Decentralization Act of 1967 Autonomy for Local Governments

Provincial and city governments may undertake agricultural extension and rural health work.
These activities supplement national programs and are subject to national policies.
National government must provide technical and financial support.
Funds previously contributed to the national government by local units will now accrue to local general funds.
Personnel performing these functions are absorbed locally and protected from layoffs.
Budget adjustments at national level are mandated accordingly.

Certain heads and assistant heads of local offices paid entirely from local funds are appointed by the respective chief executives.
Exemptions include judges, auditors, fiscals, and some specific positions.
Vacancies filled from a certified list by the Civil Service Commission based on merit and eligibility.
Other employees appointed by local chief executives upon office head’s recommendation.
All appointees are paid from local funds post-enactment.
Suspension, removal, and transfers comply with civil service laws.
Salary scales can be adjusted according to local government classification and service.

Grounds for suspension/removal include disloyalty, dishonesty, oppression, and misconduct.
Charges filed before appropriate authorities depending on office.
Investigation to be completed within 10 days and suspension not to exceed 60 days.
Respondents assured right to defense and compulsory process for evidence.
Decisions must be rendered within 30 days post-investigation with detailed findings.
Suspension or removal does not bar candidacy for public office.
Criminal action is separate and unaffected.

Members of local legislative bodies prohibited from acting as counsel in civil or criminal cases adverse to their government.
Fee collection for appearances before local government agencies is prohibited.
Applies also to governors and mayors.

Vice-Governor or Vice-Mayor vacancies filled by board or council member with highest vote.
Succeeding vacancies filled based on ranked votes.
Vacancies close to elections filled through special elections; otherwise, appointees come from the same political party.
Temporary vacancies governed by existing laws.

Elective offices in new LGUs filled by regular or special elections.
Reclassification leading to additional board members requires appointments based on political party recommendation.

Certain provincial, city, and municipal actions are effective without national government approval.
Examples include absentee permissions, compensation for temporary services, salaries during suspension, and others.
Budgets become effective upon local legislative approval.
Special funds abolished and incorporated into general funds with minimum appropriations maintained for key sectors.

Governors, mayors have exclusive power over specified administrative functions.
Powers include initiating criminal actions, approving leaves, authorizing payments, and attending national conventions.
Their decisions not subject to national officials' review or direction.

Increased regular internal revenue allotment: provinces and cities from 10% to 13%, municipalities from 2% to 4%.
Distribution based on population (70%) and land area (30%).
Monthly release and reporting procedures established for internal revenue allotments.
Secretary of Finance empowered to set implementation rules.

Net proceeds from income tax withheld from wages equally credited to municipalities for excess income tax allotments.

Quarterly release of highway special fund shares to local governments, with conditions on counterpart funds and project standards.
Monthly release of sweepstakes, horse races, and lottery gross receipts to relevant local treasurers.
Penalties imposed for unlawful withholding of funds.

Positions of Provincial Engineer and City Public Works Supervisor created for local administration of public works funded by local funds.
Functions formerly performed by national district engineers transferred locally for projects funded locally.
Positions of Provincial Attorney and City Legal Officer created to serve as legal advisers and handle civil cases.

Creation or boundary modification of municipalities or municipal districts only via an Act of Congress.
Repeals previous administrative code provision allowing otherwise.

Composed of Senators, Congressmen, and presidential appointees with specified party representation.
Mandated to study local government roles and prepare a comprehensive local government code.
Backed by technical staff and funded through appropriations.

Officers violating specific sections punished by imprisonment (6 months to 1 year), fines (₱1,000-₂,000), or both.
Violations administrative grounds for suspension, dismissal, and perpetual disqualification from public office.

Officials and employees keep their positions and benefits under previous law.
Implied powers and the general welfare clause construed liberally in favor of local governments.