Philippine Local Government Code 1991

State policy and decentralization principles

Section 2 declares State policy that territorial and political subdivisions shall enjoy genuine and meaningful local autonomy to become self-reliant communities and more effective partners in attaining national goals.
Section 2 requires a decentralization system that proceeds from the National Government to local government units.
Section 2 mandates accountability mechanisms for local government units through effective mechanisms of recall, initiative, and referendum.
Section 2 requires national agencies and offices to conduct periodic consultations with appropriate local government units, nongovernmental organizations, people’s organizations, and other concerned sectors before any project or program is implemented in their jurisdictions.
Section 3 establishes operative principles guiding local autonomy, including allocation of powers and resources, accountable local organizational structures, merit-based local appointments subject to civil service law, and that vesting of accountability must be accompanied by reasonably adequate resources.
Section 3 directs that provinces, cities, and municipalities must ensure their component units act within prescribed powers; that local government units may group, consolidate, or coordinate; and that capabilities of municipalities and barangays shall be enhanced through active participation in national programs.
Section 3 requires continued mechanisms to enhance local autonomy through legislative enabling acts and administrative/organizational reforms, strengthened accountability to constituents, improved coordination of national policies/programs, and adequate technical/material assistance to less developed local government units.
Section 3 encourages private sector participation in local governance, especially in delivering basic services.

Interpretation rules for powers, taxes, and welfare

Section 5(a) requires liberal interpretation of local government unit powers in their favor and resolution of fair and reasonable doubt as to existence of power in favor of devolution and the affected local government unit.
Section 5(b) requires strict construction against the local government unit for any tax ordinance or revenue measure, and liberal construction in favor of the taxpayer; it also requires strict construction against the claimant for any tax exemption, incentive, or relief granted by a local government unit.
Section 5(c) requires general welfare provisions to be liberally interpreted to give more powers to local government units in accelerating economic development and upgrading quality of life.
Section 5(d) provides that rights and obligations existing at the Code’s effectivity arising from contracts or other prestation involving a local government unit remain governed by the original contract terms or the law in force when such rights were vested.
Section 5(e) allows resort to customs and traditions in the place of controversy for controversies under the Code where no legal provision or jurisprudence applies.

Creation, boundaries, and corporate start

Section 6 allows creation, division, merger, abolition, or substantial boundary alteration of local government units by Congress (for provinces, cities, municipalities, and other political subdivisions) or by ordinance of the sangguniang panlalawigan or sangguniang panlungsod (for barangays), subject to Code limitations and requirements.
Section 7 sets viability indicators for creation or conversion of a local government unit: income, population, and land area.
Section 7(a) requires income to be sufficient, based on acceptable standards, to provide essential government facilities/services and special functions commensurate with population size.
Section 7(b) requires population to be determined by the total inhabitants within the territorial jurisdiction.
Section 7(c) requires contiguous land area (except when the unit comprises two (2) or more islands or is separated by an independent local government unit), properly identified by metes and bounds with technical descriptions, and sufficient to provide basic services/facilities.
Section 7 requires attestation of compliance with indicators 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).
Section 8 requires division and merger to comply with the same requirements as creation, while prohibiting division from reducing income, population, or land area below minimum requirements and prohibiting income classification of the original local government unit from falling below its current income classification before division; it requires income classification update within six (6) months from the Code’s effectivity.
Section 9 allows abolition when income, population, or land area has been irreversibly reduced to less than minimum standards certified by the agencies named in Section 7, and requires the law/ordinance abolishing the unit to specify the province/city/municipality/barangay for incorporation/merger.
Section 10 requires plebiscite approval by a majority of the votes cast before effectiveness of creation/division/merger/abolition/boundary alteration, with Comelec conducting it within one hundred twenty (120) days from effectivity unless a different date is fixed.
Section 14 provides that a new local government unit’s corporate existence commences upon election and qualification of its chief executive and a majority of its sanggunian, unless the creating law/ordinance fixes another time.
Section 15 characterizes each local government unit created or recognized under the Code as a body politic and corporate with powers exercised in conformity with law.

Seat, centers, and naming of LGUs

Section 11(a) requires the law or ordinance creating or merging local government units to specify the seat of government and directs selection to consider geographical centrality, accessibility, transportation/communication availability, drainage and sanitation, development/economic progress, and other relevant considerations.
Section 11(b) allows sanggunian, after public hearing and by vote of two-thirds (2/3) of all members, to transfer the seat when conditions/developments significantly change, but prohibits transferring the seat outside the local government unit’s territorial boundaries.
Section 11(b) allows disposal of the old site (including improvements) by sale or lease or conversion to other beneficial use.
Section 11(c) prohibits transferring/relocating/converting local government offices/facilities unless public hearings are first conducted and majority concurrence of all sanggunian members is obtained.
Section 12 directs provinces, cities, and municipalities to endeavor to establish a government center and requires National Government/local/government-owned or controlled corporations to bear expenses for construction of their buildings/facilities in the center as far as practicable.
Section 13 governs naming and change of name of local government units and public places/streets/structures, including:
- Section 13(a) authorizes the sangguniang panlalawigan (consulting Philippine Historical Commission (PHC)) to change specified provincial and provincial-owned public places, roads, bridges, schools, and health facilities upon required recommendations.
- Section 13(b) allows similar changes within highly urbanized cities and independent component cities through their sanggunian for specified city items.
- Section 13(c) authorizes sanggunian of component cities/municipalities to change specified city/municipal barangay roads/bridges/schools/hospitals and other municipal government-owned public places/buildings.
Section 13(d) prohibits naming after a living person, requires a justifiable reason, and limits name changes to not oftener than once every ten (10) years; it also prohibits changing names of local government units or public places with historical/cultural/ethnic significance unless by unanimous vote of the sanggunian concerned and in consultation with PHC.
Section 13(e) and Section 13(f) require that changes of name of public schools be made only upon recommendation of the local school board; and changes of name of public hospitals/health centers/other health facilities be made only upon recommendation of the local health board.
Section 13(g) requires ratification in a plebiscite for the direct political unit affected before a change of name of any local government unit becomes effective.
Section 13(h) requires notifying the Office of the President, the representative of the legislative district concerned, and the Bureau of Posts for any change of name.

General powers, corporate authority, contracts

Section 16 grants every local government unit powers necessary to promote the general welfare, including preservation/enrichment of culture, promoting health and safety, enhancing the right to a balanced ecology, encouraging scientific/technological capability, improving public morals, enhancing economic prosperity and social justice, promoting full employment, maintaining peace and order, and preserving comfort and convenience.
Section 17(a) requires local government units to continue exercising powers and discharging duties/functions devolved to them and to exercise other powers necessary/incidental to efficient provision of basic services and facilities.
Section 18 grants local government units authority to establish an organization for implementation of development plans and to:
- create their own sources of revenues and levy taxes, fees, and charges that accrue exclusively for their use and disposition and are retained by them;
- receive a just share in national taxes automatically and directly released without need of further action; and
- obtain and dispose of real/personal property held in their proprietary capacity for productive/developmental/welfare purposes in furtherance of governmental or proprietary powers.
Section 19 allows a local government unit to exercise eminent domain for public use/purpose/welfare for the benefit of the poor and landless upon payment of just compensation, subject to the Constitution and pertinent laws, and imposes these conditions:
- a valid and definite offer must have been previously made and rejected; and
- the local government unit may immediately take possession only after filing expropriation proceedings and making a deposit with the proper court of at least fifteen percent (15%) of the fair market value based on the current tax declaration; and
- the amount finally to be paid is determined by the proper court based on fair market value at the time of taking.
Section 20(a) allows a city or municipality, through an ordinance after public hearings, to authorize reclassification of agricultural lands and provide utilization/disposition in two cases:
- when the land ceases to be economically feasible and sound for agricultural purposes as determined by the Department of Agriculture; or
- when the land has substantially greater economic value for residential, commercial, or industrial purposes as determined by the sanggunian concerned.
Section 20(a) limits reclassification to percentages of total agricultural land area at ordinance passage:
- fifteen percent (15%) for highly urbanized and independent component cities;
- ten percent (10%) for component cities and first to third class municipalities; and
- five percent (5%) for fourth to sixth class municipalities.
Section 20(a) excludes agricultural lands distributed to agrarian reform beneficiaries under Republic Act No. 6657 from the reclassification limitations; conversion of such lands is governed by Section 65 of that law.
Section 20(b) authorizes the President, when public interest requires and upon recommendation of National Economic and Development Authority (NEDA), to authorize a city or municipality to reclassify lands beyond the stated limits.
Section 20(c) requires LGUs to prepare comprehensive land use plans enacted through zoning ordinances as primary and dominant bases for future land use, considering food production, human settlements, and industrial expansion.
Section 20(d) requires that when national agency approval is required, it shall not be unreasonably withheld; failure to act on a proper and complete application within three (3) months from receipt is deemed as approval.
Section 21 authorizes closure and opening of roads:
- Section 21(a) allows permanent or temporary closure/opening of local roads/alley/park/square by ordinance, with permanent closure requiring at least two-thirds (2/3) approval of all sanggunian members and provision of an adequate substitute.
- Section 21(b) prohibits permanent closure without provisions for maintenance of public safety; withdrawals from public use may be used/conveyed for lawful purposes available for local government property; freedom parks cannot be permanently closed without transfer/relocation to a new site.
- Section 21(c) allows temporary closure for actual emergencies, fiesta celebrations, public rallies, agricultural or industrial fairs, and undertakings of public works/highways/telecommunications/waterworks projects, with the duration specified in a written order of the local chief executive; prohibits temporary closure for athletic, cultural, or civic activities not officially sponsored/recognized/approved by the LGU.
- Section 21(d) permits city/municipality/barangay to temporarily close and regulate local streets/roads/thoroughfares or other public places by ordinance where shopping malls, Sunday, flea or night markets, or shopping areas may be established and goods/merchandise/foodstuffs/commodities may be sold to the general public.
Section 22 establishes corporate powers of LGUs:
- Section 22(a) grants continuous succession, power to sue/be sued, corporate seal use, acquire/convey property, enter into contracts, and other corporate powers subject to Code and other laws.
- Section 22(b) allows use/modification/change of existing corporate seals, requires registration of corporate seals for newly established or those without corporate seals with the Department of the Interior and Local Government, and requires registration for changes of corporate seal.
- Section 22(c) prohibits the local chief executive from entering contracts on behalf of the LGU without prior sanggunian authorization; requires a legible copy of the contract be posted in a conspicuous place in the provincial capitol or city/municipal/barangay hall.
- Section 22(d) grants full autonomy in proprietary functions and management of economic enterprises subject to Code and other laws.
Section 23 allows local chief executives, upon sanggunian authority, to negotiate and secure financial grants or donations in kind for basic services/facilities enumerated in Section 17 from local and foreign assistance agencies without clearance/approval from National Government departments/agencies or a higher local government unit, subject to:
- national security implication projects requiring approval by the national agency concerned; and
- deemed approval if the national agency fails to act within thirty (30) days from receipt of the request for approval.
- Section 23 requires reporting within thirty (30) days after signing the grant agreement or deed of donation to both Houses of Congress and the President of the nature, amount, and terms of the assistance.
Section 24 states that local government units and their officials are not exempt from liability for death or injury to persons or damage to property.

Basic services and devolution obligations

Section 17(b) enumerates basic services/facilities by LGU level, including barangay, municipality, province, and city services and facilities.
Section 17(b)(1) lists barangay basic services and facilities such as agricultural support services (including farm produce collection/buying stations), health and social welfare services (including maintenance of barangay health center and day-care center), hygiene/sanitation/solid waste collection, maintenance of katarungang pambarangay, barangay roads/bridges and water supply systems, infrastructure facilities (e.g., multi-purpose hall, plaza, sports center), information and reading centers, and satellite/public markets where viable.
Section 17(b)(2) lists municipal basic services and facilities such as agricultural and fishery extension/on-site research services (including livestock/poultry dispersal, fingerlings/seeding materials, seed farms, demonstration farms, quality control of copra, interbarangay irrigation, and enforcement of fishery laws in municipal waters including mangrove conservation), community-based forestry projects and management of communal forests not exceeding fifty (50) square kilometers, health services including primary care and disease control and purchase of medicines/supplies/equipment, social welfare including child/youth welfare and welfare of women/elderly/disabled, information services including job placement information systems and public library, solid waste disposal/environmental management, municipal buildings and parks/sports facilities, municipal infrastructure and health facilities funded out of municipal funds (including roads/bridges, school buildings, clinics/health centers, communal irrigation, fish ports, seawalls/dikes/drainage/sewerage/flood control, traffic signals and road signs), public markets/slaughterhouses/municipal enterprises, public cemeteries, tourism facilities and attractions with regulation/supervision of business concessions and security services, and sites for police/fire stations and substations and municipal jail.
Section 17(b)(3) lists provincial basic services and facilities such as agricultural extension and on-site research (pest/disease prevention and control, dairy farms, livestock markets, animal breeding stations, artificial insemination centers, farmer/fishermen cooperatives and technology transfer), industrial research and development and technology transfer, enforcement of forestry/pollution/small-scale mining and environment protection laws limited to community-based forestry projects and mini-hydroelectric projects for local purposes (subject to DENR supervision/control/review as stated), health services including hospitals and tertiary health services, social welfare services including rebel returnees and evacuees relief operations and population development, provincial buildings/jails/freedom parks/assembly areas, provincial infrastructure including inter-municipal waterworks/drainage/sewerage/flood control/irrigation/reclamation, low-cost housing and mass dwellings excluding those funded by SSS, GSIS, and HDMF (with national funds equitably allocated among regions in proportion to ratio of homeless to population), investment support including access to credit financing, upgrading and modernization of tax information and collection services using computer hardware/software, inter-municipal telecommunications services subject to national policy guidelines, and tourism development and promotion programs.
Section 17(b)(4) gives cities all municipal and provincial services and facilities plus adequate communication/transportation facilities and support for education, police, fire services/facilities.
Section 17(c) excludes from this section public works and infrastructure projects and facilities and services funded by the National Government under the annual General Appropriations Act, other special laws, pertinent executive orders, and those wholly or partially funded from foreign sources, except when the LGU is duly designated as implementing agency.
Section 17(d) requires LGUs to undertake designs/plans/specifications/testing of materials and procurement of equipment/materials from foreign and local sources necessary for the foregoing services and facilities, based on national policies/standards/guidelines.
Section 17(e) requires national agencies/offices concerned to devolve to local government units responsibility for basic services and facilities enumerated in Section 17 within six (6) months from the Code’s effectivity; it defines “devolution” as conferral by National Government of power and authority upon local government units to perform specific functions/responsibilities.
Section 17(f) authorizes the National Government or the next higher level LGU to provide or augment basic services/facilities assigned to a lower level when not made available or inadequate.
Section 17(g) provides that funding for basic services/facilities comes from the LGU share in proceeds of national taxes and other local revenues and funding support from the National Government, its instrumentalities, and GOCCs tasked by law; it mandates first allocation of funds/resources for the provision of basic services/facilities in Section 17(b) before applying them for other purposes unless otherwise provided.
Section 17(h) requires phasing out regional offices of national agencies/offices whose functions are devolved within one (1) year from approval of the Code, while allowing necessary field units for monitoring/technical assistance; it requires distribution of properties/equipment/assets of regional offices to LGUs in the region under rules issued by the oversight committee created under the Code.
Section 17(i) requires that devolution include transfer of records/equipment/assets and personnel corresponding to devolved powers/functions/responsibilities; it provides absorption of personnel by the LGU to which they belong/are assigned to the extent administratively viable as determined by the oversight committee, while stating that rights under civil service law are not impaired and that career executive service officers and similar-ranked officers not absorbed are retained by the National Government without diminution of rank/salary/tenure.
Section 17(j) allows LGUs, by ordinance, to sell/lease/encumber/otherwise dispose of public economic enterprises owned by them in their proprietary capacity to ensure active private sector participation in local governance; it further provides that costs may be charged for delivery of basic services/facilities enumerated.

Resource generation and damages liability

Section 18 grants LGUs power to establish development-implementation organizations and to create revenue sources and levy taxes/fees/charges accruing exclusively to their use/disposition and retained by them.
Section 18 provides automatic/direct release to LGUs of their just share in national taxes without further action.
Section 18 provides an equitable share in proceeds from utilization and development of national wealth/resources within their jurisdiction, including sharing with inhabitants by way of direct benefits.
Section 18 allows LGUs to acquire/develop/lease/encumber/alienate/dispose of real/personal property held in proprietary capacity and apply resources/assets for productive/developmental/welfare purposes.
Section 24 states that LGUs and their officials face liability for death/injury and property damage.

Intergovernmental supervision and ecological consultations

Section 25(a) establishes presidential general supervision to ensure local government acts remain within scope of prescribed powers/functions, with direct supervision over provinces, highly urbanized cities, and independent component cities; supervision through provinces over component cities and municipalities; and through cities/municipalities over barangays.
Section 25(b) requires national agencies and offices with project implementation functions to coordinate with one another and with local government units and ensure local unit participation in planning and implementation of national projects.
Section 25(c) allows a local government unit to request from the President direction to a national agency to provide financial/technical/other assistance, extended at no extra cost.
Section 25(d) requires national agencies/offices (including GOCCs) with field units/branches to furnish the local chief executive monthly reports including duly certified budgetary allocations and expenditures.
Section 26 imposes a duty on every national agency or GOCC authorizing/involved in planning/implementation of projects/programs that may cause pollution, climatic change, depletion of non-renewable resources, loss of cropland/rangeland/forest cover, or extinction of animal/plant species to consult with local government units, nongovernmental organizations, and other sectors and explain goals/objectives, impacts on people/community regarding environmental/ecological balance, and prevention/minimization measures.
Section 27 prohibits implementation of any project or program by government authorities unless:
- consultations required under Sections 2(c) and 26 are complied with; and
- prior approval of the sanggunian concerned is obtained.
Section 27 provides that occupants in areas where projects are implemented cannot be evicted unless appropriate relocation sites are provided in accordance with the Constitution.

Local procurement committees

Section 37 creates a Local Prequalification, Bids and Awards Committee (Local PBAC) in every province, city, and municipality responsible primarily for prequalification of contractors, bidding, evaluation of bids, and recommendation of awards concerning local infrastructure projects.
Section 37(a) makes the governor or city/municipal mayor chairman and sets members as:
- chairman of the sanggunian appropriations committee;
- a representative of the minority party in the sanggunian or, if none, one chosen by the sanggunian from among its members;
- the local treasurer;
- two (2) representatives of non-governmental organizations represented in the local development council concerned chosen by the organizations themselves; and
- any practicing certified public accountant designated by the local chapter of the Philippine Institute of Certified Public Accountants, if any.
Section 37(a) requires Commission on Audit representatives to observe proceedings and certify compliance with prequalification/bids/awards rules and procedures.
Section 37(b) requires deliberation of agenda and relevant information at least one (1) week before committee meetings.
Section 37(c) requires all committee meetings be held in the provincial capitol or city/municipal hall, and requires that minutes and decisions be recorded, posted prominently, and delivered by the most expedient means to elective local officials concerned.
Section 38 creates a Local Technical Committee in every province/city/municipality to provide technical assistance to the Local PBAC, composed of the provincial/city/municipal engineer, local planning and development coordinator, and other officials designated by the Local PBAC.
Section 38(b) provides that the Local PBAC designates the chairman of the Local Technical Committee and the chairman attends Local PBAC meetings to present reports and recommendations.

Qualifications and election rules

Section 39(a) requires an elective local official to be a citizen of the Philippines, a registered voter in the barangay/municipality/city/province or district for sangguniang positions as applicable, a resident for at least one (1) year immediately preceding election day, and able to read and write Filipino or any other local language or dialect.
Section 39(b) sets age minimums for candidates for governor/vice-governor or member of the sangguniang panlalawigan, or mayor/vice-mayor or member of the sangguniang panlungsod of highly urbanized cities: at least twenty-three (23) years old on election day.
Section 39(c) sets age minimums for mayor or vice-mayor of independent component cities, component cities, or municipalities: at least twenty-one (21) years old on election day.
Section 39(d) sets age minimum for member of the sangguniang panlungsod or sangguniang bayan: at least eighteen (18) years old on election day.
Section 39(e) sets age minimum for punong barangay or member of the sangguniang barangay: at least eighteen (18) years old on election day.
Section 39(f) sets age minimum and maximum for sangguniang kabataan candidates: at least fifteen (15) years but not more than twenty-one (21) years on election day.
Section 40 disqualifies from running for any elective local position:
- those sentenced by final judgment for an offense involving moral turpitude or for an offense punishable by one (1) year or more of imprisonment, within two (2) years after serving sentence;
- those removed from office as a result of an administrative case;
- those convicted by final judgment for violating the oath of allegiance to the Republic;
- those with dual citizenship;
- fugitives from justice in criminal or non-political cases here or abroad;
- permanent residents in a foreign country or those who acquired the right to reside abroad and continue to avail of that right