the person 
having legal interest therein or the assessor who is not satisfied with the decision of the 
Board may, within [thirty (30)] FIFTEEN (15) days after receipt of the decision of said 
Board, appeal to the Central Board of Assessment Appeals, as herein provided. The 
decision of the Central Board OF ASSESSMENT APPEAL shall be final and executory. 
IT HAS ONE HUNDRED TWENTY (120) DAYS TO DECIDE THE APPEAL FROM THE 
DATE OF THE RECEIPT THEREOF. 


, 
a 
I 
. Section 230 of the Code is hereby amended to read as follows: 
I 
. 
The Central 
ppeals shall be composed of a chairman and two members to be 
appointed by the President, who shall serve for a term of seven years, without 
reappointment. Of those first appointed, the chairman shall hold office for seven years, 
one member for five years, and the other member for three years. Appointment to any 
vacancy shall only be for the unexpired portion of the term of the predecessor. In no 
case shall any member be appointed or designated in temporary or acting capacity. 
The chairman and the members of the Board shall be Filipino citizen, at least forty years 
old at the time of their appointment, and members of the Bar or Certified Public 
Accountant for at least ten (1 0) years immediately preceding their appointment. The 
Chairman of the Board of Assessment Appeal shall have the salary grade equivalent to 
the rank of Director [Ill] IV under the Salary Standardization Law exclusive of 
allowances and other emoluments. The members of the Board shall have the salary 
grade equivalent to the rank of Director [/I] 
I l l  under the Salary Standardization Law 
exclusive of allowances and other emoluments. The Board shall have appellate 
jurisdiction over all assessment cases decided by the Local Board of Assessment 
Appeals. 
There shall be Hearing Ofiicer to be appointed by the Central Board of 
Assessment Appeals pursuant to civil service law, rules and regulations, one each for 
Luzon, Visayas and Mindanao, who shall hold office in Manila, Cebu and Cagayan de 
Oro City, respectively, and who shall serve for a term of six (6) years, without 
reappointment until their successor have been appointed and qualified. The hearing 
Officer shall have the same qualifications as that of the Judges of the Municipal Trial 
court. 
I 
I 
The Hearing Officer shall have the salary grade equivalent to the rank of Director 
[I] 
II under the Salary Standardization Law exclusive of allowances and other 
emoluments. 


. 
"Y 
x. - A province or city or a 
municipality within the Metropolitan Manila Area may levy an annual ad valorem tax on 
real property such s land, building, machinery, and other improvement not hereinafter 
specifically exempted. IN THE CASE OF A LEVY IMPOSED BY THE PROVINCE, 
SHALL BE GUIDED BY THE INCOME CLASSIFICATION OF THE MUNICIPALITIES 
WITHIN THE PROVINCE. 
I 
1 
, Section 271 of the Code is hereby amended to read as follows: 
. - The proceeds of the basic real 
property tax, including interest thereon, and proceeds from the use, lease or disposition, 
sale or redemption of property acquired at a public auction, in accordance with the 
provisions of this Title, by the province, or city or a municipality within the Metropolitan 
Manila Area shall be distributed as follows: 
(a) In the case of provinces: 
(1) Province - Thirty[-five] percent [(35%)](30%) shall accrue to the 
general fund; 
(2) Municipality - Forty-FIVE percent [(40%)](45%) to the general fund of 
the municipality where the property is located; and 
(3) B,arangay - Twenty-five percent (25%) shall BE DISTRIBUTED 
i 
[accrue] to THE COMPONENT barangay [where the property is 
located] IN THE FOLLOWING MANNER:[.] 
I 
' ( I )  SIXTY 
PERCENT (60%) 
SHALL 
ACCRUE 
TO 
THE 
' I 
BARANGAY WHERE THE PROPERTY IS LOCATED; 
(11) FORTY PERCENT (40%) SHALL ACCRUE EQUALLY TO ALL 
OTHER BARANGAYS OF THE MUNICIPALITY. 
(b) In the case of cities: 
(I) 
Seventy percent (70%) shall accrue to the general fund of the city; and 


(2) Thirty percent (30%) shall be distributed among the component 
barangays of the cities [where the property is located] in the following 
manner: 
(i) Fifty percent (50%) shall accrue to the barangay where the 
(c) In the ca 
property is located; 
(ii) Fifty percent (50%) shall accrue equally to all component 
barangays of the city. 
e of a municipality within the Metropolitan Manila Area: 
(I) 
The Metropolitan Manila Authority- Thirty-five percent (35%) shall 
accrue to the general fund of the Metropolitan Manila Authority; 
(2) Municipality - Thirty-five percent (35%) shall accrue to the general 
fund of the municipality where the property is located; 
(3) 
Barangays Thirty percent (30%) shall be distributed among the 
component barangays 
of the munlcipality [where the property 
IS 
located ] in the following manner: 
(i) Fifty percent (50%) shall accrue to the barangay where the 
property is located; and 
(ii) Fifty percent (50%) shall accrue equally to all THE OTHER 
component barangays of the municipality. 
(d) The share of each barangay shall be released without need of any further 
action directly to the barangay treasurer on a quarterly basis, within five (5) days after 
the end of each quarter, and shall not be subject to any lien or holdback for whatever 
purpose. 
I 
. Section 272 of the Code is hereby amended to read as follows: 
f fh 
fion 
ne 
x. I - The proceeds from the additional one percent (?YO) 
tax on real 
property accruing to the Special Education Fund (SEF) shall be automatically released 
to the local school boards[: Provided, That,]. [illn THE case of provinces, FORTY 
PERCENT (40%) OF the proceeds shall [be divided equally between] ACCRUE TO the 


< 
I 
provincial SCHOOL BOARDS and SIXTY PERCENT (60%) TO THE municipal school 
boards: Provided, [however,] That the proceeds shall be allocated for the operation and 
maintenance of public schools, construction and repair of school buildings, facilities and 
equipment, educational researches, purchase of books and periodicals, [and] sports 
development, AND 
ALLOWANCES 
FOR 
TEACHING AND 
NON-TEACHING 
PERSONNEL, as determined and approved by the [IILocal [slSchool [b]Boards. 
I 
I 
79. Section 273 of the Code is hereby amended to read as follows: 
I 
n l  
he proceeds of the 
on idle lands shall [accrue to the respective general fund of 
the land is located. In the case of a municipality within the 
additional real 
the province, o 
Metropolitan Manila Area, the proceeds shall accrue equally to the Metropolitan Manila 
Authority and the municipality here the land is located] BE DISTRIBUTED AS 
FOLLOWS: 
(A) 
IN THE CASE OF PROVINCES: 
1) 
PROVINCE - THIRTY PERCENT (30%) SHALL ACCRUE TO 
THE GENERAL FUND; 
2) 
MUNICIPALITY - FORTY-FIVE PERCENT (45%) TO THE 
GENERAL FUND OF THE MUNICIPALITY WHERE THE PROPERTY 
IS LOCATED; AND 
3) 
BARANGAY - TWENTY-FIVE PERCENT (25%) SHALL BE 
DISTRIBUTED TO THE COMPONENT BARANGAY OF THE 
MUNICIPALITY IN THE FOLLOWING MANNER: 
(I) SIXTY PERCENT (60%) SHALL ACCRUE TO THE BARANGAY 
WHERE THE PROPERTY IS LOCATED; 
(11) 
FORTY PERCENT (40%) SHALL ACCRUE EQUALLY TO ALL 
1 
OTHER BARANGAYS OF THE MUNICIPALITY 
(B) 
IN THE CASE OF CITIES: 
~ 
(1) SEVENTY PERCENT (70%) SHALL ACCRUE TO THE GENERAL 
I 
I 
1 FUND OF THE CITY; AND 


I 
(3)T lRTY PERCENT (30%) SHALL BE DISTRIBUTED AMONG THE 
IN THE FOLLOWING 
I 
COMPONENT BARANGAYS OF THE CITY 
MANNER: 
FIFTY PERCENT (50%) 
SHALL ACCRUE TO THE 
BARANGAY WHERE THE PROPERTY IS LOCATED; 
(11) 
FIFTY PERCENT (50%) SHALL ACCRUE EQUALLY TO ALL 
OTHER BARANGAYS OF THE CITY. 
(C) 
IN THE CASE OF A MUNICIPALITY WITHIN THE METROPOLITAN 
MAN I LA AREA: 
(I) 
MUNICIPALITY - SEVENTY PERCENT (70%) SHALL ACCRUE TO 
THE GENERAL FUND OF THE MUNICIPALITY WHERE THE 
PROPERTY IS LOCATED; 
(2) BhRANGAYS - THIRTY PERCENT (30%) SHALL BE DISTRIBUTED 
I 
AMONG THE COMPONENT BARANGAYS OF THE MUNICIPALITY 
IN'THE FOLLOWING MANNER: 
( I )  FIFTY PERCENT (50%) SHALL ACCRUE TO THE BARANGAY 
I 
WHERE THE PROPERTY IS LOCATED; AND 
(11) FIFTY PERCENT (50%) SHALL ACCRUE EQUALLY TO ALL THE 
OTHER COMPONENT BARANGAYS OF THE MUNICIPALITY. 
I 
, . Section 284 of the Code is hereby amended to read as follows: 
nfe 
, - UPON APPROVAL OF THIS CODE, AS AMENDED, [Lllocal government 
units [shall' have a] ARE ENTITLED TO A FIFTY PERCENT (50%) share [in the] OF 
national [internal 
on the collection of the third fiscal year 
preceding the current fiscal year [as follows:]. 
revenue] taxes based 
[(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 and thereafter, forty percent (40%); 


[Provided, That in the event that the National Government incurs an 
unmanageable public sector deficit, the President of the Philippines is hereby 
authorized, upon the recommendation of the Secretary of Finance, Secretary of Interior 
I 
I 
and Local Governbenl, and Secretary of Budget and Management, and subject to 
consultations with ithe presiding officers of both Houses of the Congress and the 
Presidents of the 
iga, to make the necessary adjustments in the internal revenue 
allotment of local gyvernment units, but in no case shall the allotment be less than thirty 
percent (30%) of the collection of the internal revenue taxes the third fiscal year 
t 
preceding the current fiscal year. Provided, further, That in the first year of the effectivity 
of this Code, the local government units shall, in addition to the thirty percent (30%) 
internal revenue allotment which shall include the cost of devolved functions for 
essential public services, be entitled to receive the amount equivalent to the cost of 
devolved personal services.] 
. Section 285 of the Code is hereby amended to read as follows: 
i 
I 
. - The share of 
local government units in the [internal revenue] NATIONAL TAXES [allotment], WHICH 
IS AUTOMATICALLY APPROPRIATED AND OBLIGATED, shall be allocated in the 
following manner: 
(a) Provinces - Twenty-three percent (23%); 
(b) Cities - Twenty-[three] ONE percent [(23%)] (21 O h ) ;  
(c) Municipalities - Thirty-[four] SIX percent [(34%)] (36%); and 
I 
I 
(d) Barangay[s] - 
Provided, hdwever, That the share of each province, city and municipality shall 
Twenty percent (20%) 
I 
be determined on the basis of the following formula: 
(a) Population - Fifty percent (50%) 
(b) Land Area - Twenty-five percent (25%) 
(c) Equal sharing - Twenty-five percent (25%) 


. Section 286 of the Code is hereby amended to read as follows: 
n 
. - (a) The share of each 
local government unit shall be released without need of any further action, directly to 
the provincial, city, municipal or barangay treasurer, as the case may be, on a 
MONTHLY OR quarterly basis within five (5) days after the end of each MONTH OR 
I 
quarter [, and which ] 
1 
(B) SAID SHARE shall not be subject to any lien, or holdback that may be 
~ 
imposed by the [na ional] CENTRAL government for whatever purpose. 
i 
[(b)](C) Nothing in this Chapter shall be understood to diminish the share of local 
government units upder existing laws. 
CTI 
. Section 287 of the Code IS hereby amended to read as follows: 
vel 
. - Each local government unit 
shall appropriate in its annual budget no less than [twenty percent (20%)] THIRTY 
PERCENT (30%) of its annual [internal revenue] NATIONAL TAX [allotment] SHARE for 
development projects. PROVIDED, HOWEVER, THAT AT LEAST THIRTY PERCENT 
(30%) OF WHICH SHALL BE APPROPRIATED FOR THE DEVELOPMENT OF 
COASTAL RESOURCES OF CITIES AND MUNICIPALITIES CONCERNED, IN 
ACCORDANCE WITH THE ANNUAL INVESTMENT PROGRAM EMBODIED IN THE 
I 
LOCAL DEVELOPMENT PLAN PREPARED BY THE LOCAL DEVELOPMENT 
COUNCIL AND APPROVED BY THE SANGGUNIANG CONCERNED. [Copies of the 
development plans of the local government units shall be furnished the Department of 
Interior and Local Government.] 
. Section 289 of this Code is hereby amended to read as follows: 
I 
U Wiz 
. Local government units shall have an equitable 
share in the proceeds derived from the utilization and development of the national 
wealth within their 5espective areas, including sharing the same with the inhabitants by 
way of direct benefits. 
1 


I 
government units 
NATIONAL TAXES, 
r 
I 
NATIONAL WEALTH SHALL BE DEFINED AS ALL 
NATURAL 
shall, I]ln addition to their SHARE OF THE [internal revenue] 
LOCAL GOVERNMENT UNITS SHALL [allotment] have a share of 
RESOURCES SITUATED WITHIN THE TERRITORIAL JURISDICTION OF THE 
REPUBLIC INCLUDING BUT NOT LIMITED TO LANDS OF PUBLIC DOMAIN, 
WATERS, MINERALS, POTENTIAL ENERGY SOURCES, GAS AND OIL DEPOSITS, 
FOREST PRODUCTS, FLORA AND FAUNA, FISHERY AND AQUATIC RESOURCES, 
ALL QUARRY 
PRODUCTS, AND OTHER 
RESOURCES WHICH CAN BE 
EXTRACTED OR UTILIZED. 
, 
I 
. Section 294 of the Code is hereby amended to read as follows: 
. - The proceeds 
from the share of l&al government units pursuant to this chapter shall be appropriated 
by their respective sanggunian to finance development and livelihood projects[. 
Provided, however, That]. [e]Eighty percent (80%) of the proceeds derived from the 
development and utilization of hydro-thermal, geothermal, and other sources of energy 
shall be applied [solely] to lower the cost of electricity AND TO FINANCE 
DEVELOPMENT PROJECTS in the local government unit where [such a] THE source 
of energy is located. 
I 
I 


I 
I 
. Section 296 of the Code is hereby amended to read as follows: 
- 
(a) It shall be the basic policy that any local government unit may create 
indebtedness, and avail of credit facilities to finance local infrastructure and other socio- 
economic development projects in accordance with the approved local development 
plan and public investment program. 
I 
(b) A local government unit may avail of credit lines from [government or private 
banks] ANY BANK and OTHER lending institutions AUTHORIZED BY THE BANGKO 
SENTRAL NG PILIPINAS, for the purpose of stabilizing local finances 
i 
~ 
. Section 297 of the Code is hereby amended to read as follows: 
7. 
re 
er 
In 
ess 
I 
Of 
(a) A 
Ioc 'I government unit may [contract] SECURE loans, credits, 
GUARANTEES anp other forms of indebtedness with any government or domestic 
private bank, and other lending institutions, to finance the construction, installation, 
improvement, expansion, operation, or maintenance of public facilities, infrastructure 
facilities, housing projects, [the] acquisition of real property, and [the] implementation of 
other capital investment projects, subject to such terms and conditions as may be 
agreed upon by the local government unit and the lender. The proceeds from such 
transactions shall accrue directly to tne local government unit concerned. 
1 
I 
(b) xxx 
(c) Government financial and other lending institutions are hereby authorized to 
grant loans, credits, and other forms of indebtedness out of their loanable funds to local 
government units for purposes specified above. 
I 
GOVERNMENT FINANCING INSTITUTIONS SHALL OPEN APPROPRIATE 
LENDING WINDOWS FOR LOCAL GOVERNMENT UNITS. THESE FINANCIAL 
INSTITUTIONS 
SHALL 
LEND 
TO 
FOURTH, FIFTH 
AND 
SIXTH 
CLASS 
MUNICIPALITIES, CITIES AND PROVINCES AT CONCESSIONAL RATES. 


I 
(D) THE LOCAL GOVERNMENT UNIT CONCERNED SHALL PUBLISH ALL 
LOANS APPLIED FOR, SPECIFYING THE AMOUNT TO BE BORROWED, THE 
PROJECT TO BE FUNDED, THE SECURITY OFFERED, AND THE TERMS OF 
PAYMENT IN A NEWSPAPER OF LOCAL CIRCULATION, IF ANY OR IF THERE IS 
NONE, IN A NEWSPAPER OF GENERAL CIRCULATION IN THE PROVINCE, CITY, 
MUNICIPALITY OR BARANGAY CONCERNED. THE PUBLICATION SHALL BE 
DONE IN THREE (3) CONSECUTIVE ISSUES OF A DAILY NEWSPAPER. 
UPON THE FILING OF THE LOAN, THE PROVINCIAL GOVERNMENT 
CONCERNED SHqLL CAUSE THE POSTING OF THE LOAN APPLICATION IN ALL 
THE CITY OR MUNICIPAL HALLS OF THE PROVINCE. IN THE CASE OF A CITY 
OR MUNICIPALITY, THE LOAN APPLICATION SHALL BE POSTED IN ALL 
BARANGAY HALLS AND IN THE MUNICIPAL OR CITY HALL CONCERNED. 
I 
I 
I 
IN THE CASE OF THE BARANGAY, THE LOAN APPLICATION SHALL BE 
POSTED IN THE' BARANGAY HALL AND IN CONSPICUOUS AND PUBLICLY 
ACCESSIBLE PLACES. 
I 
I 9. Section 299 of the Code is hereby amended to read as follows: 
ection 2 
. Subject to the 
rules and regulations of the Central Bank and the Securities and Exchange 
I 
Commission, provinces, cities, and municipalities are hereby authorized to issue bonds, 
debentures, securities, collateral[s], notes and other obligations to finance self- 
liquidating, income-producing development or livelihood projects pursuant to the 
priorities established in the approved local development plan or the public investment 
program. The sanggunian concerned shall, through an ordinance approved by a 
majority of all its members, declare and state the terms and conditions of the bonds and 
the purpose for which the proposed indebtedness is to be incurred. 
I 
THE 
SANGGUNIAN 
COI\ICERNED 
MAY 
EXEMPT 
SAID 
BONDS, 
DEBENTURES, SECURITIES, COLLATERAL, NOTES AND OTHER OBLIGATIONS 
FROM LOCAL TAXES. 
I I 
I 


. 
I 
'. Section 302 of the Code is hereby amended to read as follows: 
n 
riv 
r. - 
(a) Local government units may enter into contracts with any [duly pre-] qualified 
[ individual contractor, ] PROJECT PROPONENT INCLUDING COOPERATIVES AND 
N 0 N -G OV E R N M E N T 0 R G A N I ZAT I 0 N S fo r the f i n a n c i n g 
~ 
construction 
~ 
ope ration , 
MANAGEMENT, PROVISIONING and/OR 
maintenance of any financially viable 
[infrastructure] DEVELOPMENT PROJECT [ facilities ] under the build-operate-and- 
transfer agreement AND/ OR ITS VARIANTS, OR UNDER CONTRACT OF 
MANAGEMENT, ;SERVICE, LEASE, 
CONCESSION, JOINT 
VENTURE, 
OR 
COMBINATION THEREOF, 
OR UNDER ANY 
OTHER PRIVATE SECTOR 
1 
I 
PARTICIPATION ARRANGEMENT, AS PROVIDED FOR UNDER R.A. 6957, AS 
AMENDED, [subject to the applicable provisions of Republic Act Numbered Sixty-nine 
hundred fifty seven ( R.A. 6957 ) authorizing the financing, construction, operation and 
maintenance of infrastructure projects 
by the private sector and the rules' and 
1 
regulations issued thereunder and such terms and conditions provided in this Section. ] 
1 
ALL PROJECTS IMPLEMENTED UNDER THIS SECTION SHALL BE SUBJECT 
1 
I 
TO THE FOLLOWING TERM§ AND CONDITIONS: 
I 
(I) 
NO APPROVAL BY ANY NATIONAL GOVERNMENT AGENCY, OFFICE OR 
lNSTRUb!lENTALlTY 
IS REQUIRED FOR IMPLEMENTATION OF THE 
PROJECT, REGARDLESS OF ITS COST, UNDER WHATEVER PRIVATE 
SECTOR PARTICIPATION AGREEMENT, OR WHETHER INVOLVING ONE 
OR MORE LOCAL GOVERNMENT UNITS. 
WHERE THE 
PROJECT INVOLVES TWO 
OR 
MORE 
LOCAL 
GOVERNMENT 
UNITS, 
THE 
APPROVAL 
BY 
IT§ 
RESPECTIVE 
SANGGUNIAN IS REQUIRED. 
FOR PROJECTS JOINTLY PURSUED BY ONE OR MOR;€ LOCAL 
GOVERNMENT UNITS AND THE NATIONAL GOVERNMENT, OR ITS 
AGENCIES 
OR 
INSTRUMENTALITIES, THE APPROVAL 
BY THE 


INVESTdENT COORDINATING COMMITTEE (ICC) OF THE NATIONAL 
ECONOLIC AND DEVELOPMENT AUTHORITY 
(NEDA) SHALL BE 
REQUIRED. 
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ALL TROJECT PROPOSALS SHALL FIRST UNDERGO THE PROCESS 
(b) Local 
plans and public 
I 
REQUIRED UNDER SECTION 114 OF THIS CODE. 
(2)ONLY THE APPROVAL OF THE SANGGUNIAN CONCERNED IS 
REQUIRED 
FOR 
LOCALLY 
FUNDED 
PROJECTS 
IMPLEMENTED 
THROUGH 
COMPETITIVE PUBLIC 
BIDDING, INCLUDING TOLLS, 
CHARGES, RENTALS OR FEES, AND ADJUSTMENT§ THEREON, FOR 
THE USE OF SAID PROJECTS OR FACILITIES. THE AGREEMENT OF 
THE PARTIES IMPLEMENTING THE PROJECTS MAY DEFINE THE 
NATURE AND EXTENT OF SAID ADJUSTMENTS. 
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government units shall include in their respective local development 
' investment programs priority projects that may be financed, 
(3) TOLLS, CHARGES, RENTALS OR FEES, INCLUDING ADJUSTMENTS 
THEREON, FOR THE USE OF PROJECTS OR FACILITIES SUBJECT TO 
I 
NEGOTIATED CONTRACTS SHALL REQUIRE APPROVAL BY THE 
SANGGUNIAN CONCERNED. 
(4) LOCAL GOVERNMENT UNITS IMPORTING HEAVY EQUIPMENT AND 
MACHINERY ARE EXEMPT FROM PAYMENT OF DUTIES, TAXES OR 
CHARGES FOR IMPLEMENTING DEVELOPMENT PROJECT§. 
(5) THE RE,QUIREMENTS OF CONSULTATION PROVIDED FOR UNDER 
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8 
, 
following fundamental 
(c)xxx 
~ 
principles: 
. Section 31 1 of the Code is hereby amended to read as follows: 
ection 
. - Local treasurers shall maintain 
I 
depository accounts in the name of their respective local government units with banks 
DULY AUTHORIZED BY THE BANGKO SENTRAL NG PILIPINAS [, preferably 
government 
-owned] 
PREFERABLY 
NEAREST 
TO 
THE 
SEAT 
OF 
ITS 
GOVERNMENT. [located in or nearest to their respective areas of jurisdiction.] Earnings 
of each depository account shall accrue exclusively thereto. 
. Section 314 (b)(l) of the Code is hereby amended to read as 
I 
follows: 
1 
e c t i ~ ~  
- (a) Local government budgets shall 
primarily consist of two (2) parts: 
(I) 
xxxx 
(2) xxxx 
(b) The budget document shall contain: 


(I) 
[A ] THE budget message of the local chief executive setting forth [in 
brief] the significance of the executive budget, particularly in relation to the 
approved 
[local development] ANNUAL INVESTMENT plan 
WHICH 
SHALL FORM PART OF THE BUDGET DOCUMENT; 
I 
(2) xxxx 
(3) xxxx 
. Section 318 of the Code is hereby amended to read as follows' 
tatements of income and expenditures from the treasurer, the 
budget proposals of the heads of departments and offices, and the estimates of THE 
REGULAR income and budgetary ceilings from the local finance committee, the local 
chief executive shall prepare the executive budget for the ensuing fiscal year in 
accordance with the provisions of this Title. 
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The local chief executive shall submit the said executive budget to the 
sanggunian concerned not later than the sixteenth (16th) of October of the current fiscal 
year. Failure to submit such budget on the date prescribed herein shall subject the local 
chief executive to such criminal and administrative penalties as provided for under this 
Code and other applicable laws. 
. Section 321 of the Code is hereby amended to read as follows: 
All budgetary proposals 
shall be included and considered in the budget preparation process. After the local chief 
executive concerned shall have submitted the executive budget to the sangguniang, no 
ordinance providing for the supplemental budget shall be enacted except when 
supported by funds actually available as certified by local treasurer or by new revenue 
sources. THE LOCAL GOVERNMENT UNIT REALIZES ADDITIONAL INCOME AS 


, 
FINANCED BY THE SUPPLEMENTAL BUDGET SHALL BE INCORPORATED IN THE 
LOCAL DEVELOPMENT PLAN AND ANNUAL INVESTMENT PROGRAM. 
. Section 323 of the Code is hereby amended to read as follows: 
, - In case 
the sanggunian concerned fails to pass the ordinance authorizing the annual 
appropriations at ,the beginning of the ensuing fiscal year THE BUDGET AS 
SUBMITTED BY THE LOCAL EXECUTIVE CONCERNED, 
SHALL BE DEEMED 
APPROVED. It shill continue to hold DAILY sessions, EXCLUSIVE OF SATURDAYS, 
SUNDAYS AND HPLIDAYS, without additional remuneration for its members, until such 
7. Section 324 of the Code is hereby amended to read as follows: 
ectio 
uire 
. - The budgets of local 
I 
government units for any fiscal year shall comply with the following requirements: 
(a)xxxx 
(b)xxxx 
(d) Five percent ( 5% ) of the estimated revenue from regular source shall be set 
aside as an annual lump sum appropriation for unforeseen expenditures arising ,from 
the occurrence of calamities: Provided, however, That such appropriation shall be used 
only in the area, c/r a portion thereof, of the local government unit [or other areas] 


PROVINCE AND THE MAYOR IN THE CASE OF A CITY OR MUNICIPALITY. A COPY 
OF THE DECLARATION SHALL IMMEDIATELY BE FURNISHED THE SANGGUNIAN 
OF THE LOCAL GOVERNMENT UNIT CONCERNED. THE SANGGUNIAN MAY 
CONCUR OR REJECT THE DECLARATION OF CALAMITY. IN THE EVENT OF A 
REJECTION BY THE SANGGUNIAN OF THE DECLARATION OF CALAMITY, NO 
LOCAL GOVERNMENT FUND§ §HALL BE DISBURSED THEREFOR. FAILURE OF 
THE SANGGUNIAN CONCERNED TO ACT ON THE DECLARATION OF CALAMITY 
WITHIN TWENTY-FOUR (24) HOURS FROM ITS RECEIPT OF THE COPY OF THE 
DECLARATION OF CALAMITY MENTIONED ABOVE, THE SAME SHALL BE 
DEEMED APPROVED. 
(e> AT LEAST TWENTY PERCENT (20%) OF THE SHARES OF THE LOCAL 
GOVERNMENT UNITS FROM THE INTERNAL REVENUE ALLOTMENT §HALL BE 
SET ASIDE TO DEFRAY THE COST OF THE DEVOLVED BASIC SERVICES AND 
FACILITIES IN AC ORDANCE WITH SECTION 17, PARAGRAPH (G) OF THE CODE 
7 
. Section 325 of the Code is hereby amended to read as follows: 
. - The use of provincial, city, and 
municipal funds shall be subject to the following limitations: 
(a) The [total] appropriations, whether annual or supplemental, for personal 
services of a local government unit for one (I) fiscal year shall not exceed forty-five 
percent (45%) in the case of first to third class provinces, cities and municipalities, and 
fifty-five percent (55%) in the case of fourth class or lower, of the annual income from 
regular sources realized in the next preceding fiscal year. The appropriations for 
salaries, wages, representation and transportation allowances of officials and 
employees of the, public utilities and economic enterprises owned, operated and 
maintained by the local government unit concerned shall not be included in the annual 
budget or in the computation of the maximum amount for personal services. The 
appropriation for the personal services of such economic enterprises shall be charged 
to their respective budgets. 
I 
(b) xxx 


. 
I 
(c) xxx 
. Section 326 of the Code is hereby amended to read as follows: 
shall review ordinances, authorizing the annual or supplemental appropriations of 
provinces, highly-u'rbanized cities, independent component cities, and municipalities 
I 
within the Metropollitan Manila Area in accordance with the immediately succeeding 
Section. ] 
. Section 327 of the Code is hereby amended to read as follows: 
! 
The sangguiian panlalawigan shall review the ordinance authorizing annual or 
supplemental appropriation of component cities and municipalities in the same manner 
and within the same period prescribed for the review of other ordinances. 
l 
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If within [ninAty (go)] THIRTY (30) days from receipt of copies of such ordinance, 
the sangguniang panlalawigan takes no action thereon, the same shall be deemed to 
have been reviewed in accordance with law and shall continue to be in full force and 
effect. If within the same period, the sangguniang panlalawigan shall have ascertained 
that the ordinance authorizing annual or supplemental appropriations has not complied 
with the requirements set forth in this Title, the sangguniang panlalawigan shall, within 
[ninety day] THE period, [hereinabove prescribed,] declare such ordinance inoperative 
in its entirety or in part. Items of appropriation contrary to limitations prescribed in this 
Title or in excess of the amounts prescribed herein shall be disallowed or reduced 
accordingly. 
The sanggunian panlalawigan shall within the same period advise the 
sangguniang panlungsod or sangguniang bayan concerned through the local chief 
executive of any action on the ordinance under review. Upon receipt of such advice, 


i 
the city or municipal treasurer concerned shall not make further disbursement of funds 
from any of the iterrp of appropriation declared inoperative, disallowed or reduced. 
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Section 329 of the Code is hereby amended to read as follows: 
, - Unless otherwise provided in this Title, 
all the income of the barangay from whatever source INCLUDING ITS SHARE OF THE 
NATIONAL TAXES AS PROVIDED UNDER SECTION 286 OF THIS CODE shall 
accrue to its general fund and shall [, at the option of the barangay concerned, be kept 
as trust fund in the custody of the city or municipal treasurer, or ] be RELEASED TO 
AND deposited FOR THE ACCOUNT OF THE BARANGAY in a bank [, preferably 
government owned,] PREFERABLY LOCATED WITHIN THE BARANGAY. [situated in 
or nearest to its area of jurisdiction.] Such funds shall be disbursed PURSUANT TO AN 
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APPROVED ORDINANCE BY THE BARANGAY CONCERNED in accordance with the 
provisions of this Title. Ten percent (10%) of the general fund of the barangay shall be 
[set aside] AUTOMATICALLY APPROPRIATED AND OBLIGATED for the Sangguniang 
Kabataan WHICH SHALL BE RELEASED TO AND DEPOSITED TO THE ACCOUNT 
OF THE SANGGUNIANG KABATAAN IN A BANK PREFERABLY LOCATED WITHIN 
THE BARANGAY:WlTHlN TWENTY (20) DAYS AFTER THE END OF EVERY 
QUARTER OF THE CURRENT YEAR. 
SUCH FUNDS SHALL BE DISBURSED 
PURSUANT TO A h  APPROVED RESOLUTION BY THE SANGGUNIAN KABATAAN 
CONCERNED. 
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.. Sec. 334 of the Code is hereby amended to read as follows: 
Section 334. Barangay Financial Procedure. (a) The barangay treasurer shall 
collect all taxes, fees and other charges due and contributions accruing to the barangy 
for which he shall issue receipts, and shall deposit all collections [with the city or 
municipality treasury or] in the depository account maintained in the name of the 
barangay within (5) days after receipt thereof. 


I 
, Sec. 339 of this Code is hereby amended to read as follows: 
. -No Cash advance shall be granted to any 
local official or emkloyee, elective or appointive, unless made in accordance with the 
rules and regulatibns as the COA may prescribe. ANY LOCAL ELECTIVE OR 
APPOINTIVE 
OF ICIAL WHO 
HAS AVAILED 
OF 
CASH 
ADVANCES 
IN 
CONNECTION WITH HIS/HER DUTIES SHALL LIQUIDATE THE SAID CASH 
ADVANCES WITHIN ONE (1) YEAR FROM THE AVAILMENT THEREOF. FAILURE 
TO LIQUIDATE THE SAID CASH ADVANCES WITHIN THE PERIOD ABOVE 
PRESCRIBED SHALL CAUSE THE AUTOMATIC DEDUCTION BY THE LOCAL 
TREASURER CONCERNED EQUAL TO TWENTY-FIVE PERCENT (25%) OF THE 
MONTHLY SALARY, HONORARIUM AND ALLOWANCES OF THE OFFICIAL OR 
EMPLOYEE CONCERNED UNTIL THE UNLIQUIDATED CASH ADVANCE IS FULLY 
PAID 
WITHOUT 
PREJUDICE 
TO 
THE 
APPROPRIATE 
ADMINISTRATIVE 
SANCTIONS THAT MAY BE IMPOSED UPON HIM/HER BY T H E  PROPER 
AUTHORITIES. FAILURE OF THE LOCAL TREASURER CONCERNED TO CAUSE 
THE DEDUCTION MENTIONED ABOVE SHALL SUBJECT THE SAID TREASURER 
TO ADMINISTRATIVE OR CRIMINAL SANCTIONS. 
I 
. Section 344 of the Code is hereby amended to read as follows: 
r s  . No money shall 
be disbursed unlesi the local budget officer certifies to the existence of appropriation that 
has been legally made for the purpose, the local accountant has obligated said 
appropriation, and he local treasurer certifies to the availability of funds for the purpose. 
Vouchers and payrolls shall be certified to and approved by the head of the department or 
office who has administrative control of the fund concerned as to validity, propriety, and 
legality of the claim involved. 
Except in cases of disbursements involving regularly 
recurring administrative expenses such as payrolls for regular or permanent employees, 
expenses for light, water, telephone and telegraph services, remittances to government 
creditor agencies such as the GSIS, SSS, LBP, DBP, Nationat Printing Office 
Procurement Service of the DBM and others, approval of the disbursement voucher by 
1 


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THE CHECKS. 
the local chief executive [himselq OR BY THE DEPARTMENT HEADS OR CHIEFS OF 
HOSPITALS DULY AUTHORIZED BY THE LOCAL CHIEF EXECUTIVE CONCERNED, 
I 
shall be required whenever local funds are disbursed. 
ion 345 of the Code is hereby amended to read as follows: 
in 
ent SP 
ettlement of obligations shall be drawn by the Treasurer and 
al [administrator] CHIEF EXECUTIVE, OR IN HIS/HER 
ABSENCE, AN OFFICIAL DULY ALITHORIZED BY LAW. CHECKS IN SETTLEMENT 
OF 
OBLIGATIONS 
DULY 
APPROPRIATED 
FOR 
PERSONAL 
SERVICES, 
MAINTENANCE AND OTHER OPERATING EXPENSES AND CAPITAL OUTLAY OF 
THE SANGGUNIAN SHALL BE COUNTERSIGNED BY THE VICE-GOVERNOR OR 
THE VICE-MAYOR FOR THE PROVINCE, CITY OR MUNICIPALITY, AS THE CASE 
MAY BE, OR IN HIS/HER ABSENCE, BY AN OFFICIAL DULY AUTHORIZED BY LAW 
IN CASE OF THE ABSENCE OF THE TREASURER FOR MORE THAN THREE 
(3) DAYS, THE SIGNING OF THE CHECKS ABOVE MENTIONED SHALL BE DONE 
BY AN OFFICIAL DULY AUTHORIZED BY LAW. 
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CHECKS ISSUED IN SETTLEMENT OF OBLIGATIONS OF THE BARANGAY, 
SHALL BE SIGNED BY THE BARANGAY TREASURER WHO SHALL BE PROPERLY 
. Section 352 of the Code is hereby amended to read as follows: 
s tin 
Local treasurers, accountants, budget officers and other accountable officers shall, 


FAILURE ON THE PART OF THE SANGGUNIAN CONCERNED TO 
ALLOCATE FUNDS SHALL RENDER THE ANNUAL BUDGET OF THE LOCAL 
GOVERNMENT CONCERNED INOPERATIVE WITHOUT PREJUDICE TO THE 
LOCAL OFFICIALS CONCERNED BEING SUBJECTED TO ADMINISTRATIVE 
SANCTIONS. 
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The local development plans THUS approved by their respective sanggunian 
[may] SHALL be iniegrated [with] INTO the development plans of the next higher level 
of local development council. 
n 11 5 of the Code is hereby amended to read as follows: 
In 
. - WITHIN JANUARY OF EVERY 
YEAR, [Tlthe Department of the Budget and Management shall furnish the various local 
development councils information on financial resources and budgetary allocations OF 
NATIONAL FUNDS FOR PROGRAMS AND PROJECTS applicable to their respective 
jurisdiction to guide them in their planning functions. 
CTI 
. Section 116 of the Code is hereby amended to read as follows: 
, - There is hereby established in every 
province, city and municipality a local peace, LAW and order council, pursuant to 
Executive Order Numbered Three Hundred Nine (E.O. No. 309), as amended, Series of 
1988. IN ADDITION, NOT MORE THAN TWO (2) REPRESENTATIVES ELECTED BY 
I 
THE ACCREDITED NON-GOVERNMENTAL OR PEOPLES ORGANIZATIONS MAY 
REPRESENT THE SAID ORGANIZATIONS IN THE COUNCIL. [The local peace and 
order councils shall have the same composition and functions as those prescribed by 
the said executive order] 
, 
i 
. Section 117 of the Code is hereby amended to read as follows: 
s. - The esta lishment by law of autonomous special economic zones in selected 
P 
I
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1 
areas of the country shall be subject lo concurrence by the local government units 
included therein. 
ALL IDENTIFIED SPECIAL ECONOMIC ZONES ENUMERATED IN SECTION 5 
OF R.A. 7916, OTHERWISE KNOWN AS THE SPECIAL ECONOMIC ZONE ACT OF 
1995 WHICH HAVE NOT YET BEEN OFFICIALLY ESTABLISHED UPON THE 
I 
APPROVAL OF THIS ACT, SHALL BE SUBJECT TO THE PROVISION ABOVE- 
MENTIONED. 
, 
. Section I 
18 of the Code is hereby amended to read as follows: 
I 
. - Boundary disputes between and among local government units shall, as 
much as possible, ?e settled amicably. To this end: 
(a) xxx 
1 
(b) Boundary disputes involving two (2) or more municipalities OR COMPONENT 
CITIES within the same province shall be referred for settlement to the sangguniang 
pan la lawig an concerned. 
(c) Boundary disputes involving municipalities, or component cities of different 
provinces shall be jointly referred for settlement to the sanggunians of the provinces 
concerned. 
(d) Boundary disputes involving a component city or municipality on the one hand 
and a highly urbanized city on the other, or two (2) or more highly urbanized cities, shall 
be jointly referred for settlement to the respective sangguniang of the parties; 
I 
(e) In the event the sanggunian fails to effect an amicable settlement within sixty 
(60) days from the date the dispute was referred thereto, it shall issue a certification to 
that effect. Thereafter, the dispute shall be formally tried by the sanggunian concerned 
which shall decide the issue within sixty (60) days from [the date of the] IT§ RECEIPT 
OF THE certification referred to above. 


within thirty (30) days from the end of each fiscal year, post in at least three (3) publicly 
accessible and conspicuous places SUCH AS PLAZA AND MAIN STREET in the local 
government unit CONCERNED, AND TO PUBLISH SAID STATEMENTS OF INCOME 
AND EXPENDITURES IN A NEWSPAPER OF GENERAL CIRCULATION, WHERE 
AVAILABLE, IN THE TERRITORIAL JURISDICTION OF SUCH UNIT, a summary of all 
[acquisition of 
revenues collected and funds received including the appropriations, and disbursements 
of such funds during the preceding fiscal year. FAILURE TO COMPLY WITH THIS 
REQUIREMENT 
ISHALL 
SUBJECT 
THE 
OFFICIALS 
CONCERNED 
TO 
DISCIPLINARY ACTION IN ACCORDANCE WITH EXISTING LAWS. 
supplies by local government units] TO DIRECTLY ACQUIRE OR 
I 
. Section 356 of the Code is hereby amended to read as follows. 
I 
1 
ne 
ule i 
nf car 
I. - Except as 
otherwise provided herein, AND SUBJECT TO THE LIMITATIONS PROVIDED IN 
. Section 364 of the Code is hereby amended to read as follows: 
, - There shall be in every 
province, city or municipality a Committee on Awards to decide the winning bids and 
questions of awards and procurement and disposal of property. 
I 
The Committee on Award shall be composed of the local chief executive as 
chairman, the local treasurer, the local accountant, the local budget officer, the local 
general services officer, [and] the head of office or department for whose use the 
supplies are being procured, ONE (1) REPRESENTATIVE OF THE PHILIPPINE 
INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS (PICPA), AND TWO (2) 


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REPRESENTATIVES OF NON-GOVERNMENTAL ORGANIZATIONS THAT ARE 
REPRESENTED IN THE LOCAL DEVELOPMENT COUNCIL CONCERNED, TO BE 
CHOSEN BY THE ORGANIZATIONS THEMSELVES, as members. In case a head of 
office or department would sit in a dual capacity, a member of the sanggunian elected 
from among its members shall sit as a member. The Committee on Awards at the 
barangay level shall be the sangguniang barangay. No national official shall sit as a 
member of the Committee on Awards. 
The results of the bidding shall be made public by [conspicuously] posting the 
same IN A CONSPICUOUS PLACE in the provincial capitol or city, municipal, or 
1 
barangay hall. 
. Section 367 of the Code is hereby amended to read as follows: 
- Upon approval 
by the Committee On Awards, procurement of supplies may be effected after personal 
canvass of at least three (3) responsible suppliers in the locality by a committee of 
[three (3)] FOUR ( I )  composed of the local general services officer or the municipal or 
barangay treasurer as the case may be, the local accountant, [and] the head of office 
or department for whose 
use the supplies 
are 
being procured, AND A 
REPRESENTATIVE OF NON-GOVERNMENTAL ORGANIZATION. The Awards shall 
be decided by the Committee on Awards. THE ACQUISITION AND PROCUREMENT 
BY LOCAL GOVERNMENT UNITS OF SUPPLIES, GOODS, EQUIPMENT AND 
SERVICES, EXCEPT CONSULTANTS AS AUTHORIZED BY THE SANGGUNIANG 
CONCERNED, THROUGH PERSONAL CANVASS [Purchases under this section] shall 
not exceed TWENTY-FIVE PERCENT (25%) OF the TOTAL amount[s] ALLOCATED 
FOR THE PURPOSE [specified hereunder for all items] in any one (1) month [for each 
local government unit:]. THE SERVICES PURCHASED THROUGH PERSONAL 
CANVASS SHALL BE PERFORMED AND COMPLETED WITHIN A PERIOD OF 
THIRTY (30) DAYS FROM THE DATE OF PURCHASE. 
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["Provinces and Cities and Municipalities within the Metropolitan Manila Area: 
First and Second Class - One hundred fifty thousand pesos (PI 50,000.00) 


Third and FoLrth Class - One hundred thousand pesos (PA 00,000.00) . 
"Fifth and Si th Class - Fifty thousand pesos (P50,OOO.OO) 
"Municipalities: 
7 
"First Class - Sixty thousand pesos (P60,OOO.OO). 
"Second and Third Class - Forty thousand pesos (P40,OOO.OO) 
"Fourth Class and Below -Twenty thousand pesos (P20,000.00).] 
. Section 369 of this Code is hereby amended to read as follows: 
(a) xxx 
I 
, 
(b) In case of repeat orders for regular supplies, procurement may be made by 
negotiated purchase; Provided, That the repeat order is made within SIX (6) [three (3)] 
months from the last procurement of the same item: Provided, further, That the same 
I 
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terms and conditions of sale are obtained for the said repeat order 


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T 
. Section 391 (a), (20) of the Code is hereby amended to read as 
follows: 
, - (a) The sangguniang 
barangay, as the legislative body of the barangay, shall: 
xxx 
xxx 
xxx 
xxx 
xxx 
I 
xxx 
xxx 
I 
xxx 
xxx 
xxx 
xxx 
xxx 
(13) Authorize the barangay treasurer to make direct purchases in the amount 
not exceeding [one FIVE thousand pesos [(PI ,OOO.OO)] (P5,OOO.OO) at any one time for 
the ordinary and essential administrative needs of the barangay. 
I 
(14) Prescri e fines in amount not exceeding [one] FIVE thousand pesos 
P 
I 
[(PI ,OOO.OO)] (P5,OQO.OO) for violation of barangay ordinances. 
(1 5) xxx 
(20) Adopt measures [towards the prevention and eradication of] TO PREVENT 
AND ERADICATE drug abuse, child abuse, and juvenile delinquency; PROVIDE 
ASSISTANCE TO BATTERED AND ABUSED WOMEN; AND ESTABLISH CRISES 
CENTERS TO SERVE THESE PURPOSES. 


I 
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(22) Provide for the establishment of CENTERS FOR [a] non-formal education 
[center], VOCATIONAL AND TECHNOLOGICAL TRAINING in the barangay whenever 
feasible, in coordination with the Department of Education, Culture and Sports AND 
I 
. Section 393 paragraph (a) and (b) of the Code are hereby 
- 
(4 
x x x  
(b) 
x x x  
( 4  
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 provisions of the immediately preceding paragraph. 
THE GOVERNMENT SERVICE INSURANCE SYSTEM SHALL PROVIDE A 
SPECIAL LIFE INSURANCE AND RETIREMENT BENEFITS PLAN FOR ELECTIVE 
BARANGAY 
OFFICIALS 
INCLUDING 
BARANGAY 
TREASURERS 
AND 
S EC R ETAR I E S . 
THE BARANGAY OFFICIALS CONCERNED SHALL PAY AS CONTRIBUTION 
A CORRESPONDING PERCENTAGE FROM THEIR ALLOWANCES, HONORARIA 
AND OTHER FEES RECEIVED FROM THE BARANGAY. 
BARANGAY FUNDS MAY BE UTILIZED AS COUNTERPART CONTRIBUTION 
FOR THE SPECIAL LIFE INSURANCE AND RETIREMENT BENEFITS PLAN FOR 
THE 
BARANGAY; OFFICIALS 
CONCERNED AS 
MAY 
BE 
REASONABLY 
DETERMINED BY THE GOVERNMENT SERVICE INSURANCE SYSTEM. 
I 
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(d) All duly1 appointed members of the barangay tanod brigades, or their 
equivalent, which shall number not more than twenty (20) in each barangay, shall be 
ENTITLED TO 
MONTHLY 
HONORARIA 
TO 
BE 
DETERMINED 
BY 
THE 
SANGGUNIANG BARANGAY, AND shall be granted COMPULSORY insurance 


L 
, 
I 
I 
COVERAGE or other benefits during their incumbency, chargeable to the barangay, or 
i 
the city or municipal government to which the barangay belongs. 
. Section 423 of the Code are hereby amended to read as follows 
- (a) There shall be in every 
Mabataan to be composed of a Chairman[,] AND seven (7) 
I 
CTI 
. Section 426 (b) of the Code is hereby amended to read as 
follows: 
unc 
The sangguniang kabataan shall: 
(a> 
xxx 
(b) Initiate, UNDERTAKE AND IMPLEMENT programs, PROJECTS, AND 
ACTIVITIES, designed to enhance the social, political, economic, cultural, intellectual, 
moral, spiritual, and physical development of the members [;I. SUBJECT TO REVIEW 
BY THE SANGGUNIANG BARANGAY, THE SANGGUNIANG KABATAAN SHALL 
ENACT AN ANNUAL BUDGET TO CARRY OUT THE FOREGOING FUNCTIONS. NO 
FUNDS OF THE SANGGUNIANG KABATAAN SHALL BE DISBURSED WITHOUT AN 
I 
APPROVED APPROPRIATION. 
(c) xxx 
(g-I) COORDINATE 
WITH 
THE APPROPRIATE AGENCY 
OF 
THE 
GOVERNMENT FOR THE IMPLEMENTATION IN THEIR RESPECTIVE BARANGAY 
I 
OF PROJECTS AND PROGRAMS RELATED TO ENVIRONMENTAL PROTECTION, 
LIKE TREE PLANTING AND SOLID WASTE DISPOSAL. 
IN THE URBAN CENTERS WHERE TREE PLANTING IS NO LONGER 
FEASIBLE, THE SANGGUNIANG KABATAAN SHALL PARTICIPATE IN “GREENING” 
I 


, 
I 
members by giving 
PROGRAMS IN AREAS IDENTIFIED BY THE LOCAL GOVERNMENT UNITS 
CONCERNED. 
I 
, 
written notice to all members of the date, time, place, and agenda of 
(h) xxx 
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e ti 
- 
The 
be furnished the pu ong barangay and the sanggunian barangay. 
P 
A majority of the members of the sangguniang kabataan shall constitute a 
quorum. 
ABSENCE WITHOUT JUST CAUSE FOR TWO (2) CONSECUTIVE SESSIONS 
MAY BE A GROUND FOR DISCIPLINARY ACTION. 
. Section 431 of the Code is hereby amended to read as follows: 
6lni 
ataan 
. In addition to the duties which may be assigned to him by the sangguniang 
barangay, the sangguniang kabataan shall: 
~ 
(a) 
xxx 
(b) 
xxxx 
(d) With the concurrence of the sangguniang kabataan, appoint [from among the 
members of the sangguniang kabataan,] the secretary and THE treasurer, 
and such other officers as may be deemed necessary; and 
(e) xxx 
I 


, 
I 
7. Section 433 of the Code is hereby amended to read as follows: 
r. - The sangguniang 
kabataan treasurer shall: 
(a) 
Take custody of all sangguniang kabataan property and funds. 
[not otherwise deposited with the city or municipal treasurer] THE FUNDS OF THE 
SANGGUNIANG hBATAAN SHALL BE DEPOSITED IN THE NAME OF THE 
SANGGUNIANG KABATAAN CONCERNED IN A BANK DULY AUTHORIZED BY THE 
BANGKO SENTRAL NG PILIPINAS PREFERABLY LOCATED IN OR NEAREST THE 
BARANGAY CONCERNED; 
(b) 
xxx 
' 
1 
I 
(c) 
xxx 
(d) xxx 
I 
(e) Submit 10 the sangguniang kabataan and to the sangguniang barangay 
certified and detailed statements of actual income and expenditures at the end of every 
[month] QUARTEA AND THE SAME SHALL BE PUBLISHED OR POSTED IN THE 
AREA DESIGNATED FOR THIS PURPOSE; and 
(9 xxx 
en 
rivil 
n. - The sangguniang 
kabataan chairman shall have the same privileges enjoyed by other sangguniang 
barangay officials under this Code subject to such requirements and limitations provided 
herein. During their incumbency, sangguniang kabataan officials shall be exempt from 
payment of tuition, and matriculation fees while enrolled in public tertiary schools, 
I 
including state colleges and universities. The national government shall reimburse said 
college or university the amount of the tuition and matriculation fees: Provided, That, to 
qualify for the privilege, the said officials shall enroll in the state college or university 
within or nearest their area of jurisdiction. 


I 
1 
THE SANGGUNIANG KABATAAN CHAIRMAN, THE SECRETARY AND 
TREASURER MAY BE PROVIDED WITH HONORARIA OR ALLOWANCES BY THE 
SANG G U N IAN G KABATAAN CONCERN ED . 
the said member 
. Section 435 of the Code is hereby amended to read as follows: 
. - (a) In case a 
refuses to assume the position or fails to qualify, the sanggunian 
to re 
s 
. - The term of office, manner of 
election, removal, suspension AND DISCIPLINARY ACTION of the officers and 
MEMBERS of the pederasyon ng mga sangguniang kabataan at all levels AND THE 
SANGGUNIANG KABATAAN AT THE BARANGAY LEVEL shall be governed by the 
Constitution and By-Laws of the Sangguniang Kabataan in conformity with the 
provisions of this Code and national policies of the youth. 
I 


1 
I 
THE PAMB~NSANG PEDERASYON NG MGA SANGGUNIANG KABATAAN 
SHALL PROMULG TE THE APPROPRIATE GUIDELINES FOR THE CONDUCT OF 
i" 
THE PEDERASYON ELECTIONS AT ALL LEVELS IN CONSULTATION WITH THE 
COMMISSION ON ELECTIONS. 
(a) A sangguniang kabataan chairman shall, upon the certification of his election 
by the Comelec and during his tenure of office is elected as pederasyon president, 
serve as an ex-officio member of the sangguniang panlalawigan, sangguniang 
panlungsod, and s,angguniang bayan as the case may be, without need of further 
appointment. HE SHALL HAVE THE SAME POWERS, DUTIES AND FUNCTIONS, 
AND ENJOY THE SAME PRIVILEGES AS THE REGULAR MEMBERS. 
I 
1 
I 
1 
ctio 
to rea 
~ 
s follows: 
n. - (a) A municipality may be 
created if it has a'[an] LOCALLY GENERATED average annual income as certified 
I 
I 
by the provincial tr!easurer, of at least [Two] TWENTY million [five hundred thousand] 
pesos [(P2,500,00~.00)] (P20,000,000.00) for the last two (2) consecutive years based 
I 
on the 
[I9911 1998 constant prices; a population of at least twenty-five thousand 
(25,000) inhabitants, as certified by the National Statistics Office; and a contiguous 
territory of at least fifty (50) square kilometers as certified by the Lands Management 
Bureau: Provided, That the creation thereof shall not reduce the land area, population or 
income of the original municipality or municipalities at the time of said creation, to less 
than the minimum requirements prescribed herein. 
(b) xxx 


cti? 
ci 
ent. - (a) There shall 
be in each municipality a municipal mayor, a municipal vice-mayor, sangguniang bayan 
members[,]. IN AiDDITION, THE MUNICIPAL MAYOR SHALL APPOINT THE 
FOLLOWING OFFICIALS: [a secretary to the sanggunian bayan] a municipal treasurer, 
a municipal assessor, a municipal accountant, a municipal budget officer, a municipal 
planning and development coordinator, a municipal engineer/building official, a 
municipal health officer, FIRE PROTECTION OFFICER, A MUNICIPAL LIBRARIAN 
FOR FIRST CLASS MUNICIPALITIES, OPTIONAL FOR SECOND UP TO SIXTH 
CLASS MUNICIPALITIES, and a municipal civil registrar. 
(b) [In addition thereto,] [t]The mayor may ALSO appoint a municipal 
administrator, a municipal legal officer, a municipal agriculturist, a municipal 
environment and natural resources officer, a municipal social welfare and development 
officer, a municipal architect, A MUNICIPAL HUMAN RESOURCE DEVELOPMENT 
OFFICER, COOPERATIVES OFFICER, and a municipal information officer. 
(c) xxx 
xxx 
(I) 
xxx 
(i) xxx 
(ii) xxx 
(v) Appoint all officials and employees whose salaries and wages are 
wholly or mainly paid out of municipal funds and whose appointments 
are not otherwise provided for in this Code as well as those he may be 


authorized by law to appoint; EXCEPT THOSE TO BE APPOINTED 
BY THE VICE MAYOR AS PROVIDED FOR IN SECTION 445 (a)(2) 
07 THS CODE; 
I 
(viii) xxx 
(ix) xxx 
i 
(2) xxx 
I 
(3) Initiate and maximize the generation of resources and revenues, and apply 
I 
the same to the implementation of development plans, program objectives and priorities 
as provided for u der Section 18 of this Code, particularly those resources and 
revenues programmed for agro-industrial development and country-wide growth and 
progress, and relative thereto, shall: 
f 
(i) xxx 
(ii) xxx 
(iv) Issue licenses and permits and suspend or revoke the same for any violation 
of the conditions upon which said licenses or permits had been issued, 
pursuant to law or ordinance [;]SUBJECT TO THE ORDINANCE OF THE 
SANGGUNIANG BAYAN ISSUE 
LICENSES AND 
PERMITS FOR 
GAMBLING OPERATIONS AUTHORIZED BY LAW; 
(vii) Adopt adequate measures to safeguard and conserve land, mineral, marine, 
forest, THE ECOLOGICAL SYSTEM, and other resources of the municipality, 
and protect the funds, credit, rights and other priorities of the municipality, 
AND ISSUE, UPON THE AUTHORIZATION OF THE SANGGUNIANG 
BAYAN, AN ENVIRONMENTAL CLEARANCE CERTIFICATE AND A 
PERMIT TO OPERATE FOR ANY FIRM OR ENTITY TO OPERATE IN THE 
I 
M U N IC I PAL ITY. 
I 
. Section 445 (2) of the Code is hereby amended to read as 
follows: 
, - The vice mayor 
shall: 


(1) xxxx 
(2) Subject to civil service law, rules, and regulations, appoint THE SECRETARY 
OF THE SANGGUNIANG BAYAN AND all OTHER officials and employees [of the 
sangguniang bayan], INCLUDING THE EMPLOYEES OF THE INDIVIDUAL MEMBERS 
THEREOF, except those whose manner of appointment is specifically provided in this 
Code; 
~ 
(3) xxx 
j 
i - Section 447, (a),(l), (v), (viii), (2) (x), (3) (vii) (xi), (5) (xiv), (xv) 
y amended as follows: 
The sangguniang bayan, as the legislative body of the municipality, shall enact 
ordinances, approve resolutions and appropriate funds for the general welfare of the 
municipality and its inhabitants pursuant to Section 16 of this Code and in the proper 
exercise of the corporate powers of the municipality as provided for under Section 22 of 
this Code, and shall: 
(1) 
PASS [Approve] ordinances and [pass] resolutions necessary for an 
efficient and effective municipal government, and in this connection shall: 
(i) xxxx 
I 
(iv) [Adopt measures] ENACT ORDINANCES to protect the inhabitants of the 
I 
municipality from the harmful effects of man-made or natural calamities; and 
to provide relief services and assistance for victims during and IN the 
aftermath of said disasters or calamities and ASSIST THEM in their return to 
productive I ivel i hood 
[following said events.] 
i 
(v) AUTHORIZE THE MAYOR TO ISSUE AN ENVIRONMENTAL CLEARANCE 
CERTIFICATE AND A PERMIT TO OPERATE FOR ANY FIRM OR ENTITY 
TO OPERATE IN THE MUNICIPALITY AFTER THE REQUIREMENTS OF 
2(D), 26 AND 27 HAVE BEEN COMPLIED WITH. 


REQUIRE THE SUBMISSION OF AN ENVIRONMENTAL CLEARANCE 
CERTIFICATE ISSUED BY THE DEPARTMENT OF ENVIRONMENT AND NATURAL 
RESOURCES FOR PROJECTS, PROGRAMS AND ACTIVITIES DEALING WITH 
LOGGING, QUARRYING, COMMERCIAL AND INDUSTRIAL DISTRICTS, ZONES OR 
ESTABLISMENTS, RECLAMATIONS, ESTABLISHMENTS AND OPERATION OF 
NON-FERROUS INDUSTRIES, IRON AND STEEL MILLS, SMELTING PLANTS, OIL, 
GAS, AND PETROLEUM AND PETROCHEMICAL INDUSTRIES, FOSSIL FUELLED, 
NUCLEAR, COAL-FIRED, HYDRO-ELECTRIC, GEOTHERMAL AND OTHER MAJOR 
POWER PLANTS! AND FOR THE CONSTRUCTION OF EDIFICES, ROADS, 
BRIDGES AND SI ILAR FACILITIES AND OTHER PROJECTS OR PROGRAMS OF 
CENTRAL GOVERNMENT AGENCIES OR PRIVATE SECTOR THAT CRITICALLY 
7 
IMPACTS ON T E ENVIRONMENT, SUBJECT TO THE REQUIREMENTS OF 
SECTION 2 (D), 
AND 27 OF THE CODE AS AMENDED; 
I 
[(v)] (VI) Enact ordinances intended to prevent, suppress and impose appropriate 
penalties for habitual drunkenness in public places, vagrancy, mendicancy, prostitution, 
establishment and maintenance of houses of ill repute, gambling and other [prohibited] 
games of chance, fraudulent devices and ways to obtain money or property, drug 
addiction, maintenance of drug dens, drug pushing, juvenile delinquency, SQUATTING, 
ILLEGAL VENDING AND PEDDLING, [the] printing, distribution or exhibition of obscene 
or pornographic materials or publications, and such other activities inimical to the 
welfare and morals of the inhabitants of the municipality; 
[(vi)] (vii) xxx 
I 
[(vii)] (viii) xxx 
[(viii)] (ix) xxx 
[(xii)] (xiii) Provide [for] legal assistance to MUNICIPAL AND barangay officials 
INCLUDING THE MEMBERS OF THE MUNICIPAL POLICE who, in the performances 
of their official duties, or on the occasion thereof, have to, initiate judicial proceedings or 
defend themselves against legal actions [; and]. THE SANGGUNIANG BAYAN MAY 
I 
AUTHORIZE THE MUNICIPAL MAYOR TO ENGAGE THE SERVICES OF PRIVATE 


1 
< 
1 
[xiii] (xiv) xxx, 
(2) Generate and maximize the use of resources and revenues for the 
development plans, program objectives and priorities of the municipality as provided for 
under Section 18 of this Code, with particular attention to agro-industrial development 
and countryside growth and progress, and relative thereto, shall: 
(i) xxx 
(ii) xxx 
I 
1 
(iii) xxx 
(vii) Adopt a comprehensive land use plan for the municipality WHICH SHALL BE 
REVIEWED EVERY FIVE YEARS THEREAFTER: Provided, That the 
formulation, adoption, or modification of said plan shall be in coordination 
with the approved provincial comprehensive land use plan; 
(v) 
xxy 
i 
xxr 
xxr 
(vi) 
(vii) 
(viii) 
xxx 
I 
(i)o 
xxx 
(x) [Subject to national law,] AUTHORIZE THE MUNICIPAL MAYOR process 
and approve subdivision AND CONDOMINIUM plans for residential, 
commercial, or industrial [purposes] and other development purposes[,] 
AND 
TO ISSUE LICENSE OR AUTHORITY TO SELL SUCH 
SUBDIVISION LOTS AND CONDOMINIUM UNITS and collect [processing] 
fees and other charges THEREFOR SUBJECT TO NATIONAL LAW[,]. 
[t]The proceeds of which shall accrue entirely to the municipality[;]. 
[Provided, however, That, where approval by a national agency or office is 
required, said approval shall not be withheld for more than thirty (30) days 
from receipt of the application. Failure to act on the application within the 
period stated above shall be deemed as approval thereof.] 
(xi) [Subject to the provisions of Book II of this Code,] [g]Grant [the] exclusive 
privilege of constructing fish corrals or fish pens, or the taking or catching of 


bangus fry, prawn fry or kawag-kawag or fry of any species or fish within the 
municipal waters SUBJECT TO THE PROVISION OF BOOK II OF THIS 
CODE. THE MUNICIPAL WATERS SHALL BE RESERVED FOR FISHING 
ACTIVITIES OF RESIDENT FISHERFOLKS AND COOPERATIVES DULY 
REGISTERED WITH THE COOPERATIVE DEVELOPMENT AUTHORITY 
IN ACCORDANCE WITH R.A. 6938 WHERE AT LEAST TWO-THIRDS OF 
ITS MEMBERS ARE RESIDENTS OF THE MUNICIPALITY CONCERNED. 
(xv) xxx 
I 
(3) xxx 
~ 
I 
(i) xxx 
1 
(v) [Any law to the contrary notwithstanding] [aIAuthorize and license the 
establishment, operation and maintenance of cockpits[,] AND COMMERCIAL 
BREEDING OF GAMECOCKS, and regulate cockfighting [and commercial 
breeding I 
of 
gamecocks] 
AFTER 
COMPLIANCE 
WITH 
‘THE 
REQUIREMENTS OF SECTIONS 2 (D), 26 and 27 OF THIS CODE : 
BETTING 
STATIONS 
AND 
ON-LINE 
BINGO, 
THE 
SANGGUNIAN 
CONCERNED MAY AUTHORIZE THE MAYOR TO ISSUE A PERMIT FOR THE 
OPERATION WITHIN THE LOCAL JURISDICTION AND TO REGULATE ITS 
LOCATIONS WITHIN THE MUNICIPALITY SUBJECT TO THE PROVISIONS 
OF SECTIONS 2 (D), 26 AND 27 OF THIS CODE; 
(vi)xxx 
(4) xxx 
(i) xxx 
(5) Approve, ordinances which shall ensure the efficient and effective delivery of 
the basic services and facilities as provided for under Section 17 of this Code, and in 
addition to said services and facilities, shall: 
I 


1 
I 
(I) xxx 
(ii) xxx 
(iii) Authorize :he establishment, maintenance and operations of ferries, wharves, 
and other structure, and marine and seashore or offshore activities 
intended to accelerate productivity, AND CORRESPONDINGLY LEVY 
TAXES, FEES AND CHARGES THEREOF; 
(vi) Regulate traffic on all streets and bridges, prohibit the putting up of 
encroachments or obstacles thereon, and, when necessary in the interest 
of public welfare, authorize the removal of encroachments and illegal 
constructions in public places; 
, INSTALL AND ADMINISTER A TICKETING SYSTEM, FIX, 
IMPOSE AND COLLECT FINES AND PENALTIES FOR ALL KINDS OF 
VIOLATIONS OF TRAFFIC RULES AND REGULATIONS FOR MOVING 
OR NON-MOVING MOTOR VEHICLES AND CONFISCATE DRIVERS’ 
LICENSES. 
(xiv) Provide for the PROPER care, PROTECTION AND WELL-BEING of 
paupers, the aged, the sick, persons of unsound mind, disabled persons, 
I 
BATTERED AND SEXUALLY ABUSED PERSONS, abandoned minors, 
juvenile delinquents, drug dependents, abused children and other needy 
and bisadvantaged persons, particularly children and youth below 
eightjen (18) years of age and [, subject to availability of funds,] establish 
and provide for the operation of centers and facilities for said needy and 
disadvantaged persons[;]. 
THE SANGGUNIANG BAYAN SHALL 
APPROPRIATE FUNDS FOR THE IMPLEMENTATION OF THIS 
PROVl SI ON. 
i 
(xv) Establish and provide SEPARATE JAIL FACILITIES FOR JUVENILE AND 
ADULT PRISONERS AND DETAINEES, AS WELL AS, FOR MALE AND 
FEMALE PRISONERS AND DETAINEES; for the maintenance and 
improvement of jails and detention centers, institute sound jail 


(XVI) 
EFFICIENT 
AND 
EFFECTIVE 
FIRE 
PROTECTION 
soulD. 
MANAGEMENT. 
(XVII) 
REGULATE THE ADVERTISING OF LIQUOR AND TOBACCO 
ESTABLISH AND MAINTAIN FIRE STATION STRUCTURES 
FOR 
PRODUCTS 
(XIV) ADOPT MEASURES TO ENHANCE THE FULL IMPLEMENTATION OF 
THE NATIONAL AGRARIAN REFORM PROGRAM IN COORDINATION 
WITH THE DEPARTMENT OF AGRARIAN REFORM. 
7. 
Section 450 (a) of the Code is hereby amended to read as 
follows: 
I 
ti o 
UI 
re 
. - (a) A municipality or a cluster of 
barangay[s] may be converted into a component city if it has [an] A LOCALLY 
GENERATED average annual income , as certified by the [Department of Finance] 
PROVINCIAL TREASURER , of at least [Twenty million pesos (P20,000,000 OO)] ONE 
HUNDRED MILLION PESOS (P100,000,000.00) for the last two (2) years based on 
[I9911 1998 constant prices [,I ; AN AVERAGE REAL PROPERTY TAX COLLECTION 
~ 
1 
EFFICIENCY OF, 
YEARS PRECEDI 
MU N I C I PALlTY CC 
requisites: 
0) 
AT LEAST, EIGHTY PERCENT (80%) DURING THE THREE 
dG THE CURRENT CALENDAR YEAR IN THE CASE OF A 
NVERTED INTO COMPONENT CITY, and if it has the following 
a contiguous territory of at least 
one hundred 
(100) square 
kilometers, as certified by the Lands Management Bureau; or 
(ii) 
a population of not less than [one hundred fifty thousand (150,000) 
in habitants, as certified by the National Statistics Office. 
rruviueu. I rial, trie C;reatiuri triereoi sriaii riot reauce me iana area, popurarion, ana 
incorne of the original unit or units at the time of said creation to less that the minimum 
requirements prescribed herein. 


I 
I 
(b) xxx 
I 
(c) xxx 
. Section 452 (a) of the same Code is hereby amended to read as 
! 
follows: 
i 
ec 
, - (a) 
Cities with a minimum 
population 
of tw 
hundred 
thousand (200,000) inhabitants, as certified 
by the 
National Statistics Qffice, and with the latest LOCALLY GENERATED annual income of 
at least [Fifty Million Pesos (P50,000,000.00)] TWO HUNDRED FIFTY MILLION 
PESOS (P250,000,000.00) based on [I9911 1998 constant prices, as certified by the 
[city treasurer1DEPARTMENT OF FINANCE, AND AN AVERAGE REAL PROPERTY 
TAX COLLECTION EFFICIENCY OF, AT LEAST, EIGHTY PERCENT (80%) FOR 
THE THREE YEARS PRECEDING THE CURRENT CALENDAR YEAR, shall be 
classified as highly urbanized cities. 
(b) xxx 
(c) xxx 
! 
CTI 
. Section 454 of the Code is hereby amended to read as follows: 
- 
ent- (a) There shall be in 
each city a mayor, a city vice-mayor, sangguniang panlungsod members 
IN 
ADDITION, THE CITY MAYOR SHALL APPOINT THE FOLLOWING OFFICIALS [a 
secretary to the sangguniang panlungsod,] a city treasurer, a city assessor, a city 
, 
accountant, a city budget officer, a city planning and development coordinator, a city 
engineer, a city health officer, a city civil registrar] a city administrator] a city legal 
officer, a city veterinarian, a city social welfare and development officer, A CITY 
ENVIRONMENT AND NATURAL RESOURCES OFFICER, A CITY COOPERATIVES 
OFFICER, A CITY BUILDINGS AND GROUNDS OFFICER, A CITY HUMAN 
RESOURCE DEVELOPMENT OFFICER, A CITY FIRE PROTECTION OFFICER, A 
CITY LIBRARIAN and a city general services officer. 


I 
1 
(b) [In additi,on thereto, t] The City mayor may appoint a city architect, a city 
information officer, a city agriculturist, AND a city population officer. [a city environment 
I 
I 
(a) xxx 
(b) xxx 
and natural resources officer, and a city cooperative officer]. 
(c) xxx 
MAYOR AS PROVIDED FOR IN SECTION 456 OF THIS CODE. 
(3) xxx 
(iv) Issue licenses and permits and suspend or revoke the same for any violation 
of the conditions upon which said licenses a permits had been issued 
pursuant to law a ordinance [;I. 
THIS INCLUDES THE ISSUANCE OF 
LICENSES AND PERMITS FOR GAMBLING OPERATIONS AUTHORIZED 
BY LAW SUBJECT TO THE ORDINANCE OF THE SANGGUNIANG 
PANLUNGSOD; 
IN THE CASE OF OTHER LEGALIZED GAMBLING AND GAMING ACTIVITIES 
AUTHORIZED BY THE CENTRAL GOVERNMENT SUCH AS BUT NOT LIMITED TO 
, 
CASINOS, LOTTO ,OUTLETS, JAI-ALA1 FRONTONS AND BETTING STATIONS AND 
ON-LINE BINGO, THE SANGGUNIAN CONCERNED MAY AUTHORIZE THE MAYOR 
I 
I 
TO ISSUE A PERMIT FOR THE OPERATION WITHIN THE LOCAL JURISDICTION 
AND TO REGULATE ITS LOCATIONS WITHIN THE CITY SUBJECT TO THE 
PROVISIONS OF $ECTIONS 2 (D), 26 AND 27 OF THIS CODE; 
I 


(vi) Adopt adequate measures to safeguard and conserve land, mineral, marine, 
mayor s h a I I: 
(1) xxxx 
forest, THE ECOLOGICAL SYSTEM and other resources of the city[.] AND 
ISSUE, 
UPON THE AUTHORIZATION OF THE 
SANGGUNIANG 
PANGLUNGSOD, AN ENVIRONMENTAL CLEARANCE CERTIFICATE 
AND A PERMIT TO OPERATE FOR ANY FIRM OR ENTITY TO OPERATE 
IN THE CITY. 
I . Section 456 (3) of the code is hereby amended to read as 
follows: 
I 
PANLUNGSOD, except those whose manner of appointment is specifically 
provided in this Code; 
(3) xxx 
eby amended to read as follows: 
n. (a) xxx 
(I) 
xxx 
I 
(i) xxx 
(ii) xxx 
(V) AUTHORIZE THE MAYOR TO ISSUE AN ENVIRONMENTAL CLEARANCE 
CERTIFICATE AND A PERMIT TO OPERATE FOR ANY FIRM OR ENTITY TO 
OPERATE IN THE iCITY AFTER PUBLIC CONSULTATIONS HAVE BEEN COMPLIED 
i 
WITH OR AFTER THE REQUIREMENTS OF SECTION 2(D), 26 AND 27 HAVE BEEN 
1 
COMPLIED WITH. 1 
~ 


REQUIRE THE SUBMISSION OF AN ENVIRONMENTAL CLEARANCE 
CERTIFICATE ISSUED BY THE DEPARTMENT OF ENVIRONMENT AND NATURAL 
RESOURCES FOR PROJECTS, PROGRAMS, AND ACTIVITIES DEALING WITH 
LOGGING, QUARRYING, COMMERCIAL AND INDUSTRIAL DISTIRCTS, ZONES OR 
ESTABLISHMENTS, RECLAMATION, ESTABLISHMENT AND OPERATION OF NON- 
FERROUS INDUSTRIES, IRON AND STEEL MILLS, SMELTING PLANTS, OIL, GAS 
I 
AND PETROLEUM AND PETROCHEMICAL INDUSTRIES, FOSSIL-FUELLED, 
i 
NUCLEAR, COAL-FIRED, HYDRO-ELECTRIC, GEOTHERMAL AND OTHER MAJOR 
[v] (vi) Enact 
penalties for habitual 
establishment and 
POWER PLANTS, AND FOR THE CONSTRUCTION OF EDIFIES, ROADS, BRIDGES, 
AND SIMILAR FACILITIES AND OTHER PROJECTS OR PROGRAMS OF CENTRAL 
I 
ordinances intended to prevent, suppress, and impose appropriate 
drunkenness in public places, vagrancy, mendicancy, prostitution, 
maintenance of houses of ill repute, gambling and other prohibited 
GOVERNMENT AGENCIES OR PRIVATE SECTOR THAT CRITICALLY IMPACTS ON 
legal actions [;and]. THE SANGGUNIANG PANLUNGSOD MAY AUTHORIZE THE 
CITY MAYOR TO ENGAGE THE SERVICES OF PRIVATE COUNSEL FOR THIS 
I 
PURPOSE; AND 
~ 
I 
I 
I 
(xiii) xxx 
(2) Generate and maximize the use of resources and revenues for the 
development plans, program objectives and priorities of the city as provided for under 


I 
1 
I 
t 
Section I 8  of this Code, with particular attention to agro-industrial development and city- 
wide growth and progress, and relative thereto, shall: 
(0 
xxx 
(ii) 
xxx 
(x) [Subject to national law,] AUTHORIZE THE CITY MAYOR TO process and 
approve subdivision AND CONDOMINIUM plans for residential, commercial, or 
industrial [purposes] and other development purposes[,] AND TO ISSUE LICENSE OR 
AUTHORITY TO SELL SUCH SUBDIVISION LOTS A.ND CONDOMINIUM UNITS and 
collect [processing] fees and other charges THEREFOR SUBJECT TO NATIONAL 
LAWS[,]. [t]The proceeds of which shall accrue entirely to the municipality[;]. [Provided, 
~ 
I 
I 
I 
however, That, where approval by a national agency or office is required, said approval 
shall not be withheld for more than thirty (30) days from receipt of the application. 
Failure to act on the application within the period stated above shall be deemed as 
a p prova I thereof .] 
I 
(3) xxxx 
I 
r 
[A y law to the contrary notwithstanding] [a]Authorize and 
(VI 
license the 
establishment, operation 
and 
maintenance of 
cockpits[,] AND 
COMMERCIAL BREEDING OF GAMECOCKS, and regulate cockfighting [and 
commercial 
breeping 
of 
gamecocks] 
AFTER 
COMPLIANCE 
WITH 
THE 
REQUIREMENTS OF SECTIONS 2 (D), 26 and 27 OF THIS CODE : Provided, That 
existing rights should not be prejudiced. 
IN THE CASE OF OTHER LEGALIZED GAMBLING AND GAMING ACTIVITIES 
AUTHORIZED BY THE CENTRAL GOVERNMENT SUCH AS BUT NOT LIMITED TO 
CASINOS, LOTTO OUTLETS, JAI-ALA1 FRONTONS AND BETTING STATIONS AND 
ON-LINE BINGO, THE SANGGUNIAN CONCERNED MAY AUTHORIZE THE MAYOR 
TO ISSUE A PERMIT FOR THE OPERATION WITHIN THE LOCAL JURISDICTION 
AND TO REGULATE ITS LOCATIONS WITHIN THE CITY SUBJECT TO THE 
PROVISIONS OF SECTIONS 2 (D), 26 AND 27 OF THIS CODE; 
(vi) xxx 


e is hereby amended to read as 
- (a) A province may be created if 
it has [an] A LOCALLY GENERATED average annual income, as certified by the 
Department of Finance, of not less than [twenty million pesos (P20,000,000.00)] TWO 
HUNDRED MILLION PESOS (P200,000,000.00) based on [I 9911 1998 constant prices, 
AN AVERAGE REAL PROPERTY TAX COLLECTION EFFICIENCY, OF AT LEAST, 
EIGHTY PERCENT (80%) DURING THE THREE YEARS PRECEDING THE 
CURRENT CALENDAR YEAR; and it has the following requisites: 
(i) contiguous territory of at least two thousand (2,000) square kilometers, as 
(ii) population of not less than 
certified by the Lands Management Bureau; or 
two hundred fifty thousand (250,000) inhabitants as certified by the National [Census 
and] Statistics Office. 
, 
l 
Provided, That, the creation thereof shall not reduce the land area, population, 
and income of the original unit or units at the time of said creation to less than the 
minimum requirements prescribed herein. 
I 
- Section 463 (a) and (b) of the Code are hereby amended to 
I 
I 
I 
read as follows: 
I 
ecti 
3 -  
vi 
- (a) There shall 
be in each provi ce a governor, a vice-governor, members of the sangguniang 
1 
panlalawigan. IN ADDITION, THE PROVINCIAL GOVERNOR SHALL APPOINT THE 
FOLLOWING; [a secretary to the sangguniang panlalawigan], a provincial treasurer, a 
provincial assessor, a provincial accountant, a provincial engineer, a provincial budget 
officer, a provincial planning and development coordinator, a provincial legal officer, a 
provincial administrator, a provincial health officer, a provincial social welfare and 
development officer, a provincial general services officer, a provincial agriculturist, A 
PROVINCIAL 
ENVIRONMENT AND 
NATURAL 
RESOURCES 
OFFICER, A 
PROVINCIAL COOPERATIVES OFFICER, A HUMAN RESOURCE DEVELOPMENT 
OFFICER , A PROVINCIAL LIBRARIAN and a provincial veterinarian. 


I 
I 
I 
I 
(b) [In addi'tion thereto,] [t]The governor may ALSO appoint a provincial 
population officer, [ a provincial natural resources and environment officer, a provincial 
cooperative officer, a provincial architect, and a provincial information officer 
I 
- Section 465, (b),(3)(v) of the Code is hereby amended by 
I 
adding sub-paragraph vii to read as follows: 
ction 
nctions and 
( I )  xxx 
(3) xxx 
(i) xxx 
(ii) xxx 
(v) Adopt adequate measures to safeguard and conserve land, mineral, marine, 
forest and other resources, AND PRESERVE THE ECOSYSTEM of the province, in 
coordination with the mayors of component cities and municipalities. 
TH E GOVERNOR MAY ISSUE ENVl RON M ENTAL CLEARANCE CERTl F ICATE 
FOR ANY FIRM OR ENTITY TO OPERATE IN THE PROVINCE WHOSE 
ENVIRONMENTAL IMPACT AFFECTS TWO OR MORE MUNICIPALITIES AFTER 
THE APPROVAL OF TWO-THIRD VOTES OF THE MEMBERS OF THE 
SAN GG U N IAN G PAN LALAW I GAN , AN D UPON FAVORABLE REC 0 M M E N DATl 0 N 
OF THE SANGGUNIANG BAYANS OF THE MUNICIPALITY WHERE THE FIRM OR 
i 
ENTITY WOULD OPERATE AS WELL AS THE SANGGUNIANG BAYANS OF THE 
AFFECTED MUNICIPALITIES. 
- Section 466 (2) of the Code is hereby amended to read as 
follows: 
. - (a) The vice- 
governor shall: 
(I) 
xxxx 


1 
I 
I 
(2) [Subject' to civil service law, rules and regulations,] [a]Appoint THE 
VEHICLES OPERATING 
activities as provided 
SECRETARY OF THE SANGGUNIANG PANLALAWIGAN AND all OTHER 
officials and employees [ of the sangguniang panlalawigan] INCLUDING THE 
EMPLOYEES OF THE INDIVIDUAL MEMBERS THEREOF, except those 
whose m nner of appointment is specifically provided in this Code; 
, 
I 
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(3) xxx 
I 
WITHIN THE PROVINCE [and fix the license fees for such 
for under this Code]. 
- Section 468, (a), (4), 
(vi), (vii) of the Code is hereby amended to 
, 
read as follows: 
ecti 
- 
sangguniang panlalawigan, as the legislative body of the province, shall enact 
ordinances, approve resolutions and appropriate funds for the general welfare of the 
province and its inhabitants pursuant to Section 16 of this Code and in the proper 
exercise of the corporate powers of the province for under Section 22 of this Code, and 
shall: 
(1)XXX 
I 
(3) Subject to the provision of the Book II of this Code, grant franchises, approve 
the issuance of permits or licenses, or enact ordinances levying taxes, fees and charges 
upon such conditions and for such purposes intended to promote the general welfare of 
the inhabitants of the province, and pursuant to this legislative authority shall: 
I 
(0 
Fix and impose reasonable fees and charges for all services 
rendered by the provincial government to private persons and 
I 
~ 
entities; [and] 
i 
the basic services and facilities as provided for under Section 17 of this Code, and, in 
addition to said services and facilities, shall: 
(i) xxx 


1 
(11) 
AUTHO~IZE THE GOVERNOR TO ISSUE AN ENVIRONMENTAL 
I 
I 
CLEARANCE CERTIFICATE AND A PERMIT TO OPERATE FOR ANY FIRM OR 
LOGGING, QUARRYING, 
ESTABLISH M ENT, 
ENTITY TO OPERATE IN THE PROVINCE AFTER PUBLIC CONSULTATIONS HAVE 
COMMERCIAL AND INDUSTRIAL DISTRICTS, ZONES OR 
REC LAMATIO N , ESTABLISH ME NT AND 0 P E RAT1 0 N 0 F N 0 N- 
BEEN COMPLIED WITH OR AFTER THE REQUIREMENTS OF SECTION 2 (D), 26 
AND 27 HAVE BEEN COMPLIED WITH. 
ABUSED PERSONS, abandoned minors, abused children, disabled persons, juvenile 
delinquents, drug dependents, and other needy and disadvantaged persons, particularly 
children and youth below eighteen (18) years of age; [subject to availability funds,] 
establish and support the operatim of PROVINCIAL REHABILITATION AND/OR 
CRISES centers and facilities for said needy and disadvantaged persons; and facilitate 
efforts to promote the welfare of families below the poverty threshold, the 
disadvantaged, anld the exploited. THE SANGGUNIANG PANLALAWIGAN SHALL 
I 
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APPRORIATE FU DS TO BE INCLUDED IN THE ANNUAL BUDGET OF THE 
r\l 
PROVINCE, FOR THE PROPER IMPLEMENTATION OF THIS PROVISION 


(v) xxx 
I 
[(c)] (A) No 
Philippines, a resident 
a holder of college 
- Section 470 of the Code is hereby amended to read as follows: 
- [(a> 
The treasurer shall be appointed by the Secretary of Finance from a list of at least three 
(3) ranking, eligible recommendees of the governor or mayor, as the case may be, 
subject to civil service law, rules, and regulations.] 
[(b) The treasurer shall be under the administrative supervision of the governor or 
I 
person shall be appointed treasurer unless he is a citizen of the 
of the local government unit concerned, of good moral character, 
degree preferably in commerce, public administration or law from a 


. Section 471 of the Code is hereby amended to read as follows: 
ec 
r. - (a) An assistant treasurer may be 
appointed by the [Secretary of Finance from a list of at least three (3) ranking eligible 
recommendees of the] governor or mayor AS THE CASE MAY BE, subject to civil 
service law, rules and regulations. 
, 
~ 
- Article Seven and Section 4.77 of the Code are hereby amended 
by adding Article Seven - A and B and Section 477 - I and 2 to read as follows: 
, 
1 
cfi 
. - (a) No person shall 
be appointed engineer unless he is a citizen of the Philippines, PREFERABLY a 
resident of the local government unit concerned of good moral character and a licensed 
civil engineer. He qust have acquired experience in the practice of his profession for at 
least five (5) years 'in the case of the provincial or city engineer, and three (3) years in 
the case of the mu icipal engineer. 
1 
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1 
The appointment of an engineer shall be mandatory for the provincial, city, and 
municipal governments. [The city and municipal engineer shall also act as the local 
building official.] 
I 
xxx 
C Ti 
- NO 
PERSON SHALL BE APPOINTED BUILDINGS AND GROUNDS OFFICER UNLESS 
HE IS A CITIZEN OF THE PHILIPPINES, PREFERABLY A RESIDENT OF THE 
LOCAL GOVERNVENT UNIT CONCERNED, OF GOOD MORAL CHARACTER, AND 
A LICENSED ARCHITECT OR CIVIL ENGINEER. HE MUST HAVE ACQUIRED 
I 
1 
DIVERSIFIED AND PROFESSIONAL EXPERIENCE IN BUILDING DESIGN AND 
CONSTRUCTION FOR AT LEAST FIVE (5) YEARS IN THE CASE OF THE 
PROVINCIAL OR CITY, AND AT LEAST THREE (3) YEARS, IN THE CASE OF A 
MUNICIPAL, BUILDINGS AND GROUNDS OFFICER. 


THE APPOt TMENT OF A BUILDINGS AND GROUNDS OFFICER IS 
MANDATORY FOR A CITY AND A MUNICIPALITY. 
(B) THE BUILDINGS AND GROUNDS OFFICER SHALL TAKE CHARGE OF 
THE BUILDINGS AND GROUNDS SERVICES AND SHALL: 
(I) 
BE 
PRIMARILY RESPONSIBLE FOR 
ENFORCEMENT OF 
THE 
PROVISIONS OF THE BUILDING CODE 
OF THE PHILIPPINES AS WELL AS 
THOSE THE SANGGUNIAN CONCERNED MAY PRESCRIBE; 
(i) ISSUE BUILDING PERMITS; 
(ii) INSPECT DURING REASONABLE TIME AND DETERMINE COMPLIANCE 
WITH THE REQUIREMENTS OF THE BUILDING CODE AS WELL AS RULES AND 
REGULATIONS PROMUGATED BY THE SANGGUNIAN; 
(I) 
ORDERl WORK STOPPAGE WHEN THE CONSTRUCTION OF ANY 
BUILDING IS FOUND TO BE VIOLATIVE OF THE PROVISIONS OF THE BUILDING 
CODE AND THE SANGGUNIAN RULES AND REGULATIONS, AND PRECRIBE THE 
TERMS AND CONDITIONS FOR RESUMPTION OF SAID WORK; 
I 
i 
2) ORDER DISCONTUANCE OF OCCUPANCY OR USE OF ANY BUILDING 
I 
OR  STRUCTURE^ OR PORTION THEREOF, FOUND OCCUPIED OR USED 
CONTRARY TO THE PROVISIONS OF THE BUILDING CODE AND THE RULES AND 
REGULATIONS PqESCRIBED BY THE SANGGUNIAN; 
(3) MAINTAIN AN INVENTORY, AND CONDUCT A PERIODIC ASSESSMENT 
OF THE CONDITIONS OF ALL BUILDINGS IN THE LOCALITY, AND, 
(4) EXERCISE OTHER POWERS AND PERFORM OTHER DUTIES AND 
FUNCTIONS AS MAY BE PROVIDED BY LAW OR ORDINANCE. 
- (A) NO 
PERSON SHALL BE APPOINTED FIRE PROTECTION OFFICER UNLESS HE IS A 
CITIZEN OF THE PHILIPPINES, A RESIDENT OF THE LOCAL GOVERNMENT UNIT 
CONCERNED, OFi GOOD MORAL CHARACTER, AND A LICENSED ELECTRICAL 
ENGINEER. HE MUST HAVE ACQUIRED EXPERIENCE IN THE PRACTICE OF HIS 
PROFESSION FOR AT LEAST FIVE (5) YEARS IN THE CASE OF THE CITY, AND 
I 
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OFFICER. 
PLANTATIONS OR NURSERIES; PUBLIC TRANSPORT VEHICLES, EQUIPMENT OR 
MACHINERY; SHIPS, VESSELS AND OTHER PUBLIC TRANSPORT CRAFTS 
DOCKED AT PIERS OR WHARVES OR ANCHORED AT MAJOR SEAPORTS, 
PETROLEUM INDUSTRY INSTALLATIONS, PLANE CRASHES AND OTHER 
SIMILAR I NC I DENTS; 
, 
(2) ENFORCING THE FIRE CODE AND OTHER RELATED LAWS; 
(3) 
INVESTIGATING 
CAUSES 
OF 
DESTRUCTIVE 
FIRES 
AND, 
IF 
WARRANTED, FILING OF THE PROPER COMPLAINTS RELATIVE THERETO. 
(4) MONITORING, EVALUATING, AND WHENEVER POSSIBLE, ASSISTING 
IN THE SUPPRESSION OF DESTRUCTIVE FIRES OCCURING IN NEIGHBORING 
L 0 CAL IT1 E S . 
(5) 
1NITIAT;ING 
FIRE 
PROTECTION AND 
EMERGENCY 
SERVICES 
I 
PROGRAMS AND' PUBLIC SAFETY DRILLS SUCH AS FOR RESCUE AND 
EVACUATION I N F] RE-RELATED DISASTROUS I NC I DENTS. 
(6) INITIATIthG PROGRAMS DESIGNED TO IMPROVE AND STRENGTHEN 
THE FIRE PROTECTION CAPABILITY OF THE LOCAL GOVERNMENT UNIT; AND 
(7) EXERCISING OTHER POWERS AND PERFORMING OTHER DUTIES AND 
FUNCTIONS AS MAY BE PROVIDED BY LAW OR ORDINANCE. 
I, 
Section 478 of the Code is hereby amended to read as follows: 
- (a) No person shall be 
appointed health officer unless he is a citizen of the Philippines, a resident of the local 
government unit concerned, of good moral character, and a licensed medical 


practitioner. He m st have acquired experience in the practice of his profession for at 
least five (5) years in the case of the provincial or city health officer, and three (3) years 
in the case of the. municipal health officer. 
;I 
The appointpent of a health officer shall be mandatory for provincial, city and 
municipal governmdnts. 
(b) the health officer shall take charge of the office on health services shall: xxx 
(4) COORDINATE WITH THE DEPARTMENT OF HEALTH AND THE OTHER 
LOCAL GOVERNMENT UNITS TO ENSURE AN INTEGRATED APPROACH TO THE 
DELIVERY OF HEALTH CARE SERVICES THROUGH AREA-BASED HEALTH 
PLANNING, 
COMPLEMENT 
HEALTH 
SERVICES 
AMONG 
OTHER 
LOCAL 
GOVERNMENT UNITS AND WITH THE DEPARTMENT OF HEALTH THROUGH 
COMPREHENSIVE 
HEALTH 
CARE 
AGREEMENTS 
(CHCAs) 
AND 
OTHER 
INSTRUMENTS: PROVIDED, THAT THE FORMULATION OF SUCH AGREEMENTS 
AND 
INSTRUMENTS 
AS 
WELL 
AS 
THE 
PROGRAMMING, 
PLANNING, 
PRIORITIZING OF PROJECTS AND IMPLEMENTATION OF THE SAME SHALL BE 
UNDERTAKEN IN COLLABORATION AND TOGETHER WITH THE 
LOCAL 
GOVERNMENT UNITS CONCERNED; 
(5) IN THE CASE OF THE PROVINCIAL HEALTH OFFICER, HE/SHE 
COORDINATE WITH THE HEALTH OFFICERS OF COMPONENT CITIES AND 
MUNICIPALITIES FOR THE PURPOSE OF INTEGRATION, COORDINATION, AND 
M 0 N I TOR I N G LOCAL H EALT H P ROG RAMS ; I' 
I 
. An Article shall be added after Article Ten Article, to be known as 
Article Ten -A- S CTION 481-ENTITLED HUMAN RESOURCE DEVELOPMENT 
OFFICER and shallmread as follows: 
r 
- /  - 
- (a) NO PERSON SHALL BE APPOINTED HUMAN RESOURCE 


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1 
I 
EMOLUMENTS; 
DEVELOPMENT OFFICER UNLESS HE IS A CITIZEN OF THE PHILIPPINES, A 
RESIDENT OF THE LOCAL GOVERNMENT UNIT CONCERNED, OF GOOD MORAL 
CHARACTER, HOLDER OF A COLLEGE DEGREE, PREFERABLY IN HUMAN 
RESOURCE 
DEVELOPMENT, 
PERSONNEL 
MANAGEMENT, 
PUBLIC 
ADMINISTRATION/ LAW, OR OTHER RELATED COURSE FROM RECOGNIZED 
I 
I 
COLLEGE OR UNIVERSITY, AND HOLDER OF FIRST GRADE CIVIL SERVICE 
I 
ELIGIBILITY OR ITS EQUIVALENT. HE MUST HAVE ACQUIRED EXPERIENCE IN 
PERSONNEL MAdAGEMENT AND HUMAN RESOURCE DEVELOPMENT WORK 
FOR AT LEAST FIVE (5) YEARS IN THE CASE OF THE PROVINCIAL OR CITY, AND 
I 
THREE (3) YEARS IN THE CASE OF THE MUNICIPAL, HUMAN RESOURCE 
DEVELOPMENT OFFICER. 
THE APPOINTMENT OF A HUMAN RESOURCE DEVELOPMENT OFFICER IS 
MANDATORY FOR THE PROVINCIAL AND CITY GOVERNMENTS AND OPTIONAL 
FOR THE MUNICIPAL GOVERNMENT 
(B) THE HUMAN RESOURCE DEVELOPMENT OFFICER SHALL: 
(1) 
PROVIDE DIRECTION AND SUPERVISION OF ACTIVITIES 
INVOLVING 
PERSONNEL 
MANAGEMENT 
AND 
HUMAN 
RESOURCE 
j I 
DEVELOPMENT; ' 
(2) 
HANDLE ACTIVITIES PERTAINING TO PERSONNEL MOVEMENT, 
EMPLOYEE DEVELOPMENT AND WELFARE BENEFITS; 
(3) 
REVIEW 
AND 
PROCESS 
APPOINTMENT 
PAPERS, 
PROMOTIONS, TRANSFERS, DETAILS, 
LEAVES OF ABSENCE 
AND OTHER 
PERSONNEL MOVEM E NTS ; 
I 
(5) 
CONDUCT 
TESTS, 
INTERVIEWS, 
EVALUATION 
OF 
APPLICATIONS AND RECOMMEND PLACEMENT OF QUALIFIED APPLICANTS. 
(6) 
ACT AS CUSTODIAN OF RECORD OF PERSONNEL 
IN HIS 
JURISDICTION; 


a 
1 
f 
(7) 
PROV1DE APPROPRIATE SECRETARIAT SERVICES FOR THE 
PROMOTION AND 
SELECTION BOARD; 
(8) 
DESIGN MODULES FOR THE TRAINING REQUIREMENTS, 
COORDINATE 
AND 
CONDUCT 
IN-HOUSE 
SEMINARS, 
WORKSHOPS AND TRAINING FOR EMPLOYEES; 
PREPARE 
STUDIES 
ON 
EMPLOYEE 
BENEFITS, 
AND 
PROPOSE POLICY ORDERS DESIGNED FOR EMPLOYEES' 
WELFARE; 
COORDINATE WITH THE CIVIL SERVICE COMMISSION ON 
PERSONNEL MATTERS; AND 
EXERCISE OTHER POWERS AND PERFORM OTHER DUTIES 
AND FUNCTIONS AS MAY BE PROVIDED BY LAW OR 
0 RD I NAN C E. 
. Section 482 of the Code is hereby amended to read as follows: 
. - (a) No person shall be 
appointed agriculturist unless he is a citizen of the Philippines, a resident of the local 
government unit concerned, of good moral character, a holder of a college degree in 
agriculture or any related course from a recognized college or university and a first grade 
civil service eligible or its equivalent. He must have practiced his profession in agriculture 
or acquired experience in a related field for at least five (5) years in the case of the 
provincial or city agriculturist, and three (3) years in the case of the municipal agriculturist. 
"The position of an agriculturist shall be mandatory for the provinc[ial]ES [government,] 
I 
MUNICIPALITIES and [optional for the] cit[y]IES WHICH HAVE AGRICULTURAL AREAS 
[and urban municipal governments]. 
I 
. Section 483. Qualifications, Powers and Duties of the Code is 


EXtiQ 
, - (a) No person shall be 
be appointed environment and natural resources officer unless he is a citizen of the 
Philippines, a resident of the local government unit concerned, of good moral character, 
a holder of a college degree preferably in environment, forestry, agriculture or any 
related course from a recognized college or university, and a first grade civil service 
eligible or its equivalent. He must have acquired experience in environmental and 
natural resources management, conservation, and utilization, for at least five (5) years 
in the case of the provincial or city environment and natural resources officer, and three 
(3) years in the case of the municipal environment and natural resources officer. 
I 
The appointment of the environment and natural resources officer is [optional] 
MANDATORY for the provincial[,] AND city [and] BUT OPTIONAL FOR municipal 
governments. 
(b) xxx 
I 


T 
Section 487 (a) of the Code is hereby amended to read as 
follows: 
ection 
. - (a) No person shall 
be appointed cooperatives officer unless he is a citizen of the Philippines a resident of 
the local government unit concerned, of good moral character, a holder of a college 
degree preferably in business administration with special training in cooperatives or any 
related course from a recognized college or university, and a first grade civil service 
I 
eligible or its equiv,alent. He must have experience in cooperatives organization and 
management for at ileast five (5) years in the case of the provincial or city cooperatives 
officer, and three (3j years in the case of the municipal cooperatives officer. 
The appointment of the cooperatives officer is [optional] MANDATORY for the 
I 
I 
provincial and city [,:I [and] BUT OPTIONAL FOR municipal governments 
7. Section 492 of the Code is hereby amended to read as follows: 
I 
re 
- Every 
barangay shall be represented in said hga by the punong barangay or, in his absence or 
incapacity, by [a] THE HIGHEST RANKING sanggunian member [duly elected for the 
purpose among its members], who shall attend meetings or deliberations called by the 
different chapters of the liga. xxxl' 
. Section 508 of the Code is hereby amended to read as follows: 
- 
(a) 
Vice-governors, vice-mayors, 
sangguniang members of barangays, municipalities, component cities, highly urbanized 
cities and municipalities, and other [elective] officials and local government units, 
including those of the Metropolitan Manila are and any metropolitan political 
subdivisions, may form their respective leagues or federations, subject to applicable 
provisions of this title and pertinent provisions of this Code. 


, Section 51 3 of the Code is hereby amended to read as follows. 
, - Failure by the local treasurer or the local chief accountant to post 
the [itemized] monthly [collections and disbursements] STATEMENTS OF INCOME 
AND EXPEND1TUF;IES of the local government unit concerned within ten (IO) days 
following the end :of every month and for at least two (2) consecutive weeks at 
I 
the discretion of the 
prominent places in the main office building of the local government unit concerned, its 
plaza and main street, and to publish said [itemization] STATEMENTS OF INCOME 
AND EXPENDITURES in a newspaper of general circulation, where available, in the 
territorial jurisdiction of such unit, shall be punishable by a fine not exceeding [Five 
hundred pesos (P500.OO)l TEN THOUSAND PESOS (PI 0,000.00) or by imprisonment 
I 
, 
court. 
. Section 516 of the Code is hereby amended to read as follows 
x 
- 
sanggunian of a local government unit is authorized to prescribe fines or other penalties 
for violation of tax ordinances but in no case shall such fines be less than One thousand 
pesos (PI ,000.00) nor more than [Five] TEN thousand pesos [(PS,OOO.OO)], 
(PIO,OOO.OO) nor shall imprisonment be less than one (I) month nor more than six 
(6)months. Such fine or other penalty, or both, shall be imposed at the discretion of the 
court, The sangguniang barangay may prescribe a fine of not less than One hundred 
pesos (PI 00.00) nor more than One thousand pesos (PI ,000.00) OR IMPRISONMENT 
OF NOT MORE THAN ONE (1) MONTH OR BOTH AT THE DISCRETION OF THE 
COURT. 
I 
I 


. Add new section 521 to read as follows 
TI 
. ANY VIOLATION OF PROVISIONS OF THIS CODE 
NOT OTHERWISE SPECIFICALLY PENALIZED SHALL BE PUNISHED WITH A FINE 
NOT EXCEEDING FIVE THOUSAND PESOS (P5,OOO.OO) OR IMPRISONMENT OF 
NOT MORE THAN SIX (6) MONTHS OR BOTH AT THE DISCRETION OF THE 
COURT. 
. In 
I 
. Section 524 of the Code is hereby amended to read as follows: 
T 
I 
ectio 
- I  
fh 
(a) Each local government unit shall conduct a periodic inventory of infrastructure 
and other community facilities and undertake the maintenance, repair, improvement, or 
reconstruction of these facilities through a closer cooperation among the various 
agencies of the National Government operating within the province, city, or municipality 
concerned. 
I 
j 
(b) No infrastructure or community project within the territorial jurisdiction of any 
local government u it shall be undertaken without informing the local executive and tt- 
sanggunian concqrned AND COMPLIANCE WITH THE REQUIREMENTS 
SECTIONS 2 (D), 26 AND 27 OF THIS CODE. 
r 
ITL 
7. 
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in 


ower - 
xxx 
I 
I 
. Section 530 of the Code is hereby amended to read as follows: 
. - All powers, functions, and 
attributes granted by Presidential Decree Numbered One hundred ninety - eight ( P.D. 
198 ), otherwise known as 
The Provincial Water Utility Act of 1973, I' to the Local 
Water Utilities Administration (LWUA) [may] SHALL be devolved into the existing local 
water district or THE LOCAL GOVERNMENT UNIT should they opt or choose to 
exercise, in writing, such powers, functions and attributes: Provided, That all obligations 
of the local water district concerned to the LWUA, IF ANY, shall first be settled prior to 
said devolution: PROVIDED, FURTHER, THAT LOCAL GOVERNMENT UNIT 
OPERATING A LOCAL WATER SYSTEM SHALL BE EXEMPTED FROM PAYMENT 
OF TARIFF AND DUTIES ON IMPORTED MACHINERY 
AND EQUIPMENT 
DIRECTLY USED IN THE OPERATION AND MAINTENANCE OF THE WATER 
SYSTEM. 
. - xx 
n 
an,- x 
. Section 533 of the Code is hereby amended to read as follows: 
P Im 
With one month fter the approval of this Code, the President shall convene the 
oversight Committee as herein provided for. The said Committee shall formulate and 
issue the appropriate rules and regulations necessary for the efficient and effective 
implementation of any and all provisions of this Code, thereby ensuring compliance with 
the principles of local autonomy as defined under the Constitution. 
'1 
i 
(b) The Committee shall be composed of the following: 
(1) The Executive Secretary who shall be the Chairman; 


(2) [Three (3) members of the Senate lo be appointed by the President of the 
Senate, to include] THE CHAIRMAN OF THE SENATE COMMITTEE ON 
LOCAL 
GOVERNMENT 
OR 
HIS 
DULY 
AUTHORIZED 
REPRESENTATIVE 
I 
1 
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i 
(3) members of the House of Representatives to be appointed by 
the Speaker, to include] THE CHAIRMAN OF THE HOUSE COMMITTEE 
ON 
LOCAL 
GOVERNMENT 
OR 
HIS 
DULY 
AUTHORIZED 
(4) The Cabinet represented by the following: 
deemed approved. 
powers and functions 
with the corresponding 
(i) 
Secretary of the Interior and Local Government OR HIS 
Thereafter, the Committee shall supervise the transfer of such 
mandated under this Code to the local government units together 
personnel, properties, asset and liabilities of the offices or 
UNDERSECRETARY; 
Secretary of Finance OR HIS UNDERSECRETARY; 
(ii) 
(iii) 
Secretary 
of 
Budget 
and 
Management 
OR 
HIS 
U N D ERS ECRETARY; 
(5) One representative from each of the following: 
(i) 
The league of Provinces; 
(ii) 
The League of Cities; 
(iii) 
(iv) 
The League of Municipalities; and 
' The Lisa ng mga Barangay; 
I 
(6) ONE REPRESENTATIVE FROM EACH OF THE NATIONAL AGENCIES 
WITH DEVOLVED FUNCTIONS 
(c) The Committee shall submit its report and recommendation to the President 
within two (2) montbs after its organization. If the president fails to act within thirty (30) 
projects. The Committee shall likewise recommend the corresponding appropriations 
necessary to effect the said transfer 


.t4J 
, Y, 
1 
For t9is purpose, the services of a technical staff shall be enlisted from among 
(2) SERVE 
the qualified employees of Congress, the government offices and the leagues 
constituting the Committee. 
TU€ COMMITTEE SHALL NOW DISCHARGE THE FOLLOWING FUNCTIONS: 
(1) ASSIST THE OFFICE OF THE PRESIDENT IN THE FORMULATION OF 
POLICIES AND SERVE AS THE CENTRAL CLEARING BODY FOR THE 
ISSUANCE 
OF 
POLICIES 
RELATIVE 
TO 
THE 
EXECUTIVE 
I 
I 
AS THE VENUE FOR CONSULTATION TO VENTILLATE, 
- Section 534 of the Code is hereby amended to read as 
follows: 
- 
- 
i 
(a) xxx 
(b) xxx 


$ 
a 
]* -*A 
r 
(e) 
The 
PROVISIONS OF THE 
following 
[provisions] 
LAWS AND 
(f) 
All 
proclamations and 
PRESIDENTIAL DECREES are hereby repealed or amended insofar as they are 
general and special laws, acts, city charters, decrees, executive orders, 
administrative regulations, or part or parts thereof which are 
inconsistent with the provisions of this Code: Sections 2, 16, and 29 of Presidential 
Decree 704; Section 12 of Presidertial Decree No. 87, as amended; Sections 52, 53, 
66, 67, 68, 70, 71, 72, and 74 of Presidential Decree No. 463; Section 16, of 
Presidential Decree No., 972, as amended; SECTION I8 OF REPUBLIC ACT 8550 AS 
AMENDED; SECTIONS 201, 203, 205, 206, AND 207 OF PRESIDENTIAL DECREE 
NO. 1096; SECTIONS 3, 4, 5, 6, 8, 9, AND 10 OF PRESIDENTIAL DECREE NO. 957; 
SECTION 4 AND SECTION 22, PARAGRAPHS (2) and (3), CHAPTER I, TITLE V OF 
EXECUTIVE ORDER NO. 292, SERIES OF 1987; SECTION 13, PARAGRAPH 2) OF 
CTI 
- Section 535 of the Code is hereby amended to read as follows: 
- s  
- If, for any reason or reasons, any 
part or provision of this Code shall be held unconstitutional or invalid, other parts or 
provisions hereof which are not affected thereby shall continue to be in full force and 
effect. 
7 - Section 536 of the Code is hereby amended to read as follows: 
1 
- 
vi 
- This Code shall take effect on 
January first, nineteen hundred ninety-two, unless otherwise provided herein, after its 
complete publication in at least 
[one (I) newspaper] TWO (2) NATIONAL 
NEWSPAPERS of general circulation. 
I 
i 
Approved. 
i 
>