Reorganization of Dept. of Local Government

Constitutional and legal basis

The Executive Order is issued by the President under powers vested by the Constitution.
The recitals cite Proclamation No. 3 dated March 25, 1986 for the President’s priority to completely reorganize the government.
The recitals cite Article XVIII, Section 16 of the 1987 Constitution to support continuing reorganization even after ratification.
The recitals cite Article XVIII, Section 6 of the 1987 Constitution for continued exercise of legislative powers until the first Congress is convened.

Policy, purpose, and guiding principles

Section 3 requires reorganization to make the Department more capable of assisting the President in general supervision over local governments, promoting local autonomy, encouraging community empowerment, and maintaining public order and safety services.
Section 4 states the Department’s principles include accountability and responsiveness of local governments to constituency needs.
Section 4(b) makes allocation of more powers and resources to local governments a primordial philosophy.
Section 4(c) requires wider latitude for resource generation through:
- Section 4(c)(1) generation of local revenues;
- Section 4(c)(2) local government share in national taxes, grants and subsidies as provided by law;
- Section 4(c)(3) credit financing.
Section 4(d) enhances inter-local government cooperation and coordination mutually beneficial to all concerned.
Section 4(e) directs decentralization of substantive operational functions to regional offices as a policy of the Department.

Department mandate and powers

Section 4 mandates the Department to primarily assist the President in the exercise of general supervision over local governments.
Section 5(a) requires the Department to advise the President on promulgation of policies, rules, regulations, and other issuances relative to general supervision of local governments.
Section 5(b) requires the Department to establish and prescribe rules and issuances implementing laws on general supervision of local governments and the promotion of local autonomy and community empowerment, and to monitor compliance.
Section 5(c) requires the Department to provide assistance in the preparation of national legislation affecting local governments.
Section 5(d) requires the Department to establish plans, policies, programs and projects to strengthen administrative, technical, and fiscal capabilities of local government offices and personnel.
Section 5(e) requires the Department to formulate plans, policies and programs to meet local emergencies arising from natural and man-made disasters.

Secretary and internal structure

Section 7 vests in the Secretary of Local Government the authority and responsibility to exercise the Department’s mandate and discharge its powers and functions.
Section 7 makes the Secretary responsible for supervision and control of the Department and clarifies the Secretary is appointed by the President.
Section 7 requires the Secretary to:
- advise the President on matters relative to power of general supervision over local governments (Section 7(a));
- establish appropriate policies and standards for effective and efficient operations (Section 7(b));
- promulgate policies, rules, regulations necessary to carry out Department goals (Section 7(c));
- exercise supervision and control over all offices within the Department (Section 7(d));
- delegate duties, powers and authority when necessary (Section 7(e));
- appoint other officers and employees of the Department except as otherwise provided by law (Section 7(f));
- perform other functions provided by law or directed by the President (Section 7(g)).
Section 6 provides that the Department is composed of the Offices of the Secretary, staff, and line offices consisting of:
- Bureau of Local Government Supervision;
- Bureau of Local Government Development;
- National Barangay Operations Office;
- Project Development Services;
- Support Services;
- Office of Public Affairs; and
- Regional and Field Officers.
Section 9 limits the Secretary’s assistants to not more than three (3) Undersecretaries and three (3) Assistant Secretaries, appointed by the President upon recommendation of the Secretary, and authorizes the Secretary to delineate and assign their functional areas.

Support services and offices

Section 8 establishes the Office of the Secretary as consisting of the Secretary and immediate staff.
Section 10 creates Support Services, including:
- Planning Service for planning, programming, research and statistics (Section 10(a));
- Financial and Management Service for budgetary, financial and management improvement advice and assistance (Section 10(b));
- Legal Service for legal counseling, assistance to the Secretary in review/determination of subordinate bodies/agencies, collaboration with the Solicitor General, and investigation of administrative cases involving Department personnel and local officials (Section 10(c));
- Electronic Data Processing Service for up-to-date data and management information inputs, including monitoring of all field operations for planning, management and control, policy formulation and decision-making (Section 10(d));
- Administrative Service for personnel, information, records, supplies, equipment, collection, disbursements, security and custodial work, and other services not related to other listed services (Section 10(e)).
Section 11 establishes an Office of Public Affairs with functions including:
- technical assistance in modernization and maintenance of a Department-wide micro-telecommunications systems (Section 11(a));
- mechanisms for operationalization of public information, coverages and documentation of Department activities (Section 11(b));
- functional supervision over regional information centers to provide relevant information to citizens (Section 11(c));
- plans and programs to implement administrative and technical capabilities of public officers and personnel (Section 11(d));
- guidelines for Information and Public Assistance Services (Section 11(e));
- consultation services and advice for implementation of Regional Information Services (Section 11(f));
- assessing information needs through opinion polls and surveys (Section 11(g));
- assistance on various public programs of the Department (Section 11(h));
- policies, plans, programs and projects to meet local emergencies from natural and man-made disasters (Section 11(i)).

Bureaus, academy, and barangay operations

Section 12 provides that the Bureau of Local Government Supervision is headed by a Bureau Director appointed by the President upon recommendation of the Secretary.
Section 12 requires the Bureau of Local Government Supervision to:
- advise and assist the Secretary in general supervision, particularly formulation and implementation of national laws, policies and standards on local government operations and personnel (Section 12(a));
- establish guidelines in administration of the Katarungang Pambarangay Program (Section 12(b));
- monitor compliance by local governments (Section 12(c));
- assist in preparation of national legislation affecting local governments and in promotion of local autonomy (Section 12(d));
- extend consultation services on promoting local autonomy (Section 12(e));
- assist local governments in promoting citizens participation in local government activities (Section 12(f));
- perform other delegated or legally assigned functions (Section 12(g) and Section 12(h)).
Section 13 provides that the Bureau of Local Government Development is headed by a Bureau Director appointed by the President upon recommendation of the Secretary.
Section 13 requires the Bureau of Local Government Development to:
- establish plans, policies, programs and standards to strengthen administrative, fiscal and technical capabilities (Section 13(a));
- provide technical assistance to enhance capabilities (Section 13(b));
- formulate, prescribe, monitor and periodically evaluate local development policies, plans, programs and projects designed to enhance participation of local governments in planning and implementation (Section 13(c));
- establish a system of incentives and grants and prescribe policies, procedures and guidelines for self-help assistance projects (Section 13(d));
- formulate and develop models, standards and technical materials on local government development (Section 13(e));
- provide consultation services and advice in development programs (Section 13(f));
- establish viable systems of strategies and approaches anchored on citizens participation in a wholistic and integrated framework (Section 13(g));
- perform other delegated or legally assigned functions (Section 13(h)).
Section 14 establishes the Local Government Academy within the Department for human resource development and training of local government officials and Department personnel.
Section 14 provides that the Academy is under direct supervision of a Board of Trustees composed of the Secretary of Local Government as Chairman and four (4) other members appointed by the President upon recommendation of the Secretary.
Section 14 authorizes that the Academy’s structure and staffing pattern shall be prescribed and approved by the Secretary.
Section 15 establishes the National Barangay Operations Office headed by a Director appointed by the President upon recommendation of the Secretary.
Section 15 requires the Office to:
- formulate policies, plans and programs to promote community and citizens participation in barangay political development through mobilization and participation of barangay assemblies (Section 15(a));
- initiate innovative barangay development projects in close coordination with the Bureau of Local Government Development (Section 15(b));
- provide secretariat services to the Association of Barangay Councils and serve as clearing house on barangay officials’ insurance, hospitalization, educational and other benefits as provided by law (Section 15(c));
- disseminate information to barangay units on national development efforts and issues for meaningful participation (Section 15(d));
- establish and maintain masterlists of barangays and barangay officials and barangay socio-economic profile (Section 15(e));
- provide situation and political analysis for the Secretary on barangay affairs (Section 15(f));
- perform other delegated or legally assigned functions (Section 15(g)).
Section 16 creates Project Development Services and assigns it functions to:
- formulate innovative approaches and strategies to promote technical capabilities of local governments (Section 16(a));
- assist in development of program components for implementing tested and appropriate systems and processes at local level (Section 16(b));
- perform other delegated or legally assigned functions (Section 16(c)).

Regional and field offices; abolition and creation

Section 17 mandates one Regional Office in each administrative region established by law, headed by a Regional Director appointed by the President upon recommendation of the Secretary.
Section 17 authorizes other field offices as may be necessary and requires Regional Offices to:
- implement laws, rules, regulations, other issuances, policies, plans, programs and projects of the Department (Section 17(a));
- provide efficient and effective service to local government (Section 17(b));
- coordinate with regional offices of other departments, offices and agencies affecting local administration and development (Section 17(c));
- assist local governments develop overall capabilities for local government administration and development (Section 17(d));
- perform other delegated or legally assigned functions (Section 17(e)).
Section 18 abolishes the following agencies, offices and units:
- National Secretariat Paglilingkod sa Bagong Lipunan;
- Katipunan ng mga Sanggunian National Secretariat and the Pambansang Katipunan ng mga Punong Bayan sa Pilipinas Office;
- Operations, Monitoring and Support Office;
- Barangay Brigades Development Program Office;
- Management Information System Office.
Section 19 creates the Leagues of Provinces, Cities and Municipalities.
Section 19 transfers the functions, budget and records of the abolished Katipunan ng mga Sanggunian National Secretariat and Pambansang Katipunan ng mga Punong Bayan sa Pilipinas to the Leagues, and places the Leagues under supervision of the Bureau of Local Government Supervision.
Section 19 authorizes the Secretary to promulgate necessary implementing rules to activate the Leagues.

Reorganization transitory provisions and staffing

Section 20 requires transitory compliance to accomplish the reorganization, including hold-over arrangements for transferred or performing personnel.
Section 20(a) requires that transfer of a government unit includes functions, appropriations, funds, records, equipment, facilities, choses in action, rights, other assets, liabilities, and personnel needed for discharge of transferred functions in a hold-over capacity, with continued salary and benefits.
Section 20(a) provides that personnel whose positions are not included in the Department’s new position structure and staffing pattern approved and prescribed by the Secretary or who are not reappointed are deemed separated from service and are entitled to the benefits under Section 21.
Section 20(b) provides that transfers resulting in abolition of the original unit include appropriations, funds, records, equipment, facilities, choses in action, rights, other assets and personnel needed for proper discharge of transferred functions, with remaining appropriations and funds reverting to the General Fund.
Section 20(b) directs that remaining assets of an abolished unit are allocated by the Secretary to appropriate units or disposed of in accordance with the Government Auditing Code and other pertinent laws, rules and regulations, with liabilities likewise treated under the same framework.
Section 20(b) requires that personnel in hold-over capacity continue performing duties and receiving salaries and benefits, and that personnel not included in the new structure or not reappointed are deemed separated and entitled to Section 21 benefits.
Section 20(c) provides that transfers not resulting in abolition include the appropriations, funds, records, equipment, facilities, choses in action, rights, assets and personnel needed for discharge of transferred functions, with liabilities treated under the Government Auditing Code and other pertinent laws.
Section 21 provides for the new organizational structure and staffing pattern by placing Department officers and employees in a holdover capacity until reorganization is completed.
Section 21 requires the Secretary to approve and prescribe the new organizational structure and staffing pattern within one hundred twenty (120) days from approval of the Executive Order.
Section 21 requires that authorized positions created thereunder be filled with regular appointments by the Secretary or by the President, as the case may be.
Section 21 provides that incumbents whose positions are not included or who are not reappointed are deemed separated from service and receive:
- retirement benefits under existing laws, rules and regulations; or
- otherwise, the equivalent of one month basic salary for every year of service, or the equivalent nearest fraction favorable to them based on the highest salary received, with payment in no case exceeding the equivalent of 12 months salary.
Section 22 requires the Secretary to formulate and enforce a system for measuring and evaluating Department performance periodically and objectively and submit it to the President of the Philippines.
Section 23 requires notice or creditor consent before implementing a reorganizational change of such substance as to prejudice third persons with rights recognized by law or contract when notice to or consent of creditors is required under an agreement.
Section 24 provides that no change in the reorganization is valid except upon prior approval of the President or by an act of Congress for promoting efficiency and effectiveness in delivery of public services, and requires the Secretary to prevent overlapping of functions among Department offices and bureaus.
Section 25 requires funding to be taken from funds available in the Department.
Section 26 authorizes the Secretary to issue rules, regulations and other issuances necessary for effective implementation.

Final clauses: separability and repeals

Section 27 provides a separability clause so that if any part or provision is held unconstitutional or invalid, other parts not affected continue in full force and effect.
Section 28 repeals or modifies inconsistent laws, acts, decrees, executive orders, proclamations and administrative regulations or parts thereof, except as otherwise provided in the Executive Order.