Sen. Aquilino Q. Pimentel - Committee on Local Government - SENATE BILL NO. 2064

SENATE BILL NO. 1121 - Full Text

Explanatory Notes

THIRTEENTH CONGRESS ]
REPUBLIC OF THE PHILIPPINES]
Second Regular Session ]

S.B. No. 1121

INTRODUCED BY SENATOR AQUILINO Q. PIMENTEL, JR.

AN ACT
TO STRENGTHEN LOCAL GOVERNMENT UNITS BY AMENDING CERTAIN
PROVISIONS OF REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE LOCAL
GOVERNMENT CODE OF 1991

EXPLANATORY NOTE

R.A. 7160, otherwise known as the Local Government Code of
1991, is considered by many social and economic scientists as the
"key that unlocks vast opportunities in the countryside."

The Code has provided operational meaning to
decentralization and devolution. It is a giant step in our
country's journey towards full democratization. Like many great
pieces of legislation, however, the law has to be assessed and
amended to address new needs and recommend solutions to the
burgeoning problems of local governance. Local government
officials and advocates of local autonomy clamor for changes in
the law to address matters like: (a) the inadequacy of the
internal revenue shares of the local government units to meet the
budgetary requirements of the devolved functions, programs and
projects; (b) the continued lack of budgetary support from the
national government for the full implementation of devolved
tertiary health services; (c) the interference of national
government in personnel and fiscal management of the local
government units; (d) the need to further broaden the tax base
of the local government units and (e) the time frame for the
revision of real property assessment.

In response to these concerns, amendments to the Code are
hereby introduced with the view of strengthening local autonomy
and providing dynamism in the implementation of the devolved
functions, programs, projects, and services. The development
objectives of the national government should be viewed within the
context of local autonomy and decentralization.

The highlights of the proposed amendments are as follows:

BOOK ONE - GENERAL PRINCIPLES

* Consultation with local government units on the planning and
implementation of national programs and projects is emphasized
and made mandatory;
(See: SECTION 1 | SECTION 10)

* Local government units shall now enjoy greater fiscal
autonomy;

* Income based on locally generated revenue is made a basis
for the creation of a province, city, or a municipality;
(See: SECTION 3 )

* The sangguniang panlalawigan, sangguniang panlungsod, and
sangguniang bayan are authorized to declare public holidays in
their respective jurisdictions;
(See: SECTION 4 )

* The Bureau of Fire Protection is now devolved to local
government units;

* The following services, programs and functions are also
devolved to local government units:

a. Implementation of forest projects, and the execution of laws
designed to protect the environment;
(See: SECTION 9 )

b. The construction, supervision, and management of nationally
funded infrastructure projects;

c. Processing and approval of subdivision and condominium
plans, including the issuance of licenses and the grant of
authority to sell subdivision lots and condominium units;

d. Issuance of environment compliance and clearance
certificates; and

e. Regulation and setting of public and private utility vehicle
fees within the province.

* Local government units are given eighteen (18) months within
which to prepare and enact a comprehensive land use plan and
zoning ordinance after agricultural land within their
jurisdiction is reclassified into residential, commercial or
industrial land;
(See: SECTION 7 )

* The Barangay shall have their own Pre-qualification, Bids
and Awards Committees (PBACs);
(See: SECTION 12 )

* The provision on Preparatory Recall Assembly, as one of the
modes of instituting a recall of local elective officials, is
repealed;

* A local executive may issue a temporary appointment or
designation of an officer-in-charge for a period not exceeding
sixty (60) days;

* Teaching and non-teaching staffs of the DECS are given non-
taxable monthly fixed allowances chargeable against the Special
Education Fund (SEF) of the different local government units
concerned.

BOOK TWO - LOCAL TAXATION
AND FISCAL MATTERS

* Government officials who fail to comply with requirements
imposed by law upon them in the transfer of land are now subject
to sanctions;

* The gross income of banks and other financial institutions
are subject to local government taxation;
(See: SECTION 52 )

* Local government units now have a share in the tax imposed
by the province on the business of printing and publication.
(See: SECTION 47 )

* Franchise tax coverage is expanded;
(See: SECTION 48 )

* The barangay in municipalities are now empowered to impose
business taxes on stores or retailers with gross sales of up to
five hundred thousand pesos (P500,000) and up to one million
pesos (P1,000,000) gross sales in the case of the barangay in
the cities and the municipalities in Metro Manila.
(See: SECTION 53 )

* For assessment purposes, the fair market value of a
residential building to be exempted from real property taxes is
raised from one hundred seventy five thousand (P175,000) to five
hundred thousand (P500,000) pesos.

* The revision of real property assessment will be undertaken
every six (6) years instead of every three (3) years.
(See: SECTION 70 )

* The shares of the local government units are now based on
the collection of national taxes, and their allotments are
increased to fifty percent (50%) starting fiscal year 2001;
(See: SECTION 80 )

* The shares in the proceeds of the utilization and
development of national wealth is increased from 40% to 60% and
retained by the collecting agency. These shall be remitted to
the local government units concerned on a quarterly basis;
(See: SECTION 84 )

* Availment by local government units of any of the modes of
credit financing shall not be subject to interference by any
national government agency, the same being a curtailment of the
exercise of LGU fiscal autonomy;
(See: SECTION 88 )

* Heavy equipment and machineries imported by local water
districts registered under R.A. 6938 are exempted from the
payment of duties, taxes, fees and charges;
(See: SECTION 90 )

* Development projects implemented under the build-operate-and-
transfer and other financing schemes may receive incentives;

* Local government units are required to inform their
constituents of LGU loan applications, indicating the amount, the
project to be financed, the implementation timetable, terms of
payment, and the security to be used for such loans;
(See: SECTION 88 )

* The local government units are now allowed to maintain
depository accounts with any private commercial bank licensed by
the Bangko Sentral ng Pilipinas (BSP).
(See: SECTION 92 )

BOOK THREE - LOCAL GOVERNMENT UNITS

* Barangay sanggunian members are now entitled to retirement
benefits;
(See: SECTION 111 )

* Barangay tanod brigades or their equivalent are entitled to
monthly allowances;
(See: SECTION 111 )

* Income requirement for the creation of a province, city, or
municipality is increased and shall be based on locally generated
income;
(See: SECTION 111 | SECTION 132 )

* Local executives shall now appoint treasurers and assistant
treasurers;
(See: SECTION 138 )

* Provinces, cities, and first class municipalities are now
required to appoint and hire environment and natural resources
officers, cooperative officers, buildings and grounds officers,
and human resources development officers.
(See: SECTION 122 | SECTION 133 | SECTION 139 | SECTION 141 )

* Fire protection officers for cities and municipalities are
required to be appointed;
(See: SECTION 122 | SECTION 128 | SECTION 139 )

* Fishing cooperatives shall be allowed to operate commercial
fishing vessels in municipal waters;
(See: SECTION 125 )

* The power to issue environmental compliance and clearance
certificates in certain industries is now vested in governors and
city mayors;
(See: SECTION 125 )

BOOK FOUR - MISCELLANEOUS AND FINAL PROVISIONS

* Penal sanction is now imposed for the violation of
provisions of the Local Government Code.
(See: SECTION 150 )

This bill is designed to strengthen local government units,
assuring the growth and development of self-reliant and dynamic
communities throughout the country.

The approval of this bill is urgently requested.

AQUILINO Q. PIMENTEL, JR.

Main Text

THIRTEENTH CONGRESS ]
REPUBLIC OF THE PHILIPPINES]
Second Regular Session ]

S.B. No. 1121

INTRODUCED BY SENATOR AQUILINO Q. PIMENTEL, JR.

AN ACT
TO STRENGTHEN LOCAL GOVERNMENT UNITS BY AMENDING CERTAIN
PROVISIONS OF REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE LOCAL
GOVERNMENT CODE OF 1991

BOOK ONE - GENERAL PROVISIONS

SECTION 1. Section 2 of Republic Act No. 7160, otherwise

known as the Local Government Code of 1991, hereinafter referred

to as the Code, is hereby amended to read as follows:

Section 2. Declaration of Policy. -

(a) It is hereby declared [the] A policy of the State TO

ENSURE that [the] ITS territorial and political subdivisions [of

the State shall] enjoy genuine and meaningful local autonomy to

enable them to attain [their fullest] FULL development as self-

reliant communities and [make them more] BECOME effective

partners in the attainment of national goals.

(B) Towards this end, the State shall provide for a more

responsive and accountable local government structure instituted

through a system of decentralization [whereby] WHERE local

government units [shall be given] ARE GRANTED more powers,

authority, responsibilities [,] and resources. The process of

decentralization shall proceed from the [National] CENTRAL

Government to the local government units.

[(b)] (C) It is also [the] A policy of the State to [ensure

the accountability of local government units through the

institution of] INSTITUTE effective mechanisms [of] FOR recall,

initiative and referendum, TO ENSURE THAT LOCAL ELECTIVE

OFFICIALS ARE MORE ACCOUNTABLE TO THE PEOPLE.

[(c)] (D) It is likewise [the] A policy of the State to

require all [national] CENTRAL GOVERNMENT agencies and offices to

conduct [periodic consultations] PUBLIC HEARINGS AND CONSULT with

THE [appropriate] PROPER local government units, non-

governmental and people's organizations, and other concerned

sectors of the community, before any [project or] program OR

PROJECT is APPROVED FOR implement[ed]ATION BY CENTRAL GOVERNMENT

AGENCIES, OFFICES OR GOVERNMENT-OWNED OR CONTROLLED CORPORATIONS,

in their respective jurisdictions.

(E) THE STATE SHALL EMPOWER LOCAL GOVERNMENT UNITS TO

REGULATE OR PROHIBIT GAMBLING AND OTHER ACTIVITIES THAT MAY

ADVERSELY AFFECT THE MORALS, WELL-BEING AND GOOD ORDER OF

INHABITANTS IN THEIR COMMUNITIES.

SECTION 2. Section 3 of the Code is hereby amended to read

as follows:

Section 3. Operative Principles of Decentralization. -

The formulation and implementation of policies and measures on

local autonomy shall be guided by the following operative

principles:

(a) xxx

(b) xxx

[l]Local officials and employees WHO ARE paid wholly [or mainly]

from local funds, shall, UNLESS OTHERWISE PROVIDED UNDER THIS

CODE, be appointed [or removed] BY THE GOVERNOR, MAYOR, OR PUNONG

BARANGAY OR BY THE VICE-GOVERNOR OR VICE-MAYOR AS THE CASE MAY BE

according to merit and fitness, AND MAY ONLY BE REMOVED FOR

CAUSE, SUBJECT TO CIVIL SERVICE LAW, RULES AND REGULATIONS [by

the appropriate appointing authority];

(d) xxx

(e) xxx

(f) xxx

(g) xxx

(h) xxx

(i) Local government units shall share with the [National]

CENTRAL Government the responsibility [in the management and

maintenance of] TO MAINTAIN SOUND ecological balance [within] IN

their RESPECTIVE territori[al]ES [jurisdiction], subject to the

provisions of this Code [and national policies];

(j) xxx

(k) The realization of local autonomy shall be facilitated

through improved coordination of [national] CENTRAL government

[policies and] programs AND POLICIES, and TO extenD[sion of]

adequate technical and material assistance to less developed and

deserving local government units;

(l) The [participation of the] private sector [in local

governance, particularly, in the delivery of basic services]

shall be encouraged TO PARTICIPATE AS PARTNERS IN LOCAL

GOVERNANCE, ESPECIALLY IN THE DELIVERY OF BASIC SERVICES, to

ensure the [viability] EFFECTIVENESS of local autonomy as an

[alternative strategy] INSTRUMENT for sustainable development;

[and]

(m) The [National] CENTRAL Government shall ensure that

decentralization contributes to the continuing improvement of the

performance of local government units and the quality of

[community] life IN THEIR COMMUNITIES; AND

(N) LOCAL GOVERNMENT UNITS SHALL ENJOY FISCAL AUTONOMY, AND

SHALL EXERCISE PRIMARY AUTHORITY TO ALLOCATE, UTILIZE AND DISPOSE

OF FUNDS GENERATED BY THEM OR ALLOTTED TO THEM, SUBJECT TO THE

PROVISIONS OF THIS CODE AND OTHER APPLICABLE LAWS.

SECTION 3. Section 7 of the Code is hereby amended to read

as follows:

Section 7. Creation and Conversion. - As a general

rule, the creation of a local government unit or its conversion

from one level to another level shall be based on verifiable

indicators of viability and projected capacity to provide

services, to wit:

(a) Income - MONEY RECEIVED FROM REGULAR LOCAL REVENUE SOURCES,

SHARE FROM NATIONAL TAXES, AND OTHER NON-REGULAR LOCAL REVENUE.

FOR THE PURPOSE OF CREATION OR CONVERSION OF A LOCAL GOVERNMENT

UNIT, [It] INCOME must be sufficient, based on acceptable

standards, to provide for all essential government facilities

[and], services and special functions commensurate with the size

of its population, as expected of the local government unit

concerned[.] AND SHALL BE BASED ONLY ON REVENUES GENERATED

LOCALLY;

(b) Population. - It shall be determined as the total number of

inhabitants within territorial jurisdiction of the local

government unit concerned; [and]

two (2) or more islands or is separated by a local government

unit independent of the others; properly identified by metes and

bounds with technical descriptions; and sufficient to provide for

such basic services and facilities to meet the requirements of

its populace[.]; AND

(D) TAX COLLECTION EFFICIENCY - IN CASE OF A CONVERSION OF A

MUNICIPALITY INTO A COMPONENT OR INDEPENDENT CITY OR FROM

COMPONENT CITY AND INDEPENDENT COMPONENT CITY INTO A HIGHLY

URBANIZED CITY, THE LOCAL GOVERNMENT UNIT CONCERNED MUST HAVE AN

AVERAGE OF, AT LEAST, EIGHTY PER CENT (80%) REAL PROPERTY TAX

COLLECTION EFFICIENCY AND SEVENTY PER CENT (70%) COLLECTION OF

OTHER LOCAL TAXES EVERY YEAR IN THE THREE (3) IMMEDIATELY

PRECEDING YEARS. TAX COLLECTION EFFICIENCY IS MEASURED AS THE

RATIO OF ACTUAL TAX REVENUES COLLECTED TO THE AMOUNT OF TAXES

THAT ARE DUE AND COLLECTIBLE.

[Compliance with the foregoing indicators shall be attested

to 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).] THE

FOLLOWING CENTRAL GOVERNMENT AGENCIES SHALL ATTEST TO THE

VIABILITY OF A LOCAL GOVERNMENT UNIT UNDER THE FOREGOING

INDICATORS, TO WIT:

(1) THE DEPARTMENT OF FINANCE (DOF), AS TO INCOME AND

THE COMMISSION ON AUDIT (COA) AS TO TAX COLLECTION

EFFICIENCY, IN THE CASE OF THE CREATION OF A PROVINCE OR THE

CONVERSION OF A METROPOLITAN MANILA MUNICIPALITY INTO A

CITY. IN THE CASE OF THE CREATION OF A MUNICIPALITY, CITY

OR CONVERSION OF AN INDEPENDENT OR COMPONENT CITY INTO

HIGHLY URBANIZED STATUS, THE PROVINCIAL TREASURER CONCERNED

SHALL CERTIFY AS TO THE INCOME AND TAX COLLECTION EFFICIENCY

OF THE LOCAL GOVERNMENT UNIT.

(2) THE NATIONAL STATISTICS OFFICE (NSO), AS TO

POPULATION.

(3) THE LAND MANAGEMENT BUREAU (LMB) AND BUREAU OF

FISHERIES AND AQUATIC RESOURCES (BFAR), AS TO LAND AREA.

SECTION 4. Section 13 of the Code is hereby amended to read

as follows:

Section 13. Naming [of] Local Government Units, [and]

Public Places, Streets and Structures, AND DECLARING LOCAL PUBLIC

HOLIDAYS. - (a) The sangguniang panlalawigan, [may] in

consultation with the [Philippine Historical Commission (PHC)]

NATIONAL HISTORICAL INSTITUTE (NHI) AND LOCAL HISTORICAL

ASSOCIATIONS, IF ANY, MAY NAME OR change the name of the

following within its territorial jurisdiction:

(1) Component cities and municipalities, upon

[the] recommendation of the sanggunian concerned;

(2) xxx

(3) xxx

(4) xxx

(5) xxx

(b) The sanggunian[s] of highly urbanized cities and

[of] component cities, whose charters prohibit their voters from

voting for provincial elective officials, hereinafter referred to

[in this Code] as independent component cities, [may,] in

consultation with the [Philippine Historical Commission] NATIONAL

HISTORICAL INSTITUTE, AND LOCAL HISTORICAL ASSOCIATIONS, IF ANY,

MAY NAME OR change the name of the following within its

territorial jurisdiction:

(1) City barangays, upon [the] recommendation of the

sangguniang barangay concerned;

(1) xxx

(2) xxx

(3) xxx

(4) xxx

(5) xxx

municipalities, [ may ] in consultation with the [Philippine

Historical Commission] NATIONAL HISTORICAL INSTITUTE, AND LOCAL

HISTORICAL ASSOCIATIONS, IF ANY, MAY NAME OR change the name of

the following within its territorial jurisdiction:

(1) City and municipal barangays, upon [the] recommendation of

the sangguniang barangay concerned;

(2) xxx

(3) xxx

(4) xxx

(5) Xxx

(d) xxx

(e) xxx

(f) xxx

(g) xxx

THE SANGGUNIANG PANLALAWIGAN, PANLUNGSOD OR BAYAN, UPON

CONSULTATION WITH THE NATIONAL HISTORICAL INSTITUTE AND LOCAL

HISTORICAL ASSOCIATIONS, IF ANY, AND THE DEPARTMENT OF LABOR AND

EMPLOYMENT (DOLE), THROUGH AN ORDINANCE DULY APPROVED BY THREE-

FOURTHS (3/4) VOTE OF ALL THEIR RESPECTIVE MEMBERS, MAY DECLARE

WORKING OR NON-WORKING SPECIAL PUBLIC HOLIDAYS TO COMMEMORATE

SIGNIFICANT HISTORIC EVENTS IN THE LOCALITY.

SECTION 5. Section 14 of the Code is hereby amended to read

as follows:

Section 14. Beginning of Corporate Existence. - [When a

new local government unit is created, its] THE corporate

existence OF A NEWLY CREATED LOCAL GOVERNMENT UNIT shall commence

upon the [election] EFFECTIVITY OF THE LAW OR ORDINANCE CREATING

IT, [and qualification of its chief executive and a majority of

the members of its sanggunian,] unless [some] other [time] BASIS

is [fixed therefor by the law or ordinance creating it] PROVIDED

THEREIN.

SECTION 6. Section 17 (a) (b) (1) (i), (ii), (iii), (iv),

(v), (vi), (vii), (viii), 2 (i), (ii), (iii), (iv), (v), (vi),

(vii), (viii), (x), (xi), (xii), (xiii) (b), 3 (i), (iii), (iv),

(v), (vi), (vii), (viii), (x), 4 (i), (ii) (c), (e), (h), (i)

(j) of the same Code are hereby amended to read as follows:

Section 17. [Basic] Services and Facilities. - (a)

Local government units shall endeavor to be self-reliant and

shall continue exercising the powers and discharging the duties

and functions currently vested upon them. They shall also

discharge the POWERS, functions and responsibilities of

[national] CENTRAL GOVERNMENT agencies and offices devolved to

them pursuant to this Code. Local government units shall

likewise exercise such other powers and discharge such other

functions and responsibilities as are necessary, appropriate, or

incidental to efficient and effective [provision of the basic

services and facilities enumerated herein] LOCAL GOVERNANCE.

(b) Such [basic] services and facilities include, but are

not limited to, the following:

(1) For a Barangay:

(i) Agricultural support services which include THE

DISTRIBUTION OF planting materials [distribution system] and

operation AND MAINTENANCE of [farm produce] collection and

buying stations FOR FARM PRODUCTS;

(ii) Health and [social welfare services which include

maintenance of barangay health center, and] day-care

centerS, AND OTHER SOCIAL WELFARE SERVICES;

(iii) [Services and facilities related to general

hygiene and] COMMUNITY ACTIONS FOR CLEANLINESS, sanitation,

beautification and SYSTEMATIC COLLECTION AND DISPOSAL OF

[solid] wasteS [collection];

(iv) [Maintenance of katarungang pambarangay] MEDIATION

AND CONCILIATION SERVICES UNDER THE BARANGAY JUSTICE SYSTEM;

(v) CONSTRUCTION, Maintenance, REPAIR AND

REHABILITATION of barangay roads [and], bridges, and water

supply systems.

THE FOLLOWING ARE BARANGAY ROADS:

1. THOSE CONSTRUCTED BY THE BARANGAY OUT OF ITS OWN FUNDS;

2. THOSE CONSTRUCTED BY HIGHER LOCAL GOVERNMENT UNITS OR

CENTRAL GOVERNMENT AND TURNED OVER TO THE BARANGAY; AND

3. THOSE CONSTRUCTED BY PRIVATE PERSONS AS PREVIOUSLY APPROVED

BY THE SANGGUNIAN CONCERNED AND ARE OFFICIALLY DONATED TO THE

BARANGAY CONCERNED.

FUNDS FOR THE MAINTENANCE, REPAIR AND REHABILITATION OF

BARANGAY ROADS SHALL BE DEVOLVED TO THE BARANGAY CONCERNED;

(vi) [Infrastructure facilities such as m] Multi-

purpose hall, multi-purpose pavement, plaza, sports center

and other similar INFRASTRUCTURE facilities;

(vii) Information and reading centerS; and

(viii) Satellite or public marketS, where viable.

(2) For a Municipality:

(i) Extension and on-site research services and

facilities related to agriculture INCLUDING ANIMAL HEALTH,

and fishery activities which include dispersal of livestock

and poultry, fingerlings, and other seeding materials for

aquaculture; palay, corn, and vegetable seed farms;

medicinal plant gardens; fruit tree, coconut, and other

kinds of seedling nurseries[;] AND demonstration farms;

quality control of copra and improvement and development of

local distribution channels, preferably through

cooperatives; inter-barangay irrigation systems; water and

soil resource utilization and conservation projects; and

enforcement of fishery laws AND ORDINANCES in municipal

waters [including] ESPECIALLY the conservation of mangroves;

(ii) [Pursuant to national policies and subject to

supervision, control and review of the DENR,]

[i]Implementation of community-based forestry projects

which include integrated social forestry programs and

similar projects; management and control of communal

forests with an area not exceeding fifty (50) square

kilometers; establishment of tree parks, greenbelts, and

similar forest development projects.

(iii) [Subject to the provisions of Title Five Book I

of this Code,] [h]Health services which include [the]

implementation of programs and projects on primary health

care, maternal and child care, and communicable and non-

communicable disease control services; access to secondary

and tertiary health services; purchase of medicines,

medical supplies[,] and equipment needed to carry out the

services herein enumerated, SUBJECT TO THE PROVISIONS OF

TITLE FIVE, BOOK I OF THIS CODE;

(iv) Social welfare services which include programs and

projects on child, [and] youth AND SPECIAL CHILDREN welfare,

family and community welfare, women's welfare, welfare of

the elderly and disabled persons; community-based

rehabilitation programs for vagrants, beggars, street

children, scavengers, juvenile delinquents, and victims of

drug abuse; livelihood and other pro-poor projects;

nutrition [services;], and family planning services;

(v) Information services [which include] ON

investment[s] and job [placement information systems]

OPPORTUNITIES, tax and market[ing] information [systems],

and [maintenance of a] public librar[y]IES AND OTHER

SIMILAR FACILITIES;

(vi) [Solid] [w]Waste disposal systemS or environmental

management systemS and services or facilities related to

general hygiene and sanitation;

(vii) Municipal buildings, cultural centers, public

[parks including] AND freedom parks, playgrounds, [and]

sports facilities and equipment, and other similar

[facilities] SERVICES;

(viii) Infrastructure facilities intended primarily

to service the needs of the residents [of] WITHIN the

municipality and which are funded [out of] BY CENTRAL,

PROVINCIAL OR municipal [funds] GOVERNMENT BUDGETS SHALL

INCLUDE [including, but not limited to,] municipal roads and

bridges; [school buildings, and other facilities for] public

elementary and secondary school[s] BUILDINGS AND SIMILAR

STRUCTURES, AND PUBLIC LIBRARIES; CRISES CENTERS, clinics,

health centers and other [health] facilities necessary to

carry out health services; communal irrigation, small water

impounding [projects] and [other] similar projects; fish

ports AND WHARVES; artesian wells, spring development,

rainwater collectors and water supply systems; RECLAMATION,

seawall[s], dike[s], drainage [and], sewerage, and flood

control PROJECTS; traffic signals [and], road signs[;], and

similar facilities[;]. THE FOLLOWING ARE MUNICIPAL ROADS:

1. THOSE CONSTRUCTED BY THE MUNICIPALITY OUT OF ITS OWN FUNDS;

2. THOSE CONSTRUCTED BY HIGHER LOCAL GOVERNMENT UNITS OR

CENTRAL GOVERNMENT AND TURNED OVER TO THE MUNICIPALITY; AND

3. THOSE CONSTRUCTED BY PRIVATE PERSONS AS PREVIOUSLY APPROVED

BY THE SANGGUNIAN CONCERNED AND ARE OFFICIALLY DONATED TO OR

TAKEN OVER BY THE MUNICIPALITY CONCERNED;

(ix) xxx

(x) Public cemeter[y]IES.

(xi) Tourism facilities and tourist attractions,

including [the] acquisition of LANDS AND equipment FOR THE

PURPOSE; regulation and supervision of business concessions

RELATED TO THE TOURISM INDUSTRY[;] and security [services]

for such SERVICES and facilities; [and]

(xii) Sites for police [and fire] stations and

substations and [the] municipal jailS;

(XIII) FIRE PROTECTION SERVICE; AND

(XIV) UPGRADING AND MODERNIZATION OF TAX INFORMATION

AND COLLECTION SERVICES AND OTHER SYSTEMS AND PROCESSES

THROUGH THE USE OF INFORMATION TECHNOLOGY AND OTHER MEANS;

(3) For a Province:

(i) Agricultural extension and on-site research

services and facilities which include the prevention and

control of plant and animal pests and diseases; dairy

farms, livestock markets, animal breeding stations, and

artificial insemination centers; and assistance in the

organization of farmers' and fishermen's cooperatives and

other collective organizations, as well as IN the transfer

of appropriate technology.

(ii) xxx

(iii) Pursuant to national policies, [and subject to

supervision, control and review of the DENR,] enforcement of

forestry laws [limited to community-based forestry

projects], pollution control law, small-scale mining law,

and other laws on the protection of the environment; [and]

mini-hydro electric projects for local purposes; MONITOR AND

EVALUATE THE IMPLEMENTATION OF PROGRAMS AND PROJECTS ON

ENVIRONMENT AND NATURAL RESOURCES;

(iv) [Subject to the provisions of Title Five, Book I

of this Code,] [h]Health services which include THE

ESTABLISHMENT, OPERATION AND MAINTENANCE OF hospitals and

other tertiary health services; PROCUREMENT OF DRUGS,

MEDICINES, HOSPITAL SUPPLIES AND EQUIPMENT, MEDICINES,

MEDICAMENTS AND EQUIPMENT; AND INTEGRATION AND MONITORING OF

HEALTH-RELATED PROJECTS AND SERVICES IN THE PROVINCE,

SUBJECT TO THE PROVISIONS OF TITLE FIVE, BOOK I OF THIS

CODE.

THE PROCUREMENT OF DRUGS, MEDICINES, HOSPITAL SUPPLIES

AND EQUIPMENT, MEDICINES, MEDICAMENTS AND EQUIPMENT BY THE

CENTRAL GOVERNMENT FOR DISTRIBUTION TO PROVINCES, CITIES,

MUNICIPALITIES AND BARANGAY MAY BE DONE ONLY AFTER DUE

CONSULTATION WITH THE LEAGUES OF PROVINCES, CITIES,

MUNICIPALITIES AND BARANGAY, RESPECTIVELY;

PURCHASE MEDICINES AND DRUGS BY THE CENTRAL GOVERNMENT

SHALL BE DEVOLVED TO THE LOCAL GOVERNMENT UNIT.

(v) Social welfare services which include programs and

projects on rebel returnees and evacuees; relief operations,

and population development [services];

(vi) Provincial buildings, provincial jails, freedom

parks and other assembly areas, and [other] similar

facilities;

(vii) PUBLIC WORKS AND [I]infrastructure [facilities]

PROJECTS intended to service the needs of the residents [of]

WITHIN the province [which are] WHETHER funded [out of] BY

CENTRAL OR provincial [funds] GOVERNMENT BUDGETS including

[, but not limited to,] provincial roads, NATIONAL ROADS,

[and] bridges, PORTS, inter-municipal [waterworks] WATER

SYSTEMS, drainage, sewerage, flood control, and irrigation

systems; INTER-MUNICIPAL reclamation projects and other

similar facilities. THE FOLLOWING ARE PROVINCIAL ROADS:

1. THOSE CONSTRUCTED BY THE PROVINCE OUT OF ITS OWN FUNDS;

2. THOSE CONSTRUCTED BY CENTRAL GOVERNMENT OR BY THE COMPONENT

CITY, MUNICIPALITY OR BARANGAY AND TURNED OVER TO THE PROVINCE;

AND

3. THOSE CONSTRUCTED BY PRIVATE PERSONS AS PREVIOUSLY APPROVED

BY THE SANGGUNIAN CONCERNED AND ARE OFFICIALLY DONATED TO OR

TAKEN OVER BY THE PROVINCE CONCERNED;

(viii) [Programs and projects for] [l]Low-cost housing

and other mass-dwelling PROGRAMS AND PROJECTS, except those

funded by the Social Security System (SSS), Government

Service Insurance System (GSIS), and the Home Development

Mutual Fund (HDMF): Provided, That national funds for these

programs and projects shall be equitably allocated among the

regions in proportion to the ratio of the homeless to the

population;

(ix) xxx

(x) Upgrading and modernization of tax information and

collection services AND OTHER SYSTEMS AND PROCESSES through

the use of [computer hardware and software] INFORMATION

TECHNOLOGY and other means;

(xi) [Inter-municipal] [t]Telecommunications AND

TRANSPORTATION services AND FACILITIES, subject to national

policy guidelines; and

(xii) Xxx

(4) For a City:

All the services and facilities [of the municipality

and province] WHICH PROVINCES AND MUNICIPALITIES MAY DELIVER AND

PROVIDE MAY ALSO APPLY TO CITIES[, and in addition thereto, the

following:]

[(i) Adequate communications and transportation

facilities;]

[(ii) Support for education, police and fire

services and facilities;]

PROVIDED UNDER subsection (b) hereof, public works and

infrastructure projects and other facilities, programs and

services funded by the [National] CENTRAL Government under the

General Appropriations Act, other special laws, pertinent

executive orders and those wholly or partially funded from

foreign sources, are not [covered under this Section] DEVOLVED TO

THE LOCAL GOVERNMENT UNITS, except in those cases where the local

government unit concerned is duly designated as the implementing

agency for such projects, facilities, programs and services.

(d) xxx

(e) [National] CENTRAL GOVERNMENT agencies or offices

concerned shall devolve to local government units the POWERS AND

responsibilit[y]IES TO DELIVER AND PROVIDE [for the provision of]

basic AND OTHER services and facilities, AND THE FUNCTIONS AND

PROGRAMS enumerated in this Section, within six (6) months after

the effectivity of this Code, AS AMENDED.

(f) xxx

(g) xxx

(h) Regional, PROVINCIAL, CITY, MUNICIPAL AND DISTRICT

offices of [national] CENTRAL GOVERNMENT agencies or offices

whose functions are devolved to local government units as

provided herein shall be phased out within one (1) year from the

approval of this Code, AS AMENDED. Said [national] CENTRAL

GOVERNMENT agencies and offices may establish such field units as

may be necessary for monitoring purposes and providing technical

assistance to local government units. The properties, equipment,

and other assets of these regional offices shall be distributed

to the local government units in the region in accordance with

the rules and regulations issued by the Oversight Committee

created under this Code.

(i) The devolution contemplated in this Code shall include

the transfer to local government units of the FUNDS, records,

equipment, and other assets and personnel of [national] CENTRAL

GOVERNMENT agencies and offices corresponding to the devolved

powers, functions, and responsibilities.

Personnel of said [national] CENTRAL GOVERNMENT agencies or

offices shall be absorbed by the local government units to which

they belong or in whose areas they are assigned to the extent

that it is administratively viable as determined by the said

oversight committee: Provided, That the rights accorded to such

personnel pursuant to civil service law, rules and regulations

shall not be impaired: Provided, further, That regional directors

who are career executive service officers and other officers of

similar rank in the said regional offices who cannot be absorbed

by the local government unit shall be retained by the [National]

CENTRAL Government, without any diminution of rank, salary or

tenure.

(J) THE CENTRAL GOVERNMENT, REGIONAL, PROVINCIAL, CITY,

MUNICIPAL AND DISTRICT OFFICES WHOSE FUNCTIONS HAVE BEEN DEVOLVED

OR PHASED OUT AS HEREIN PROVIDED, SHALL SUBMIT A REPORT TO

CONGRESS REGARDING THE STATUS OF THEIR COMPLIANCE WITH THE

DEVOLUTION HEREIN MANDATED ON OR BEFORE JULY OF EVERY CALENDAR

YEAR. SUCH A REPORT SHALL BE USED BY CONGRESS TO DETERMINE

THEIR RESPECTIVE BUDGETS.

[(j)] (K) To ensure the active participation of the

private sector in local governance, local government units may,

by ordinance, sell, lease, encumber, or otherwise dispose of

public economic enterprises owned by them on their propriety

capacity.

SECTION 7. Section 20, Paragraphs (a) and (c) of the Code is

hereby amended to read as follows:

Section 20. Reclassification of Lands. -

(a) A city or municipality, [may, through an] BY ordinance

passed by the sanggunian after conducting public hearings for the

purpose, MAY authorize the reclassification of agricultural lands

and provide for the manner of their utilization or disposition in

the following cases: (1) when the land ceases to be

economically feasible and sound for agricultural purposes as

determined by the Department of Agriculture [or] AND (2) where

the land shall have substantially greater economic value for

residential, commercial, or industrial purposes, as determined by

the sanggunian concerned: Provided, That such reclassification

shall be limited to the following percentage of the total

agricultural land area at the time of the passage of [the

ordinance] THIS CODE, AS AMENDED.

(1) For highly urbanized and independent component cities,

fifteen percent (15%);

(2) For component cities and first to third class

municipalities, ten percent (10%); and

(3) For fourth to sixth class municipalities, five percent (5%):

Provided, further, That agricultural lands distributed to

agrarian reform beneficiaries pursuant to Republic Act Numbered

Sixty-six hundred fifty-seven (R.A. No. 6657), otherwise known as

"The Comprehensive Agrarian Reform Law", shall not be affected by

the said reclassification and the conversion of such lands into

other purposes shall be governed by Section 65 of said Act.

(b) xxx

government units shall [, in conformity with existing laws,

continue to prepare] RECLASSIFY THEIR RESPECTIVE AGRICULTURAL

LAND AREAS INTO INDUSTRIAL, COMMERCIAL AND RESIDENTIAL AND TO BE

INCLUDED IN their respective comprehensive land use plans enacted

through zoning ordinances WITHIN EIGHTEEN (18) MONTHS FROM

APPROVAL OF THIS CODE, AS AMENDED, [which shall be the primary

and dominant basis for the future use of land resources,] AND MAY

BE REVIEWED EVERY FIVE YEARS THEREAFTER; [Provided, That] [t]The

requirements for food production, human settlements, and

industrial AND COMMERCIAL expansion shall be taken into

consideration in the preparation of such plans.

(d) xxx

(e) xxx

SECTION 8. Section 25 of the Code is hereby amended to read

as follows:

Section 25. [National] CENTRAL GOVERNMENT Supervision

over Local Government Units. - (a) Consistent with the basic

policy on local autonomy, the President shall exercise general

supervision over local government units to ensure that their acts

are within the scope of their prescribed powers and functions.

The President shall exercise supervisory authority over

provinces, highly urbanized cities, independent component cities;

through the province with respect to component cities and

municipalities; and through the city and municipality with

respect to barangays.

(b) [National] CENTRAL GOVERNMENT agencies and offices with

project implementation functions shall coordinate with one

another and with the local government units concerned in the

discharge of these functions. They shall ensure the

participation of local government units both in the planning and

implementation of said national projects. FOR THIS PURPOSE ALL

CENTRAL GOVERNMENT AGENCIES SHALL FURNISH COPIES OF THEIR

NATIONAL PROGRAMS, PROJECTS AND PLANS TO THE LOCAL GOVERNMENT

UNIT CONCERNED WITHIN WHOSE BOUNDARIES THE PROGRAMS, PROJECTS AND

PLANS ARE TO BE IMPLEMENTED.

(d) xxx

SECTION 9. Section 26 of the Code is hereby amended to read

as follows:

Section 26. Duty of [National] CENTRAL Government

Agencies in the Maintenance of Ecological Balance. - It shall be

the duty of every [national] CENTRAL GOVERNMENT agency or

government-owned or -controlled corporation authorizing or

involved in the planning and implementation of any project or

program that may cause pollution, climatic change, depletion of

non-renewable resources, loss of cropland, rangeland, or forest

cover, and extinction of animal or plant species, to HOLD ACTUAL

CONSULTATIONS with the local government units, non-governmental

organizations, and other sectors concerned; and TO explain the

goals and objectives of the project or program, its impact upon

the people and the community in terms of environmental or

ecological balance, and the measures that will be undertaken to

prevent or minimize the adverse effects thereof.

THE CONSULTATION REQUIREMENT AS PROVIDED HEREIN APPLIES

ALSO TO PRIVATE FIRMS OR ENTITIES.

SECTION 10. Section 27 of this Code is hereby amended to

read as follows:

Section 27. Prior Consultations Required. - No project

or program OF THE CENTRAL GOVERNMENT AGENCIES OR PRIVATE SECTOR

THAT CRITICALLY IMPACTS ON THE ENVIRONMENT shall be implemented

[by government authorities unless] WITHOUT the consultations

[mentioned] PROVIDED FOR in Sections 2 [(c)](D), [and] 26 hereof

[are complied with], and THE prior approval OF THE MAJORITY OF

THE MEMBERS IN A RESOLUTION of the sanggunian concerned [is

obtained]; Provided, That occupants in areas where such projects

are to be implemented shall not be evicted unless appropriate

relocation sites have been provided, in accordance with the

provisions of the Constitution AND EXISTING LAWS.

SECTION 11. Section 28 of this Code is hereby amended to

read as follows:

Section 28. Powers of Local Chief Executives over the

units of the Philippine National Police. - The extent of

operational supervision and control of local chief executives

over the police force, and jail management personnel assigned in

their respective jurisdictions shall be governed by the

provisions of Republic Act Numbered Sixty-nine seventy-five (R.A.

No. 6975), otherwise known as "The Department of the Interior and

Local Government Act of 1990", and the rules AS AMENDED and

regulations issued pursuant thereto.

SECTION 12. Section 37 of the same Code is hereby amended

to read as follows:

Section 37. Local Pre-qualification, Bids and Awards

Committee (Local PBAC). - (a) There is hereby created a [local]

pre-qualification, bids and awards committee in every province,

city, [and] municipality, AND BARANGAY [which] THAT shall be

primarily responsible for the conduct of pre-qualification of

contractors, bidding, evaluation of bids, and [the]

recommendation of awards concerning local infrastructure

projects.

The governor, or the city or municipal mayor, shall act

as [the] chairman OF THE COMMITTEE, with the following as

members:

(1) The chairman of the appropriations committee of the

sanggunian concerned;

(2) A representative of the minority party in the sanggunian

concerned, if any, or if there be none, one (1) chosen by said

sanggunian from among its members;

(3) The local treasurer;

(4) Two (2) representatives of non-governmental

organizations that are represented in the local

development council concerned, to be chosen by the

organizations themselves; [and]

(5) [Any] A PRACTICING certified public accountant from

the private sector, to be designated by the local

chapter of the Philippine Institute of Certified

Public Accountants, if any; AND

(6) THE LEGAL OFFICER OF THE LOCAL GOVERNMENT UNIT

CONCERNED, IF ANY.

THE PUNONG BARANGAY SHALL ACT AS CHAIRMAN OF THE BARANGAY

PRE-QUALIFICATION, BIDS AND AWARDS COMMITTEE, WITH THE FOLLOWING

AS MEMBERS:

(1) A REPRESENTATIVE OF THE SANGGUNIANG BARANGAY CHOSEN

FROM AMONG THE MEMBERS;

(2) THE BARANGAY TREASURER; AND

(3) ONE (1) REPRESENTATIVE CHOSEN BY THE NON-GOVERNMENTAL OR

PEOPLE'S ORGANIZATION FROM AMONG ITS REPRESENTATIVES IN

THE BARANGAY DEVELOPMENT COUNCIL.

Representatives of the Commission on Audit shall observe the

proceedings of such A committee and THE COMMISSION ON AUDIT shall

certify THEREAFTER that the rules and procedures for pre-

qualification, bids and awards have been complied with.

THE PROCEEDINGS OF THE BARANGAY COMMITTEE SHALL BE OBSERVED

AND CERTIFIED TO BY THE MUNICIPAL TREASURER, AND/OR BY THE

AUTHORIZED REPRESENTATIVES OF THE LATTER, RESPECTIVELY.

THE FOLLOWING CONTRACTS INVOLVING INFRASTRUCTURE PROJECTS

ARE SUBJECT TO PUBLIC BIDDING, TO WIT:

(1) THOSE AMOUNTING TO TEN MILLION (P10,000,000) PESOS OR MORE

IN THE CASE OF PROVINCES, HIGHLY URBANIZED AND INDEPENDENT

COMPONENT CITIES AND MUNICIPALITIES WITHIN THE METROPOLITAN

MANILA AREA;

(2) THOSE AMOUNTING TO FIVE MILLION (P5,000,000.00) PESOS OR

MORE IN THE CASE OF COMPONENT CITIES AND FIRST CLASS

MUNICIPALITIES;

(3) THOSE AMOUNTING TO THREE MILLION (P3,000,000) PESOS OR MORE
IN THE CASE OF SECOND TO SIXTH CLASS MUNICIPALITIES, AND
(4) ANY AMOUNT IN THE CASE OF THE BARANGAY;
LOCAL GOVERNMENT UNITS SHALL NOT SPLIT CONTRACTS FOR

INFRASTRUCTURE PROJECTS OR FOR THE ACQUISITION AND PROCUREMENT OF

SUPPLIES, GOODS, EQUIPMENT AND SERVICES SUBJECT OF THE ABOVE

PROVISIONS FOR THE PURPOSE OF EVADING THE MAXIMUM LIMITATIONS

SPECIFIED THEREIN.

(b) Xxx

SECTION 13. Section 38 of the Code is hereby `amended as

follows:

Section 38. Local Technical Committee. - (a) There is

hereby created a local technical committee in every province,

city and municipality to provide technical assistance to the

local pre-qualification, bids and awards committees. It shall be

composed of the provincial, city or municipal engineer, the local

planning and development coordinator, and such other officials

designated by the local pre-qualification, bids and awards

committee.

THE CITY OR MUNICIPAL TECHNICAL COMMITTEE SHALL PROVIDE

TECHNICAL ASSISTANCE TO THE BARANGAY PRE-QUALIFICATION, BIDS AND

AWARDS COMMITTEE IN THE LOCAL GOVERNMENT UNIT CONCERNED, UPON

REQUEST OF THE LATTER.

(b) The chairman of the local technical committee shall be

designated by the local pre-qualification, bids and awards

committee and shall attend its meeting in order to present the

reports and recommendations of the local technical committee.

SECTION 14. Section 46 of the Code is hereby `amended as

follows:

Section 46. Temporary Vacancy in the Office of the

Local Chief Executive. - (a) When the governor, OR city or

municipal mayor [, or punong barangay] is temporarily

incapacitated to perform his duties for physical or legal reasons

such as, but not limited to, leave of absence, travel abroad, and

suspension from office, the vice-governor, city or municipal

vice-mayor [or the highest ranking sangguniang barangay member]

shall automatically exercise the powers and perform the

duties and functions of the local chief executive concerned,

except the power to appoint, suspend, or dismiss employees which

can only be exercised if the period of temporary incapacity

exceeds thirty (30) days.

IF A TEMPORARY VACANCY OCCURS IN THE OFFICE OF THE GOVERNOR

OR MAYOR, VICE-GOVERNOR OR VICE-MAYOR, THE HIGHEST RANKING

SANGGUNIAN MEMBER OR, IN THE CASE OF HIS/HER INABILITY, THE

SECOND HIGHEST RANKING SANGGUNIAN MEMBER SHALL BECOME THE

GOVERNOR, VICE-GOVERNOR, MAYOR OR VICE-MAYOR, AS THE CASE MAY BE.

SUBSEQUENT VACANCIES IN THE SAID OFFICE SHALL BE FILLED

AUTOMATICALLY BY THE OTHER SANGGUNIAN MEMBERS ACCORDING TO THEIR

RANKING AS DEFINED HEREIN.

IN CASE OF TEMPORARY INCAPACITY OF THE PUNONG BARANGAY TO

PERFORM HIS/HER DUTIES FOR PHYSICAL OR LEGAL REASONS, SUCH AS BUT

NOT LIMITED TO, LEAVE OF ABSENCE, TRAVEL ABROAD, AND SUSPENSION

FROM OFFICE, THE HIGHEST RANKING SANGGUNIAN MEMBER SHALL

AUTOMATICALLY ASSUME THE POWERS, DUTIES AND FUNCTIONS OF THE

PUNONG BARANGAY, EXCEPT THE POWER TO APPOINT, SUSPEND, OR DISMISS

EMPLOYEES WHICH CAN ONLY BE EXERCISED IF THE PERIOD OF TEMPORARY

INCAPACITY EXCEEDS THIRTY (30) DAYS. SUBSEQUENT VACANCIES IN THE

SAID OFFICE SHALL BE FILLED AUTOMATICALLY BY THE OTHER SANGGUNIAN

MEMBERS ACCORDING TO THEIR RANKING AS DEFINED HEREIN.

SECTION 15. Section 47 of the Code is hereby amended to

read as follows:

Section 47. Approval of Leave of Absence. - (a) Leaves

of absence of local elective officials shall be approved as

follows:

(1) Leaves of absence of the governor and the mayor of a

highly urbanized city or and independent component

city shall be approved by the President or his duly

authorized representative;

(2) Leaves of absence of a vice-governor or a city or

municipal vice-mayor shall be approved by the local

chief executive concerned[: Provided, That]. [t]The

leaves of absence of the members of the sanggunian

and its employees shall be approved by the vice-

governor or city or municipal vice-mayor concerned;

(3) Leaves of absence of the component city or municipal

mayor shall be approved by the governor; and

(4) Leaves of absence of a punong barangay shall be

approved the city or municipal mayor[: Provided,

That]. [l]Leaves of absence of sangguniang barangay

members shall be approved by the punong barangay.

(b) Whenever the application for leave of absence

hereinabove specified is not acted upon within [five (5)] THREE

(3) working days after receipt thereof, the application for leave

of absence shall be deemed approved.

SECTION 16. Subparagraph 49 of the Code is hereby amended

by adding a new subparagraph to be known as subparagraph "C"

which shall read as follows:

Section 49. Presiding Officer. -

(a) xxx

(b) xxx

OFFICER MAY TEMPORARILY RELINQUISH THE CHAIR TO THE MAJORITY

FLOOR LEADER OR TO ANY MEMBER CHOSEN BY THE SANGGUNIAN, TO

PROPOSE OR DEFEND AN ORDINANCE OR A RESOLUTION, OR TO PARTICIPATE

IN A DEBATE OR DISCUSSION ON THE FLOOR OF THE SANGGUNIAN.

(D) ISSUE SUBPOENA DUCES TECUM AND AD TESTIFICANDUM WHEN

AUTHORIZED BY A RESOLUTION OF THE SANGGUNIAN CONCERNED.

SECTION 17. Section 60 of the Code is hereby amended to

read as follows:

Section 60. Grounds for Disciplinary Action. An

elective local official may be discipline, suspended or removes

from office on any of the following grounds:

(a) xxx

(b) xxx

(d) xxx

(g) Application for, or acquisition of, foreign citizenship

or residence or the status of an immigrant of another country;

[and]

(H) FAILURE OR REFUSAL OF THE PUNONG-BARANGAY, MUNICIPAL OR

CITY MAYOR, AND PROVINCIAL GOVERNOR CONCERNED TO CONVENE THE

MEETINGS OF THE LOCAL DEVELOPMENT COUNCIL AND OTHER LOCAL SPECIAL

BODIES IS SUBJECT TO DISCIPLINARY ACTION AS PROVIDED FOR IN THIS

CODE;

[(h)] (I) Such other grounds as may be provided in this Code

and other laws.

An elective local official may be removed from office on the

grounds enumerated above by order of the proper court.

SECTION 18. Section 61 of the Code is hereby amended to read

as follows:

Section 61. Form and Filing of Administrative

Complaints. - [A verified] AN ADMINISTRATIVE complaint against

[any erring] A local elective official [shall be prepared as

follows] MUST BE VERIFIED AND FILED WITH:

(a) xxx

(b) [A complaint against any elective official of a municipality

shall be filed before the sangguniang panlalawigan whose decision

may be appealed to the Office of the President] THE SANGGUNIANG

PANLALAWIGAN, WHOSE DECISIONS ON QUESTIONS OF FACT IS FINAL AND

EXECUTORY, WHEN THE COMPLAINT IS AGAINST AN OFFICIAL OF A

COMPONENT CITY OR A MUNICIPALITY.

filed before the sangguniang panlungsod or sangguniang bayan

concerned whose decision shall be final and executory.] THE

SANGGUNIANG PANLUNGSOD OR SANGGUNIANG BAYAN CONCERNED, WHOSE

DECISION ON QUESTIONS OF FACT IS FINAL AND EXECUTORY, WHEN THE

COMPLAINT IS AGAINST A BARANGAY OFFICIAL.

SECTION 19. Section 63 of the Code is hereby amended to

read as follows:

Section 63. Preventive Suspension. - (a) Preventive

suspension may be imposed:

(1) By the President, if the respondent is an elective

official of a province, a highly urbanized or an

independent component city; or MUNICIPALITY WITHIN

THE METROPOLITAN MANILA AREA

(2) By the governor, if the respondent is an elective

official of a component city or municipality; or

(3) By the mayor, if the respondent is an elective official of

the barangay.

A LOCAL ELECTIVE OFFICIAL WHO IS CHARGED CRIMINALLY MAY BE

PREVENTIVELY SUSPENDED ONLY BY THE COURT THAT HAS ACQUIRED

JURISDICTION OVER THE PERSON OF THE ACCUSED. THE PREVENTIVE

SUSPENSION SHALL NOT EXCEED A PERIOD OF TWO (2) MONTHS.

SECTION 2O. Section 70 of the Code is hereby amended by

deleting paragraphs "a" to "c", retaining only the provision of

paragraph "d" and adding a new paragraph thereafter to read as

follows:

Section 70. Initiation of Recall Process. - [(a)

Recall may be initiated by a preparatory recall assembly or by

registered voters of the local government unit to which the

local elective official subject to such recall belongs.

[(b) There shall be a preparatory recall assembly in every

province, city, district and municipality which shall be composed

of the following:

[(1) Provincial level. - All mayors, vice mayors and

sanggunian members of the municipalities and

component cities;

[(2) City level. - All punong barangay and sangguniang

barangay members in the city;

[(3) Legislative District level. - In cases where

sangguniang panlalawigan members are elected by

district, all elective municipal officials in the

district; and in cases where sangguniang panlungsod

members are elected by district, all elective

barangay officials in the district; and

[(4) Municipal level. - All punong barangay and

sangguniang barangay members in the municipality.

[(c) A majority of all the preparatory recall assembly

members may convene in session in a public place and initiate a

recall proceeding against any elective official in the local

government unit concerned. Recall of provincial, city or

municipal officials shall be validly initiated through a

resolution adopted by a majority of all the members of the

preparatory recall assembly concerned during its session called

for the purposed.]

[(d)] THE recall of any elective provincial, city,

municipal, or barangay official may [also] be validly [initiated

upon] COMMENCED BY A petition of at least twenty-five percent

(25%)of the total number of registered voters in the local

government unit concerned during the election in which the local

official sought to be recalled was elected.

IN PROVINCES OR CITIES WHICH HAVE MORE THAN ONE (1)

CONGRESSIONAL DISTRICT, AT LEAST TEN PERCENT (10%) OF THE

PETITIONERS SHALL COME FROM EACH CONGRESSIONAL DISTRICT THEREIN.

A PETITION OF A RECALL OF AN ELECTIVE SANGGUNIAN KABATAAN

OFFICIAL MAY BE VALIDLY COMMENCED BY PETITION OF AT LEAST TEN

PERCENT (10%) OF THE TOTAL NUMBER OF VOTERS REGISTERED IN THE

ROSTER OF THE KATIPUNAN NG KABATAAN DURING THE ELECTION IN WHICH

THE SANGGUNIAN KABATAAN SOUGHT TO BE RECALLED WAS ELECTED IN THE

LOCALITY.

(1) xxx

(2) xxx

SECTION 21. Section 71 of the Code is hereby amended to

read as follows:

Section 71. Election on Recall. - Upon the filing of a

valid [resolution or] petition for recall with the [appropriate]

PROPER local office of the Comelec, the Commission or its duly

authorized representative shall set the date of the election on

recall, which shall not be later than thirty (30) days after the

filing of the [resolution or] petition [for recall] in the case

of [the] barangay, city, or municipal officials, and forty-five

(45) days in the case of provincial officials. The official [or

officials] sought to be recalled shall automatically be

considered [as] A duly registered candidate [or candidates] to

the pertinent position[s] and, like other candidates, shall be

entitled to be voted upon.

SECTION 22. Section 77 of the Code is hereby amended to

read as follows:

Section 77. Responsibility for Human Resource[s and]

Development. - The chief executive of every local government unit

shall be responsible for human resource [and] development in his

unit and shall take all personnel actions [in accordance with]

PURSUANT TO the Constitutional provisions [on civil service,

pertinent] AND laws[, and rules and regulations thereon,]

including such policies, guidelines and standards as the Civil

Service Commission may [establish] PROMULGATE[: Provided, That].

[t]The local chief executive may employ emergency or casual

employees or laborers paid on the daily wage or piecework basis

and hired through job orders for local projects authorized by the

sanggunian concerned, without need of approval or attestation [

made ] by the Civil Service Commission[: Provided, further, That]

[t]The period of employment of emergency or casual laborers AND

EMPLOYEES as provided in this Section shall not exceed six (6)

months. WHEN A CASUAL OR CONTRACTUAL EMPLOYEE WHO HAD

CONSECUTIVELY SERVED AS SUCH FOR FIVE (5) YEARS IS HIRED AGAIN,

THE EMPLOYEE SHALL BE EXTENDED A PERMANENT APPOINTMENT SUBJECT TO

CIVIL SERVICE LAW, RULES AND REGULATIONS.

SECTION 23. Section 79 of the same Code is hereby amended

to read as follows:

Section 79. Limitation on Appointment. - (A) No person

shall be appointed in the career service of the local government

if he is related within the fourth civil degree of consanguinity

or affinity to the appointing or recommending authority. THIS

PROHIBITION SHALL NOT APPLY TO PROMOTIONAL APPOINTMENTS WHERE THE

RELATIVES TO BE APPOINTED ARE NEXT IN RANK AND QUALIFIED TO BE

APPOINTED TO THE POSITIONS CONCERNED.

(B) NO APPOINTMENT, IN A TEMPORARY CAPACITY, OR DESIGNATION

AS OFFICER-IN-CHARGE, TO A VACANT REGULAR POSITION SHALL BE

EXTENDED FOR MORE THAN SIXTY (60) DAYS. AT THE EXPIRATION OF THE

PERIOD, THE APPOINTMENT IS DEEMED TERMINATED AND THE OFFICER NEXT

IN RANK, SHALL AUTOMATICALLY ASSUME THE POSITION AS OFFICER-IN-

CHARGE UNTIL A QUALIFIED REPLACEMENT IS PERMANENTLY APPOINTED.

SECTION 24. Section 80 of the Code is hereby amended to

read as follows:

Section 80. Public Notice of Vacancy; Personnel

Selection Board. -

(a) Xxx

(b) xxx

chief executive, and its members shall be determined by

resolution of the sanggunian concerned. A representative of the

Civil Service Commission, if any, and the personnel officer of

the local government unit concerned shall be ex officio members

of the board.

THE POWERS AND FUNCTIONS OF THE HEAD OF THE SELECTION

BOARD SHALL NOT BE DELEGATED. NO APPOINTMENT TO A PERMANENT OR

TEMPORARY POSITION SHALL BE EXTENDED BY THE CHIEF EXECUTIVE

WITHOUT THE ENDORSEMENT OF THE PROPER SELECTION BOARD.

THE SANGGUNIAN MAY CREATE A SELECTION BOARD FOR ITS

OWN PERSONNEL, WITH ITS OFFICIAL PRESIDING OFFICER AS CHAIRMAN

WITH A REPRESENTATIVE OF A CIVIL SERVICE COMMISSION AS EX-OFFICIO

MEMBER.

SECTION 25. Section 81 of this code is hereby amended to

read as follows:

Section. 81. Compensation of Local Officials and

Employees. - The compensation of local officials and personnel

shall be determined by the sanggunian concerned[: Provided,

That]. [t]The increase in compensation of elective local

officials shall take effect only after the terms of office of

those approving such increase shall have expired[: Provided,

further, That]. SUBJECT TO THE PROVISION ABOVE STATED, the

increase in compensation of the appointive officials and

employees shall take effect as provided in the ordinance

authorizing such increase[: Provided, however, That said]. THE

increases shall not exceed the limitations on budgetary

allocations for personal services provided under Title Five Book

II of this Code[: Provided, finally, That]. [s]Such compensation

SHALL [may] be based upon the pertinent provisions of Republic

Act Numbered Sixty-seven fifty-eight (R.A. 6758), otherwise known

as the "Compensation and Position Classification Act of 1989."

SECTION 26. Sec. 86 of this Code is hereby amended to read

as follows:

Section. 86. Administrative Investigation. - In any

local government units, administrative investigation may be

conducted by a person or a committee duly authorized by the

APPOINTING AUTHORITY [local chief executive]. Said person or

committee shall conduct hearings on the cases brought against

appointive local officials and employees and submit their

findings and recommendations to the local chief executive

concerned within fifteen (15) days from the conclusion of the

hearings. The administrative cases herein mentioned shall be

decided within [ninety (90)] SIXTY (60) days from the time of the

FILING THEREOF [respondent is formally notified of the charges].

FAILURE OF THE OFFICIALS CONDUCTING THE INVESTIGATION TO

DECIDE THE ADMINISTRATIVE CASES WITHIN SIXTY DAYS FROM THE FILING

THEREOF SHALL BE A GROUND FOR THE FILING OF ADMINISTRATIVE ACTION

AGAINST THEM.

SECTION 27. Section 99 of the Code is hereby amended to read

as follows:

Section 99. Functions of Local School Boards. - The

province, city or municipal school board shall USE THEIR SHARES

OF THE SPECIAL EDUCATION FUND FOR THE DISCHARGE OF ANY OR ALL OF

THE FOLLOWING FUNCTIONS:

(a) xxx

(b) xxx

(d) Recommend changes in the names of public schools

within the territorial jurisdiction of the local government unit

for enactment by the sanggunian concerned [.];

(E) PROVIDE FUNDS FOR THE ACQUISITION OF SCHOOL SITES,

SCHOOL BUILDINGS, EQUIPMENT, BOOKS AND LEARNING MATERIALS AND THE

LIKE, SUBJECT TO THE PERTINENT PROVISIONS OF THIS CODE;

(F) GRANT OF NON-TAXABLE MONTHLY AUGMENTATION ALLOWANCES,

WHENEVER FEASIBLE; AND

(G) PROVIDE FUNDS FOR SCHOLARSHIPS AND ALLOWANCES WITH

PRIORITY FOR POOR AND DESERVING STUDENTS.

The Department of Education, Culture and Sports shall

consult the local school board on the appointment of division

superintendents, district supervisors, school principals, and

[other school officials] TEACHING PERSONNEL TO THE END THAT

QUALIFIED RESIDENTS OF THE LOCAL GOVERNMENT UNIT CONCERNED SHALL

BE GIVEN PRIORITY.

SUCH CONSULTATION IS PREREQUISITE TO SAID APPOINTMENTS, AND

THE SECRETARY OF THE SCHOOL BOARD CONCERNED SHALL CERTIFY TO

COMPLIANCE THEREWITH. FAILURE TO FOLLOW THIS PROCESS SHALL

NULLIFY THE APPOINTMENT.

SECTION 28. Section 100 of the Code is hereby amended by

adding paragraphs to read as follows:

Section 100. Meetings and Quorum; Budget. -

(a) xxx

(b) xxx

the following:

(1) Construction, repair, and maintenance of school buildings

and other facilities of public elementary and secondary schools,

SUBJECT TO THE PERTINENT PROVISIONS OF THIS CODE;

(2) Establishment and maintenance of extension classes AND NON-

FORMAL EDUCATION AND TRAINING PROGRAMS where necessary; [and]

(3) HOLDING OF [S]sports activities at the division, district,

municipal, and barangay levels;

SECTION 29. Section 102 of the Code is hereby amended to

read as follows:

Section 102. Creation and Composition. - (a) There

shall be established a local health board in every province,

city, or municipality, [T]the composition of the local health

board OF WHICH shall be as follows:

(1) The provincial health board shall be headed by the

governor as chairman, the provincial health officer as vice

chairman, and the chairman of the committee on health of the

sangguniang panlalawigan, [a] TWO (2) representativeS from the

private sector or non governmental organizations involved in

health services, and a representative of the Department of Health

in the province, as members;

(2) The city health board shall be headed by the city mayor

as chairman, the city health officer as vice-chairman, and the

chairman of the committee on health of the sangguniang

panglunsod, [a] TWO representativeS from the private sector or

non-governmental organizations involves in health services, and a

representative of the Department of Health in the city, as

members and;

(3) The municipal health board shall be headed by the

municipal mayor as chairman, the municipal health officer as vice

chairman of the committee on health the of sangguniang bayan, [a]

TWO (2) representativeS from the private sector or non-

governmental organizations involved in health services, and a

representative of the Department of Health in the municipality,

as members.

(b) The functions of the local health board shall be:

(1) To propose to the sanggunian concerned BY MEANS OF A

RESOLUTION DULY APPROVED AND in accordance with standards

and criteria set by SECTION 17 (g) OF THIS CODE AND the

Department of Health, annual budgetary allocations for the

operation, maintenance and IMPROVEMENT of health facilities

and services within the municipality, city or province, as

the case may be;

(2) To serve as a TECHNICAL AND an advisory committee to the

sanggunian concerned AND THE LOCAL DEVELOPMENT COUNCIL on

health matters such as, but not limited to, the necessity

for, and application of, local appropriations for public

health FACILITIES AND SERVICES [purposes]; and

(3) Consistent with the technical and administrative standards

the Department of Health, create committees which shall

GUIDE [advise] local health agencies on matters such as but

not limited to, INTER-LOCAL GOVERNMENT UNIT AND LOCAL

GOVERNMENT UNITS AND DEPARTMENT OF HEALTH COOPERATION AND

AGREEMENTS, personnel selection and promotion, bids and

awards grievance and complaints, personnel discipline,

budget review, operations review and similar functions.

SECTION 30. Section 103 of the Code is hereby amended to

read as follows:

Section 103. Meetings and Quorum. - (a) The Board

shall meet at least once a month or as often as may be

necessary.

(b) A majority of the board shall constitute a quorum,

but the chairman or vice chairman must be present during meetings

where budgetary proposals are [being] prepared or considered.

The affirmative voteS of [all] the majority of the members shall

be necessary to approve such proposals.

SECTION 31. Section 105 of the Code is hereby amended to

read as follows:

Section. 105. Direct National, Supervision and Control

by the Secretary of Health OR THE SECRETARY OF AGRICULTURE. - In

cases of epidemics, pestilence, and other widespread public

health dangers, the Secretary of Health may, upon the direction

of the President, and in consultation with the local government

unit concerned, temporarily assume direct supervision and control

over health operations in any local government unit for the

duration of the emergency, but in no case exceeding a cumulative

period of six (6) months. With the concurrence of the local

government unit concerned, the period for such direct national

control and supervision may be [further] extended.

IN CASES OF EPIDEMICS, PESTILENCES, AND OTHER WIDE

SPREAD PUBLIC HEALTH DANGERS INVOLVING AGRICULTURE AND FISHERIES,

THE SECRETARY OF AGRICULTURE MAY, UPON THE DIRECTION OF THE

PRESIDENT, AND IN CONSULTATION WITH THE LOCAL GOVERNMENT UNIT

CONCERNED, TEMPORARILY ASSUME DIRECT SUPERVISION AND CONTROL OVER

HEALTH OPERATIONS IN ANY LOCAL GOVERNMENT UNIT FOR THE DURATION

OF THE EMERGENCY, BUT IN NO CASE EXCEEDING A CUMULATIVE PERIOD OF

SIX (6) MONTHS. WITH THE CONCURRENCE OF THE LOCAL GOVERNMENT

UNIT CONCERNED, THE PERIOD FOR SUCH DIRECT NATIONAL CONTROL AND

SUPERVISION MAY BE EXTENDED.

SECTION 32. Section 107 of the Code is hereby amended to

read as follows:

Section 107. Composition of Local Development Councils.

- The composition of the local development council shall be as

follows:

(a) The barangay development council shall be headed by the

punong barangay [and shall be composed of] WITH the following AS

members:

(1) Members of the sangguniang barangay;

(2) Representatives of non-governmental organizations

operating in the barangay, who shall constitute not less

than one fourth (1/4) of the members of the fully organized

councils; AND

(3) A MEMBER OF CONGRESS OR AN AUTHORIZED

representative [of the congressman].

(b) The city or municipal development council shall be

headed by the mayor, [and shall be composed of] WITH the

following AS members:

(1) All punong barangay[s] in the city or municipality

WHERE THERE ARE TWENTY (20) OR LESS BARANGAY. A CITY OR

MUNICIPALITY WITH MORE THAN TWENTY (20) BARANGAY SHALL BE

ENTITLED TO TWENTY (20) REPRESENTATIVES PLUS ONE (1)

REPRESENTATIVE FOR EVERY ADDITIONAL TWENTY (20) BARANGAY OR

FRACTION THEREOF DULY ELECTED BY THE PUNONG BARANGAY

THEMSELVES.

(2) The chairmen of the committees on appropriations

AND

PUBLIC WORKS of the sangguniang panlungsod or

sanggunian bayan concerned;

(3) [The congressman ] A MEMBER OF CONGRESS or [his]

AN AUTHORIZED representative; [and] Representatives of non-

governmental organizations operating in the city or

municipality, as the case may be, who shall constitute not

less that one-fourth (1/4) of the members of the fully

organized council. AT LEAST TWENTY FIVE PERCENT (25%) OF

THE MEMBERS OF THE CITY OR MUNICIPAL DEVELOPMENT SHALL

CONSTITUTE A QUORUM.

the governor, [and shall be composed of the] WITH THE following

AS members:

(1) All mayors of component cities and municipalities;

(2) The chair[men] of the committees on appropriations

AND

PUBLIC WORKS of the sangguniang panlalawigan;

(4) [The congressman] ONE REPRESENTATIVE FOR EVERY

MEMBER OF CONGRESS [or his representative]; and

(5) Representatives of the non-governmental organizations

operating in the province, who shall constitute not less than one-

fourth (¬) of the members of the fully organized council.

THE LEAGUE OF PROVINCES, LEAGUE OF CITIES, LEAGUE OF

MUNICIPALITIES AND LIGA NG MGA BARANGAY SHALL MONITOR COMPLIANCE

WITH THIS SECTION BY THEIR RESPECTIVE LOCAL GOVERNMENT UNITS AND

REPORT TO CONGRESS, THROUGH THE OVERSIGHT COMMITTEE ON

DEVOLUTION, WITHIN NINETY (90) DAYS FROM APPROVAL OF THIS CODE,

AS AMENDED, AND EVERY JANUARY THEREAFTER.

(d) xxx

SECTION 33. Section 108 of the Code is hereby amended to

read as follows:

Section 108. Representation of Non-governmental

Organizations. - Within [a period of] sixty (60) days from the

start of THE organization of local development councils, the non-

governmental organizations, THROUGH THEIR RESPECTIVE FEDERATIONS

OR ASSOCIATIONS, shall choose from among themselves their

representatives to said councils. The local sanggunian concerned

shall accredit ONLY non-governmental organizations RECOMMENDED BY

THEIR RESPECTIVE FEDERATIONS OR ASSOCIATIONS, subject to such

criteria as may be provided by law AND IMPLEMENTING RULES AND

REGULATIONS. IN CASE THERE IS NO FEDERATION OR ASSOCIATION OF NON-

GOVERNMENTAL ORGANIZATIONS IN THE LOCALITY, THE EXISTING NON-

GOVERNMENTAL ORGANIZATIONS SHALL CHOOSE FROM AMONG THEMSELVES

THEIR REPRESENTATIVES TO THE COUNCIL.

SECTION 34. Section 110 of the Code is hereby amended to

read as follows:

Section 110. Meetings [and Quorum]. - The local

development councils shall meet [at least once every six (6)

months] FOUR (4) TIMES A YEAR: IN MARCH, JUNE, SEPTEMBER AND

DECEMBER, or as often as may be necessary AND SHALL BE CONVENED

BY THE PUNONG BARANGAY, MUNICIPAL OR CITY MAYOR AND PROVINCIAL

GOVERNOR CONCERNED.

SECTION 35. Section 112 of the Code is hereby amended to

read as follows:

Section 112. Sectoral or Functional Committees - The

Local Development council SHALL [may] form sectoral or functional

committees WHICH SHALL INCLUDE A COMMITTEE FOR SUSTAINABLE

ENVIRONMENTAL MANAGEMENT to assist them on the performance of

their functions.

SECTION 36. Section 114 of the Code is hereby amended to

read as follows:

Section 114. Relation of Local Development councils to

the Sanggunian and Regional Development Council. - (a) The

policies, programs and projects proposed by the local

development councils shall be submitted to the sanggunian

concerned for appropriate action UNLESS OTHERWISE ADOPTED

THROUGH LOCAL INITIATIVE.

IF WITHIN THIRTY (30) CALENDAR DAYS THE POLICIES,

PROGRAMS AND PROJECTS SUBMITTED BY THE LOCAL DEVELOPMENT COUNCIL

CONCERNED ARE NOT MODIFIED OR DISAPPROVED BY THE SANGGUNIAN, THE

SAME SHALL BE DEEMED APPROVED AND THE FUNDS NECESSARY FOR THEIR

IMPLEMENTATION PURSUANT TO THE PRIORITIES SET OUT IN THE ANNUAL

INVESTMENT PLAN SHALL THEREAFTER BE ALLOCATED BY THE SANGGUNIAN

CONCERNED.

FAILURE ON THE PART OF THE SANGGUNIAN CONCERNED TO

ALLOCATE FUNDS SHALL RENDER THE ANNUAL BUDGET OF THE LOCAL

GOVERNMENT CONCERNED INOPERATIVE WITHOUT PREJUDICE TO THE LOCAL

OFFICIALS CONCERNED BEING SUBJECTED TO ADMINISTRATIVE SANCTIONS.

The local development plans THUS approved by their

respective sanggunian [may] SHALL be integrated [with] INTO the

development plans of the next higher level of local development

council.

SECTION 37. Section 115 of the Code is hereby amended

to read as follows:

Section 115. Budget Information. - WITHIN JANUARY OF

EVERY YEAR, [T]the Department of the Budget and Management shall

furnish the various local development councils information on

financial resources and budgetary allocations OF NATIONAL FUNDS

FOR PROGRAMS AND PROJECTS applicable to their respective

jurisdiction to guide them in their planning functions.

SECTION 38. Section 116 of the Code is hereby amended to

read as follows:

Section 116. Organization. - There is hereby

established in every province, city and municipality a local

peace, LAW and order council, pursuant to Executive Order

Numbered Three Hundred Nine (E.O. No. 309), as amended, Series of

1988. IN ADDITION, NOT MORE THAN TWO (2) REPRESENTATIVES ELECTED

BY THE ACCREDITED NON-GOVERNMENTAL OR PEOPLES ORGANIZATIONS MAY

REPRESENT THE SAID ORGANIZATIONS IN THE COUNCIL. [The local peace

and order councils shall have the same composition and functions

as those prescribed by the said executive order]

SECTION 39. Section 117 of the Code is hereby amended to

read as follows:

Section 117. Establishment of Autonomous Special

Economic Zones. - The establishment by law of autonomous special

economic zones in selected areas of the country shall be subject

to concurrence by the local government units included therein.

ALL IDENTIFIED SPECIAL ECONOMIC ZONES ENUMERATED IN SECTION

5 OF R.A. 7916, OTHERWISE KNOWN AS THE SPECIAL ECONOMIC ZONE ACT

OF 1995 WHICH HAVE NOT YET BEEN OFFICIALLY ESTABLISHED UPON THE

APPROVAL OF THIS ACT, SHALL BE SUBJECT TO THE PROVISION ABOVE-

MENTIONED.

SECTION 40. Section 118 of the Code is hereby amended to

read as follows:

Section 118. Jurisdictional Responsibility for

Settlement of Boundary Dispute. - Boundary disputes between and

among local government units shall, as much as possible, be

settled amicably. To this end:

(a) xxx

(b) Boundary disputes involving two (2) or more

municipalities OR COMPONENT CITIES within the same province shall

be referred for settlement to the sangguniang panlalawigan

concerned.

cities of different provinces shall be jointly referred for

settlement to the sanggunians of the provinces concerned.

(d) Boundary disputes involving a component city or

municipality on the one hand and a highly urbanized city on the

other, or two (2) or more highly urbanized cities, shall be

jointly referred for settlement to the respective sangguniang of

the parties;

(e) In the event the sanggunian fails to effect an amicable

settlement within sixty (60) days from the date the dispute was

referred thereto, it shall issue a certification to that effect.

Thereafter, the dispute shall be formally tried by the sanggunian

concerned which shall decide the issue within sixty (60) days

from [the date of the] ITS RECEIPT OF THE certification referred

to above.

SECTION 41. Section 120 of the Code is hereby amended to

read as follows.

Section 120. Local Initiative Defined. - Local

initiative is the legal process whereby the registered voters of

a local government unit may directly propose, enact, or amend any

ordinance OR RESOLUTION.

SECTION 42. Section 121 of the Code is hereby amended to

read as follows:

Section 121. Who May Exercise INITIATIVE AND

REFERENDUM. - The power of local initiative and referendum may be

exercised by all registered voters of the provinces, cities,

municipalities, and barangays.

SECTION 43. Section 122 of the is hereby amended to read as

follows:

Section 122. Procedure in Local Initiative. - (a) Not

less than one thousand (1,000) registered voters in case of

provinces and cities, one hundred (100) in case of

municipalities, and fifty (50) in case of barangays may file a

petition with the sanggunian concerned proposing the adoption,

enactment, repeal, or amendment of an ordinance.

(b) xxx

(d) xxx

(e) Proponent shall have a (90) days in case of provinces

and cities, sixty (60) days in case of municipalities, and thirty

(30) days in case of barangays, from notice mentioned in

subsection (b) hereof to collect the required number of

signatures. AT LEAST TWO PERCENT (2%) OF THE SIGNATURES GATHERED

FOR A LOCAL INITIATIVE IN PROVINCES, CITIES, OR MUNICIPALITIES

SHALL COME FROM RESIDENTS OF EVERY BARANGAY THEREIN.

SECTION 44. Section 125 of the Code is hereby amended to

read as follows:

Section 125. Limitations upon Sanggunians. - Any

proposition or ordinance approved through the system of

initiative and referendum as herein provided shall not be AMENDED

[repealed], modified or [amended] REPEALED by the sanggunian

concerned within six (6) months from the date of ITS approval.

THEREAFTER THE PROPOSITION OR ORDINANCE OR RESOLUTION CONCERNED

MAY BE AMENDED, MODIFIED OR REPEALED BY THE SANGGUNIAN BY THE

VOTE OF THREE FOURTHS (3/4) OF ALL ITS MEMBERS. [thereof, and may

be amended, modified or repealed by the sanggunian within

three (3) years thereafter by a vote of three-fourths of all its

members: Provided, That] [i]In THE case of barangays, the

PROPOSITION OR ORDINANCE OR RESOLUTION CONCERNED SHALL NOT BE

AMENDED, MODIFIED OR REPEALED WITHIN [period shall be] eighteen

(18) months FROM [after the] ITS approval [thereof].

BOOK TWO - LOCAL TAXATION

AND FISCAL MATTERS

SECTION 45. Section 131 of the Code is hereby amended to

read as follows:

Section 131. Definition of Terms. - When used in

this Title, the term:

(a) xxx

(b) xxx

OR RECREATION SUCH AS theaters, cinemas, concert halls, circuses,

COUNTRY AND SPORTS CLUBS, GOLF COURSES, BEACH AND OTHER RESORTS,

RECREATIONAL PARKS, COCKPITS, and other places of amusement where

one seeks [admission to] entertainment [oneself] by [seeing or

viewing the show] WATCHING SHOWS or performances, OR [entertain

oneself] BY PARTICIPATING IN ACTIVITIES OR USING THE FACILITIES

THEREAT.

(i) "Corporation" xxx

(n) "Gross Sales or Receipts" include the total amount of

money or its equivalent representing the contract price,

compensation or service fee, including the amount charged or

materials supplied with the services and deposits or advance

payments actually or constructively received during the taxable

[quarter] YEAR for the services performed or to be performed for

another person excluding discounts if determinable at the time of

sales, sales return, excise tax, and value-added tax (VAT);

(z)"Wholesale" xxx

SECTION 46. Section 133, Paragraph (d), (l) and (o) of the

Code are hereby amended to read as follows:

Section 133. Common Limitations on the Taxing Powers Of

Local Government Units. - Unless otherwise provided herein, the

exercise of the taxing powers of provinces, cities,

municipalities, and barangays shall not extend to the levy of the

following:

(a) Xxx

(b) xxx

(d) Customs duties AND registration fees of vessel WITH

TONNAGE FIVE (5) TONS AND ABOVE, [and] wharfage on wharves,

tonnage dues, and all other kinds of customs fees, charges and

dues except wharfage on wharves constructed, [and] maintained OR

OPERATED by the local government unit concerned OR BY A PRIVATE

PERSON OR ENTITY;

(e) xxx

(f) xxx

(g) xxx

(h) Excise taxes [on articles enumerated under the

National Internal Revenue Code, as amended,] and OTHER taxes,

fees or charges on petroleum products;

(l) Taxes[, fees or charges] for the registration of

motor vehicles and for the issuance of all kinds of licenses or

permits for the driving thereof except tricycles AND PUBLIC

UTILITY VEHICLES OPERATING WITHIN THE PROVINCE;

(m) xxx

(n) Taxes, fees or other charges, on [Countryside and

Barangay Business Enterprises and] cooperatives duly registered

under [R.A. 6810 and] Republic Act Numbered Sixty-nine hundred

thirty-eight (R. A. 6938) otherwise known as the "Cooperative

Code of the Philippines" [respectively]; and

(o) Taxes [, fees or charges] of any kind on the [National]

CENTRAL Government, its agencies and instrumentalities, and local

government units[.], EXCEPT QUASI-PUBLIC CORPORATIONS, GOVERNMENT

BANKS, FINANCING AND INVESTMENT INSTITUTIONS, GAMBLING AND GAMING

ENTERPRISES OPERATED BY THE CENTRAL GOVERNMENT OR ITS AGENTS OR

INSTRUMENTALITIES, OR CONTRACTED OUT BY IT TO FOREIGN OR DOMESTIC

CORPORATIONS, INDIVIDUALS OR ENTITIES, WHICH HAVE BEEN GIVEN

PERMITS BY THE LOCAL GOVERNMENT UNITS.

Provinces

SECTION 47. Section 136 of the Code is hereby amended to

read as follows:

Section 136. Tax on Business of Printing and

Publication. - The province may impose a tax on the business of

persons engaged in the printing and/or publication of books,

cards, posters, leaflets, handbills, certificates, receipts,

pamphlets, and others of similar nature, at a rate not exceeding

fifty percent (50%) of one percent (1%) of the gross annual

receipts for the preceding calendar year.

In the case of a newly started business, the tax shall not

exceed one-twentieth (1/20) of one (1%) of the capital

investment. In the succeeding calendar year, regardless of when

the business started to operate, the tax shall be based on the

gross receipts for the preceding calendar year, or any fraction

thereof, as provided herein;

The receipts from the printing and/or publishing of books or

other reading materials prescribed by the Department of

Education, Culture and Sports as school texts or references shall

be exempt from the tax herein imposed.

PROVIDED, THAT SEVENTY PERCENT (70%) OF THE PROCEEDS OF THE

TAX MENTIONED IN THIS SECTION SHALL ACCRUE TO THE PROVINCE AND

THIRTY PERCENT (30%) SHALL ACCRUE TO THE MUNICIPALITY WHERE THE

BUSINESS IS LOCATED.

SECTION 48. Section 137 of the Code is hereby amended to

read as follows.

Section 137. Franchise Tax. - Notwithstanding any

exemption granted by any law or other special laws, the province

may impose a tax on ANY business[es] enjoying a franchise GRANTED

BY CONGRESS, A CENTRAL GOVERNMENT AGENCY OR A LOCAL GOVERNMENT

UNIT, INCLUDING POWER GENERATION, TRANSMISSION AND DISTRIBUTION,

TELECOMMUNICATIONS, ICE PLANTS AND STORAGE FACILITIES, LEGAL

GAMBLING OR GAMING ACTIVITIES, AND OTHER SIMILAR BUSINESSES,

BASED ON INCOME REALIZED WITHIN ITS TERRITORIAL JURISDICTION,

at a rate not exceeding fifty percent (50%) of one percent

(1%) of the gross annual receipts for the preceding calendar year

[based on the income receipt, or realized, within its territorial

jurisdiction].

SECTION 49. Section 138 of the Code is hereby amended to

read as follows:

Section 138. Section 138. Tax on Sand, Gravel and Other

Quarry Resources. - The province may levy and collect not more

than ten percent (10%) of fair market value in the locality per

cubic meter of ordinary stones, sand, gravel, earth, and other

resources as defined in the Internal Revenue Code, as amended,

extracted from public lands or from the beds of seas, lakes,

rivers, streams, creeks, and other public waters within its

territorial jurisdiction.

The permit to extract sand, gravel, and other quarry

resources shall be issued [exclusively] by the provincial

governor [, pursuant to the ordinance of the sangguniang

panlalawigan] UPON THE RECOMMENDATION OF THE MAYOR OF THE CITY OR

MUNICIPALITY CONCERNED.

The proceeds of the tax on sand, gravel and other quarry

resources shall be distributed as follows:

(1) Province - Thirty percent (30%);

(2) Component City or Municipality where the sand, gravel,

and other quarry resources are extracted - Thirty percent (30%);

and

(3) Barangay where the sand, gravel, and other quarry

resources are extracted - Forty percent (40%)

SECTION 50. Section 139 of the Code is hereby amended to

read as follows:

Section 139. Professional Tax. (a) The province may

levy an annual professional tax on each person engaged in the

exercise and practice of his profession requiring government

examination at such REASONABLE amount and [reasonable]

classification as the sanggunian panlalawigan may PROVIDE.

[determine but shall not in no case exceed Three hundred pesos

(P300.00).]

SECTION 51. Section 141 of the Code is hereby amended to

read as follows:

Section 141. Annual Fixed Tax For Every Delivery Truck

or Van of Manufacturers or Producers, Wholesalers of, Dealers, or

Retailers in, Certain Products. - (a) The province may levy an

annual fixed tax for every truck, van or any vehicle used by

manufacturers, producers, wholesalers, dealers, or retailers in

the delivery or distribution of distilled spirits, fermented

liquors, softdrinks, cigars and cigarettes, and other products as

may be determined by the sangguniang panlalawigan, to sales

outlets, or consumers, whether directly or indirectly, within the

province [in an amount not exceeding Five hundred pesos

(P500.00)].

Municipalities

SECTION 52. Section 143 of the Code is hereby amended to

read as follows:

Section 143. Tax on Business. - The municipality may

impose taxes on ANY BUSINESS AT THE RATE NOT EXCEEDING TWO AND A

HALF PERCENT (2«%) BASED ON THE GROSS SALES OR RECEIPTS IN THE

PRECEDING CALENDAR YEAR.

[(a) xxx]

[(b) xxx]

[(c) On exporters, and on] IN THE CASE OF manufacturers,

millers, producers, wholesalers, distributors, dealers or

retailers of essential commodities enumerated hereunder, [at a]

THE rate SHALL not [exceeding] EXCEED one-half (1/2) of the rates

[prescribed under subsections (a), (b) and (d) of this Section]

IMPOSED BY THE MUNICIPALITY IN ACCORDANCE WITH THE PRECEEDING

PARAGRAPH:

(1) Rice and corn;

(2) Wheat or cassava flour, meat, dairy products, locally

manufactured, processed or preserved food, sugar, salt

and other agricultural, marine, and fresh water

products, whether in their original state or not;

(3) Cooking oil and cooking gas;

(4) Laundry soap, detergents, and medicine;

(5) Agricultural implements, equipment and post-harvest

facilities, fertilizers, pesticides, insecticides,

herbicides and other farm inputs;

(6) Poultry feeds and other animal feeds

(7) School supplies; and

(8) Cement

IN THE CASE OF EXPORTERS, INDIRECT EXPORTERS AND EXPORT SUB-

CONTRACTORS, THE RATE OF BUSINESS TAXES SHALL NOT EXCEED ONE

PERCENT (1%) OF GROSS SALES OR RECEIPTS OF THE PRECEEDING YEAR.

[(d) On retailers,

With gross sales or receipts Rate of Tax

From the preceding calendar year of: Per Annum

P400,000.00 or less 2%

More than P400,000.00 1%

Provided, however, That Barangays shall have the exclusive

power to levy taxes, as provided under Section 152 hereof, on

gross sales or receipts of the preceding calendar year of Fifty

thousand pesos (P50,000.00) or less, in the case of cities, and

Thirty thousand pesos (P30,000.00) or less, in the case of

municipalities.]

[(e) On contractors and other independent contractors, in

accordance with the following schedule:

With gross sales or receipts for the Amount of Tax

preceding calendar year in the amount of Per Annum

Less than 5,000.00 27.50

P5,000.00 or more but less than 10,000.00 61.60

10,000.00 or more but less than 15,000.00 104.50

15,000.00 or more but less than 20,000.00 165.00

20,000.00 or more but less than 30,000.00 275.00

30,000.00 or more but less than 40,000.00 385.00

40,000.00 or more but less than 50,000.00 550.00

50,000.00 or more but less than 75,000.00 880.00

75,000.00 or more but less than 100,000.00 1,320.00

100,000.00 or more but less than 150,000.00 1,980.00

150,000.00 or more but less than 200,000.00 2,640.00

200,000.00 or more but less than 250,000.00 3,630.00

250,000.00 or more but less than 300,000.00 4,620.00

300,000.00 or more but less than 400,000.00 6,160.00

400,000.00 or more but less than 500,000.00 8,250.00

500,000.00 or more but less than 750,000.00 9 ,250.00

750,000.00 or more but less than 1,000,000.00 10,250.00

1,000,000.00 or more but less than 2,000,000.00 11,500.00

2,000,000.00 or more at a rate not

exceeding fifty

percent

(50%) of one percent

1%)]

[(f) On banks and other financial institutions, at a

rate not exceeding fifty percent (50%) of one percent (1%) on the

gross receipts of the preceding calendar year derived from

interest, commissions and discounts from lending activities,

income from financial leasing, dividends, rentals on property and

profit from exchange or sale of property, insurance premium.]

[(g) On peddlers engaged in the sale of any merchandise or

article of commerce, at a rate not exceeding Fifty pesos (P50.00)

per peddler annually.]

[(h) On any business, not otherwise specified in the

preceding paragraphs, which the sanggunian concerned may deem

proper to tax: Provided, That on any business subject to the

excise, value-added or percentage tax under the National Internal

Revenue Code, as amended, the rate of tax shall not exceed two

percent (2%) of gross sales or receipts of the preceding calendar

year.]

[The sanggunian concerned may prescribe a schedule of

graduated tax rates but in no case to exceed the rates prescribed

herein.]

SECTION 53. Section 152 of the Code is hereby amended to

read as follows:

Section 152. Scope of Taxing Powers. - The barangays

may levy taxes, fees, and charges, as provided in this Article,

[which] THAT shall exclusively accrue to them:

(a) Taxes - On stores or retailers with fixed business

establishments [with] HAVING gross sales or receipts [of] IN the

preceding calendar year of [Fifty thousand pesos (P50,000.00)]

ONE MILLION PESOS ( P1,000,000.00) or less, in the case of

BARANGAYS IN cities and IN MUNICIPALITIES WITHIN METROPOLITAN

MANILA AREA, AND [thirty thousand pesos (P30,000.00)] FIVE

HUNDRED THOUSAND PESOS (P500,000.00) or less, in the case of

BARANGAYS IN OTHER municipalities, at a rate not exceeding one

percent (1%) on such gross sales or receipts.

(b) Xxx

SECTION 54. Sec. 155 of this Code is amended to read as

follows:

Section 155. Toll Fees or Charges. - The sanggunian

concerned may prescribe the terms and conditions and fix the

rates for the imposition of toll fees or charges for the use of

any public road, pier or wharf, waterway, bridge, ferry or

telecommunication system funded and constructed by the local

government unit concerned: Provided, That no such toll fees or

charges shall be collected from GOVERNMENT VEHICLES AND VEHICLES

EXCLUSIVELY CARRYING officers and enlisted men of the Armed

Forces of the Philippines and members of the Philippine National

Police, on mission, post office personnel delivering mail,

physically-handicapped, [and] disabled PERSONS AND SENIOR

citizens [who are sixty-five (65) years or older].

When public safety and welfare so requires, the sanggunian

concerned may discontinue the collection of the tolls, and

thereafter the said facility shall be free and open for public

use.

SECTION 55. Sec. 157 of this Code is hereby amended to read

as follows:

Section 157. Individuals Liable to Community Tax. -

Every inhabitant of the Philippines eighteen (18) years of age or

over who has been regularly employed on a wage or salary basis

for at least thirty (30) consecutive working days during any

calendar year, or who is engaged in business or occupation, or

who owns real property with an aggregate assessed value of One

thousand pesos (P1,000.00) or more, or who is required by law to

file an income tax return shall pay an annual community tax of

Five pesos (P5.00) and an annual additional tax of One peso

(P1.00) for every One thousand pesos (P1,000.00) of income

regardless of whether from business, exercise of profession,

EMPLOYMENT or from property which in no case shall exceed Five

thousand pesos (P5,000.00)

In the case of husband and wife, the additional tax

herein imposed shall be based upon the total property owned by

them and the total gross receipts or earnings derived by them.

SECTION 56. Section 159 of the Code is hereby amended to

read as follows:

Section 159. Exemptions. - The following are exempt

from the community tax:

(1) Diplomatic and consular representatives; [and]

(2) Transient visitors when their stay in the Philippines

does not exceed three (3) months;

(3) DISABLED PERSONS; AND

(4) SENIOR CITIZENS UNLESS GAINFULLY EMPLOYED OR

ENGAGED IN BUSINESS AND EARNING MORE THAN SIXTY THOUSAND PESOS

(P60,000) ANNUALLY.

SECTION 57. Section 171 of the Code is hereby amended to

read as follows:

Section 171. Examination of Books of Accounts and

Pertinent BUSINESS Records [of Businessmen] by Local Treasurer. -

The provincial, city, municipal or barangay treasurer may, by

himself or [through] BY any of his deputies duly authorized in

writing, examine the books, account, and other pertinent records

of any person, partnership, corporation, or association subject

to local taxes, fees and charges in order to ascertain, assess

and collect the correct amount of tax, fees or charge. Such

examination shall be made during regular business hours, only

once every tax period, and shall be certified to by the examining

official. Such certificate shall be made of record in the book

of accounts of the taxpayer examined.

In case the examination herein authorized is made by a duly

authorized deputy of the local treasurer, the written authority

of the deputy concerned shall specifically state the name,

address, and business of the taxpayer whose books, account, and

pertinent records are to be examined, the date and place of such

examination, and the procedure to be followed in conducting the

same.

For this purpose, the records of the revenue district office

of the Bureau of Internal Revenue shall be made available to the

local treasurer, his deputy or duly authorized representative.

SUCH BUSINESS RECORDS SHALL BE TREATED AS CONFIDENTIAL UNLESS

OTHERWISE ORDERED BY THE COURT.

SECTION 58. Section 188 of the Code is hereby amended to

read as follows:

Section 188. Publication of Tax Ordinances and Revenue

Measures. - Within ten (10) days after their approval, certified

true copies of all provincial, city, and municipal tax ordinances

or revenue measures shall be published in full for three (3)

consecutive days in a DAILY newspaper PUBLISHED AND CIRCULATED

LOCALLY [of local circulation] OR ONCE A WEEK FOR THREE

CONSECUTIVE WEEKS IN THE CASE OF A WEEKLY NEWSPAPER PUBLISHED AND

CIRCULATED LOCALLY[: Provided, however, That]. [i]In provinces,

cities, and municipalities where there are no newspapers THAT ARE

PUBLISHED AND CIRCULATED LOCALLY [of local circulation], the same

[may] SHALL INSTEAD be posted FOR AT LEAST ONE (1) MONTH in

PROVINCIAL CAPITOLS, CITY OR MUNICIPAL HALLS, ALL BARANGAY HALLS

AND OTHER [at least two (2)] conspicuous and publicly accessible

places.

SECTION 59. Section 191 of the Code is hereby amended to

read as follows:

Section 191. Authority of Local Government Units to

Adjust Rates of Tax Ordinances. Local government units shall have

the authority to adjust the tax rates as prescribed herein not

oftener than once every five (5) years, but in no case shall such

adjustment exceed ten percent (10%) of the rates fixed under this

Code.

IN THE CASE OF FIXED TAXES PRESCRIBED IN THIS CODE, THE

MAXIMUM ALLOWABLE RATE MAY BE ADJUSTED NOT MORE THAN ONCE EVERY

THREE (3) YEARS BASED ON THE AVERAGE ANNUAL INFLATION RATE AS

CERTIFIED BY THE NATIONAL STATISTICS OFFICE.

SECTION 60. Section 195 of the Code is hereby amended to

read as follows:

Section 195. Protest of Assessment. - When the local

treasurer or his duly authorized representative finds that

correct taxes, fees, or charges have not been paid, he shall

issue a notice of assessment stating the nature of the tax, fee

or charge, the amount of deficiency, the surcharges, interests

and penalties. Within sixty (60) days from the receipt of the

notice of assessment, the taxpayer may file a written protest

with the local treasurer contesting the assessment; otherwise,

the assessment shall become final and executory. The local

treasurer shall decide the protest within [sixty (60)] THIRTY

(30) days from the time of its filing. If the local treasurer

finds the protest to be wholly or partly meritorious, he shall

issue a notice canceling wholly or partially the assessment.

However, if the local treasurer finds the assessment to be wholly

or partly correct, he shall deny the protest wholly or partly

with notice to the taxpayer. The taxpayer shall have thirty (30)

days from the receipt of the denial of the protest or from the

lapse of the [sixty (60)] THIRTY (30) day period prescribed

herein within which to appeal with the court of competent

jurisdiction otherwise the assessment becomes conclusive and

unappealable.

SECTION 61. Section 199 of this Code is hereby amended to

read as follows:

Section 199. Definition of Terms.

(a) xxx

(b) xxx

(o) "Machinery" embraces machines, equipment,

mechanical contrivances, instruments, appliances or apparatusES

which may or may not be attached permanently or temporarily, to

the real property. It includes the physical facilities for

production, the installations and appurtenant service facilities,

those which are mobile, self-powered or self-propelled, and those

not permanently attached to the real property which are actually,

directly, and exclusively used to meet the needs of the

particular industry, business or activity and which by their very

nature and purpose are designed for or necessary to its

manufacturing, mining, logging, commercial, industrial or

agricultural purposes.

SECTION 62. Section 204 of the Code is hereby amended to

read as follows:

Section 204. Declaration of Real Property by the

Assessor. - When any person, natural or juridical, by whom real

property is required to be declared under Section 202 hereof,

refuses or fails for any reason to make such declaration within

the time prescribed, the [provincial,] city or municipal assessor

shall himself declare the property in the name of the defaulting

owner, if known, or against an unknown owner, as the case may be,

and shall assess the property for taxation in accordance with the

provision of this Title. No oath shall be required of a

declaration thus made by the [provincial,] city or municipal

assessor.

SECTION 63. Section 205 of the Code is hereby amended to

read as follows:

Section 205. Listing of Real Property in the Assessment

Rolls. (a) In every [province and] city [, including the] AND

municipalit[ies]Y [within the Metropolitan Manila Area,] there

shall be prepared and maintained by the [provincial,] city or

municipal assessor an assessment roll wherein shall be listed all

real property, whether taxable or exempt, located within the

territorial jurisdiction of the local government unit concerned.

Real property shall be listed, valued and assessed in the name of

the owner or administrator, or anyone having legal interest in

the property. THE PROVINCIAL ASSESSOR SHALL CONSOLIDATE THE

ASSESSMENT ROLLS OF THE MUNICIPALITIES WITHIN THE PROVINCE.

(b) xxx

SECTION 64. Section 206 of this Code is hereby amended to

read as follows:

Section 206. Proof of Exemption of Real Property from

Taxation. - Every person by or for whom real property is

declared, who shall claim tax exemption for such property under

this Title shall file with the [provincial,] city or municipal

assessor within thirty (30) days from the date of the declaration

of real property sufficient documentary evidence in support of

such claim including corporate charters, title of ownership,

articles of incorporation, bylaws, contracts, affidavits,

certifications and mortgage deeds, similar documents.

If the required evidence is not submitted within the period

herein prescribed, the property shall be listed as taxable in the

assessment roll. However, if the property shall be proven to be

tax exempt, the same shall be dropped from the assessment roll.

Section 65. Section 207 of this Code is hereby amended to

read as follows:

Section 207. Real Property Identification System. - All

declarations of real property made under the provisions of this

Title shall be kept and filed BY THE PROVINCIAL, CITY OR

MUNICIPAL ASSESSOR under a uniform classification system [to be

established] DEFINED by the [provincial, city or municipal

assessor] DEPARTMENT OF FINANCE PURSUANT TO THE PROVISIONS OF

THIS CODE.

SECTION 66. Section 208 of the Code is hereby amended to

read as follows:

SECTION 208. Notification of Transfer of Real Property

Ownership. - Any person who shall transfer real property

ownership to another shall notify the [provincial,] city or

municipal assessor concerned within sixty (60) days from the date

of such transfer. The notification shall include the mode of

transfer, the description of the property alienated, the name and

address of the transferee.

SECTION 67. Section 213 of the Code is hereby amended to

read as follows:

Section 213. Authority of Assessor to Take Evidence.

- For the purpose of obtaining information on which to base the

market value of any real property, the assessor of the

[province,] city or municipality or his deputy may summon the

owners of the properties to be affected or persons having legal

interest therein and witnesses, administer oaths, and take

deposition concerning the property, its ownership, amount,

nature, and value.

SECTION 68. Section 215 of this Code is hereby amended to

read as follows:

Section 215. Classes of Real Property for Assessment

Purposes. For purposes of assessment, real property shall be

classified as residential, agricultural, commercial, industrial,

mineral, timberland or special.

[The] CitIES[y] [or] AND municipalit[y]IES [within the

Metropolitan Manila Area], through their respective sanggunian

shall have the power to classify lands as residential,

agricultural, commercial, industrial, mineral, timberland, or

special in accordance with their zoning ordinances.

PROVINCES SHALL HAVE THE SAME POWER TO CLASSIFY LANDS

ON THE BASIS OF THE ZONING ORDINANCES OF THEIR COMPONENT CITIES

AND MUNICIPALITIES.

SECTION 69. Section 218, paragraph (b), sub-paragraph (1)

is hereby amended to read as follows:

Section 218. Assessment Levels. - The assessment levels

to be applied to the fair market value of real property to

determine its assessed value shall be fixed by ordinances of the

sangguniang panlalawigan, sangguniang panlungsod or sangguniang

bayan of a municipality [within the Metropolitan Manila area,] at

the rate not exceeding the following:

(a) On lands:

CLASS ASSESSMENT LEVELS

Residential 20%

Agricultural 40%

Commercial 50%

Industrial 50%

Mineral 50%

RECREATIONAL 50%

Timberland 20%

(b) On Buildings and Other Structures:

(1) Residential

Fair Market Value

Over Not Over Assessment Levels

[P175,000.00]P500,000.00 0%

[P175,000.00]500,000.00 [P300,000.00]P750,000.00 10%

[P300,000.00]750,000.00 [P500,000.00]P850,000.00 20%

[P500,000.00]850,000.00 P1,000,000.00

30%

xxxx

SECTION 70. Section 219 of the Code is hereby amended to

read as follows:

Section 219. General Revision of Assessment and

Property Classification. - The provincial, city or municipal

assessor shall undertake a general revision of real property

assessments within two (2) years after the effectively of this

[Code] ACT and every [three (3)] SIX (6) years thereafter.

SECTION 71. Section 220 of the Code is hereby amended to

read as follows:

Section 220. Valuation of Real Property. - In cases

where (a) real property is declared and listed for taxation

purposes for the first time; (b) there is an ongoing general

revision of property classification and assessment; or (c) a

request is made by the person in whose name the property is

declared, the provincial, city or municipal assessor or his duly

authorized deputy shall, in accordance with the provision of this

Chapter, make a classification, appraisal and assessment of the

real property listed and described in the declaration

irrespective of any previous assessment or taxpayer's valuation

thereon; Provided, however, That the assessment of real property

shall not be increased oftener than once every [three (3)] SIX

(6) years except in case of new improvements substantially

increasing the value of said property or of any change in its

actual use.

SECTION 72. Section 223 of the Code is hereby amended to

read as follows:

Section 223. Notification of New or Revised Assessment.

- When real property is assessed for the first time or when an

existing assessment is increased or decreased, the [provincial,]

city or municipal assessor shall within thirty (30) days give

written notice of such new or revised assessment to the person in

whose name the property is declared. The notice may be delivered

personally or by registered mail or through the assistance of the

punong barangay to the last known address of the person to be

served.

SECTION 73. Section 227 of the Code is hereby amended to

read as follows:

Section 227. Organization, Powers, Duties and

Functions of the Local Board of Assessment Appeals. -(a) The

Board of Assessment Appeal of the provinces or city shall be

composed of the Registrar of Deeds, as Chairman, the CHIEF OF THE

provincial or city [prosecutor] PUBLIC ATTORNEY OFFICE, and

PROVINCIAL OR city engineer, as members, who shall serve as such

in an ex-officio capacity without additional compensation.

(a) xxx

(b) xxx

(d) In provinces and cities without a provincial or city

engineer, the district engineer shall serve as member of the

Board. In the absence of the Registrar of Deeds, or the CHIEF OF

THE provincial or city PUBLIC ATTORNEY OFFICER [prosecutor], or

the provincial or city engineer, or the district engineer, the

persons performing their duties, whether in an acting capacity or

as duly designated officer-in- charge shall automatically become

the chairman or member respectively, of the said Board, as the

case maybe.

SECTION 74. Section 229 of the Code is hereby amended to

read as follows:

Section 229. Action by the Local Board of Assessment

Appeals. - (a) The Board shall decide the appeal within [one

hundred twenty (120)] SIXTY (60) days from the date of receipt of

such appeal. The Board, after hearing, shall render its decision

based on substantial evidence or such relevant evidence on record

as a reasonable mind might accept as adequate to support the

conclusion.

(b)xxx

property

or the person having legal interest therein and the [provincial

or] city OR MUNICIPAL assessor with a copy of the decision of the

Board. In case the [provincial or] city OR MUNICIPAL assessor

concurs in the revision or the assessment, it shall be his duty

to notify the owner of the property or the person having legal

interest therein of such fact using [the] A form prescribed for

the purpose. The owner of the property or the person having legal

interest therein or the assessor who is not satisfied with the

decision of the Board may, within [thirty (30)] FIFTEEN (15) days

after receipt of the decision of said Board, appeal to the

Central Board of Assessment Appeals, as herein provided. The

decision of the Central Board OF ASSESSMENT APPEAL shall be final

and executory. IT HAS ONE HUNDRED TWENTY (120) DAYS TO DECIDE

THE APPEAL FROM THE DATE OF THE RECEIPT THEREOF.

SECTION 75. Section 230 of the Code is hereby amended to

read as follows:

Section 230. Central Board of Assessment Appeals. The

Central Board Assessment Appeals shall be composed of a chairman

and two members to be appointed by the President, who shall serve

for a term of seven years, without reappointment. Of those first

appointed, the chairman shall hold office for seven years, one

member for five years, and the other member for three years.

Appointment to any vacancy shall only be for the unexpired

portion of the term of the predecessor. In no case shall any

member be appointed or designated in temporary or acting

capacity. The chairman and the members of the Board shall be

Filipino citizen, at least forty years old at the time of their

appointment, and members of the Bar or Certified Public

Accountant for at least ten (10) years immediately preceding

their appointment. The Chairman of the Board of Assessment

Appeal shall have the salary grade equivalent to the rank of

Director [III] IV under the Salary Standardization Law exclusive

of allowances and other emoluments. The members of the Board

shall have the salary grade equivalent to the rank of Director

[II] III under the Salary Standardization Law exclusive of

allowances and other emoluments. The Board shall have appellate

jurisdiction over all assessment cases decided by the Local Board

of Assessment Appeals.

There shall be Hearing Officer to be appointed by the

Central Board of Assessment Appeals pursuant to civil service

law, rules and regulations, one each for Luzon, Visayas and

Mindanao, who shall hold office in Manila, Cebu and Cagayan de

Oro City, respectively, and who shall serve for a term of six (6)

years, without reappointment until their successor have been

appointed and qualified. The hearing Officer shall have the same

qualifications as that of the Judges of the Municipal Trial

Court.

The Hearing Officer shall have the salary grade equivalent

to the rank of Director [I] II under the Salary Standardization

Law exclusive of allowances and other emoluments.

SECTION 76. Section 232 of this Code is hereby amended to

read as follows:

Section 232. Power to Levy Real Property Tax. - A

province or city or a municipality within the Metropolitan Manila

Area may levy an annual ad valorem tax on real property such as

land, building, machinery, and other improvement not hereinafter

specifically exempted. IN THE CASE OF A LEVY IMPOSED BY THE

PROVINCE, SHALL BE GUIDED BY THE INCOME CLASSIFICATION OF THE

MUNICIPALITIES WITHIN THE PROVINCE.

SECTION 77. Section 271 of the Code is hereby amended to

read as follows:

Section 271. Distribution of Proceeds. - The proceeds

of the basic real property tax, including interest thereon, and

proceeds from the use, lease or disposition, sale or redemption

of property acquired at a public auction, in accordance with the

provisions of this Title, by the province, or city or a

municipality within the Metropolitan Manila Area shall be

distributed as follows:

(a) In the case of provinces:

(1) Province - Thirty[-five] percent [(35%)](30%)

shall accrue to the general fund;

(2) Municipality - Forty-FIVE percent [(40%)](45%) to

the general fund of the municipality where the

property is located; and

(4) Barangay - Twenty-five percent (25%) shall BE DISTRIBUTED

[accrue] to THE COMPONENT barangay [where the property is

located] IN THE FOLLOWING MANNER:[.]

(I) SIXTY PERCENT (60%) SHALL ACCRUE TO THE BARANGAY WHERE THE

PROPERTY IS LOCATED;

(II) FORTY PERCENT (40%) SHALL ACCRUE EQUALLY TO

ALL OTHER BARANGAYS OF THE MUNICIPALITY.

(b) In the case of cities:

(1) Seventy percent (70%) shall accrue to the general

fund of the city; and

(2) Thirty percent (30%) shall be distributed among the

component barangays of the cities [where the

property is located] in the following manner:

(i) Fifty percent (50%) shall accrue to the barangay where the

property is located;

(ii) Fifty percent (50%) shall accrue equally to all

component barangays of the city.

Manila Area:

(1) The Metropolitan Manila Authority- Thirty-five

percent (35%) shall accrue to the general fund of the

Metropolitan Manila Authority;

(2) Municipality - Thirty-five percent (35%) shall

accrue to the general fund of the municipality

where the property is located;

(3) Barangays Thirty percent (30%) shall be

distributed among the component barangays of the

municipality [where the property is located ] in the

following manner:

(i) Fifty percent (50%) shall accrue to the barangay

where the property is located; and

(ii) Fifty percent (50%) shall accrue equally to all

THE OTHER component barangays of the municipality.

(d) The share of each barangay shall be released without

need of any further action directly to the barangay treasurer on

a quarterly basis, within five (5) days after the end of each

quarter, and shall not be subject to any lien or holdback for

whatever purpose.

SECTION 78. Section 272 of the Code is hereby amended to

read as follows:

Section 272. Application of the Proceeds of the

Additional One Percent SEF Tax. - The proceeds from the

additional one percent (1%) tax on real property accruing to the

Special Education Fund (SEF) shall be automatically released to

the local school boards[: Provided, That,]. [i]In THE case of

provinces, FORTY PERCENT (40%) OF the proceeds shall [be divided

equally between] ACCRUE TO the provincial SCHOOL BOARDS and SIXTY

PERCENT (60%) TO THE municipal school boards: Provided,

[however,] That the proceeds shall be allocated for the operation

and maintenance of public schools, construction and repair of

school buildings, facilities and equipment, educational

researches, purchase of books and periodicals, [and] sports

development, AND ALLOWANCES FOR TEACHING AND NON-TEACHING

PERSONNEL, as determined and approved by the [l]Local [s]School

[b]Boards.

SECTION 79. Section 273 of the Code is hereby amended to

read as follows:

Section 273. Proceeds of Tax on Idle Lands. - The

proceeds of the additional real property tax on idle lands shall

[accrue to the respective general fund of the province, or, city,

where the land is located. In the case of a municipality within

the Metropolitan Manila Area, the proceeds shall accrue equally

to the Metropolitan Manila Authority and the municipality here

the land is located] BE DISTRIBUTED AS FOLLOWS:

(A) IN THE CASE OF PROVINCES:

1) PROVINCE - THIRTY PERCENT (30%) SHALL ACCRUE TO THE GENERAL

FUND;

2) MUNICIPALITY - FORTY-FIVE PERCENT (45%) TO

THE GENERAL FUND OF THE MUNICIPALITY WHERE THE

PROPERTY IS LOCATED; AND

3) BARANGAY - TWENTY-FIVE PERCENT (25%) SHALL

BE DISTRIBUTED TO THE COMPONENT BARANGAY OF THE

MUNICIPALITY IN THE FOLLOWING MANNER:

(I) SIXTY PERCENT (60%) SHALL ACCRUE TO THE BARANGAY WHERE THE

PROPERTY IS LOCATED;

(II) FORTY PERCENT (40%) SHALL ACCRUE EQUALLY TO

ALL OTHER BARANGAYS OF THE MUNICIPALITY.

(B) IN THE CASE OF CITIES:

(1) SEVENTY PERCENT (70%) SHALL ACCRUE TO THE GENERAL

FUND OF THE CITY; AND

(3) THIRTY PERCENT (30%) SHALL BE DISTRIBUTED AMONG THE

COMPONENT BARANGAYS OF THE CITY IN THE FOLLOWING MANNER:

(J) FIFTY PERCENT (50%) SHALL ACCRUE TO THE BARANGAY WHERE THE

PROPERTY IS LOCATED;

(II) FIFTY PERCENT (50%) SHALL ACCRUE EQUALLY TO

ALL OTHER BARANGAYS OF THE CITY.

MANILA AREA:

(1) MUNICIPALITY - SEVENTY PERCENT (70%) SHALL

ACCRUE TO THE GENERAL FUND OF THE MUNICIPALITY WHERE

THE PROPERTY IS LOCATED;

(2) BARANGAYS - THIRTY PERCENT (30%) SHALL BE

DISTRIBUTED AMONG THE COMPONENT BARANGAYS OF THE

MUNICIPALITY IN THE FOLLOWING MANNER:

(I) FIFTY PERCENT (50%) SHALL ACCRUE TO THE BARANGAY

WHERE THE PROPERTY IS LOCATED; AND

(II) FIFTY PERCENT (50%) SHALL ACCRUE EQUALLY TO ALL

THE OTHER COMPONENT BARANGAYS OF THE MUNICIPALITY.

SECTION 80. Section 284 of the Code is hereby amended to

read as follows:

Section 284. [Allotment] SHARE of [Internal Revenue]

NATIONAL Taxes. - UPON APPROVAL OF THIS CODE, AS AMENDED,

[L]local government units [shall have a] ARE ENTITLED TO A FIFTY

PERCENT (50%) share [in the] OF national [internal revenue]

taxes based on the collection of the third fiscal year preceding

the current fiscal year [as follows:].

[(a) On the first year of the effectivity of this

Code, thirty percent (30%);

(b) On the second year, thirty-five percent (35%);

and

(40%);

[Provided, That in the event that the National Government

incurs an unmanageable public sector deficit, the President of

the Philippines is hereby authorized, upon the recommendation of

the Secretary of Finance, Secretary of Interior and Local

Government, and Secretary of Budget and Management, and subject

to consultations with the presiding officers of both Houses of

the Congress and the Presidents of the Liga, to make the

necessary adjustments in the internal revenue allotment of local

government units, but in no case shall the allotment be less

than thirty percent (30%) of the collection of the internal

revenue taxes the third fiscal year preceding the current fiscal

year. Provided, further, That in the first year of the

effectivity of this Code, the local government units shall, in

addition to the thirty percent (30%) internal revenue allotment

which shall include the cost of devolved functions for essential

public services, be entitled to receive the amount equivalent to

the cost of devolved personal services.]

SECTION 81. Section 285 of the Code is hereby amended to

read as follows:

Section 285. Allocation to Local Government Units. -

The share of local government units in the [internal revenue]

NATIONAL TAXES [allotment], WHICH IS AUTOMATICALLY APPROPRIATED

AND OBLIGATED, shall be allocated in the following manner:

(a) Provinces - Twenty-three percent (23%);

(b) Cities - Twenty-[three] ONE percent [(23%)] (21%);

(36%); and

(d) Barangay[s] - Twenty percent (20%)

Provided, however, That the share of each province, city and

municipality shall be determined on the basis of the following

formula:

(a) Population - Fifty percent (50%)

(b) Land Area - Twenty-five percent (25%)

SECTION 82. Section 286 of the Code is hereby amended

to read as follows:

Section 286. Automatic Release of Shares. - (a) The

share of each local government unit shall be released without

need of any further action, directly to the provincial, city,

municipal or barangay treasurer, as the case may be, on a MONTHLY

OR quarterly basis within five (5) days after the end of each

MONTH OR quarter [, and which ].

(B) SAID SHARE shall not be subject to any lien, or holdback

that may be imposed by the [national] CENTRAL government for

whatever purpose.

[(b)](C) Nothing in this Chapter shall be understood to

diminish the share of local government units under existing laws.

SECTION 83. Section 287 of the Code is hereby amended to

read as follows:

Section 287. Local Development Projects. - Each local

government unit shall appropriate in its annual budget no less

than [twenty percent (20%)] THIRTY PERCENT (30%) of its annual

[internal revenue] NATIONAL TAX [allotment] SHARE for development

projects IN ACCORDANCE WITH THE ANNUAL INVESTMENT PROGRAM

EMBODIED IN THE LOCAL DEVELOPMENT PLAN PREPARED BY THE LOCAL

DEVELOPMENT COUNCIL AND APPROVED BY THE SANGGUNIAN CONCERNED.

[Copies of the development plans of the local government units

shall be furnished the Department of Interior and Local

Government.]

SECTION 84. Section 289 of this Code is hereby amended to

read as follows:

Section 289. Share in the Proceeds from the Development

and Utilization of the National Wealth. Local government units

shall have an equitable share in the proceeds derived from the

utilization and development of the national wealth within their

respective areas, including sharing the same with the inhabitants

by way of direct benefits.

NATIONAL WEALTH SHALL BE DEFINED AS ALL NATURAL

RESOURCES SITUATED WITHIN THE TERRITORIAL JURISDICTION OF THE

REPUBLIC INCLUDING BUT NOT LIMITED TO LANDS OF PUBLIC DOMAIN,

WATERS, MINERALS, POTENTIAL ENERGY SOURCES, GAS AND OIL DEPOSITS,

FOREST PRODUCTS, FLORA AND FAUNA, FISHERY AND AQUATIC RESOURCES,

ALL QUARRY PRODUCTS, AND OTHER RESOURCES WHICH CAN BE EXTRACTED

OR UTILIZED.

SECTION 85. Section 290 of the Code is hereby amended to

read as follows:

Section 290. Amount of Share of Local Government Units.

- [Local government units shall, I]In addition to their SHARE OF

THE [internal revenue] NATIONAL TAXES, LOCAL GOVERNMENT UNITS

SHALL [allotment] have a share of [forty percent (40%)] SIXTY

PERCENT (60%) of the gross collection derived by the National

Government [from] IN the preceding fiscal year from mining

taxes, royalties, forestry and fishery charges, and such other

taxes, fees, or charges, including related surcharges, interests,

or fines, and from its share in any co-production, joint venture

or production sharing agreement in the utilization and

development of the national wealth within their territorial

jurisdiction.

SECTION 86. Section 294 of the Code is hereby amended to

read as follows:

Section 294. Development and Livelihood Projects. - The

proceeds from the share of local government units pursuant to

this chapter shall be appropriated by their respective sanggunian

to finance development and livelihood projects[: Provided,

however, That]. [e]Eighty percent (80%) of the proceeds derived

from the development and utilization of hydro-thermal,

geothermal, and other sources of energy shall be applied [solely]

to lower the cost of electricity AND TO FINANCE DEVELOPMENT

PROJECTS in the local government unit where [such a] THE source

of energy is located.

SECTION 87. Section 296 of the Code is hereby amended to

read as follows:

Section 296. General Policy. -

(a) It shall be the basic policy that any local government

unit may create indebtedness, and avail of credit facilities to

finance local infrastructure and other socio-economic development

projects in accordance with the approved local development plan

and public investment program.

(b) A local government unit may avail of credit lines from

[government or private banks] ANY BANK and OTHER lending

institutions AUTHORIZED BY THE BANGKO SENTRAL NG PILIPINAS, for

the purpose of stabilizing local finances.

SECTION 88. Section 297 of the Code is hereby amended to

read as follows:

Section 297. Loans, Credits, and Other Forms of

Indebtedness of Local Government Units. -

(a) A local government unit may [contract] SECURE loans,

credits, GUARANTEES and other forms of indebtedness with any

government or domestic private bank, and other lending

institutions, to finance the construction, installation,

improvement, expansion, operation, or maintenance of public

facilities, infrastructure facilities, housing projects, [the]

acquisition of real property, and [the] implementation of other

capital investment projects, subject to such terms and conditions

as may be agreed upon by the local government unit and the

lender. The proceeds from such transactions shall accrue directly

to the local government unit concerned.

(b) xxx

hereby authorized to grant loans, credits, and other forms of

indebtedness out of their loanable funds to local government

units for purposes specified above.

GOVERNMENT FINANCING INSTITUTIONS SHALL OPEN APPROPRIATE

LENDING WINDOWS FOR LOCAL GOVERNMENT UNITS. THESE FINANCIAL

INSTITUTIONS SHALL LEND TO FOURTH, FIFTH AND SIXTH CLASS

MUNICIPALITIES, CITIES AND PROVINCES AT CONCESSIONAL RATES.

(D) THE LOCAL GOVERNMENT UNIT CONCERNED SHALL PUBLISH

ALL LOANS APPLIED FOR, SPECIFYING THE AMOUNT TO BE BORROWED, THE

PROJECT TO BE FUNDED, THE SECURITY OFFERED, AND THE TERMS OF

PAYMENT IN A NEWSPAPER OF LOCAL CIRCULATION, IF ANY OR IF THERE

IS NONE, IN A NEWSPAPER OF GENERAL CIRCULATION IN THE PROVINCE,

CITY, MUNICIPALITY OR BARANGAY CONCERNED. THE PUBLICATION SHALL

BE DONE IN THREE (3) CONSECUTIVE ISSUES OF A DAILY NEWSPAPER.

UPON THE FILING OF THE LOAN, THE PROVINCIAL GOVERNMENT

CONCERNED SHALL CAUSE THE POSTING OF THE LOAN APPLICATION IN ALL

THE CITY OR MUNICIPAL HALLS OF THE PROVINCE. IN THE CASE OF A

CITY OR MUNICIPALITY, THE LOAN APPLICATION SHALL BE POSTED IN ALL

BARANGAY HALLS AND IN THE MUNICIPAL OR CITY HALL CONCERNED.

IN THE CASE OF THE BARANGAY, THE LOAN APPLICATION SHALL BE

POSTED IN THE BARANGAY HALL AND IN CONSPICUOUS AND PUBLICLY

ACCESSIBLE PLACES.

SECTION 89. Section 299 of the Code is hereby amended to

read as follows:

Section 299. Bonds and Other Long-Term Securities.

Subject to the rules and regulations of the Central Bank and the

Securities and Exchange Commission, provinces, cities, and

municipalities are hereby authorized to issue bonds, debentures,

securities, collateral[s], notes and other obligations to finance

self-liquidating, income-producing development or livelihood

projects pursuant to the priorities established in the approved

local development plan or the public investment program. The

sanggunian concerned shall, through an ordinance approved by a

majority of all its members, declare and state the terms and

conditions of the bonds and the purpose for which the proposed

indebtedness is to be incurred.

THE SANGGUNIAN CONCERNED MAY EXEMPT SAID BONDS, DEBENTURES,

SECURITIES, COLLATERAL, NOTES AND OTHER OBLIGATIONS FROM LOCAL

TAXES.

SECTION 90. Section 302 of the Code is hereby amended to

read as follows:

Section 302. Financing, Construction, Maintenance,

Operation, and Management of Infrastructure AND OTHER DEVELOPMENT

Projects by the Private Sector. -

(a) Local government units may enter into contracts with

any [duly pre-] qualified [ individual contractor, ] PROJECT

PROPONENT INCLUDING COOPERATIVES AND NON-GOVERNMENT ORGANIZATIONS

for the financing, construction, operation, MANAGEMENT,

PROVISIONING and/OR maintenance of any financially viable

[infrastructure] DEVELOPMENT PROJECT [ facilities ] under the

build-operate-and-transfer agreement AND/ OR ITS VARIANTS, OR

UNDER CONTRACT OF MANAGEMENT, SERVICE, LEASE, CONCESSION, JOINT

VENTURE, OR COMBINATION THEREOF, OR UNDER ANY OTHER PRIVATE

SECTOR PARTICIPATION ARRANGEMENT, AS PROVIDED FOR UNDER R.A.

6957, AS AMENDED, [subject to the applicable provisions of

Republic Act Numbered Sixty-nine hundred fifty seven ( R.A. 6957

) authorizing the financing, construction, operation and

maintenance of infrastructure projects by the private sector and

the rules and regulations issued thereunder and such terms and

conditions provided in this Section. ]

ALL PROJECTS IMPLEMENTED UNDER THIS SECTION SHALL BE SUBJECT

TO THE FOLLOWING TERMS AND CONDITIONS:

(1) NO APPROVAL BY ANY NATIONAL GOVERNMENT AGENCY, OFFICE OR

INSTRUMENTALITY IS REQUIRED FOR IMPLEMENTATION OF THE PROJECT,

REGARDLESS OF ITS COST, UNDER WHATEVER PRIVATE SECTOR

PARTICIPATION AGREEMENT, OR WHETHER INVOLVING ONE OR MORE LOCAL

GOVERNMENT UNITS.

WHERE THE PROJECT INVOLVES TWO OR MORE LOCAL

GOVERNMENT UNITS, THE APPROVAL BY ITS RESPECTIVE

SANGGUNIAN IS REQUIRED.

FOR PROJECTS JOINTLY PURSUED BY ONE OR MORE

LOCAL GOVERNMENT UNITS AND THE NATIONAL GOVERNMENT,

OR ITS AGENCIES OR INSTRUMENTALITIES, THE APPROVAL BY

THE INVESTMENT COORDINATING COMMITTEE (ICC) OF THE

NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY (NEDA)

SHALL BE REQUIRED.

ALL PROJECT PROPOSALS SHALL FIRST

UNDERGO THE PROCESS REQUIRED UNDER SECTION 114 OF

THIS CODE.

(2) ONLY THE APPROVAL OF THE SANGGUNIAN CONCERNED IS REQUIRED

FOR LOCALLY FUNDED PROJECTS IMPLEMENTED THROUGH COMPETITIVE

PUBLIC BIDDING, INCLUDING TOLLS, CHARGES, RENTALS OR FEES, AND

ADJUSTMENTS THEREON, FOR THE USE OF SAID PROJECTS OR FACILITIES.

THE AGREEMENT OF THE PARTIES IMPLEMENTING THE PROJECTS MAY DEFINE

THE NATURE AND EXTENT OF SAID ADJUSTMENTS.

(3) TOLLS, CHARGES, RENTALS OR FEES, INCLUDING ADJUSTMENTS

THEREON, FOR THE USE OF PROJECTS OR FACILITIES SUBJECT TO

NEGOTIATED CONTRACTS SHALL REQUIRE APPROVAL BY THE SANGGUNIAN

CONCERNED.

(4) LOCAL GOVERNMENT UNITS IMPORTING HEAVY EQUIPMENT AND

MACHINERY ARE EXEMPT FROM PAYMENT OF DUTIES, TAXES OR CHARGES FOR

IMPLEMENTING DEVELOPMENT PROJECTS.

(5) THE REQUIREMENTS OF CONSULTATION PROVIDED FOR UNDER SECTIONS

2 (D), 26 AND 27 SHALL BE COMPLIED WITH.

(b) Local government units shall include in their respective

local development plans and public investment programs priority

projects that may be financed, constructed, operated and

maintained by the private sector under this Section. It shall be

the duty of the local government unit concerned to disclose to

the public all projects eligible for financing under this

Section, including official notification of duly registered

contractors AND SUPPLIERS OF GOODS AND SERVICES and publication

in newspapers of general or local circulation, in conspicuous and

accessible public places. Local projects under the build-operate-

transfer agreement shall be confirmed by the local development

councils.

(c)xxx

SECTION 91. Section 305 of the Code is hereby amended to

read as follows:

Section 305 - Fundamental Principles - The financial

affairs, transactions, and operations of local government units

shall be governed by the following fundamental principles:

(a) xxx

(b) xxx

(f) Every officer of the local government unit whose duties

permit or require the possession or custody of local funds

shall be properly bonded EQUIVALENT TO THE AMOUNT HE/SHE IS

AUTHORIZED TO KEEP OR HOLD, and such officer shall be

accountable and responsible for said funds and for the

safekeeping thereof in conformity with the provisions of

law;

SECTION 92. Section 311 of the Code is hereby amended to

read as follows:

Section 311. Depository Account. - Local treasurers

shall maintain depository accounts in the name of their

respective local government units with banks DULY AUTHORIZED BY

THE BANGKO SENTRAL NG PILIPINAS [, preferably government -owned]

PREFERABLY NEAREST TO THE SEAT OF ITS GOVERNMENT. [located in or

nearest to their respective areas of jurisdiction.] Earnings of

each depository account shall accrue exclusively thereto.

SECTION 93. Section 314 (b)(1) of the Code is hereby amended

to read as follows:

Section 314. Form and Content. - (a) Local government

budgets shall primarily consist of two (2) parts:

(1) xxxx

(2) xxxx

(b)The budget document shall contain:

(1) [A ] THE budget message of the local chief

executive setting forth [in brief] the significance

of the executive budget, particularly in relation to

the approved [local development] ANNUAL INVESTMENT

plan WHICH SHALL FORM PART OF THE BUDGET DOCUMENT;

(2) xxxx

(3) xxxx

SECTION 94. Section 318 of the Code is hereby amended to

read as follows:

Section 318. Preparation of the Budget by the Local

Chief Executive. - Upon receipt of the statements of income and

expenditures from the treasurer, the budget proposals of the

heads of departments and offices, and the estimates of THE

REGULAR income and budgetary ceilings from the local finance

committee, the local chief executive shall prepare the executive

budget for the ensuing fiscal year in accordance with the

provisions of this Title.

The local chief executive shall submit the said executive

budget to the sanggunian concerned not later than the sixteenth

(16th) of October of the current fiscal year. Failure to submit

such budget on the date prescribed herein shall subject the local

chief executive to such criminal and administrative penalties as

provided for under this Code and other applicable laws.

SECTION 95. Section 321 of the Code is hereby amended to

read as follows:

Section 321. Changes in the annual budget. All

budgetary proposals shall be included and considered in the

budget preparation process. After the local chief executive

concerned shall have submitted the executive budget to the

sangguniang, no ordinance providing for the supplemental

budget shall be enacted except when supported by funds

actually available as certified by local treasurer or by new

revenue sources. THE LOCAL GOVERNMENT UNIT REALIZES

ADDITIONAL INCOME AS CERTIFIED TO BY THE LOCAL TREASURER

COMING FROM ANY SOURCE DURING THE CURRENT FISCAL YEAR. THE

DEVELOPMENT PROJECTS FINANCED BY THE SUPPLEMENTAL BUDGET

SHALL BE INCORPORATED IN THE LOCAL DEVELOPMENT PLAN AND

ANNUAL INVESTMENT PROGRAM.

SECTION 96. Section 323 of the Code is hereby amended to

read as follows:

Section 323. Failure to Enact the Annual

Appropriations. - In case the sanggunian concerned fails to pass

the ordinance authorizing the annual appropriations at the

beginning of the ensuing fiscal year, it shall continue to hold

DAILY sessions, EXCLUSIVE OF SATURDAYS, SUNDAYS AND HOLIDAYS,

without additional remuneration for its members, until such

ordinance is approved, and no other business may be taken up

during such sessions. If the sanggunian still fails to enact such

ordinance after [ninety ( 90) ] SIXTY (60) days from the

beginning of the fiscal year, the ordinance authorizing the

appropriations of the preceding year shall be deemed reenacted

and shall remain in force and effect until the ordinance

authorizing the proposed appropriations is passed by the

sanggunian concerned. However, only the annual appropriations for

salaries and wages of existing positions, statutory and

contractual obligations, and essential operating expenses

authorized in the annual and supplemental budgets for the

preceding year shall be deemed reenacted and disbursement of

funds shall be in accordance therewith.

SECTION 97. Section 324 of the Code is hereby amended to

read as follows:

Section 324. Budgetary Requirements. - The budgets of

local government units for any fiscal year shall comply with the

following requirements:

(a)xxxx

(b)xxxx

(d) Five percent ( 5% ) of the estimated revenue from

regular source shall be set aside as an annual lump sum

appropriation for unforeseen expenditures arising from the

occurrence of calamities: Provided, however, That such

appropriation shall be used only in the area, or a portion

thereof, of the local government unit [or other areas] declared

in a state of calamity by the [President] GOVERNOR IN THE CASE OF

A PROVINCE AND THE MAYOR IN THE CASE OF A CITY OR MUNICIPALITY. A

COPY OF THE DECLARATION SHALL IMMEDIATELY BE FURNISHED THE

SANGGUNIAN OF THE LOCAL GOVERNMENT UNIT CONCERNED. THE

SANGGUNIAN MAY CONCUR OR REJECT THE DECLARATION OF CALAMITY. IN

THE EVENT OF A REJECTION BY THE SANGGUNIAN OF THE DECLARATION OF

CALAMITY, NO LOCAL GOVERNMENT FUNDS SHALL BE DISBURSED THEREFOR.

FAILURE OF THE SANGGUNIAN CONCERNED TO ACT ON THE DECLARATION OF

CALAMITY WITHIN TWENTY-FOUR (24) HOURS FROM ITS RECEIPT OF THE

COPY OF THE DECLARATION OF CALAMITY MENTIONED ABOVE, THE SAME

SHALL BE DEEMED APPROVED.

SECTION 98. Section 325 of the Code is hereby amended to

read as follows:

Section 325. General Limitations. - The use of

provincial, city, and municipal funds shall be subject to the

following limitations:

(a) The [total] appropriations, whether annual or

supplemental, for personal services of a local government unit

for one (1) fiscal year shall not exceed forty-five percent (45%)

in the case of first to third class provinces, cities and

municipalities, and fifty-five percent (55%) in the case of

fourth class or lower, of the annual income from regular sources

realized in the next preceding fiscal year. The appropriations

for salaries, wages, representation and transportation allowances

of officials and employees of the public utilities and economic

enterprises owned, operated and maintained by the local

government unit concerned shall not be included in the annual

budget or in the computation of the maximum amount for personal

services. The appropriation for the personal services of such

economic enterprises shall be charged to their respective

budgets.

(b) xxx

SECTION 99. Section 326 of the Code is hereby amended to

read as follows:

[Section 326. Review of Appropriation Ordinances of

Provinces, Highly - Urbanized Cities, Independent Component

Cities, and Municipalities within the Metropolitan Manila Area. -

The Department of Budget and Management shall review ordinances,

authorizing the annual or supplemental appropriations of

provinces, highly-urbanized cities, independent component cities,

and municipalities within the Metropolitan Manila Area in

accordance with the immediately succeeding Section. ]

SECTION 100. Section 327 of the Code is hereby amended to

read as follows:

Section 327. Review of Appropriation Ordinances of

Component Cities and Municipalities. -

The sanggunian panlalawigan shall review the ordinance

authorizing annual or supplemental appropriation of component

cities and municipalities in the same manner and within the same

period prescribed for the review of other ordinances.

If within [ninety (90)] THIRTY (30) days from receipt of

copies of such ordinance, the sangguniang panlalawigan takes no

action thereon, the same shall be deemed to have been reviewed in

accordance with law and shall continue to be in full force and

effect. If within the same period, the sangguniang panlalawigan

shall have ascertained that the ordinance authorizing annual or

supplemental appropriations has not complied with the

requirements set forth in this Title, the sangguniang

panlalawigan shall, within [ninety day] THE period, [hereinabove

prescribed,] declare such ordinance inoperative in its entirety

or in part. Items of appropriation contrary to limitations

prescribed in this Title or in excess of the amounts prescribed

herein shall be disallowed or reduced accordingly.

The sanggunian panlalawigan shall within the same period

advise the sangguniang panlungsod or sangguniang bayan concerned

through the local chief executive of any action on the ordinance

under review. Upon receipt of such advice, the city or municipal

treasurer concerned shall not make further disbursement of funds

from any of the items of appropriation declared inoperative,

disallowed or reduced.

SECTION 101. Section 329 of the Code is hereby amended to

read as follows:

Section 329. Barangay Funds. - Unless otherwise

provided in this Title, all the income of the barangay from

whatever source INCLUDING ITS SHARE OF THE NATIONAL TAXES AS

PROVIDED UNDER SECTION 286 OF THIS CODE shall accrue to its

general fund and shall [, at the option of the barangay

concerned, be kept as trust fund in the custody of the city or

municipal treasurer, or ] be RELEASED TO AND deposited FOR THE

ACCOUNT OF THE BARANGAY in a bank [, preferably government

owned,] PREFERABLY LOCATED WITHIN THE BARANGAY. [situated in or

nearest to its area of jurisdiction.] Such funds shall be

disbursed PURSUANT TO AN APPROVED ORDINANCE BY THE BARANGAY

CONCERNED in accordance with the provisions of this Title. Ten

percent (10%) of the general fund of the barangay shall be [set

aside] AUTOMATICALLY APPROPRIATED AND OBLIGATED for the

Sangguniang Kabataan WHICH SHALL BE RELEASED TO AND DEPOSITED TO

THE ACCOUNT OF THE SANGGUNIANG KABATAAN IN A BANK PREFERABLY

LOCATED WITHIN THE BARANGAY WITHIN TWENTY (20) DAYS AFTER THE END

OF EVERY QUARTER OF THE CURRENT YEAR. SUCH FUNDS SHALL BE

DISBURSED PURSUANT TO AN APPROVED RESOLUTION BY THE SANGGUNIAN

KABATAAN CONCERNED.

SECTION 102. Sec. 339 of this Code is hereby amended to read

as follows:

Section 339. Cash Advances. -No Cash advance

shall be granted to any local official or employee, elective or

appointive, unless made in accordance with the rules and

regulations as the COA may prescribe. ANY LOCAL ELECTIVE OR

APPOINTIVE OFFICIAL WHO HAS AVAILED OF CASH ADVANCES IN

CONNECTION WITH HIS/HER DUTIES SHALL LIQUIDATE THE SAID CASH

ADVANCES WITHIN ONE (1) YEAR FROM THE AVAILMENT THEREOF. FAILURE

TO LIQUIDATE THE SAID CASH ADVANCES WITHIN THE PERIOD ABOVE

PRESCRIBED SHALL CAUSE THE AUTOMATIC DEDUCTION BY THE LOCAL

TREASURER CONCERNED EQUAL TO TWENTY-FIVE PERCENT (25%) OF THE

MONTHLY SALARY, HONORARIUM AND ALLOWANCES OF THE OFFICIAL OR

EMPLOYEE CONCERNED UNTIL THE UNLIQUIDATED CASH ADVANCE IS FULLY

PAID WITHOUT PREJUDICE TO THE APPROPRIATE ADMINISTRATIVE

SANCTIONS THAT MAY BE IMPOSED UPON HIM/HER BY THE PROPER

AUTHORITIES. FAILURE OF THE LOCAL TREASURER CONCERNED TO CAUSE

THE DEDUCTION MENTIONED ABOVE SHALL SUBJECT THE SAID TREASURER TO

ADMINISTRATIVE OR CRIMINAL SANCTIONS.

SECTION 103. Section 344 of the Code is hereby amended to

read as follows:

Section 344. Certification on, and Approval of,

Vouchers. - No money shall be disbursed unless the local budget

officer certifies to the existence of appropriation that has been

legally made for the purpose, the local accountant has obligated

said appropriation, and the local treasurer certifies to the

availability of funds for the purpose. Vouchers and payrolls

shall be certified to and approved by the head of the department

or office who has administrative control of the fund concerned as

to validity, propriety, and legality of the claim involved.

Except in cases of disbursements involving regularly recurring

administrative expenses such as payrolls for regular or permanent

employees, expenses for light, water, telephone and telegraph

services, remittances to government creditor agencies such as the

GSIS, SSS, LBP, DBP, National Printing Office Procurement Service

of the DBM and others, approval of the disbursement voucher by

the local chief executive [himself] OR BY THE DEPARTMENT HEADS OR

CHIEFS OF HOSPITALS DULY AUTHORIZED BY THE LOCAL CHIEF EXECUTIVE

CONCERNED, shall be required whenever local funds are disbursed.

SECTION 104. Section 345 of the Code is hereby amended to

read as follows:

Section 345. Officials Authorized to Draw Checks in

Settlement of Obligations. - Checks in settlement of obligations

shall be drawn by the Treasurer and countersigned by the local

[administrator] CHIEF EXECUTIVE, OR IN HIS/HER ABSENCE, AN

OFFICIAL DULY AUTHORIZED BY LAW. CHECKS IN SETTLEMENT OF

OBLIGATIONS DULY APPROPRIATED FOR PERSONAL SERVICES, MAINTENANCE

AND OTHER OPERATING EXPENSES AND CAPITAL OUTLAY OF THE SANGGUNIAN

SHALL BE COUNTERSIGNED BY THE VICE-GOVERNOR OR THE VICE-MAYOR FOR

THE PROVINCE, CITY OR MUNICIPALITY, AS THE CASE MAY BE, OR IN

HIS/HER ABSENCE, BY AN OFFICIAL DULY AUTHORIZED BY LAW.

IN CASE OF THE ABSENCE OF THE TREASURER FOR MORE THAN

THREE (3) DAYS, THE SIGNING OF THE CHECKS ABOVE MENTIONED SHALL

BE DONE BY AN OFFICIAL DULY AUTHORIZED BY LAW.

CHECKS ISSUED IN SETTLEMENT OF OBLIGATIONS OF THE BARANGAY,

SHALL BE SIGNED BY THE BARANGAY TREASURER WHO SHALL BE PROPERLY

BONDED, AND COUNTERSIGNED BY THE PUNONG BARANGAY. IN THE ABSENCE

OF EITHER OR BOTH OF THEM FOR MORE THAN THREE (3) DAYS, THE

SANGGUNIANG BARANGAY, BY MAJORITY VOTE, SHALL DESIGNATE FROM

AMONG THEMSELVES TWO (2) MEMBERS WHO SHALL BE SIGNATORIES TO THE

CHECKS.

[In case of temporary absence or incapacity of the

foregoing officials, these functions shall devolve upon their

immediate assistants.]

SECTION 105. Section 352 of the Code is hereby amended to

read as follows:

Section 352. Posting of the Summary of Income and

Expenditures. - Local treasurers, accountants, budget officers

and other accountable officers shall, within thirty (30) days

from the end of each fiscal year, post in at least three (3)

publicly accessible and conspicuous places SUCH AS PLAZA AND MAIN

STREET in the local government unit CONCERNED, AND TO PUBLISH

SAID STATEMENTS OF INCOME AND EXPENDITURES IN A NEWSPAPER OF

GENERAL CIRCULATION, WHERE AVAILABLE, IN THE TERRITORIAL

JURISDICTION OF SUCH UNIT, a summary of all revenues collected

and funds received including the appropriations, and

disbursements of such funds during the preceding fiscal year.

FAILURE TO COMPLY WITH THIS REQUIREMENT SHALL SUBJECT THE

OFFICIALS CONCERNED TO DISCIPLINARY ACTION IN ACCORDANCE WITH

EXISTING LAWS.

SECTION 106. Section 356 of the Code is hereby amended to

read as follows:

Section 356. General Rule in Procurement or Disposal. -

Except as otherwise provided herein, AND SUBJECT TO THE

LIMITATIONS PROVIDED IN SECTION (364) OF THIS CODE, LOCAL

GOVERNMENT UNITS ARE AUTHORIZED [acquisition of supplies by local

government units] TO DIRECTLY ACQUIRE OR PROCURE SUPPLIES AND

EQUIPMENT FROM EITHER LOCAL OR FOREIGN SUPPLIERS [shall be]

through competitive public bidding, WITHOUT NEED OF PRIOR

APPROVAL OR AUTHORITY FROM ANY AGENCY OF THE GOVERNMENT. Supplies

which have become unserviceable or no longer needed shall be

sold, whenever applicable, at public auction, subject to

applicable rules and regulations.

SECTION 107. Section 364 of the Code is hereby amended to

read as follows:

Section 364. The Committee on Awards. - There shall be

in every province, city or municipality a Committee on Awards to

decide the winning bids and questions of awards and procurement

and disposal of property.

The Committee on Award shall be composed of the local

chief executive as chairman, the local treasurer, the local

accountant, the local budget officer, the local general services

officer, [and] the head of office or department for whose use the

supplies are being procured, ONE (1) REPRESENTATIVE OF THE

PHILIPPINE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS (PICPA), AND

TWO (2) REPRESENTATIVES OF NON-GOVERNMENTAL ORGANIZATIONS THAT

ARE REPRESENTED IN THE LOCAL DEVELOPMENT COUNCIL CONCERNED, TO BE

CHOSEN BY THE ORGANIZATIONS THEMSELVES, as members. In case a

head of office or department would sit in a dual capacity, a

member of the sanggunian elected from among its members shall sit

as a member. The Committee on Awards at the barangay level shall

be the sangguniang barangay. No national official shall sit as a

member of the Committee on Awards.

The results of the bidding shall be made public by

[conspicuously] posting the same IN A CONSPICUOUS PLACE in the

provincial capitol or city, municipal, or barangay hall.

SECTION 108. Section 367 of the Code is hereby amended to

read as follows:

Section 367. Procurement through Personal Canvass -

Upon approval by the Committee on Awards, procurement of supplies

may be effected after personal canvass of at least three (3)

responsible suppliers in the locality by a committee of [three

(3)] FOUR (4) composed of the local general services officer or

the municipal or barangay treasurer, as the case may be, the

local accountant, [and] the head of office or department for

whose use the supplies are being procured, AND A REPRESENTATIVE

OF NON-GOVERNMENTAL ORGANIZATION. The Awards shall be decided by

the Committee on Awards. THE ACQUISITION AND PROCUREMENT BY LOCAL

GOVERNMENT UNITS OF SUPPLIES, GOODS, EQUIPMENT AND SERVICES,

EXCEPT CONSULTANTS AS AUTHORIZED BY THE SANGGUNIANG CONCERNED,

THROUGH PERSONAL CANVASS [Purchases under this section]

shall not exceed TWENTY-FIVE PERCENT (25%) OF the TOTAL amount[s]

ALLOCATED FOR THE PURPOSE [specified hereunder for all items] in

any one (1) month [for each local government unit:]. THE SERVICES

PURCHASED THROUGH PERSONAL CANVASS SHALL BE PERFORMED AND

COMPLETED WITHIN A PERIOD OF THIRTY (30) DAYS FROM THE DATE OF

PURCHASE.

["Provinces and Cities and Municipalities within the

Metropolitan Manila Area:

First and Second Class - One hundred fifty

thousand pesos (P150,000.00)

Third and Fourth Class - One hundred thousand pesos

(P100,000.00) .

"Fifth and Sixth Class - Fifty thousand pesos

(P50,000.00)

"Municipalities:

"First Class - Sixty thousand pesos (P60,000.00).

"Second and Third Class - Forty thousand pesos

(P40,000.00)

"Fourth Class and Below -Twenty thousand

pesos (P20,000.00).]

SECTION 109. Section 369 of this Code is hereby amended to

read as follows:

Section 369. Negotiated Purchase. -

(a) xxx

(b) In case of repeat orders for regular supplies,

procurement may be made by negotiated purchase; Provided, That

the repeat order is made within SIX (6) [three (3)] months from

the last procurement of the same item: Provided, further, That

the same terms and conditions of sale are obtained for the said

repeat order.

BOOK THREE

LOCAL GOVERNMENT UNITS

Barangays

SECTION 110. Section 391 (a), (20) of the Code is hereby

amended to read as follows:

Section 391. Powers, Duties, and Functions. - (a) The

sangguniang barangay, as the legislative body of the barangay,

shall:

(1) xxx

(2) xxx

(3) xxx

(4) xxx

(5) xxx

(6) xxx

(7) xxx

(8) xxx

(9) xxx

(10) xxx

(11) xxx

(12) xxx

(13) Authorize the barangay treasurer to make direct

purchases in the amount not exceeding [one] FIVE thousand pesos

[(P1,000.00)] (P5,000.00) at any one time for the ordinary and

essential administrative needs of the barangay.

(14) Prescribe fines in amount not exceeding [one] FIVE

thousand pesos [(P1,000.00)] (P5,000.00) for violation of

barangay ordinances.

(15) xxx

(20) Adopt measures [towards the prevention and eradication

of] TO PREVENT AND ERADICATE drug abuse, child abuse, and

juvenile delinquency; PROVIDE ASSISTANCE TO BATTERED AND ABUSED

WOMEN; AND ESTABLISH CRISES CENTERS TO SERVE THESE PURPOSES.

(22) Provide for the establishment of CENTERS FOR [a] non-

formal education [center], VOCATIONAL AND TECHNOLOGICAL TRAINING

in the barangay whenever feasible, in coordination with the

Department of Education, Culture and Sports AND THE TECHNICAL

EDUCATION AND SKILLS DEVELOPMENT AUTHORITY;

SECTION 111. Section 393 paragraph (a) and (b) of the Code

are hereby amended to read as follows:

Section 393. Benefits of Barangay Officials. -

(a) x x x

(b) X x x

appointments to any government position or in any government-

owned or -controlled corporations, including their subsidiaries,

after their tenure of office, subject to the requisite

qualifications and provisions of the immediately preceding

paragraph.

THE GOVERNMENT SERVICE INSURANCE SYSTEM SHALL PROVIDE

A SPECIAL LIFE INSURANCE AND RETIREMENT BENEFITS PLAN FOR

ELECTIVE BARANGAY OFFICIALS INCLUDING BARANGAY TREASURERS AND

SECRETARIES.

THE BARANGAY OFFICIALS CONCERNED SHALL PAY AS CONTRIBUTION A

CORRESPONDING PERCENTAGE FROM THEIR ALLOWANCES, HONORARIA AND

OTHER FEES RECEIVED FROM THE BARANGAY.

BARANGAY FUNDS MAY BE UTILIZED AS COUNTERPART CONTRIBUTION

FOR THE SPECIAL LIFE INSURANCE AND RETIREMENT BENEFITS PLAN FOR

THE BARANGAY OFFICIALS CONCERNED AS MAY BE REASONABLY DETERMINED

BY THE GOVERNMENT SERVICE INSURANCE SYSTEM.

(d) All duly appointed members of the barangay tanod

brigades, or their equivalent, which shall number not more than

twenty (20) in each barangay, shall be ENTITLED TO MONTHLY

HONORARIA TO BE DETERMINED BY THE SANGGUNIANG BARANGAY, AND shall

be granted COMPULSORY insurance COVERAGE or other benefits during

their incumbency, chargeable to the barangay, or the city or

municipal government to which the barangay belongs.

SANGGUNIANG KABATAAN

SECTION 112. Section 423 of the Code are hereby amended to

read as follows

Section 423. Creation and Election - (a) There shall

be in every barangay, a Sangguniang Kabataan to be composed of a

Chairman[,] AND seven (7) members[, a secretary and a treasurer].

SECTION 113. Section 426 (b) of the Code is hereby amended

to read as follows:

Section 426. Powers and Functions of the Sangguniang

Kabataan. - The sangguniang kabataan shall:

(a) xxx

(b) Initiate, UNDERTAKE AND IMPLEMENT programs, PROJECTS,

AND ACTIVITIES, designed to enhance the social, political,

economic, cultural, intellectual, moral, spiritual, and physical

development of the members [;]. SUBJECT TO REVIEW BY THE

SANGGUNIANG BARANGAY, THE SANGGUNIANG KABATAAN SHALL ENACT AN

ANNUAL BUDGET TO CARRY OUT THE FOREGOING FUNCTIONS. NO FUNDS OF

THE SANGGUNIANG KABATAAN SHALL BE DISBURSED WITHOUT AN APPROVED

APPROPRIATION.

(g-1) COORDINATE WITH THE APPROPRIATE AGENCY OF THE

GOVERNMENT FOR THE IMPLEMENTATION IN THEIR RESPECTIVE BARANGAY OF

PROJECTS AND PROGRAMS RELATED TO ENVIRONMENTAL PROTECTION, LIKE

TREE PLANTING AND SOLID WASTE DISPOSAL.

IN THE URBAN CENTERS WHERE TREE PLANTING IS NO LONGER

FEASIBLE, THE SANGGUNIANG KABATAAN SHALL PARTICIPATE IN

"GREENING" PROGRAMS IN AREAS IDENTIFIED BY THE LOCAL GOVERNMENT

UNITS CONCERNED.

(h) xxx

SECTION 114. Section 427 of the Code is hereby amended to

read as follows:

Section 427. Meetings of the Sangguniang Kabataan. -

The sangguniang kabataan shall meet regularly [once] TWICE a

month on the date, time and place WITHIN THE BARANGAY to be fixed

by the said sanggunian. Special meetings may be called by the

sangguniang kabataan chairman or any three (3) of its members by

giving written notice to all members of the date, time, place,

and agenda of the meeting at least one (1) day in advance.

Notices of regular or special meeting shall be furnished the

punong barangay and the sanggunian barangay.

A majority of the members of the sangguniang kabataan

shall constitute a quorum.

ABSENCE WITHOUT JUST CAUSE FOR TWO (2) CONSECUTIVE

SESSIONS MAY BE A GROUND FOR DISCIPLINARY ACTION.

SECTION 115. Section 431 of the Code is hereby amended to

read as follows:

Section 431. Powers and Duties of the Sanggunian

Kabataan Chairman. In addition to the duties which may be

assigned to him by the sangguniang barangay, the sangguniang

kabataan shall:

(a) xxx

(b) xxxx

(d) With the concurrence of the sangguniang kabataan,

appoint [from among the members of the sangguniang

kabataan,] the secretary and THE treasurer, and such

other officers as may be deemed necessary; and

(e) xxx

SECTION 116. Section 433 of the Code is hereby amended to

read as follows:

Section 433. Sangguniang Kabataan Treasurer. - The

sangguniang kabataan treasurer shall:

(a) Take custody of all sangguniang kabataan property and funds.

[not otherwise deposited with the city or municipal treasurer]

THE FUNDS OF THE SANGGUNIANG KABATAAN SHALL BE DEPOSITED IN THE

NAME OF THE SANGGUNIANG KABATAAN CONCERNED IN A BANK DULY

AUTHORIZED BY THE BANGKO SENTRAL NG PILIPINAS PREFERABLY LOCATED

IN OR NEAREST THE BARANGAY CONCERNED;

(b) xxx

(d) xxx

(e) Submit to the sangguniang kabataan and to the

sangguniang barangay certified and detailed statements of actual

income and expenditures at the end of every [month] QUARTER AND

THE SAME SHALL BE PUBLISHED OR POSTED IN THE AREA DESIGNATED FOR

THIS PURPOSE; and

(f) xxx

SECTION 117. Section 434 of the Code is hereby amended to

read as follows:

Section 434. Privileges of Sangguniang kabataan. -

The sangguniang kabataan chairman shall have the same privileges

enjoyed by other sangguniang barangay officials under this Code

subject to such requirements and limitations provided herein.

During their incumbency, sangguniang kabataan officials shall be

exempt from payment of tuition and matriculation fees while

enrolled in public tertiary schools, including state colleges and

universities. The national government shall reimburse said

college or university the amount of the tuition and matriculation

fees: Provided, That, to qualify for the privilege, the said

officials shall enroll in the state college or university within

or nearest their area of jurisdiction.

THE SANGGUNIANG KABATAAN CHAIRMAN, THE SECRETARY AND

TREASURER MAY BE PROVIDED WITH HONORARIA OR ALLOWANCES BY THE

SANGGUNIANG KABATAAN CONCERNED.

SECTION 118. Section 435 of the Code is hereby amended to

read as follows:

Section 435. Succession and Filling of Vacancies. - (a)

In case a sangguniang kabataan chairman refuses to assume office,

fails to qualify, is convicted of a felony, voluntarily resigns,

dies, is permanently incapacitated, is removed from office, or

has been absent without leave for more than [three (3)] TWO (2)

consecutive [months] MEETINGS, OR FOR FAILURE TO CALL A REGULAR

MEETING OF THE SANGGUNIANG KABATAAN AND/OR OF THE KATIPUNAN NG

KABATAAN WITHOUT JUSTIFIABLE CAUSE, the sangguniang kabataan

member who obtained the [next] highest number of votes in the

election immediately preceding shall assume the office of the

chairman for the unexpired portion of the term, and shall

discharge the powers and duties, and enjoy the rights and

privileges appurtenant to the office. In case the said member

refuses to assume the position or fails to qualify, the

sanggunian member obtaining the next highest number of votes

shall assume the position of the chairman for the unexpired

portion of the term.

(b) xxx

(d) xxx

SECTION 119. Section 437 of he Code is hereby amended to

read as follows:

Section 437. Constitution and By-Laws. - The

term of office, manner of election, removal, suspension AND

DISCIPLINARY ACTION of the officers and MEMBERS of the pederasyon

ng mga sangguniang kabataan at all levels AND THE SANGGUNIANG

KABATAAN AT THE BARANGAY LEVEL shall be governed by the

Constitution and By-Laws of the Sangguniang Kabataan in

conformity with the provisions of this Code and national policies

of the youth.

THE PAMBANSANG PEDERASYON NG MGA SANGGUNIANG KABATAAN SHALL

PROMULGATE THE APPROPRIATE GUIDELINES FOR THE CONDUCT OF THE

PEDERASYON ELECTIONS AT ALL LEVELS IN CONSULTATION WITH THE

COMMISSION ON ELECTIONS.

SECTION 120. Section 438 of the Code is hereby amended to

read as follows:

Section. 438. Membership in the Sanggunian -

(a) A sangguniang kabataan chairman shall, upon the

certification of his election by the Comelec and during his

tenure of office is elected as pederasyon president, serve as an

ex-officio member of the sangguniang panlalawigan, sangguniang

panlungsod, and sangguniang bayan as the case may be, without

need of further appointment. HE SHALL HAVE THE SAME POWERS,

DUTIES AND FUNCTIONS, AND ENJOY THE SAME PRIVILEGES AS THE

REGULAR MEMBERS.

SECTION 121. Section 442 (a) of the same Code is hereby

amended to read as follows:

Section 442. Requisites for Creation. - (a) A

municipality may be created if it has a [an] LOCALLY GENERATED

average annual income as certified by the provincial

treasurer, of at least [Two] TWENTY million [five hundred

thousand] pesos [(P2,500,000.00)] (P20,000,000.00) for the last

two (2) consecutive years based on the [1991] 1998 constant

prices; a population of at least twenty-five thousand (25,000)

inhabitants, as certified by the National Statistics Office; and

a contiguous territory of at least fifty (50) square kilometers

as certified by the Lands Management Bureau: Provided, That the

creation thereof shall not reduce the land area, population or

income of the original municipality or municipalities at the time

of said creation, to less than the minimum requirements

prescribed herein.

(b) xxx

SECTION 122. Section 443 (a) and (b) of the Code are hereby

amended to read as follows:

Section 443. Officials of the Municipal Government. -

(a) There shall be in each municipality a municipal mayor, a

municipal vice-mayor, sangguniang bayan members[,]. IN ADDITION,

THE MUNICIPAL MAYOR SHALL APPOINT THE FOLLOWING OFFICIALS: [a

secretary to the sanggunian bayan] a municipal treasurer, a

municipal assessor, a municipal accountant, a municipal budget

officer, a municipal planning and development coordinator, a

municipal engineer/building official, a municipal health officer,

FIRE PROTECTION OFFICER, and a municipal civil registrar.

(b) [In addition thereto,] [t]The mayor may ALSO appoint a

municipal administrator, a municipal legal officer, a municipal

agriculturist, a municipal environment and natural resources

officer, a municipal social welfare and development officer, a

municipal architect, A MUNICIPAL HUMAN RESOURCE DEVELOPMENT

OFFICER, COOPERATIVES OFFICER, and a municipal information

officer.

SECTION 123. Section 444 of the Code is hereby amended to

read as follows:

Section 444. The Chief Executive: Powers, Duties,

Functions and Compensation. -

(a) Xxx

(b) Xxx

(1) xxx

(i) xxx

(ii) xxx

(v) Appoint all officials and employees whose salaries

and wages are wholly or mainly paid out of municipal

funds and whose appointments are not otherwise provided

for in this Code as well as those he may be authorized

by law to appoint; EXCEPT THOSE TO BE APPOINTED BY THE

VICE MAYOR AS PROVIDED FOR IN SECTION 445 (a)(2) OF THS

CODE;

(2) xxx

(3) Initiate and maximize the generation of resources and

revenues, and apply the same to the implementation of development

plans, program objectives and priorities as provided for under

Section 18 of this Code, particularly those resources and

revenues programmed for agro-industrial development and country-

wide growth and progress, and relative thereto, shall:

(i) xxx

(ii) xxx

(iv) Issue licenses and permits and suspend or revoke the

same for any violation of the conditions upon which said

licenses or permits had been issued, pursuant to law or

ordinance [;]SUBJECT TO THE ORDINANCE OF THE SANGGUNIANG

BAYAN ISSUE LICENSES AND PERMITS FOR GAMBLING OPERATIONS

AUTHORIZED BY LAW;

(vii) Adopt adequate measures to safeguard and conserve

land, mineral, marine, forest, THE ECOLOGICAL SYSTEM, and

other resources of the municipality; and protect the funds,

credit, rights and other priorities of the municipality, AND

ISSUE, UPON THE AUTHORIZATION OF THE SANGGUNIANG BAYAN, AN

ENVIRONMENTAL CLEARANCE CERTIFICATE AND A PERMIT TO OPERATE

FOR ANY FIRM OR ENTITY TO OPERATE IN THE MUNICIPALITY.

(viii) xxx

(ix) xxx

SECTION 124. Section 445 (2) of the Code is hereby amended

to read as follows:

Section 445. Powers, Duties, and Compensation. - The

vice mayor shall:

(1) xxxx

(2) Subject to civil service law, rules, and regulations,

appoint THE SECRETARY OF THE SANGGUNIANG BAYAN AND all OTHER

officials and employees [of the sangguniang bayan], INCLUDING THE

EMPLOYEES OF THE INDIVIDUAL MEMBERS THEREOF, except those whose

manner of appointment is specifically provided in this Code;

(3) XXX

SECTION 125 - Section 447, (a),(1), (v), (viii), (2) (x),

(3) (vii) (xi), (5) (xiv), (xv) of the Code are hereby amended as

follows:

Section 447 - Powers, Duties, Functions, and

Compensation. - (a) The sangguniang bayan, as the legislative

body of the municipality, shall enact ordinances, approve

resolutions and appropriate funds for the general welfare of the

municipality and its inhabitants pursuant to Section 16 of this

Code and in the proper exercise of the corporate powers of the

municipality as provided for under Section 22 of this Code, and

shall:

(1) PASS [Approve] ordinances and [pass] resolutions necessary

for an efficient and effective municipal government, and in this

connection shall:

(i) xxxx

(iv) [Adopt measures] ENACT ORDINANCES to protect the

inhabitants of the municipality from the harmful effects of

man-made or natural calamities; and to provide relief

services and assistance for victims during and IN the

aftermath of said disasters or calamities and ASSIST THEM in

their return to productive livelihood.

[following said events.]

(V) AUTHORIZE THE MAYOR TO ISSUE AN ENVIRONMENTAL CLEARANCE

CERTIFICATE AND A PERMIT TO OPERATE FOR ANY FIRM OR ENTITY

TO OPERATE IN THE MUNICIPALITY AFTER THE REQUIREMENTS OF

SECTION 2(D), 26 AND 27 HAVE BEEN COMPLIED WITH.

REQUIRE THE SUBMISSION OF AN ENVIRONMENTAL CLEARANCE

CERTIFICATE ISSUED BY THE DEPARTMENT OF ENVIRONMENT AND

NATURAL RESOURCES FOR PROJECTS, PROGRAMS AND ACTIVITIES

DEALING WITH LOGGING, QUARRYING, COMMERCIAL AND INDUSTRIAL

DISTRICTS, ZONES OR ESTABLISMENTS, RECLAMATIONS,

ESTABLISHMENTS AND OPERATION OF NON-FERROUS INDUSTRIES, IRON

AND STEEL MILLS, SMELTING PLANTS, OIL, GAS, AND PETROLEUM

AND PETROCHEMICAL INDUSTRIES, FOSSIL FUELLED, NUCLEAR, COAL-

FIRED, HYDRO-ELECTRIC, GEOTHERMAL AND OTHER MAJOR POWER

PLANTS, AND FOR THE CONSTRUCTION OF EDIFICES, ROADS, BRIDGES

AND SIMILAR FACILITIES AND OTHER PROJECTS OR PROGRAMS OF

CENTRAL GOVERNMENT AGENCIES OR PRIVATE SECTOR THAT

CRITICALLY IMPACTS ON THE ENVIRONMENT, SUBJECT TO THE

REQUIREMENTS OF SECTION 2 (D), 26 AND 27 OF THE CODE AS

AMENDED;

[(v)] (VI) Enact ordinances intended to prevent, suppress

and impose appropriate penalties for habitual drunkenness in

public places, vagrancy, mendicancy, prostitution,

establishment and maintenance of houses of ill repute,

gambling and other [prohibited] games of chance, fraudulent

devices and ways to obtain money or property, drug

addiction, maintenance of drug dens, drug pushing, juvenile

delinquency, SQUATTING, ILLEGAL VENDING AND PEDDLING, [the]

printing, distribution or exhibition of obscene or

pornographic materials or publications, and such other

activities inimical to the welfare and morals of the

inhabitants of the municipality;

[(vi)] (vii) xxx

[(vii)] (viii) xxx

[(viii)] (ix) xxx

[(xii)] (xiii) Provide [for] legal assistance to MUNICIPAL

AND barangay officials INCLUDING THE MEMBERS OF THE

MUNICIPAL POLICE who, in the performances of their official

duties, or on the occasion thereof, have to, initiate

judicial proceedings or defend themselves against legal

actionS [; and]. THE SANGGUNIANG BAYAN MAY AUTHORIZE THE

MUNICIPAL MAYOR TO ENGAGE THE SERVICES OF PRIVATE COUNSEL

FOR THIS PURPOSE; AND

[xiii] (xiv) xxx

(2) Generate and maximize the use of resources and revenues

for the development plans, program objectives and priorities of

the municipality as provided for under Section 18 of this Code,

with particular attention to agro-industrial development and

countryside growth and progress, and relative thereto, shall:

(i) xxx

(ii) xxx

(iii) xxx

(vii) Adopt a comprehensive land use plan for the

municipality WHICH SHALL BE REVIEWED EVERY FIVE YEARS

THEREAFTER: Provided, That the formulation, adoption, or

modification of said plan shall be in coordination with

the approved provincial comprehensive land use plan;

(v) xxx

(vi) xxx

(vii) xxx

(viii) xxx

(ix) xxx

(x) [Subject to national law,] AUTHORIZE THE MUNICIPAL

MAYOR process and approve subdivision AND CONDOMINIUM

plans for residential, commercial, or industrial

[purposes] and other development purposes[,] AND TO

ISSUE LICENSE OR AUTHORITY TO SELL SUCH SUBDIVISION LOTS

AND CONDOMINIUM UNITS and collect [processing] fees and

other charges THEREFOR SUBJECT TO NATIONAL LAW[,].

[t]The proceeds of which shall accrue entirely to the

municipality[;]. [Provided, however, That, where

approval by a national agency or office is required,

said approval shall not be withheld for more than thirty

(30) days from receipt of the application. Failure to

act on the application within the period stated above

shall be deemed as approval thereof.]

(xi) [Subject to the provisions of Book II of this Code,]

[g]Grant [the] exclusive privilege of constructing fish

corrals or fish pens, or the taking or catching of

bangus fry, prawn fry or kawag-kawag or fry of any

species or fish within the municipal waters SUBJECT TO

THE PROVISION OF BOOK II OF THIS CODE. THE MUNICIPAL

WATERS SHALL BE RESERVED FOR FISHING ACTIVITIES OF

RESIDENT FISHERFOLKS AND COOPERATIVES DULY REGISTERED

WITH THE COOPERATIVE DEVELOPMENT AUTHORITY IN ACCORDANCE

WITH R.A. 6938 WHERE AT LEAST TWO-THIRDS OF ITS MEMBERS

ARE RESIDENTS OF THE MUNICIPALITY CONCERNED.

(xv) xxx

(3) xxx

(i) xxx

(v) [Any law to the contrary notwithstanding] [a]Authorize

and license the establishment, operation and

maintenance of cockpits[,] AND COMMERCIAL BREEDING OF

GAMECOCKS, and regulate cockfighting [and commercial

breeding of gamecocks] AFTER COMPLIANCE WITH THE

REQUIREMENTS OF SECTIONS 2 (D), 26 and 27 OF THIS CODE

: Provided, That existing rights should not be

prejudiced.

IN THE CASE OF OTHER LEGALIZED GAMBLING AND GAMING

ACTIVITIES AUTHORIZED BY THE CENTRAL GOVERNMENT SUCH AS BUT

NOT LIMITED TO CASINOS, LOTTO OUTLETS, JAI-ALAI FRONTONS AND

BETTING STATIONS AND ON-LINE BINGO, THE SANGGUNIAN CONCERNED

MAY AUTHORIZE THE MAYOR TO ISSUE A PERMIT FOR THE OPERATION

WITHIN THE LOCAL JURISDICTION AND TO REGULATE ITS LOCATIONS

WITHIN THE MUNICIPALITY SUBJECT TO THE PROVISIONS OF

SECTIONS 2 (D), 26 AND 27 OF THIS CODE;

(vi)xxx

(4) xxx

(i) xxx

(5) Approve ordinances which shall ensure the efficient and

effective delivery of the basic services and facilities as

provided for under Section 17 of this Code, and in addition to

said services and facilities, shall:

(1) xxx

(ii) xxx

(iii) Authorize the establishment, maintenance and

operations of ferries, wharves, and other structure,

and marine and seashore or offshore activities intended

to accelerate productivity, AND CORRESPONDINGLY LEVY

TAXES, FEES AND CHARGES THEREOF;

(vi) Regulate traffic on all streets and bridges,

prohibit the putting up of encroachments or obstacles

thereon, and, when necessary in the interest of public

welfare, authorize the removal of encroachments and

illegal constructions in public places;

INSTALL AND ADMINISTER A TICKETING SYSTEM, FIX,

IMPOSE AND COLLECT FINES AND PENALTIES FOR ALL KINDS OF

VIOLATIONS OF TRAFFIC RULES AND REGULATIONS FOR MOVING

OR NON-MOVING MOTOR VEHICLES AND CONFISCATE DRIVERS'

LICENSES.

(xiv) Provide for the PROPER care, PROTECTION AND WELL-

BEING of paupers, the aged, the sick, persons of

unsound mind, disabled persons, BATTERED AND SEXUALLY

ABUSED PERSONS, abandoned minors, juvenile delinquents,

drug dependents, abused children and other needy and

disadvantaged persons, particularly children and youth

below eighteen (18) years of age and [, subject to

availability of funds,] establish and provide for the

operation of centers and facilities for said needy and

disadvantaged persons[;]. THE SANGGUNIANG BAYAN

SHALL APPROPRIATE FUNDS FOR THE IMPLEMENTATION OF THIS

PROVISION.

(xv) Establish and provide SEPARATE JAIL FACILITIES FOR

JUVENILE AND ADULT PRISONERS AND DETAINEES, AS WELL AS,

FOR MALE AND FEMALE PRISONERS AND DETAINEES; for the

maintenance and improvement of jails and detention

centers, institute sound jail management programs, and

appropriate funds for the subsistence of detainees and

convicted prisoners in the municipality;

(XVI) ESTABLISH AND MAINTAIN FIRE STATION STRUCTURES

FOR SOUND, EFFICIENT AND EFFECTIVE FIRE PROTECTION

MANAGEMENT.

(XVII) REGULATE THE ADVERTISING OF LIQUOR AND TOBACCO

PRODUCTS.

(XIV) ADOPT MEASURES TO ENHANCE THE FULL IMPLEMENTATION

OF THE NATIONAL AGRARIAN REFORM PROGRAM IN COORDINATION

WITH THE DEPARTMENT OF AGRARIAN REFORM.

SECTION 126. Section 450 (a) of the Code is hereby amended

to read as follows:

Section 450. Requisites for Creation. - (a) A

municipality or a cluster of barangay[s] may be converted into a

component city if it has [an] A LOCALLY GENERATED average

annual income , as certified by the [Department of Finance]

PROVINCIAL TREASURER , of at least [Twenty million pesos

(P20,000,000.00)] ONE HUNDRED MILLION PESOS (P100,000,000.00) for

the last two (2) years based on [1991] 1998 constant prices

[,] ; AN AVERAGE REAL PROPERTY TAX COLLECTION EFFICIENCY OF, AT

LEAST, EIGHTY PERCENT (8O%) DURING THE THREE YEARS PRECEDING THE

CURRENT CALENDAR YEAR IN THE CASE OF A MUNICIPALITY CONVERTED

INTO COMPONENT CITY, and if it has the following requisites:

(i) a contiguous territory of at least one hundred (100)

square kilometers, as certified by the Lands Management Bureau;

(ii) a population of not less than [one hundred fifty thousand

(150,000) inhabitants, as certified by the National Statistics

Office.

Provided: That, the creation thereof shall not reduce the

land area, population, and income of the original unit or units

at the time of said creation to less that the minimum

requirements prescribed herein.

(b) xxx

SECTION 127. Section 452 (a) of the same Code is hereby

amended to read as follows:

Section 452- Highly Urbanized Cities. - (a) Cities

with a minimum population of two hundred thousand (200,000)

inhabitants, as certified by the National Statistics Office,

and with the latest LOCALLY GENERATED annual income of at least

[Fifty Million Pesos (P50,000,000.00)] TWO HUNDRED FIFTY MILLION

PESOS (P250,000,000.00) based on [1991] 1998 constant prices,

as certified by the [city treasurer]DEPARTMENT OF FINANCE, AND AN

AVERAGE REAL PROPERTY TAX COLLECTION EFFICIENCY 0F, AT LEAST,

EIGHTY PERCENT (80%) FOR THE THREE YEARS PRECEDING THE CURRENT

CALENDAR YEAR, shall be classified as highly urbanized cities.

(b) xxx

SECTION 128. Section 454 of the Code is hereby amended to

read as follows:

Section 454 - Officials of the City Government - (a)

There shall be in each city a mayor, a city vice-mayor,

sangguniang panlungsod members [,]. IN ADDITION, THE CITY MAYOR

SHALL APPOINT THE FOLLOWING OFFICIALS [a secretary to the

sangguniang panlungsod,] a city treasurer, a city assessor, a

city accountant, a city budget officer, a city planning and

development coordinator, a city engineer, a city health officer,

a city civil registrar, a city administrator, a city legal

officer, a city veterinarian, a city social welfare and

development officer, A CITY ENVIRONMENT AND NATURAL RESOURCES

OFFICER, A CITY COOPERATIVES OFFICER, A CITY BUILDINGS AND

GROUNDS OFFICER, A CITY HUMAN RESOURCE DEVELOPMENT OFFICER, A

CITY FIRE PROTECTION OFFICER, and a city general services

officer.

(b) [In addition thereto, t] The City mayor may appoint a

city architect, a city information officer, a city agriculturist,

AND a city population officer. [a city environment and natural

resources officer, and a city cooperative officer].

SECTION 129 - Section 455- (b) (3)(vii) of the Code is

hereby amended to read as follows:

Section 455. Chief Executive: Powers, Duties and

Compensation.

(a) xxx

(b) xxx

(1) xxx

(v) Appoint all officials and employees whose salaries and

wages are wholly or mainly paid out of city funds and whose

appointments are not otherwise provided for in this Code, as

well as those he may be authorized by law to appoint EXCEPT

THOSE WHO ARE TO BE APPOINTED BY THE VICE MAYOR AS PROVIDED

FOR IN SECTION 456 OF THIS CODE.

(3) xxx

(iv) Issue licenses and permits and suspend or revoke the

same for any violation of the conditions upon which said

licenses a permits had been issued pursuant to law a

ordinance [;]. THIS INCLUDES THE ISSUANCE OF LICENSES AND

PERMITS FOR GAMBLING OPERATIONS AUTHORIZED BY LAW SUBJECT TO

THE ORDINANCE OF THE SANGGUNIANG PANLUNGSOD;

IN THE CASE OF OTHER LEGALIZED GAMBLING AND GAMING

ACTIVITIES AUTHORIZED BY THE CENTRAL GOVERNMENT SUCH AS BUT

NOT LIMITED TO CASINOS, LOTTO OUTLETS, JAI-ALAI FRONTONS AND

BETTING STATIONS AND ON-LINE BINGO, THE SANGGUNIAN CONCERNED

MAY AUTHORIZE THE MAYOR TO ISSUE A PERMIT FOR THE OPERATION

WITHIN THE LOCAL JURISDICTION AND TO REGULATE ITS LOCATIONS

WITHIN THE CITY SUBJECT TO THE PROVISIONS OF SECTIONS 2 (D),

26 AND 27 OF THIS CODE;

(vii) Adopt adequate measures to safeguard and conserve

land, mineral, marine, forest, THE ECOLOGICAL SYSTEM and

other resources of the city[.] AND ISSUE, UPON THE

AUTHORIZATION OF THE SANGGUNIANG PANGLUNGSOD, AN

ENVIRONMENTAL CLEARANCE CERTIFICATE AND A PERMIT TO OPERATE

FOR ANY FIRM OR ENTITY TO OPERATE IN THE CITY.

SECTION 130. Section 456 (3) of the code is hereby amended

to read as follows:

Section 456. Powers, Duties and Compensation. - (a)The

city vice-mayor shall:

(1) Xxxx

(2) Subject to civil service law, rules and Regulations,]

[a]Appoint THE SECRETARY OF THE SANGGUNIAN AND all OTHER

officials and employees THEREOF, [of the sangguniang

panglunsod,] AND SUCH EMPLOYEES OF THE INDIVIDUAL MEMBERS OF THE

SANGGUNIANG PANLUNGSOD, except those whose manner of appointment

is specifically provided in this Code;

(3) xxx

SECTION 131. Section 458 of the Code is hereby amended to

read as follows:

Section 458. Powers, Duties, Functions and

Compensation. (a) xxx

(1) xxx

(i) xxx

(ii) xxx

(V) AUTHORIZE THE MAYOR TO ISSUE AN ENVIRONMENTAL CLEARANCE

CERTIFICATE AND A PERMIT TO OPERATE FOR ANY FIRM OR ENTITY TO

OPERATE IN THE CITY AFTER PUBLIC CONSULTATIONS HAVE BEEN COMPLIED

WITH OR AFTER THE REQUIREMENTS OF SECTION 2(D), 26 AND 27 HAVE

BEEN COMPLIED WITH.

REQUIRE THE SUBMISSION OF AN ENVIRONMENTAL CLEARANCE

CERTIFICATE ISSUED BY THE DEPARTMENT OF ENVIRONMENT AND NATURAL

RESOURCES FOR PROJECTS, PROGRAMS, AND ACTIVITIES DEALING WITH

LOGGING, QUARRYING, COMMERCIAL AND INDUSTRIAL DISTIRCTS, ZONES OR

ESTABLISHMENTS, RECLAMATION, ESTABLISHMENT AND OPERATION OF NON-

FERROUS INDUSTRIES, IRON AND STEEL MILLS, SMELTING PLANTS, OIL,

GAS AND PETROLEUM AND PETROCHEMICAL INDUSTRIES, FOSSIL-FUELLED,

NUCLEAR, COAL-FIRED, HYDRO-ELECTRIC, GEOTHERMAL AND OTHER MAJOR

POWER PLANTS, AND FOR THE CONSTRUCTION OF EDIFIES, ROADS,

BRIDGES, AND SIMILAR FACILITIES AND OTHER PROJECTS OR PROGRAMS OF

CENTRAL GOVERNMENT AGENCIES OR PRIVATE SECTOR THAT CRITICALLY

IMPACTS ON THE ENVIRONMENT, SUBJECT TO THE REQUIREMENTS OF

SECTION 2 (D), 26 AND 27 OF THE CODE AS AMENDED;

[v] (vi) Enact ordinances intended to prevent, suppress, and

impose appropriate penalties for habitual drunkenness in public

places, vagrancy, mendicancy, prostitution, establishment and

maintenance of houses of ill repute, gambling and other

prohibited games of chance, fraudulent devices and ways to obtain

money or property, drug addiction, maintenance of drug dens, drug

pushing, juvenile delinquency, the printing, distribution or

exhibition of obscene or pornographic materials or publications,

and such other activities inimical to the welfare and morals of

the inhabitants of the city;

(xii) Provide legal assistance to CITY AND barangay

officials INCLUDING THE MEMBERS OF THE CITY POLICE who, in the

performance of their official duties or on the occasion thereof,

have to initiate judicial proceedings or defend themselves

against legal actionS [;and]. THE SANGGUNIANG PANLUNGSOD MAY

AUTHORIZE THE CITY MAYOR TO ENGAGE THE SERVICES OF PRIVATE

COUNSEL FOR THIS PURPOSE; AND

(xiii) xxx

(2) Generate and maximize the use of resources and revenues

for the development plans, program objectives and priorities of

the city as provided for under Section 18 of this Code, with

particular attention to agro-industrial development and city-wide

growth and progress, and relative thereto, shall:

(i) xxx

(ii) xxx

(x) [Subject to national law,] AUTHORIZE THE CITY MAYOR TO

process and approve subdivision AND CONDOMINIUM plans for

residential, commercial, or industrial [purposes] and other

development purposes[,] AND TO ISSUE LICENSE OR AUTHORITY TO

SELL SUCH SUBDIVISION LOTS AND CONDOMINIUM UNITS and collect

[processing] fees and other charges THEREFOR SUBJECT TO

NATIONAL LAWS[,]. [t]The proceeds of which shall accrue entirely

to the municipality[;]. [Provided, however, That, where approval

by a national agency or office is required, said approval shall

not be withheld for more than thirty (30) days from receipt of

the application. Failure to act on the application within the

period stated above shall be deemed as approval thereof.]

(3) xxxx

(v) [Any law to the contrary notwithstanding] [a]Authorize and

license the establishment, operation and maintenance of

cockpits[,] AND COMMERCIAL BREEDING OF GAMECOCKS, and regulate

cockfighting [and commercial breeding of gamecocks] AFTER

COMPLIANCE WITH THE REQUIREMENTS OF SECTIONS 2 (D), 26 and 27 OF

THIS CODE : Provided, That existing rights should not be

prejudiced.

IN THE CASE OF OTHER LEGALIZED GAMBLING AND GAMING

ACTIVITIES AUTHORIZED BY THE CENTRAL GOVERNMENT SUCH AS BUT NOT

LIMITED TO CASINOS, LOTTO OUTLETS, JAI-ALAI FRONTONS AND BETTING

STATIONS AND ON-LINE BINGO, THE SANGGUNIAN CONCERNED MAY

AUTHORIZE THE MAYOR TO ISSUE A PERMIT FOR THE OPERATION WITHIN

THE LOCAL JURISDICTION AND TO REGULATE ITS LOCATIONS WITHIN THE

CITY SUBJECT TO THE PROVISIONS OF SECTIONS 2 (D), 26 AND 27 OF

THIS CODE;

(vi) xxx

SECTION 132 - Section 461(a) of the Code is hereby amended

to read as follows:

Section 461. Requisites for Creation. - (a) A province

may be created if it has [an] A LOCALLY GENERATED average annual

income, as certified by the Department of Finance, of not less

than [twenty million pesos (P20,000,000.00)] TWO HUNDRED MILLION

PESOS (P200,000,000.00) based on [1991] 1998 constant prices; AN

AVERAGE REAL PROPERTY TAX COLLECTION EFFICIENCY, OF AT LEAST,

EIGHTY PERCENT (80%) DURING THE THREE YEARS PRECEDING THE CURRENT

CALENDAR YEAR; and it has the following requisites:

(i) contiguous territory of at least two thousand

(2,000) square kilometers, as certified by the Lands

Management Bureau; or (ii) population of not

less than two hundred fifty thousand (250,000)

inhabitants as certified by the National [Census and]

Statistics Office.

Provided, That, the creation thereof shall not reduce

the land area, population, and income of the original unit or

units at the time of said creation to less than the minimum

requirements prescribed herein.

SECTION 133 - Section 463 (a) and (b) of the Code are hereby

amended to read as follows:

Section 463 - Officials of the Provincial Government. -

(a) There shall be in each province a governor, a vice-governor,

members of the sangguniang panlalawigan. IN ADDITION, THE

PROVINCIAL GOVERNOR SHALL APPOINT THE FOLLOWING; [a secretary to

the sangguniang panlalawigan], a provincial treasurer, a

provincial assessor, a provincial accountant, a provincial

engineer, a provincial budget officer, a provincial planning and

development coordinator, a provincial legal officer, a provincial

administrator, a provincial health officer, a provincial social

welfare and development officer, a provincial general services

officer, a provincial agriculturist, A PROVINCIAL ENVIRONMENT AND

NATURAL RESOURCES OFFICER, A PROVINCIAL COOPERATIVES OFFICER, A

HUMAN RESOURCE DEVELOPMENT OFFICER , and a provincial

veterinarian.

(b) [In addition thereto,] [t]The governor may ALSO appoint

a provincial population officer, [ a provincial natural resources

and environment officer, a provincial cooperative officer,] a

provincial architect, and a provincial information officer.

SECTION 134 - Section 465, (b),(3)(v) of the Code is hereby

amended by adding sub-paragraph vii to read as follows:

Section 465. The Chief Executive: Powers, duties,

Functions and Compensation.

(1) XXX

(3) XXX

(i) xxx

(ii) xxx

(v) Adopt adequate measures to safeguard and

conserve land, mineral, marine, forest and other

resources, AND PRESERVE THE ECOSYSTEM of the

province, in coordination with the mayors of

component cities and municipalities.

THE GOVERNOR MAY ISSUE ENVIRONMENTAL CLEARANCE

CERTIFICATE FOR ANY FIRM OR ENTITY TO OPERATE IN THE PROVINCE

WHOSE ENVIRONMENTAL IMPACT AFFECTS TWO OR MORE MUNICIPALITIES

AFTER THE APPROVAL OF TWO-THIRD VOTES OF THE MEMBERS OF THE

SANGGUNIANG PANLALAWIGAN, AND UPON FAVORABLE RECOMMENDATION OF

THE SANGGUNIANG BAYANS OF THE MUNICIPALITY WHERE THE FIRM OR

ENTITY WOULD OPERATE AS WELL AS THE SANGGUNIANG BAYANS OF THE

AFFECTED MUNICIPALITIES.

SECTION 135 - Section 466 (2) of the Code is hereby amended

to read as follows:

Section 466. Powers, Duties, and Compensation. - (a)

The vice-governor shall:

(1) xxxx

(2) [Subject to civil service law, rules and regulations,]

[a]Appoint THE SECRETARY OF THE SANGGUNIANG PANLALAWIGAN

AND all OTHER officials and employees [ of the

sangguniang panlalawigan] INCLUDING THE EMPLOYEES OF THE

INDIVIDUAL MEMBERS THEREOF, except those whose manner of

appointment is specifically provided in this Code;

(3) Xxx

SECTION 136 - Section 468, (a), (4), (vi), (vii) of the Code

is hereby amended to read as follows:

Section 468 - Powers, Duties, Functions, and

Composition. - (a) The sangguniang panlalawigan, as the

legislative body of the province, shall enact ordinances, approve

resolutions and appropriate funds for the general welfare of the

province and its inhabitants pursuant to Section 16 of this Code

and in the proper exercise of the corporate powers of the

province for under Section 22 of this Code, and shall:

(1) XXX

(3) Subject to the provision of the Book II of this Code,

grant franchises, approve the issuance of permits or licenses, or

enact ordinances levying taxes, fees and charges upon such

conditions and for such purposes intended to promote the general

welfare of the inhabitants of the province, and pursuant to this

legislative authority shall:

(i) Fix and impose reasonable fees and charges for all services

rendered by the provincial government to private persons and

entities; [and]

(ii) Regulate THE OPERATION AND FIX LICENSE FEES OF

PUBLIC UTILITY VEHICLES OPERATING WITHIN THE PROVINCE [and

fix the license fees for such activities as provided for

under this Code].

(4) Approve ordinances which shall ensure the efficient and

effective delivery of the basic services and facilities as

provided for under Section 17 of this Code, and, in addition to

said services and facilities, shall:

(i) xxx

(II) AUTHORIZE THE GOVERNOR TO ISSUE AN

ENVIRONMENTAL CLEARANCE CERTIFICATE AND A PERMIT TO OPERATE FOR

ANY FIRM OR ENTITY TO OPERATE IN THE PROVINCE AFTER PUBLIC

CONSULTATIONS HAVE BEEN COMPLIED WITH OR AFTER THE REQUIREMENTS

OF SECTION 2 (D), 26 AND 27 HAVE BEEN COMPLIED WITH.

REQUIRE THE SUBMISSION OF AN ENVIRONMENTAL CLEARANCE

CERTIFICATE ISSUED BY THE DEPARTMENT OF ENVIRONMENT AND

NATURAL RESOURCES FOR PROJECTS, PROGRAMS, AND ACTIVITIES

DEALING WITH LOGGING, QUARRYING, COMMERCIAL AND

INDUSTRIAL DISTRICTS, ZONES OR ESTABLISHMENT,

RECLAMATION, ESTABLISHMENT AND OPERATION OF NON-FERROUS

INDUSTRIES, IRON AND STEEL MILLS, SMELTING PLANTS, OIL,

GAS, AND PETROLEUM AND PETROCHEMICAL INDUSTRIES, FOSSIL-

FUELLED, NUCLEAR, COAL-FIRED, HYDRO-ELECTRIC, GEOTHERMAL

AND OTHER MAJOR POWER PLANTS, AND FOR THE CONSTRUCTION OF

EDIFICES, ROADS, BRIDGES AND SIMILAR FACILITIES AND OTHER

PROJECTS OR PORGRAMS OF CENTRAL GOVERNMENT AGENCIES OR

PRIVATE SECTOR THAT CRITICALLY IMPACTS ON THE

ENVIRONMENT, SUBJECT TO THE REQUIREMENTS OF SECTION 2(D),

26 AND 27 OF THE CODE AS AMENDED;

(III) xxx

(vi) Provide for the PROPER care, PROTECTION AND WELL-

BEING of paupers, the aged, the sick, persons of

unsound mind, BATTERED AND SEXUALLY ABUSED PERSONS,

abandoned minors, abused children, disabled persons,

juvenile delinquents, drug dependents, and other needy

and disadvantaged persons, particularly children and

youth below eighteen (18) years of age; [subject to

availability funds,] establish and support the

operation of PROVINCIAL REHABILITATION AND/OR CRISES

centers and facilities for said needy and disadvantaged

persons; and facilitate efforts to promote the welfare

of families below the poverty threshold, the

disadvantaged, and the exploited. THE SANGGUNIANG

PANLALAWIGAN SHALL APPRORIATE FUNDS TO BE INCLUDED IN

THE ANNUAL BUDGET OF THE PROVINCE, FOR THE PROPER

IMPLEMENTATION OF THIS PROVISION.

(v) xxx

SECTION 137- Section 470 of the Code is hereby amended to

read as follows:

Section 470. Appointment, Qualifications, Powers and

Duties - [(a) The treasurer shall be appointed by the Secretary

of Finance from a list of at least three (3) ranking, eligible

recommendees of the governor or mayor, as the case may be,

subject to civil service law, rules, and regulations.]

[(b) The treasurer shall be under the administrative

supervision of the governor or mayor, as the case may be, to whom

he shall report regularly on tax collection efforts in the local

government unit.]

[(c)] (A) No person shall be appointed treasurer unless he

is a citizen of the Philippines, a resident of the local

government unit concerned, of good moral character, a holder of

college degree preferably in commerce, public administration or

law from a recognized college or university, and a first grade

civil service eligible or its equivalent. He must have acquired

experience in treasury or accounting service for at least five

(5) years in the case of the provincial or city treasurer, and

three years in the case of municipal treasurer.

The appointment of a treasurer shall be mandatory for

provincial, city and municipal governments.

[(d)] (C) The treasurer shall take charge of the treasury

office, perform the duties provided for under Book II of this

Code, and shall:

(1) Advise the governor or mayor, as the case may be,

the sanggunian, and other local government [and

national] officials concerned regarding THE COLLECTION

EFFORT IN THE LOCAL GOVERNMENT UNIT AS WELL AS

disposition of local government funds and on such other

matters relative to public finance;

(2) xxx

[(e)] (D) Exercise such other powers and perform such other

duties and functions as may be prescribed by law or ordinance.

SECTION 138. Section 471 of the Code is hereby amended to

read as follows:

Section 471. Assistant Treasurer. - (a) An assistant

treasurer may be appointed by the [Secretary of Finance from a

list of at least three (3) ranking eligible recommendees of the]

governor or mayor AS THE CASE MAY BE, subject to civil service

law, rules and regulations.

SECTION 139 - Article Seven and Section 477 of the Code are

hereby amended by adding Article Seven - A and B and Section 477

- I and 2 to read as follows:

Article Seven - The Engineer

Section 477 - Qualifications, Powers, and Duties. - (a)

No person shall be appointed engineer unless he is a citizen of

the Philippines, PREFERABLY a resident of the local government

unit concerned of good moral character and a licensed civil

engineer. He must have acquired experience in the practice of his

profession for at least five (5) years in the case of the

provincial or city engineer, and three (3) years in the case of

the municipal engineer.

The appointment of an engineer shall be mandatory for the

provincial, city, and municipal governments. [The city and

municipal engineer shall also act as the local building

official.]

(a) xxx

ARTICLE SEVEN - A -

BUILDINGS AND GROUNDS OFFICER -

SECTION 477 - I - (A) QUALIFICATIONS, POWERS, AND DUTIES -

NO PERSON SHALL BE APPOINTED BUILDINGS AND GROUNDS OFFICER UNLESS

HE IS A CITIZEN OF THE PHILIPPINES, PREFERABLY A RESIDENT OF THE

LOCAL GOVERNMENT UNIT CONCERNED, OF GOOD MORAL CHARACTER, AND A

LICENSED ARCHITECT OR CIVIL ENGINEER. HE MUST HAVE ACQUIRED

DIVERSIFIED AND PROFESSIONAL EXPERIENCE IN BUILDING DESIGN AND

CONSTRUCTION FOR AT LEAST FIVE (5) YEARS IN THE CASE OF THE

PROVINCIAL OR CITY, AND AT LEAST THREE (3) YEARS, IN THE CASE OF

A MUNICIPAL, BUILDINGS AND GROUNDS OFFICER.

THE APPOINTMENT OF A BUILDINGS AND GROUNDS OFFICER IS

MANDATORY FOR A CITY AND A MUNICIPALITY.

(B) THE BUILDINGS AND GROUNDS OFFICER SHALL TAKE CHARGE OF

THE BUILDINGS AND GROUNDS SERVICES AND SHALL:

(1) BE PRIMARILY RESPONSIBLE FOR ENFORCEMENT OF THE

PROVISIONS OF THE BUILDING CODE OF THE PHILIPPINES AS

WELL AS THOSE THE SANGGUNIAN CONCERNED MAY PRESCRIBE;

(i) ISSUE BUILDING PERMITS;

(ii) INSPECT DURING REASONABLE TIME AND DETERMINE

COMPLIANCE WITH THE REQUIREMENTS OF THE BUILDING CODE

AS WELL AS RULES AND REGULATIONS PROMUGATED BY THE

SANGGUNIAN;

(1) ORDER WORK STOPPAGE WHEN THE CONSTRUCTION OF ANY

BUILDING IS FOUND TO BE VIOLATIVE OF THE PROVISIONS OF

THE BUILDING CODE AND THE SANGGUNIAN RULES AND

REGULATIONS, AND PRECRIBE THE TERMS AND CONDITIONS FOR

RESUMPTION OF SAID WORK;

2) ORDER DISCONTUANCE OF OCCUPANCY OR USE OF ANY

BUILDING OR STRUCTURE OR PORTION THEREOF, FOUND

OCCUPIED OR USED CONTRARY TO THE PROVISIONS OF THE

BUILDING CODE AND THE RULES AND REGULATIONS PRESCRIBED

BY THE SANGGUNIAN;

(3) MAINTAIN AN INVENTORY, AND CONDUCT A PERIODIC

ASSESSMENT OF THE CONDITIONS OF ALL BUILDINGS IN THE

LOCALITY; AND,

(4) EXERCISE OTHER POWERS AND PERFORM OTHER DUTIES AND

FUNCTIONS AS MAY BE PROVIDED BY LAW OR ORDINANCE.

ARTICLE SEVEN -B- FIRE PROTECTION OFFICE

SECTION 477 - 2 - QUALIFICATIONS, POWERS AND DUTIES - (A) NO

PERSON SHALL BE APPOINTED FIRE PROTECTION OFFICER UNLESS HE IS A

CITIZEN OF THE PHILIPPINES, A RESIDENT OF THE LOCAL GOVERNMENT

UNIT CONCERNED, OF GOOD MORAL CHARACTER, AND A LICENSED

ELECTRICAL ENGINEER. HE MUST HAVE ACQUIRED EXPERIENCE IN THE

PRACTICE OF HIS PROFESSION FOR AT LEAST FIVE (5) YEARS IN THE

CASE OF THE CITY, AND THREE (3) YEARS IN THE CASE OF THE

MUNICIPAL, FIRE PROTECTION OFFICER.

THE APPOINTMENT OF THE FIRE PROTECTION OFFICER SHALL BE

MANDATORY FOR THE CITY AND MUNICIPAL GOVERNMENTS.

(B) THE FIRE PROTECTION OFFICER SHALL BE RESPONSIBLE FOR:

(1) THE PREVENTION AND SUPRESSION OF ALL DESTRUCTIVE FIRES

ON BUILDINGS, HOUSES AND OTHER STRUCTURES; FORESTS, PUBLIC

PLANTATIONS OR NURSERIES; PUBLIC TRANSPORT VEHICLES,

EQUIPMENT OR MACHINERY; SHIPS, VESSELS AND OTHER PUBLIC

TRANSPORT CRAFTS DOCKED AT PIERS OR WHARVES OR ANCHORED AT

MAJOR SEAPORTS; PETROLEUM INDUSTRY INSTALLATIONS, PLANE

CRASHES AND OTHER SIMILAR INCIDENTS;

(2) ENFORCING THE FIRE CODE AND OTHER RELATED LAWS;

(3) INVESTIGATING CAUSES OF DESTRUCTIVE FIRES AND, IF

WARRANTED, FILING OF THE PROPER COMPLAINTS RELATIVE

THERETO.

(4) MONITORING, EVALUATING, AND WHENEVER POSSIBLE,

ASSISTING IN THE SUPPRESSION OF DESTRUCTIVE FIRES OCCURING

IN NEIGHBORING LOCALITIES.

(5) INITIATING FIRE PROTECTION AND EMERGENCY SERVICES

PROGRAMS AND PUBLIC SAFETY DRILLS SUCH AS FOR RESCUE AND

EVACUATION IN FIRE-RELATED DISASTROUS INCIDENTS.

(6) INITIATING PROGRAMS DESIGNED TO IMPROVE AND

STRENGTHEN THE FIRE PROTECTION CAPABILITY OF THE LOCAL

GOVERNMENT UNIT; AND

(7) EXERCISING OTHER POWERS AND PERFORMING OTHER DUTIES

AND FUNCTIONS AS MAY BE PROVIDED BY LAW OR ORDINANCE.

SECTION 140. Section 478 of the Code is hereby amended to

read as follows:

Section 478. Qualifications, Powers and Duties - (a) No

person shall be appointed health officer unless he is a citizen

of the Philippines, a resident of the local government unit

concerned, of good moral character, and a licensed medical

practitioner. He must have acquired experience in the practice

of his profession for at least five (5) years in the case of the

provincial or city health officer, and three (3) years in the

case of the municipal health officer.

The appointment of a health officer shall be mandatory for

provincial, city and municipal governments.

(b) the health officer shall take charge of the office on

health services shall: xxx

(4) COORDINATE WITH THE DEPARTMENT OF HEALTH AND THE OTHER

LOCAL GOVERNMENT UNITS TO ENSURE AN INTEGRATED APPROACH TO THE

DELIVERY OF HEALTH CARE SERVICES THROUGH AREA-BASED HEALTH

PLANNING, COMPLEMENT HEALTH SERVICES AMONG OTHER LOCAL GOVERNMENT

UNITS AND WITH THE DEPARTMENT OF HEALTH THROUGH COMPREHENSIVE

HEALTH CARE AGREEMENTS (CHCAs) AND OTHER INSTRUMENTS: PROVIDED,

THAT THE FORMULATION OF SUCH AGREEMENTS AND INSTRUMENTS AS WELL

AS THE PROGRAMMING, PLANNING, PRIORITIZING OF PROJECTS AND

IMPLEMENTATION OF THE SAME SHALL BE UNDERTAKEN IN COLLABORATION

AND TOGETHER WITH THE LOCAL GOVERNMENT UNITS CONCERNED;

(5) IN THE CASE OF THE PROVINCIAL HEALTH OFFICER, HE/SHE

COORDINATE WITH THE HEALTH OFFICERS OF COMPONENT CITIES AND

MUNICIPALITIES FOR THE PURPOSE OF INTEGRATION, COORDINATION, AND

MONITORING LOCAL HEALTH PROGRAMS;"

SECTION 141. An Article shall be added after Article Ten

Article, to be known as Article Ten -A- SECTION 481-ENTITLED

HUMAN RESOURCE DEVELOPMENT OFFICER and shall read as follows:

ARTICLE TEN - The Administrator

ARTICLE TEN - A - HUMAN RESOURCE

DEVELOPMENT OFFICER

SECTION 480 - I - QUALIFICATIONS, TERMS, POWERS, AND

DUTIES - (a) NO PERSON SHALL BE APPOINTED HUMAN RESOURCE

DEVELOPMENT OFFICER UNLESS HE IS A CITIZEN OF THE PHILIPPINES, A

RESIDENT OF THE LOCAL GOVERNMENT UNIT CONCERNED, OF GOOD MORAL

CHARACTER, HOLDER OF A COLLEGE DEGREE, PREFERABLY IN HUMAN

RESOURCE DEVELOPMENT, PERSONNEL MANAGEMENT, PUBLIC

ADMINISTRATION, LAW, OR OTHER RELATED COURSE FROM RECOGNIZED

COLLEGE OR UNIVERSITY, AND HOLDER OF FIRST GRADE CIVIL SERVICE

ELIGIBILITY OR ITS EQUIVALENT. HE MUST HAVE ACQUIRED EXPERIENCE

IN PERSONNEL MANAGEMENT AND HUMAN RESOURCE DEVELOPMENT WORK FOR

AT LEAST FIVE (5) YEARS IN THE CASE OF THE PROVINCIAL OR CITY,

AND THREE (3) YEARS IN THE CASE OF THE MUNICIPAL, HUMAN RESOURCE

DEVELOPMENT OFFICER.

THE APPOINTMENT OF A HUMAN RESOURCE DEVELOPMENT OFFICER IS

MANDATORY FOR THE PROVINCIAL AND CITY GOVERNMENTS AND OPTIONAL

FOR THE MUNICIPAL GOVERNMENT.

(B) THE HUMAN RESOURCE DEVELOPMENT OFFICER SHALL:

(1) PROVIDE DIRECTION AND SUPERVISION OF ACTIVITIES INVOLVING

PERSONNEL MANAGEMENT AND HUMAN RESOURCE DEVELOPMENT;

(2) HANDLE ACTIVITIES PERTAINING TO PERSONNEL MOVEMENT,

EMPLOYEE DEVELOPMENT AND WELFARE BENEFITS;

(3) REVIEW AND PROCESS APPOINTMENT PAPERS, PROMOTIONS,

TRANSFERS, DETAILS, LEAVES OF ABSENCE AND OTHER PERSONNEL

MOVEMENTS;

(4) SUPERVISE PREPARATION OF PAYROLLS, UPDATE REPORTS ON

SALARIES, SALARY DIFFERENTIALS, AND OTHER COMPENSATIONS AND

EMOLUMENTS;

(5) CONDUCT TESTS, INTERVIEWS, EVALUATION OF APPLICATIONS AND

RECOMMEND PLACEMENT OF QUALIFIED APPLICANTS.

(6) ACT AS CUSTODIAN OF RECORD OF PERSONNEL IN HIS

JURISDICTION;

(7) PROVIDE APPROPRIATE SECRETARIAT SERVICES FOR THE PROMOTION

AND SELECTION BOARD;

(8) DESIGN MODULES FOR THE TRAINING REQUIREMENTS, COORDINATE

AND CONDUCT IN-HOUSE SEMINARS, WORKSHOPS AND TRAINING FOR

EMPLOYEES;

(9) PREPARE STUDIES ON EMPLOYEE BENEFITS, AND PROPOSE POLICY

ORDERS DESIGNED FOR EMPLOYEES' WELFARE;

(10) COORDINATE WITH THE CIVIL SERVICE COMMISSION ON PERSONNEL

MATTERS; AND

(11) EXERCISE OTHER POWERS AND PERFORM OTHER DUTIES AND FUNCTIONS

AS MAY BE PROVIDED BY LAW OR ORDINANCE.

SECTION 142. Section 482 of the Code is hereby amended to

read as follows:

Section 482. Qualifications, Powers and Duties. -

(a) No person shall be appointed agriculturist unless he is a

citizen of the Philippines, a resident of the local government

unit concerned, of good moral character, a holder of a college

degree in agriculture or any related course from a recognized

college or university and a first grade civil service eligible or

its equivalent. He must have practiced his profession in

agriculture or acquired experience in a related field for at

least five (5) years in the case of the provincial or city

agriculturist, and three (3) years in the case of the municipal

agriculturist.

"The position of an agriculturist shall be mandatory for the

provinc[ial]ES [government,] MUNICIPALITIES and [optional for

the] cit[y]IES WHICH HAVE AGRICULTURAL AREAS [and urban municipal

governments].

SECTION 143. Section 483. Qualifications, Powers and

Duties of the Code is hereby amended to read as follows:

SECTION 483. Qualifications, Powers and Duties. -

(a) No person shall be appointed social welfare and development

officer unless he is a citizen of the Philippines, a resident of

the local government unit concerned, of good moral character, a

duly licensed social worker [ or a holder of a college degree

preferably in sociology or any related course from recognized

college or university, and a first grade civil service eligible

or its equivalent ]. He must have acquired experience in the

practice of social work for at least five (5) years in the case

of the provincial or city social welfare and development officer,

and three (3) years in the case of the municipal social welfare

and development officer.

The appointment of social welfare and development

officer is mandatory for the provincial, [and] city [government

and optional for] and municipal governments.

ARTICLE FOURTEEN -

THE ENVIRONMENT AND NATURAL RESOURCES OFFICER

SECTION 144. Section 484 of the Code is hereby amended to

read as follows:

Section 484 - Qualifications, Powers and Duties. - (a)

No person shall be appointed environment and natural resources

officer unless he is a citizen of the Philippines, a resident of

the local government unit concerned, of good moral character, a

holder of a college degree preferably in environment, forestry,

agriculture or any related course from a recognized college or

university, and a first grade civil service eligible or its

equivalent. He must have acquired experience in environmental and

natural resources management, conservation, and utilization, for

at least five (5) years in the case of the provincial or city

environment and natural resources officer, and three (3) years in

the case of the municipal environment and natural resources

officer.

The appointment of the environment and natural resources

officer is [optional] MANDATORY for the provincial[,] AND city

[and] BUT OPTIONAL FOR municipal governments.

(b) xxx

ARTICLE SEVENTEEN -

THE COOPERATIVES OFFICER

SECTION 145. Section 487 (a) of the Code is hereby amended

to read as follows:

Section 487 - Qualifications, Powers and Duties. - (a)

No person shall be appointed cooperatives officer unless he is a

citizen of the Philippines a resident of the local government

unit concerned, of good moral character, a holder of a college

degree preferably in business administration with special

training in cooperatives or any related course from a recognized

college or university, and a first grade civil service eligible

or its equivalent. He must have experience in cooperatives

organization and management for at least five (5) years in the

case of the provincial or city cooperatives officer, and three

(3) years in the case of the municipal cooperatives officer.

The appointment of the cooperatives officer is [optional]

MANDATORY for the provincial and city [,] [and] BUT OPTIONAL FOR

municipal governments.

SECTION 146. Section 492 of the Code is hereby amended to

read as follows:

Section 492. Representation, Chapters, National Liga -

Every barangay shall be represented in said liga by the punong

barangay or, in his absence or incapacity, by [a] THE HIGHEST

RANKING sanggunian member [duly elected for the purpose among its

members], who shall attend meetings or deliberations called by

the different chapters of the liga. xxx"

SECTION 147. Section 508 of the Code is hereby amended to

read as follows:

Section 508. Organizations - (a) Vice-governors, vice-

mayors, sangguniang members of barangays, municipalities,

component cities, highly urbanized cities and municipalities, and

other [elective] officials and local government units, including

those of the Metropolitan Manila are and any metropolitan

political subdivisions, may form their respective leagues or

federations, subject to applicable provisions of this title and

pertinent provisions of this Code.

BOOK FOUR

MISCELLANEOUS AND FINAL PROVISIONS

Title One - Penal Provisions

SECTION 148. Section 513 of the Code is hereby amended to

read as follows:

Section 513 - Failure To Post and Publish the

[Itemized] Monthly [Collections and Disbursements] STATEMENTS OF

INCOME AND EXPENDITURES. - Failure by the local treasurer or the

local chief accountant to post the [itemized] monthly

[collections and disbursements] STATEMENTS OF INCOME AND

EXPENDITURES of the local government unit concerned within ten

(10) days following the end of every month and for at least two

(2) consecutive weeks at prominent places in the main office

building of the local government unit concerned, its plaza and

main street, and to publish said [itemization] STATEMENTS OF

INCOME AND EXPENDITURES in a newspaper of general circulation,

where available, in the territorial jurisdiction of such unit,

shall be punishable by a fine not exceeding [Five hundred pesos

(P500.00)] TEN THOUSAND PESOS (P10,000.00) or by imprisonment not

exceeding [one (1) month] ONE (1) YEAR , or both such fine and

imprisonment, at the discretion of the court.

SECTION 149. Section 516 of the Code is hereby amended to

read as follows:

Section 516 - Penalties for Violation of Tax

Ordinances. - The sanggunian of a local government unit is

authorized to prescribe fines or other penalties for violation of

tax ordinances but in no case shall such fines be less than One

thousand pesos (P1,000.00) nor more than [Five] TEN thousand

pesos [(P5,000.00)], (P10,000.00) nor shall imprisonment be less

than one (1) month nor more than six (6)months. Such fine or

other penalty, or both, shall be imposed at the discretion of the

court. The sangguniang barangay may prescribe a fine of not less

than One hundred pesos (P100.00) nor more than One thousand

pesos (P1,000.00) OR IMPRISONMENT OF NOT MORE THAN ONE (1) MONTH

OR BOTH AT THE DISCRETION OF THE COURT.

SECTION 150. Add new section 521 to read as follows:

SECTION 521 - PENALTIES FOR VIOLATIONS OF OTHER

PROVISIONS OF THE CODE.

ANY VIOLATION OF PROVISIONS OF THIS CODE NOT OTHERWISE

SPECIFICALLY PENALIZED SHALL BE PUNISHED WITH A FINE NOT

EXCEEDING FIVE THOUSAND PESOS (P5,000.00) OR IMPRISONMENT OF NOT

MORE THAN SIX (6) MONTHS OR BOTH AT THE DISCRETION OF THE COURT.

SECTION [521] 522. Mandatory Review Every Five Years.

xxx

SECTION [522] 523. Insurance Coverage. xxx

SECTION [523] 524. Personnel Retirement and/or

Benefits. xxx

SECTION 151. Section 524 of the Code is hereby amended to

read as follows:

Section [524] 525 - Inventory of Infrastructure and

ESTABLISHMENT OF Other Community Facilities -

(a) Each local government unit shall conduct a periodic

inventory of infrastructure and other community facilities and

undertake the maintenance, repair, improvement, or reconstruction

of these facilities through a closer cooperation among the

various agencies of the National Government operating within the

province, city, or municipality concerned.

(b) No infrastructure or community project within the

territorial jurisdiction of any local government unit shall be

undertaken without informing the local executive and the

sanggunian concerned AND COMPLIANCE WITH THE REQUIREMENTS OF

SECTIONS 2 (D), 26 AND 27 OF THIS CODE.

SECTION [525] 526. Records and Properties. - xxx

TITLE THREE - TRANSITORY PROVISIONS

SECTION [526] 527. Application of this Code to

Local Government Units in the autonomous Regions. - xxx

SECTION [527] 528. Prior Approval or Clearance on

Regular and Recurring Transactions. - xxx

SECTION [528] 529. Deconcentration of Requisite

Authority and Power - xxx

SECTION [529] 530 - Tax Ordinance or Revenue Measures.

- xxx

SECTION 152. Section 530 of the Code is hereby amended to

read as follows:

Section [530] 531 - Local Water Districts. - All

powers, functions, and attributes granted by Presidential Decree

Numbered One hundred ninety - eight ( P.D. 198 ), otherwise

known as " The Provincial Water Utility Act of 1973, " to the

Local Water Utilities Administration (LWUA) [may] SHALL be

devolved into the existing local water district or THE LOCAL

GOVERNMENT UNIT should they opt or choose to exercise, in

writing, such powers, functions and attributes: Provided, That

all obligations of the local water district concerned to the

LWUA, IF ANY, shall first be settled prior to said devolution:

PROVIDED, FURTHER, THAT LOCAL GOVERNMENT UNIT OPERATING A LOCAL

WATER SYSTEM SHALL BE EXEMPTED FROM PAYMENT OF TARIFF AND DUTIES

ON IMPORTED MACHINERY AND EQUIPMENT DIRECTLY USED IN THE

OPERATION AND MAINTENANCE OF THE WATER SYSTEM.

SECTION [531] 532. Debt Relief for Local Government

Units. - xxx

SECTION [532] 533. Election for the Sangguniang

Kabataan. - xxx

SECTION 153. Section 533 of the Code is hereby amended to

read as follows:

Section [533] 534. Formulation of Implementing Rules and

Regulations. - (a) With one month after the approval of this

Code, the President shall convene the oversight Committee as

herein provided for. The said Committee shall formulate and

issue the appropriate rules and regulations necessary for the

efficient and effective implementation of any and all provisions

of this Code, thereby ensuring compliance with the principles of

local autonomy as defined under the Constitution.

(b) The Committee shall be composed of the following:

(1) The Executive Secretary who shall be the Chairman;

(2) [Three (3) members of the Senate to be appointed by the

President of the Senate, to include] THE CHAIRMAN OF THE SENATE

COMMITTEE ON LOCAL GOVERNMENT OR HIS DULY AUTHORIZED

REPRESENTATIVE

(3) [Three (3) members of the House of Representatives to be

appointed by the Speaker, to include] THE CHAIRMAN OF THE HOUSE

COMMITTEE ON LOCAL GOVERNMENT OR HIS DULY AUTHORIZED

REPRESENTATIVE.

(4) The Cabinet represented by the following:

(i) Secretary of the Interior and Local Government OR HIS

UNDERSECRETARY;

(ii) Secretary of Finance OR HIS UNDERSECRETARY;

(iii) Secretary of Budget and Management OR HIS

UNDERSECRETARY;

(5) One representative from each of the following:

(i) The league of Provinces;

(ii) The League of Cities;

(iii) The League of Municipalities; and
(iv) The Liga ng mga Barangay;
(6) ONE REPRESENTATIVE FROM EACH OF THE NATIONAL AGENCIES WITH

DEVOLVED FUNCTIONS

to the President within two (2) months after its organization.

If the president fails to act within thirty (30) days from

receipt thereof, the recommendation of the Oversight Committee

shall be deemed approved. Thereafter, the Committee shall

supervise the transfer of such powers and functions mandated

under this Code to the local government units together with the

corresponding personnel, properties, asset and liabilities of the

offices or agencies concerned, with the least possible

disruptions to existing programs and projects. The Committee

shall likewise recommend the corresponding appropriations

necessary to effect the said transfer.

For this purpose, the services of a technical staff shall be

enlisted from among the qualified employees of Congress, the

government offices and the leagues constituting the Committee.

THE COMMITTEE SHALL NOW DISCHARGE THE FOLLOWING FUNCTIONS:

(1) ASSIST THE OFFICE OF THE PRESIDENT IN THE FORMULATION OF

POLICIES AND SERVE AS THE CENTRAL CLEARING BODY FOR THE ISSUANCE

OF POLICIES RELATIVE TO THE EXECUTIVE INTERPRETATION OF THE

LOCAL GOVERNMENT CODE;

(2) SERVE AS THE VENUE FOR CONSULTATION TO VENTILLATE,

ARTICULATE AND CONCEPTUALIZE ISSUES AFFECTING LOCAL GOVERNANCE

AND THE PROMOTION OF LOCAL AUTONOMY;

(3) COORDINATE EFFORTS OF VARIOUS NATIONAL GOVERNMENT AGENCIES,

THE DIFFERENT LOCAL GOVERNMENT LEAGUES, NON-GOVERNMENTAL AND

PEOPLE'S ORGANIZATIONS, AND THE PRIVATE SECTOR IN THE

IMPLEMENTATION OF THE LOCAL GOVERNMENT CODE OF 1991; AND

(4) MONITOR THE IMPLEMENTATION OF VARIOUS ISSUES AND POLICIES

THROUGH REGIONAL ACTION TEAMS.

THE DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT SHALL

SERVE AS THE COORDINATING ARM OF THE OVERSIGHT COMMITTEE.

SUCH AMOUNTS AS MAY BE NECESSARY FOR THE OVERSIGHT

COMMITTEE'S OPERATING AND OTHER EXPENSES SHALL BE CHARGED AGAINST

THE APPROPRIATIONS OF THE DEPARTMENT OF THE INTERIOR AND LOCAL

GOVERNMENT.

TITLE FOUR. - FINAL PROVISIONS

SECTION 154 - Section 534 of the Code is hereby amended

to read as follows:

Section [534] 535 - Repealing Clause -

(a) xxx

(b) xxx

(e) The PROVISIONS OF THE following [provisions] LAWS AND

PRESIDENTIAL DECREES are hereby repealed or amended insofar as

they are inconsistent with the provisions of this Code: Sections

2, 16, and 29 of Presidential Decree 704; Section 12 of

Presidential Decree No. 87, as amended; Sections 52, 53, 66, 67,

68, 70, 71, 72, and 74 of Presidential Decree No. 463; Section

16, of Presidential Decree No., 972, as amended; SECTION 18 OF

REPUBLIC ACT 8550 AS AMENDED; SECTIONS 201, 203, 205, 206, AND

207 OF PRESIDENTIAL DECREE NO. 1096; SECTIONS 3, 4, 5, 6, 8, 9,

AND 10 OF PRESIDENTIAL DECREE NO. 957; SECTION 4 AND SECTION 22,

PARAGRAPHS (2) and (3), CHAPTER I, TITLE V OF EXECUTIVE ORDER NO.

292, SERIES OF 1987; SECTION 13, PARAGRAPH 2) OF PRESIDENTIAL

DECREE NO. 1869; and

(f) All general and special laws, acts, city charters, decrees,

executive orders, proclamations and administrative regulations,

or part or parts thereof which are inconsistent with any of the

provisions of this Code are hereby repealed or modified

accordingly.

SECTION 155 - Section 535 of the Code is hereby amended to

read as follows:

Section [535] 536 - Separability Clause - If, for any reason

or reasons, any part or provision of this Code shall be held

unconstitutional or invalid, other parts or provisions hereof

which are not affected thereby shall continue to be in full force

and effect.

SECTION 156 - Section 536 of the Code is hereby amended to

read as follows:

Section [536] 537 - Effectivity Clause - This

Code shall take effect on January first, nineteen hundred ninety-

two, unless otherwise provided herein, after its complete

publication in at least [one (1) newspaper] TWO (2) NATIONAL

NEWSPAPERS of general circulation.

Approved.

Last modified on: Thursday August 21 2008