Philippine Local Government Code of 1983

Local governments: powers and corporate nature

Section 5(1) requires that creation or conversion of a local government unit be based on factors related to viability and projected capacity to provide services, shown by verifiable indicators.
Section 5(2) establishes that every local government unit created or recognized under the Code is a body politic and corporate with powers exercised through its government, as a subdivision of the government and as a corporate entity representing inhabitants of its territory.
Section 6 provides that a newly created local government unit’s corporate existence commences upon qualification of its chief executive and a majority of the members of its legislative body (sanggunian) unless another time is fixed by law.
Section 7 mandates that every local government unit exercises powers expressly granted, necessarily implied, and powers necessary and proper for governance to promote health and safety, enhance prosperity, improve morals, maintain peace and order, and preserve comfort and convenience of inhabitants.
Section 8(1) grants each local government unit power to create its own sources of revenue and levy taxes, subject to limitations provided by law.
Section 8(2) provides that local taxation of real property—including appraisal and assessment and levy, collection, and administration of real property taxes—is governed by existing laws insofar as not inconsistent with the Code.
Section 9 authorizes a local government unit, through its head and pursuant to a resolution of its sanggunian, to exercise eminent domain and institute condemnation proceedings for public use or purpose.

Closure of roads and ordinance effectivity

Section 10 authorizes a local government unit, through its head pursuant to a resolution of its sangguniang and in accordance with existing law and the Code, to close any barangay, municipal, city, or provincial road, street, alley, park, or square.
Section 10 prohibits closure of any way or place (or any part) without indemnifying any person prejudiced thereby.
Section 10 allows property withdrawn from public use to be used or conveyed for any purpose for which other real property of the local unit may lawfully be used or conveyed.
Section 11(1) requires that no ordinance enacted by a local government takes effect until after ten (10) days from the date a copy is posted in a conspicuous place at specified locations (provincial, city, municipal, or barangay hall; public market; and/or the church or chapel).
Section 11(2) requires that in highly urbanized cities, the ordinance’s main features must also be published in a newspaper of general circulation in the city.

Corporate powers and non-liability

Section 12 grants each local government unit as a corporation the following powers: continuous succession in its corporate name; to sue and be sued; to have and use a corporate seal; to acquire and convey real or personal property; to enter into contracts; and to exercise other corporate powers granted to corporations, subject to limitations in the Code and other laws.
Section 13 provides that unless otherwise provided by law, no province, city, municipality, or barangay is liable for injuries or damages arising from the act or omission of its officers or employees while performing official functions.

Intergovernmental relations and national supervision

Section 14(1) provides that the President exercises general supervision over local governments to ensure local affairs are administered according to law, including power to order an investigation of local officials when necessary, primarily through the Ministry of Local Government.
Section 14(2) limits ministries and national offices having to do with local government administration to setting uniform standards and guidelines so as to obviate prior approval or pre-clearance requirements on regular and recurring transactions and activities normal to local governments, with the Ministry of Local Government establishing consultative arrangements for compliance, especially on highly technical matters.
Section 14(2) directs that, as policy when appropriate, the Ministry of Local Government exercises supervisory authority over municipalities through provinces and barangays through municipalities and cities.
Section 14(3) requires coordination for integration of project implementation functions of ministries and national agencies other than the Ministry of Local Government with allied national government functions.
Section 14(4) designates regional offices or appropriate field units of ministries and national agencies in the region as major points of contact and liaison between local governments and the national government, and provides that the national government shall effect substantial delegation of authority and powers to regional offices as a general policy and as much as practicable.
Section 15 provides provincial-city relations: the province through the provincial governor ensures component cities act within assigned powers and functions; highly urbanized cities are independent of the province.
Section 17 assigns primary responsibility for provincial supervision over municipal affairs to the province through the provincial governor to ensure municipalities act within assigned powers and functions.
Section 21 assigns primary responsibility for city supervision over barangay affairs to the city through the city mayor to ensure barangays act within assigned powers and functions.
Sections 19, 20 require certain provincial approval and permit provincial funds transfers: permanent closure of a public road, street, alley, park or square and donation of municipal funds or property require approval of the sangguniang panlalawigan, and the sangguniang panlalawigan may extend loans, grants, or subsidies to municipalities out of provincial funds under terms and conditions it imposes.
Sections 16, 20 govern loans, grants, or subsidies between province and component cities, allowing either sanggunian to extend loans, grants, or subsidies out of its respective funds to the other, under terms and conditions imposed.
Sections 22, 25 require city or municipal review of barangay ordinances and resolutions to ensure they are within powers granted by law and conform to city or municipal ordinances.
Sections 23, 26 permit barangay suggestions or recommendations to their next higher sanggunian for barangay improvement and welfare of inhabitants.

Relations with key national offices

Section 27(1) provides that local government participation and local fund assistance in delivery of health services continue until the national integration of said services is fully implemented by the Ministry of Health.
Section 27(2) allows a local government unit to assist or augment integrated national health services with local funds even notwithstanding integration.
Section 28 authorizes provinces or cities to create positions of special counsel to assist provincial and city fiscals when exigencies warrant, with salaries chargeable against provincial or city funds, appointed by the Minister of Justice upon recommendation of the provincial governor or city mayor, on permanent or temporary basis.
Section 29 mandates that the Commission on Audit reviews and audits all accounts of each local government unit in accordance with law on government accounts and accounting.
Section 30 provides that the Ministry of Education, Culture and Sports exercises the same jurisdiction and powers over educational institutions established or supported by local government units as it exercises over other public schools.
Sections 31–33 establish rules for national program participation, technical/financial assistance, technical supervision, and transfer of responsibility from national to local governments based on capability, with local participation involving substantive aspects and corollary operational activities.

Fiscal principles and financial accountability

Section 34 directs that all concerned relative to local government financial affairs observe: local governments get authority and flexibility consistent with standards and guidelines; no money is paid out of treasury except under lawful appropriation or specific statutory authority; no funds disbursed and no checks issued without approval/signature of the local chief executive; public funds are spent solely for public purposes; revenue is obtainable from all sources including power to levy taxes subject to legal limitations; all monies officially received by a public officer are accounted for as government funds except as otherwise provided by law; trust funds are not paid out except to fulfill the purpose for which created or received; and fiscal responsibility is shared by all exercising authority over the local unit’s financial affairs.
Section 35 requires budgets of local government units to be prepared, approved, and reviewed in conformity with law, rules, and regulations, considering limitations on appropriations for salaries and compensation, personnel movement, administration, and appropriations for discretionary purposes of local executives.
Section 36(1) requires every local government officer whose duties require possession or custody of local government funds to be accountable and responsible for safekeeping; local treasurers and other accountable officers must render accounts within time, form, style, contents, and under regulations the Commission on Audit may prescribe.
Section 36(2) makes heads of local government units responsible for proper operation and maintenance of accounting offices, including ensuring accounting records and books conform to the Code, pertinent laws, rules, regulations, and reporting requirements of the Office of Budget and Management, and provides that non-compliance is ground for administrative action including dismissal from service.
Section 37 requires the books of accounts, papers, and cash of any local treasurer or other accountable local official to be open at all times for inspection by the Commission on Audit or its duly authorized representative.
Section 38 states that conduct and management of local government credit transactions and borrowings are governed by existing laws.
Section 39 states that intergovernmental sharing of funds between national and local governments is governed by existing laws.

Requirements and prohibitions for local officials

Section 40 requires each local government official or employee to file, before assuming office, a sworn statement of assets, liabilities and property holdings in the office of the unit’s chief official.
Section 41(1) makes it unlawful for any local government official, directly or indirectly, individually or as a member of a firm, to engage in any business transaction with the local government unit of which he is an official or over which he has supervision, or with any of its authorized officials, boards, agents, or attorneys, when money is to be paid or value is transferred out of local government resources to such person or firm.
Section 41(2) makes it unlawful to purchase real estate or other property forfeited in favor of the unit which shall be sold for unpaid taxes or assessment, or by virtue of legal process at the suit of said unit.
Section 41(3) makes it unlawful to be surety for any person having contract or doing business with the local government unit for which surety may be required.

Local elective officials: qualifications and terms

Section 42(1) requires an elective local official to be a citizen of the Philippines, at least twenty-three years of age on election day, a qualified voter registered in the barangay, municipality, city, or province where the candidate proposes to be elected, a resident therein for at least one year at the time of filing of the certificate of candidacy, and able to read and write English, Pilipino, or any other local language or dialect.
Section 42(2) requires candidates for punong barangay or member of the sangguniang barangay to be actual residents in the barangay where they propose to be elected.
Section 42(3) provides that a candidate for chairmanship of the kabataang barangay need not be of the minimum age required in Section 42.
Section 43(1) provides election manner: the governor, vice-governor, city mayor, city vice-mayor, municipal mayor, municipal vice-mayor, and barangay officials are elected at large by qualified voters in their respective units, while the kabataang barangay chairman is elected by registered voters of the kabataang barangay assembly.
Section 43(2) provides that members of the sangguniang panlalawigan, sangguniang panlungsod, and sangguniang bayan are elected at large, but representatives of the katipunan ng mga barangay and kabataang barangay federation in those sanggunian are elected by their respective organizations subject to Commission on Elections supervision.
Section 43(3) requires maintenance of the present manner of election/appointment of representatives of the agricultural and industrial labor sectors to the sangguniang panlungsod or sangguniang bayan, as the case may be.
Section 44 fixes the term of all local elective officials at six (6) years starting from the date provided by law.

Vacancies, recall, and disciplinary actions

Section 45 grants continuity for tenure when a part of a unit is detached to form a new unit or is merged: elective officials of the mother unit residing in the detached or merged territory continue to hold office in the mother unit and exercise functions for the remainder of the term.
Section 46 authorizes the Commission on Elections to supervise local elections and plebiscites, including promulgation of necessary rules and regulations consistent with the Code.
Section 47 grants elective local officials entitlement to leave credits granted to appointive officials under existing laws, including commutation of the money/value thereof.
Sections 48–52 establish succession rules for permanent and temporary vacancies:
- Section 48 covers permanent vacancy in the offices of governor, city mayor, or municipal mayor and sets a sequence from the vice-governor/city or municipal vice-mayor to the highest-vote-getting sanggunian member from the immediately preceding election, and then to a presidential appointment upon recommendation of the Minister of Local Government.
- Section 49 covers permanent vacancy in the offices of vice-governor, city vice-mayor, or municipal vice-mayor with a sequence from the highest-vote-getting sanggunian member to a presidential appointment upon recommendation of the Minister of Local Government.
- Section 50 requires presidential appointment upon recommendation of the Minister of Local Government to fill permanent vacancies in local sanggunian positions, with appointees drawn from the political party of the member who caused the vacancy, except for sangguniang barangay.
- Section 51 covers permanent vacancy in the office of punong barangay with succession from the highest-vote sangguniang barangay member, and then to the next highest-vote member if needed, for the unexpired term.
- Section 52 provides acting rules for temporary incapacity, leave of absence, or travel outside the territorial jurisdiction of the Republic of the Philippines, with limits on appointment/suspension/dismissal powers for specified periods and a further rule at expiration of three months.
Section 53 provides approval of leave privileges: leave of vice-governor/city or municipal vice-mayor and sanggunian members is approved by the local chief executive; municipal mayor leave is approved by the provincial governor; city mayor and provincial governor leave is approved by the Minister of Local Government or authorized representative.
Sections 54–59 establish recall:
- Section 54 provides that recall is exercised by registered voters of the unit of the elective official and must be initiated only upon petition of at least twenty-five percent of the total number of registered voters in the local government unit concerned based on the election in which the official sought to be recalled was elected.
- Section 55 allows recall only once during an official’s term for loss of confidence; prohibits recall within two years from assumption or one year immediately preceding a regular local election.
- Section 56 sets the form/filing/verification process: the written petition must be signed before the election registrar or representative and filed with the Commission on Elections through its office in the local unit; the Commission causes publication of the petition for not less than ten days nor more than twenty days to verify authenticity and genuineness and required percentage; it announces acceptance of candidates and includes the official sought to be recalled in the candidate list; it sets the election date not later than thirty days after acceptance for city/municipal/barangay officials and forty-five days for provincial officials; the winner is certified and proclaimed by the Commission on Elections.
- Section 57 provides that recall becomes effective only upon election and proclamation of a successor receiving the highest number of votes cast; if the recalled official receives the highest number of votes, confidence is affirmed and the official continues in office.
- Sections 58–59 require that recall acts of the Commission on Elections are governed by the Constitution and election laws, and that the Commission conducts and supervises the recall process and promulgates necessary rules and regulations.
Sections 60–67 establish suspension and removal procedures and consequences:
- Section 60 lists grounds committed while in office: disloyalty to the Republic, culpable violation of the Constitution, dishonesty/oppression/misconduct/neglect of duty, any offense involving moral turpitude, abuse of authority, and unauthorized absence for three consecutive months.
- Section 61 provides where verified complaints are preferred: before the Minister of Local Government for provincial/city elective officials; before the sangguniang panlalawigan for elective municipal officials; and before the sangguniang panlungsod or sangguniang bayan for elective barangay officials of a city or municipality, as the case may be.
- Section 62 requires within seven days after filing: the Minister or sanggunian concerned shall require a verified answer within seven days from receipt and commence hearing/investigation within ten days after receipt of the answer; it prohibits investigations within ninety days immediately prior to an election and prohibits preventive suspension within that period; it requires lifting preventive suspension if imposed before that period.
- Section 63(1) authorizes preventive suspension by the Minister if respondent is provincial/city official; by the provincial governor if respondent is elective municipal; and by the city or municipal mayor if respondent is elective barangay.
- Section 63(2) authorizes preventive suspension after issues are joined when there is reasonable ground to believe the respondent committed the acts, evidence of culpability is strong, gravity warrants it, or continuance could influence witnesses or threaten evidence integrity; it sets a cap that preventive suspension shall not extend beyond sixty days after the start.
- Section 63(3) provides that after sixty days, the suspended official is deemed reinstated without prejudice to continuation of proceedings; delays due to respondent’s fault, neglect, or request are not counted.
- Section 64 grants respondent full opportunity to appear and defend personally or by counsel, confront and cross-examine witnesses, and require witnesses and documentary evidence through subpoena or subpoena duces tecum.
- Section 65(1) requires written decision within thirty days after the end of investigation by the Minister or appropriate sanggunian, stating clearly and distinctly facts and reasons; copies must be furnished immediately to respondent and interested parties.
- Section 65(2) limits the penalty of suspension so that it shall not exceed the un-expired term and provides that suspension or removal is not a bar to candidacy of the respondent so suspended or removed as long as qualifications for office are met.
- Section 66 provides that administrative appeals must be filed within thirty days from receipt of decision: decisions of the Minister are appealable to the President, and decisions of the sanggunian are appealable to the Minister of Local Government; judicial remedies remain available.
- Section 67 provides that a respondent suspended pending investigation receives no salary or compensation during suspension, but is paid full salary/compensation including emoluments during suspension upon subsequent exoneration and reinstatement.

Local school boards and budgeting

Section 68(1) requires establishment of a provincial school board, city school board, or municipal school board in every province, city, or municipality, with composition including the local chief executive as chairman, the education superintendent as vice-chairman, the treasurer, a representative from the relevant sanggunian chosen by it, and the president or duly elected representative of the federation of parent-teachers associations.
Section 68(2) provides rules where there are multiple school superintendents or multiple district supervisors: the regional director designates the vice-chairman for provincial/city boards, and the division superintendent designates the district supervisor for municipal school board vice-chairman.
Section 68(3) provides that the duties and responsibilities of the officials in the school boards shall not be delegated.
Section 69(1) requires school boards to determine annual supplementary budgetary needs for operation and maintenance of local public schools in their area, and the supplementary local cost meeting such needs to be reflected in an annual school board budget corresponding to the board’s share of the proceeds of the additional real property tax; it provides that approval by the Ministry of Education, Culture and Sports of the budget is ministerial.
Section 69(2) authorizes boards to apply for a share in the stabilization portion of the fund created under existing laws creating the Special Education Fund, with remittance to the concerned provincial/city/municipal treasurer upon approval.
Section 69(3) authorizes the treasurer to disburse funds from the local share in the Special Education Fund pursuant to the board’s budget and existing rules and regulations.
Section 70(2) provides quorum and voting: three members constitute a quorum, but the chairman and vice-chairman must always be present when the school budget is being prepared and considered, and affirmative vote of three members is required to approve the budget.
Section 71 provides that the chairman and members perform duties without compensation or remuneration; members not government officials are entitled to necessary travelling expenses chargeable against the school board funds.

Personnel administration for local governments

Section 72 assigns responsibility for personnel administration to each head of the local government unit, requiring personnel actions consistent with constitutional civil service provisions and all applicable civil service laws and rules, including policies, guidelines, and standards established by the Civil Service Commission.
Section 73 requires appointment of all officials and employees paid wholly out of provincial, city, or municipal funds by the governor, city mayor, or municipal mayor, unless otherwise provided by the Code.
Section 74 requires promotions to follow existing laws and rules; local heads must evolve a screening process that may include tests of merit and fitness under Civil Service Commission standards and guidelines.
Section 75 provides that salaries of local officials and personnel are by law or ordinance, and sets determination for the vice-governor, vice-mayor, sanggunian members “in all levels,” and such other positions not included under existing laws by the Joint Commission on Local Government Personnel Administration established under Presidential Decree No. 1136.
Section 76 provides that when a civil service position is abolished by law or ordinance, the affected official or employee must be reinstated in another vacant position without diminution of salary; if no vacant position exists, the affected person is granted separation pay equivalent to one month salary for every year of service beyond monetary privileges under existing laws.
Section 77 requires administrative discipline proceedings against appointive local officials and employees to follow civil service law and rules and other laws affecting the civil service, with results reported to the Civil Service Commission.
Section 78(1) grants disciplinary jurisdiction: the local head may remove, separate, suspend, and otherwise discipline officials and employees under jurisdiction; if penalty is suspension without pay for not more than thirty days, the decision is final; if heavier, the decision is appealable to the Civil Service Commission with final authority; if respondent is in the career executive service, appeal is to the Career Service Board.
Section 78(2) provides that appeals do not prevent decisions from becoming executory; if penalty is suspension of removal, respondent is considered under preventive suspension during pendency of appeal if he wins, and if completely exonerated he is paid salary for the appeal period.

Boundary disputes settlement rules

Section 79 directs that municipal boundary disputes as to jurisdiction over areas or barangays are heard and decided by the sangguniang panlalawigan of the province where the municipalities are situated; if the disputing areas are claimed by municipalities in different provinces, the sangguniang panlalalawigan of involved provinces jointly hear and decide.
Section 79 provides a sixty days period: if no settlement is reached within sixty days from referral to the sangguniang panlalawigan concerned, the dispute is elevated to the Regional Trial Court of the province that first took cognizance.
Section 79 requires the RTC to decide within one year from start of proceedings, and it allows appeal within the time and manner under the Rules of Court.
Section 80 directs that barangay boundary disputes between barangays within the same city or municipality are heard and decided by the sangguniang panlungsod or sangguniang bayan concerned to allow amicable settlement.
Section 80 provides a sixty days period: if no amicable settlement is reached within sixty days from referral, the case is heard and decided by the Regional Trial Court of the province or city where the barangays are located within one year from start of court proceedings, with appeal under the Rules of Court.

Barangay creation, role, and structure

Section 81 establishes that the barangay, as the basic political unit, serves as the primary planning and implementing unit for government programs, projects, and activities, and as a forum for collective views of the community.
Section 82 provides that a barangay may be created, named, and its boundaries defined, altered, or modified by ordinance of the sangguniang panlalawigan or **sangguniang