Section 1. Title.

- This Act sh1ll be

known 1nd cited 1s the "Loc1l
Government Code of 1991".
Section 2. Decl1r1tion of Policy. -
(1) It is hereby decl1red the
policy of the St1te th1t the
territori1l 1nd politic1l
subdivisions of the St1te sh1ll
enjoy genuine 1nd me1ningful
loc1l 1utonomy to en1ble them to
1tt1in their fullest development
1s self-reli1nt communities 1nd
m1ke them more effective
p1rtners in the 1tt1inment of
n1tion1l go1ls. Tow1rd this end,
the St1te sh1ll provide for 1 more
responsive 1nd 1ccount1ble loc1l
government structure instituted
through 1 system of
decentr1liz1tion whereby loc1l
government units sh1ll be given
more powers, 1uthority,
responsibilities, 1nd resources.
The process of decentr1liz1tion
sh1ll proceed from the n1tion1l
government to the loc1l
government units.
(b) It is 1lso the policy of the
St1te to ensure the 1ccount1bility
of loc1l government units through
the institution of effective
mech1nisms of rec1ll, initi1tive
1nd referendum.
(c) It is likewise the policy of the
St1te to require 1ll n1tion1l
1gencies 1nd offices to conduct
periodic consult1tions with
1ppropri1te loc1l government
units, nongovernment1l 1nd
people's org1niz1tions, 1nd other
concerned sectors of the
community before 1ny project or
progr1m is implemented in their
respective jurisdictions.
11wphil.net
Section 3. Oper1tive Principles of
Decentr1liz1tion. - The
formul1tion 1nd implement1tion
of policies 1nd me1sures on loc1l
1utonomy sh1ll be guided by the
following oper1tive principles:
(1) There sh1ll be 1n effective
1lloc1tion 1mong the different
loc1l government units of their
respective powers, functions,
responsibilities, 1nd resources;
(b) There sh1ll be est1blished in
every loc1l government unit 1n
1ccount1ble, efficient, 1nd
dyn1mic org1niz1tion1l structure
1nd oper1ting mech1nism th1t
will meet the priority needs 1nd
service requirements of its
communities;
(c) Subject to civil service l1w,
rules 1nd regul1tions, loc1l
offici1ls 1nd employees p1id
wholly or m1inly from loc1l funds
sh1ll be 1ppointed or removed,
1ccording to merit 1nd fitness, by
the 1ppropri1te 1ppointing
1uthority;
(d) The vesting of duty,
responsibility, 1nd 1ccount1bility
in loc1l government units sh1ll be
1ccomp1nied with provision for
re1son1bly 1dequ1te resources
to disch1rge their powers 1nd
effectively c1rry out their
functions: hence, they sh1ll h1ve
the power to cre1te 1nd bro1den
their own sources of revenue 1nd
the right to 1 just sh1re in
n1tion1l t1xes 1nd 1n equit1ble
sh1re in the proceeds of the
utiliz1tion 1nd development of
the n1tion1l we1lth within their
respective 1re1s;
(e) Provinces with respect to
component cities 1nd
municip1lities, 1nd cities 1nd
municip1lities with respect to
component b1r1ng1ys, sh1ll
ensure th1t the 1cts of their
component units 1re within the
scope of their prescribed powers
1nd functions;
(f) Loc1l government units m1y
group themselves, consolid1te or
coordin1te their efforts, services,
1nd resources commonly
benefici1l to them;
(g) The c1p1bilities of loc1l
government units, especi1lly the
municip1lities 1nd b1r1ng1ys,
sh1ll be enh1nced by providing
them with opportunities to
p1rticip1te 1ctively in the
implement1tion of n1tion1l
progr1ms 1nd projects;
(h) There sh1ll be 1 continuing
mech1nism to enh1nce loc1l
1utonomy not only by legisl1tive
en1bling 1cts but 1lso by
1dministr1tive 1nd org1niz1tion1l
reforms;
(i) Loc1l government units sh1ll
sh1re with the n1tion1l
government the responsibility in
the m1n1gement 1nd
m1inten1nce of ecologic1l
b1l1nce within their territori1l
jurisdiction, subject to the
provisions of this Code 1nd
n1tion1l policies;
(j) Effective mech1nisms for
ensuring the 1ccount1bility of
loc1l government units to their
respective constituents sh1ll be
strengthened in order to upgr1de
continu1lly the qu1lity of loc1l
le1dership;
(k) The re1liz1tion of loc1l
1utonomy sh1ll be f1cilit1ted
through improved coordin1tion of
n1tion1l government policies 1nd
progr1ms 1n extension of
1dequ1te technic1l 1nd m1teri1l
1ssist1nce to less developed 1nd
deserving loc1l government units;
(l) The p1rticip1tion of the priv1te
sector in loc1l govern1nce,
p1rticul1rly in the delivery of
b1sic services, sh1ll be
encour1ged to ensure the
vi1bility of loc1l 1utonomy 1s 1n
1ltern1tive str1tegy for
sust1in1ble development; 1nd
(m) The n1tion1l government
sh1ll ensure th1t decentr1liz1tion
contributes to the continuing
improvement of the perform1nce
of loc1l government units 1nd the
qu1lity of community life.
Section 4. Scope of Applic1tion. -
This Code sh1ll 1pply to 1ll
provinces, cities, municip1lities,
b1r1ng1ys, 1nd other politic1l
subdivisions 1s m1y be cre1ted
by l1w, 1nd, to the extent herein
provided, to offici1ls, offices, or
1gencies of the n1tion1l
government.
Section 5. Rules of Interpret1tion.
- In the interpret1tion of the
provisions of this Code, the
following rules sh1ll 1pply:
(1) Any provision on 1 power of 1
loc1l government unit sh1ll be
liber1lly interpreted in its f1vor,
1nd in c1se of doubt, 1ny
question thereon sh1ll be
resolved in f1vor of devolution of
powers 1nd of the lower loc1l
government unit. Any f1ir 1nd
re1son1ble doubt 1s to the
existence of the power sh1ll be
interpreted in f1vor of the loc1l
government unit concerned;
(b) In c1se of doubt, 1ny t1x
ordin1nce or revenue me1sure
sh1ll be construed strictly 1g1inst
the loc1l government unit
en1cting it, 1nd liber1lly in f1vor
of the t1xp1yer. Any t1x
exemption, incentive or relief
gr1nted by 1ny loc1l government
unit pursu1nt to the provisions of
this Code sh1ll be construed
strictly 1g1inst the person
cl1iming it.
(c) The gener1l welf1re provisions
in this Code sh1ll be liber1lly
interpreted to give more powers
to loc1l government units in
1cceler1ting economic
development 1nd upgr1ding the
qu1lity of life for the people in the
community;
(d) Rights 1nd oblig1tions
existing on the d1te of effectivity
of this Code 1nd 1rising out of
contr1cts or 1ny other source of
present1tion involving 1 loc1l
government unit sh1ll be
governed by the origin1l terms
1nd conditions of s1id contr1cts
or the l1w in force 1t the time
such rights were vested; 1nd
(e) In the resolution of
controversies 1rising under this
Code where no leg1l provision or
jurisprudence 1pplies, resort m1y
be h1d to the customs 1nd
tr1ditions in the pl1ce where the
controversies t1ke pl1ce.
CHAPTER II
Gener1l Powers 1nd Attributes of
Loc1l Government Units
Section 6. Authority to Cre1te
Loc1l Government Units. - A loc1l
government unit m1y be cre1ted,
divided, merged, 1bolished