WHEREAS,
Sec. 25, Article II of the
Constitution mandates that the State shall ensure the autonomy of local
governments;
WHEREAS, pursuant to this
declared policy, Republic Act No. 7160,
otherwise known as the Local Government Code of 1991, affirms, among
others, that the territorial and political subdivisions of the State
shall enjoy genuine and meaningful local autonomy to enable them to
attain their fullest development as self-reliant communities and make
them more effective partners in the attainment of national goals;
WHEREAS, Sec. 533 of the
Local Government Code of 1991 requires the
President to convene an Oversight Committee for the purpose of
formulating and issuing the appropriate rules and regulations necessary
for the efficient and effective implementation of all the provisions of
the said Code; and
WHEREAS, the Oversight
Committee, after due deliberations and
consultations with all the concerned sectors of society and
consideration of the operative principles of local autonomy as provided
in the Local Government Code of 1991, has completed the formulation of
the implementing rules and regulations;
NOW, THEREFORE, I, CORAZON C.
AQUINO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order:
Section 1. The
attached "Rules and Regulations
Implementing the Local Government Code of 1991," which shall form an
integral part of this Administrative Order, are hereby approved and
adopted for the efficient and effective implementation of the said
Code.
Sec. 2.
This Administrative Order shall take
effect upon its publication in a newspaper of general circulation.
DONE in the City of Manila,
this 21st day of February, in the year of Our Lord, nineteen hundred
and ninety-two.
RULES
AND
REGULATIONS IMPLEMENTING THE LOCAL GOVERNMENT CODE OF 1991
RULE I
Policy and Application
ARTICLE 1.
Title. — These Rules shall be known and
cited as the Rules and Regulations Implementing the Local Government
Code of 1991.
ARTICLE 2.
Purpose. — These Rules are promulgated to
prescribe the procedures and guidelines for the implementation of the
Local Government Code of 1991 in order to facilitate compliance
therewith and achieve the objectives thereof.
ARTICLE 3.
Declaration of Policy. — (a) It is hereby
declared the policy of the State that the territorial and political
subdivisions of the State shall enjoy genuine and meaningful local
autonomy to enable them to attain their fullest development as
self-reliant communities and make them more effective partners in the
attainment of national goals. Toward this end, the State shall provide
for a more responsive and accountable local government structure
instituted through a system of decentralization whereby local
government units (LGUs) shall be given more powers, authority,
responsibilities, and resources. The process of decentralization shall
proceed from the National Government to the LGUs.
(b) It is also
the policy of the State to ensure the
accountability of LGUs through the institution of effective mechanisms
of recall, initiative and referendum.
(c) It is
likewise the policy of the State to require
all national government agencies and offices (NGOs) to conduct periodic
consultations with appropriate LGUs, nongovernmental organizations
(NGOs) and people's organizations, and other concerned sectors of the
community before any project or program is implemented in their
respective jurisdictions.
(d) Every LGU
shall exercise the powers expressly
granted, those necessarily implied therefrom, as well as powers
necessary, appropriate, or incidental for its efficient and effective
governance, and those which are essential to the promotion of the
general welfare. Within their respective territorial jurisdictions,
LGUs shall ensure and support, among other things, the preservation and
enrichment of culture, promote health and safety, enhance the right of
the people to a balanced ecology, encourage and support the development
of appropriate and self-reliant scientific and technological
capabilities, improve public morals, enhance economic prosperity and
social justice, promote full employment among their residents, maintain
peace and order, and preserve the comfort and convenience of their
inhabitants.
ARTICLE 4.
Scope of Application. — These Rules shall
apply to the following:
(a) All
provinces, cities, municipalities, barangays,
and such other political subdivisions as may be created by law;
(b) All LGUs
in the Autonomous Region in Muslim
Mindanao and other autonomous political units as may be created by law,
until such time that they shall have enacted their own local government
code; and
(c) NGAs and
other government instrumentalities
including government-owned and -controlled corporations (GOCCs) to the
extent provided in the Code.
ARTICLE 5.
Rules of Interpretation. — In the
interpretation of the provisions of the Code, the following rules shall
apply:
(a) The
general welfare provisions, any provision on
the powers of an LGU, and any question regarding the devolution of
powers shall be liberally interpreted and resolved in their favor of
the LGU.
(b) Any fair
and reasonable doubt on the powers of
LGUs shall be liberally interpreted and resolved in their favor; and in
cases involving lower and higher level LGUs, in favor of the lower
level LGU.
(c) Rights and
obligations existing on the date of
effectivity of the Code and arising out of contracts or any other
source of prestation involving an LGU shall be governed by the original
terms and conditions of said contracts or the law in force at the time
such rights were vested.
(d) In the
resolution of controversies arising under
the Code where no legal provision or jurisprudence applies, the customs
and traditions in the place where the controversies take place may be
resorted to.
(e) In case of
doubt, any tax ordinance or revenue
measure shall be construed strictly against the LGU enacting it, and
liberally in favor of the taxpayer. Any tax exemption, incentive, or
relief granted by any LGU pursuant to the provisions of the Code shall
be construed strictly against the person claiming it.
RULE
II
Creation, Conversion, Division,
Merger, Abolition,
and Alteration of Boundaries of
Local Government Units
ARTICLE 6. Common Provisions. — (a) Authority to
create LGUs — An LGU may be created, converted, divided, merged,
abolished, or its boundaries substantially altered either by Act of
Congress, in the case of a province, city, municipality, or any other
political subdivision, or by ordinance passed by the sangguniang
panlalawigan or sangguniang panlungsod concerned, in the case of a
barangay located within its territorial jurisdiction, subject to such
limitations and requirements prescribed in this Rule.
Notwithstanding the population requirement, the Congress may create
barangays in indigenous cultural communities to enhance the delivery of
basic services in said areas and in the municipalities within the
Metropolitan Manila Area (MMA).
(b) Creation or conversion —
(1)
The creation of an LGU or its conversion from one
level to another shall be based on the following verifiable indicators
of viability and projected capacity to provide services:
(i)
Income — which must be sufficient, based on
acceptable standards, to provide for all essential government
facilities and services and special functions commensurate to the size
of its population, as expected of the LGU. The income shall be based on
1991 constant prices, as determined by the Department of Finance (DOF).
(ii)
Population — which shall be the total number of
inhabitants within the territorial jurisdiction of the LGU.
(iii) Land
area — which must be contiguous, unless it
comprises two (2) or more islands or is separated by an LGU 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.
(2) Compliance
with the foregoing indicators shall be
attested by:
(i) The Secretary of
Finance as to the income
requirement in the case of provinces and cities, and the provincial
treasurer in the case of municipalities;
(ii) The
Administrator of the National Statistics
Office (NSO) as to the population requirement; and
(iii) The
Director of the Lands Management Bureau
(LMB) of the Department of Environment and Natural Resources (DENR) as
to the land area requirement.
(c) Division or merger — Division or merger of
existing LGUs shall comply with the same requirements for their
creation. Such division or merger shall not reduce the income,
population, or land area of the original LGU or LGUs to less than the
prescribed minimum requirements and that their income classification
shall not fall below their current income classification prior to the
division or merger.
(d) Abolition — An LGU may be abolished when its
income, population, or land area has been irreversibly reduced during
the immediately preceding three (3) consecutive years to less than the
requirements for its creation, as certified by DOF, in the case of
income; by NSO, in the case of population; and by LMB, in the case of
land area. The law or ordinance abolishing an LGU shall specify the
province, city, municipality, or barangay to which an LGU sought to be
abolished will be merged with.
(e) Updating of income classification — The income
classification of LGUs shall be updated by DOF within six (6) months
from the effectivity of the Code to reflect the changes in the
financial position resulting from the increased revenues.
(f) Plebiscite — (1) No creation, conversion,
division, merger, abolition, or substantial alteration of boundaries of
LGUs shall take effect unless approved by a majority of the votes cast
in a plebiscite called for the purpose in the LGU or LGUs directly
affected. The plebiscite shall be conducted by the Commission on
Elections (COMELEC) within one hundred twenty (120) days from the
effectivity of the law or ordinance prescribing such action, unless
said law or ordinance fixes another date.
(2) The COMELEC shall conduct an intensive
information campaign in the LGUs concerned at least twenty (20) days
prior to the plebiscite, in the case of provinces, cities, and
municipalities; and ten (10) days, in the case of barangays. The
COMELEC may seek the assistance of national and local government
officials, mass media, NGOs, and other interested parties.
(g) Beginning of corporate existence — When a new LGU
is created, its corporate existence shall commence upon the election
and qualification of its chief executive and a majority of the members
of its sanggunian, unless some other time is fixed therefore by the law
or ordinance creating it.
ARTICLE 7. Selection and Transfer of Local Government
Site, Offices, and Facilities. — (a) The seat of government of an LGU
from where governmental and corporate services are delivered shall be
at the site designated by the law or ordinance creating the LGU.
(b) In the case of a province, the site shall be
within its capital town or city.
(c) In selecting the site, factors relating to
geographical centrality, accessibility, availability of transportation
and communication facilities, drainage and sanitation, development and
economic progress, and other relevant considerations shall be taken
into account.
(d) When subsequent to the establishment of the
government site conditions and developments in the LGU have
significantly changed, the sanggunian may, after public hearing and by
a vote of two-thirds (2/3) of all its members, transfer the government
site to a location best suited to present needs and anticipated future
development and progress. No transfer shall be made outside the
territorial boundaries of the LGU concerned. The old site, together
with the improvements thereon, may be disposed of by sale or lease or
converted to such other use as the sanggunian may deem beneficial to
the LGU and its inhabitants.
(e) Local government offices and facilities shall not
be transferred, relocated, or converted to other uses unless public
hearings are first conducted for the purpose and the concurrence of a
majority of all the members of the sanggunian is obtained.
ARTICLE 8. Government Centers. — (a) Every province,
city, and municipality shall endeavor to establish a government center
where offices, agencies, or branches of the National Government, LGUs
or GOCCs may, as far as practicable, be located.
(b) The LGU shall take into account its existing
facilities and those of NGAs in designating such government center.
(c) Construction of buildings in the government
center shall conform with the overall physical and architectural plans
and motif of the government center, as approved by the sanggunian
concerned.
(d) The National Government, LGU, or GOCC concerned
shall bear the expenses for the construction of its own buildings and
facilities in the government center.
ARTICLE 9. Provinces. — (a) Requisites for creation —
A province shall not be created unless the following requisites on
income and either population or land area are present:
(1) Income — An average annual income of not less
than Twenty Million Pesos (P20,000,000.00) for the immediately
preceding two (2) consecutive years based on 1991 constant prices, as
certified by DOF. The average annual income shall include the income
accruing to the general fund, exclusive of special funds, special
accounts, transfers, and nonrecurring income; and
(2) Population or land area — Population which shall
not be less than two hundred fifty thousand (250,000) inhabitants, as
certified by NSO; or land area which must be contiguous with an area of
at least two thousand (2,000) square kilometers, as certified by LMB.
The territory need not be contiguous if it comprises two (2) or more
islands or is separated by a chartered city or cities which do not
contribute to the income of the province. The land area requirement
shall not apply where the proposed province is composed of one (1) or
more islands. The territorial jurisdiction of a province sought to be
created shall be properly identified by metes and bounds.
The creation of a new province shall not reduce the land area,
population, and income of the original LGU or LGUs at the time of said
creation to less than the prescribed minimum requirements. All expenses
incidental to the creation shall be borne by the petitioners.
(b) Procedure for creation —
(1) Petition — Interested municipalities or component
shall submit the petition, in the form of a resolution, of their
respective sanggunians requesting the creation of a new city to the
Congress, and furnish copies thereof to the sangguniang panlalawigan of
the original province or provinces.
(2) Comments on petition — The sangguniang
panlalawigan of the original province or provinces shall submit to the
Congress its comments and recommendations on the petition for creation
of the proposed province.
(3) Documents to support petition — The following
documents shall be attached to the petition for creation:
(i)
Certification by DOF that the average annual
income of the proposed province meets the minimum income requirement
and that its creation will not reduce the income based on 1991 constant
prices, of the original LGU or LGUs to less than the prescribed
minimum;
(ii)
Certification by the NSO as to population of the
proposed province and that its creation will not reduce the population
of the original LGUs to less than the prescribed minimum;
(iii)
Certification by LMB that the land area of the
proposed province meets the minimum land area requirement and that its
creation will not reduce the land area of the original LGU or LGUs to
less than the prescribed minimum;
(iv) Map of
the original LGU or LGUs, indicating the
areas to be created into a province. The map shall be prepared by the
provincial, city, or district engineer and shall clearly indicate the
road network within the proposed province; and
(v) Such other
information that the petitioners may
deem relevant for consideration in the petition.
All costs incurred in the production of the required documents shall be
borne by the petitioning LGUs.
(4) Plebiscite —
(i)
Upon the effectivity of the law creating a
province, the COMELEC shall conduct a plebiscite in the LGU or LGUs
directly affected within one hundred twenty (120) days or within the
period specified in the law.
(ii) The
COMELEC shall conduct an intensive
information campaign in the LGUs concerned at least twenty (20) days
prior to the plebiscite. For this purpose, the COMELEC may seek the
assistance of national and local government officials, mass media,
NGOs, and other interested parties.
(c) Beginning of corporate existence — When a
province is created, its corporate existence shall commence upon the
election and qualification of its governor and a majority of the
members of its sanggunian unless some other time is fixed therefore by
the law creating it.
ARTICLE 10. Status of Existing Subprovinces. — (a)
The existing subprovinces of Biliran in the province of Leyte, and
Guimaras in the province of Iloilo, shall automatically be converted
into regular provinces upon approval by a majority of the votes cast in
a plebiscite to be held in the said subprovince and the original
provinces directly affected which shall be conducted by the COMELEC
simultaneously with the national elections on May 11, 1992.
(b) The new legislative districts created as a result
of such conversion shall continue to be represented in the Congress by
the duly elected representatives of the original districts out of which
the new provinces or districts were created until their own
representatives shall have been elected in the next regular
congressional elections and have qualified.
(c) The incumbent elective officials of the
subprovinces converted into regular provinces shall continue to hold
office until June 30, 1992. Any vacancy occurring in the offices
occupied by said incumbents, or resulting from expiration of their
terms of office in case of a negative vote in the plebiscite results,
shall be filled by appointment by the President.
(d) The appointees shall hold office until their
successors shall have been elected in the regular local elections
following the plebiscite and have qualified.
(e) After effectivity of such conversion, the
President shall appoint the governor, vice governor and other members
of the sangguniang panlalawigan if none has yet been appointed, all of
whom shall likewise hold office until their successors shall have been
elected in the next regular local elections and have qualified.
(f) All qualified appointive officials and employees
in the career service of the subprovinces at the time of their
conversion into regular provinces shall continue in office in
accordance with civil service law, rules and regulations.
ARTICLE 11. Cities. — (a) Requisites for creation — A
city shall not be created unless the following requisites on income and
either population or land area are present:
(1) Income — An average annual income of not less
than Twenty Million Pesos (P20,000,000.00), for the immediately
preceding two (2) consecutive years based on 1991 constant prices, as
certified by DOF. The average annual income shall include the income
accruing to the general fund, exclusive of special funds, special
accounts, transfers, and nonrecurring income; and
(2) Population or land area — Population which shall
not be less than one hundred fifty thousand (150,000) inhabitants, as
certified by the NSO; or land area which must be contiguous with an
area of at least one hundred (100) square kilometers, as certified by
LMB. The territory need not be contiguous if it comprises two (2) or
more islands or is separated by a chartered city or cities which do not
contribute to the income of the province. The land area requirement
shall not apply where the proposed city is composed of one (1) or more
islands. The territorial jurisdiction of a city sought to be created
shall be properly identified by metes and bounds.
The creation of a new city shall not reduce the land area, population,
and income of the original LGU or LGUs at the time of said creation to
less than the prescribed minimum requirements. All expenses incidental
to the creation shall be borne by the petitioners.
(b) Procedure for creation —
(1)
Petition — Interested municipalities or barangays
shall submit the petition, in the form of a resolution, of their
respective sanggunians requesting the creation of a new city to the
Congress, and furnish copies thereof to the sangguniang panlalawigan or
sangguniang panlungsod of the LGUs concerned.
(2) Comments
on petition — The sangguniang
panlalawigan or sangguniang panlungsod shall submit to the Congress its
comments and recommendations on the petition for creation of the city.
(3) Documents
to support petition — The following
documents shall be attached to the petition for creation:
(i)
Certification by DOF that the average annual
income of the proposed city meets the minimum income requirement and
that its creation will not reduce the income based on 1991 constant
prices, of the original LGU or LGUs to less than the prescribed
minimum;
(ii)
Certification by NSO as to population of the
proposed city and that its creation will not reduce the population of
the original LGUs to less than the prescribed minimum;
(iii)
Certification by LMB that the land area of the
proposed city meets the minimum land area requirement and that its
creation will not reduce the land area of the original LGU or LGUs to
less than the prescribed minimum;
(iv) Map of
the original LGU or LGUs, indicating the
areas to be created into a city. The map shall be prepared by the
provincial, city, or district engineer as the case may be and shall
clearly indicate the road network within the proposed city;
(v)
Certification by LMB that disposable and
alienable public lands are available in the area to be created into a
city sufficient to meet its growing population and the following
purposes:
º
Government center site of not less than ten
thousand (10,000) square meters which shall include the city hall site
and those of other government buildings;
º Market
site of not less than ten thousand
(10,000) square meters, located out of view of the city hall, schools,
plaza, and cemetery and near but not along a provincial road, railroad
station, navigable river, or sea;
º Plaza
or park of not less than ten thousand
(10,000) square meters located preferably in front of the city hall;
º School
site of not less than ten thousand
(10,000) square meters, in well-drained location that conforms with the
requirements prescribed by public school authorities; and
º
Cemetery site of not less than five thousand
(5,000) square meters for every ten thousand (10,000) population which
conforms with the requirements prescribed by the health authorities;
(vi) Number
and nature of existing and commercial
establishments in the territory of the proposed city as certified by
NSO;
(vii) Sources
of potable water supply for the
inhabitants as certified by the Local Water Utilities Administration
(LWEI) or the Metropolitan Waterworks and Sewerage System (MWSS), as
the case may be;
(viii)
Facilities, plans, and site for sewerage,
garbage and waste disposal as certified by the local engineer; and
(ix) Such
other information that the petitioners may
deem relevant for consideration in the petition.
All costs incurred in the
production of the required documents shall be
borne by the petitioning LGUs.
(4) Plebiscite
—
(i)
Upon the effectivity of the law creating a city,
the COMELEC shall conduct a plebiscite in the LGUs directly affected
within one hundred twenty (120) days or within the period specified in
the law.
(ii) The
COMELEC shall conduct an intensive
information campaign in the LGUs concerned at least twenty (20) days
prior to the plebiscite. For this purpose, the COMELEC may seek the
assistance of national and local government officials, mass media,
NGOs, and other interested parties.
(c) Beginning of corporate existence. — When a city
is created, its corporate existence shall commence upon the election
and qualification of its mayor and a majority of the members of its
sanggunian, unless some other time is fixed therefore by the law
creating it.
ARTICLE 12. Conversion of a Component City Into a
Highly-Urbanized City. — (a) Requisites for conversion — A component
city shall not be converted into a highly-urbanized city unless the
following requisites are present:
(1) Income — latest annual income of not less than
Fifty Million Pesos (P50,000,000.00) based on 1991 constant prices, as
certified by the city treasurer. The annual income shall include the
income accruing to the general fund, exclusive of special funds,
transfers, and non-recurring income; and
(2) Population — which shall not be less than two
hundred thousand (200,000) inhabitants, as certified by NSO.
(b) Procedure for conversion —
(1)
Resolution — The interested component city shall
submit to the Office of the President a resolution of its sanggunian
adopted by a majority of all its members in a meeting duly called for
the purpose, and approved and endorsed by the city mayor. Said
resolution shall be accompanied by certifications as to income and
population.
(2)
Declaration of conversion — Within thirty (30)
days from receipt of such resolution, the President shall, after
verifying that the income and population requirements have been met,
declare the component city as highly-urbanized.
(3) Plebiscite
— Within one hundred twenty (120) days
from the declaration of the President or as specified in the
declaration, the COMELEC shall conduct a plebiscite in the city
proposed to be converted. Such plebiscite shall be preceded by a
comprehensive information campaign to be conducted by the Comelec with
the assistance of national and local government officials, media, NGOs,
and other interested parties.
(c) Effect of Conversion —
The conversion of a component city into a highly-urbanized city shall
make it independent of the province where it is geographically located.
ARTICLE 13. Municipalities. — (a) Requisites for
Creation — A municipality shall not be created unless the following
requisites are present:
(i)
Income — An average annual income of not less
than Two Million Five Hundred Thousand Pesos (P2,500,000.00), for the
immediately preceding two (2) consecutive years based on 1991 constant
prices, as certified by the provincial treasurer. The average annual
income shall include the income accruing to the general fund, exclusive
of special funds, special accounts, transfers, and nonrecurring income;
(ii)
Population — which shall not be less than twenty
five thousand (25,000) inhabitants, as certified by NSO; and
(iii) Land
area — which must be contiguous with an
area of at least fifty (50) square kilometers, as certified by LMB. The
territory need not be contiguous if it comprises two (2) or more
islands. The requirement on land area shall not apply where the
proposed municipality is composed of one (1) or more islands. The
territorial jurisdiction of a municipality sought to be created shall
be properly identified by metes and bounds.
The creation if a new municipality shall not reduce the land area,
population, and income of the original LGU or LGUs at the time of said
creation to less than the prescribed minimum requirements. All expenses
incidental to the creation shall be borne by the petitioners.
(b) Procedure for creation —
(1) Petition — Interested barangays shall submit the
petition, in the form of a resolution, of their respective sanggunians
requesting the creation of a new municipality to the Congress, and
furnish copies thereof to the sangguniang panlalawigan, sangguniang
panlungsod, or sangguniang bayan of the LGUs concerned.
(2) Comments on petition — The sangguniang panlungsod
or sangguniang bayan, together with the sangguniang panlalawigan, shall
submit to the Congress its comments and recommendations on the petition
for creation of the municipality.
(3) Documents to support petition — The following
documents shall be attached to the petition for creation:
(i)
Certification by the provincial treasurer, in the
case of municipalities and component cities, and the city treasurer, in
the case of highly-urbanized cities, that the average annual income of
the proposed municipality meets the minimum income requirement and that
its creation will not reduce the income, based on 1991 constant prices,
of the original LGU or LGUs to less than the prescribed minimum;
(ii)
Certification by NSO as to population of the
proposed municipality and that its creation will not reduce the
population of the original LGU or LGUs to less than the prescribed
minimum;
(iii)
Certification by the LMB that the land area of
the proposed municipality meets the minimum land area requirement and
that its creation will not reduce the land area of the original LGU or
LGUs to less than the prescribed minimum;
(iv) Map of
the original LGU or LGUs, indicating the
areas to be created into a municipality. The map shall be prepared by
the provincial, city, or district engineer as the case may be and shall
clearly indicate the road network within the proposed city;
(v)
Certification by LMB that disposable and
alienable public lands are available in the area to be created into a
municipality sufficient to meet its growing population and the
following purposes:
º
Government center site of not less than five
thousand (5,000) square meters which shall include the municipal hall
site and those of other government buildings;
º Market
site of not less than five thousand
(5,000) square meters, located out of view of the municipal hall,
schools, plaza, and cemetery and near but not along a provincial road,
railroad station, navigable river, or sea;
º Plaza
or park of not less than five thousand
(5,000) square meters located preferably in front of the municipal
hall;
º School
site of not less than five thousand
(5,000) square meters, in well-drained location that conforms with the
requirements prescribed by public school authorities; and
º
Cemetery site of not less than five thousand
(5,000) square meters for every ten thousand (10,000) population which
conforms with the requirements prescribed by health authorities.
(vi) Number
and nature of existing industrial and
commercial establishments in the territory of the proposed municipality
as certified by NSO;
(vii) Sources
of potable water supply for the
inhabitants as certified by LWUA or MWSS, as the case may be;
(viii)
Facilities, plans, and site for sewerage,
garbage and waste disposal as certified by the local engineer; and
(ix) Such
other information that the petitioners may
deem relevant for consideration in the petition.
All costs incurred in the production of the required documents shall be
borne by the petitioning LGUs.
(4) Plebiscite —
(i)
Upon the effectivity of the law creating a
municipality, the COMELEC shall conduct a plebiscite in the LGUs
directly affected within one hundred twenty (120) days or within the
period specified in the law.
(ii) The
COMELEC shall conduct an intensive
information campaign in the LGUs concerned at least twenty (20) days
prior to the plebiscite. For this purpose, the COMELEC may seek the
assistance of national and local government officials, mass media,
NGOS, and other interested parties.
(c) Beginning of corporate existence. — When a
municipality is created, its corporate existence shall commence upon
the election and qualification of its mayor and a majority of the
members of its sanggunian, unless some other time is fixed therefore by
the law creating it.
ARTICLE 14. Barangays. — (a) Creation of barangays by
the sangguniang panlalawigan shall require prior recommendation of the
sangguniang bayan.
(b)
New barangays in the municipalities within MMA
shall be created only by Act of Congress, subject to the limitations
and requirements prescribed in this Article.
(c)
Notwithstanding the population requirement, a
barangay may be created in the indigenous cultural communities by Act
of Congress upon recommendation of the LGU or LGUs where the cultural
community is located.
(d) A barangay
shall not be created unless the
following requisites are present:
(1)
Population — which shall not be less than two
thousand (2,000) inhabitants, except in municipalities and cities
within MMA and other metropolitan political subdivisions as may be
created by law, or in highly-urbanized cities where such territory
shall have a population of at least five thousand (5,000) inhabitants,
as certified by NSO. The creation of a barangay shall not reduce the
population of the original barangay or barangays to less than the
prescribed minimum.
(2) Land area
— which must be contiguous, unless
comprised by two (2) or more islands. The territorial jurisdiction of a
barangay sought to be created shall be properly identified by metes and
bounds or by more or less permanent natural boundaries.
All
expenses incidental to the creation shall be borne by the
petitioners.
(e) Procedure
for creation —
(1)
Petition — A written petition of a majority of
the registered voters residing in the area sought to be created or
resolutions of the sangguniang barangays desiring to be merged, as the
case may be, shall be presented to the sangguniang panlalawigan, upon
recommendation of the sangguniang bayan concerned, or to the
sangguniang panlungsod, for appropriate action.
In the case of municipalities
within MMA, a similar petition or
resolution shall be presented to the Congress, upon recommendation of
the sangguniang bayan concerned.
(2) Documents
to support petition — In addition to
the petition or resolution, the following shall be submitted:
(i)
Certification by NSO as to the population of the
proposed barangay and that its creation will not reduce the population
of the original barangay or barangays to less than the prescribed
minimum.
(ii) Map of
the original barangay or barangays
indicating the areas to be created into a new barangay and technical
description certified by LMB or city or municipal assessor, as the case
may be.
All
costs incurred in the production of the required documents shall be
borne by the petitioning LGUs.
(3)
Comments on petition — The presiding officer of
the sangguniang bayan shall require the sangguniang barangay of the
original barangay or barangays to submit their comments on the proposed
creation within twenty (20) days after receipt of said petition or
resolution which shall serve as basis for recommending appropriate
action thereon to the sangguniang panlalawigan.
(4) Action on
petition — The sangguniang panlalawigan
or sangguniang panlungsod shall, within fifteen (15) days from
submission of the petition and other required supporting documents,
take action granting or denying the petition.
(i)
The ordinance granting the petition creating a
new barangay shall be approved by two-thirds (2/3) of all the members
of the sangguniang panlalawigan or sangguniang panlungsod.
The
ordinance shall properly identify by metes and bounds or by natural
boundaries, the territorial jurisdiction of the new barangay. The
ordinance shall likewise fix the date of the plebiscite to be conducted
by the COMELEC in the area or areas directly affected to ratify the
creation of the new barangay.
(ii) A denial
shall be in the form of a resolution
stating clearly the facts and reasons for such denial.
(5) Submission
of ordinance to the COMELEC — Within
thirty (30) days before the plebiscite, the secretary to the
sangguniang panlalawigan or sangguniang panlungsod shall furnish the
COMELEC with a signed official copy of the ordinance creating the
barangay.
(6) Conduct of
information campaign — The COMELEC
shall conduct an intensive information campaign in the LGUs concerned
at least ten (10) days prior to the plebiscite. For this purpose, the
COMELEC may seek the assistance of national and local government
officials, mass media, NGOs, and other interested parties.
(7) Submission
of plebiscite results — At least seven
(7) days after the conduct of the plebiscite, the city or municipality
concerned shall submit the Certificates of Canvass of Votes Cast,
Statement of Affirmative and Negative Votes, Abstentions Cast in every
voting center as well as the provincial or city ordinance creating the
barangay to the COMELEC and DILG central office for inclusion in the
Official Masterlist of Barangays.
(f) Beginning
of corporate existence — When a
barangay is created, its corporate existence shall commence upon the
election and qualification of its punong barangay and a majority of the
members of its sanggunian unless some other time is fixed therefore by
the law or ordinance creating it.
(g) Financial
requirement — The financial
requirements of the barangays created by LGUs after the effectivity of
the Code shall be the responsibility of the LGU concerned.
(h)
Consolidation plan of barangays — Based on the
criteria prescribed in this Article, the governor or city mayor may
prepare a consolidation plan for barangays within his territorial
jurisdiction. The said plan shall be submitted to the sangguniang
panlalawigan or sangguniang panlungsod for appropriate action.
In the case of municipalities within MMA and other metropolitan
political subdivisions as may be created by law, the barangay
consolidation plan shall be prepared and approved by the sangguniang
bayan concerned.
RULE
III
Settlement of Boundary Disputes
ARTICLE 15. Definition and Policy. — There is a
boundary dispute when a portion or the whole of the territorial area of
an LGU is claimed by two or more LGUs. Boundary disputes between or
among LGUs shall, as much as possible, be settled amicably.
ARTICLE 16. Jurisdictional Responsibility. — Boundary
disputes shall be referred for settlement to the following:
(a) Sangguniang panlungsod or sangguniang bayan for
disputes involving two (2) or more barangays in the same city or
municipality, as the case may be;
(b) Sangguniang panlalawigan, for those involving two
(2) or more municipalities within the same province;
(c) Jointly, to the sanggunians of provinces
concerned, for those involving component cities or municipalities of
different provinces; or
(d) Jointly, to the respective sanggunians, for those
involving a component city or municipality and a highly-urbanized city;
or two (2) or more highly-urbanized cities.
ARTICLE 17. Procedures for Settling Boundary
Disputes. — The following procedures shall govern the settlement of
boundary disputes:
(a) Filing of petition — The sanggunian concerned may
initiate action by filing a petition, in the form of a resolution, with
the sanggunian having jurisdiction over the dispute.
(b) Contents of petition — The petition shall state
the grounds, reasons or justifications therefore.
(c) Documents attached to petition — The petition
shall be accompanied by:
(1) Duly authenticated copy of the law or statute
creating the LGU or any other document showing proof of creation of the
LGU;
(2) Provincial, city, municipal, or barangay map, as
the case may be, duly certified by the LMB;
(3) Technical description of the boundaries of the
LGUs concerned;
(4) Written certification of the provincial, city, or
municipal assessor, as the case may be, as to territorial jurisdiction
over the disputed area according to records in custody;
(5) Written declarations or sworn statements of the
people residing in the disputed area; and
(6) Such other documents or information as may be
required by the sanggunian hearing the dispute.
(d) Answer of adverse party — Upon receipt by the
sanggunian concerned of the petition together with the required
documents, the LGU or LGUs complained against shall be furnished copies
thereof and shall be given fifteen (15) working days within which to
file their answers.
(e) Hearing — Within five (5) working days after
receipt of the answer of the adverse party, the sanggunian shall hear
the case and allow the parties concerned to present their respective
evidences.
(f) Joint hearing — When two or more sanggunians
jointly hear a case, they may sit en banc or designate their respective
representatives. Where representatives are designated, there shall be
an equal number of representatives from each sanggunian. They shall
elect from among themselves a presiding officer and a secretary. In
case of disagreement, selection shall be by drawing lot.
(g) Failure to settle — In the event the sanggunian
fails to amicably settle the dispute within sixty (60) days from the
date such dispute was referred thereto, it shall issue a certification
to that effect and copies thereof shall be furnished the parties
concerned.
(h) Decision — Within sixty (60) days from the date
the certification was issued, the dispute shall be formally tried and
decided by the sanggunian concerned. Copies of the decision shall,
within fifteen (15) days from the promulgation thereof, be furnished
the parties concerned, DILG, local assessor, COMELEC, NSO, and other
NGAs concerned.
(i) Appeal — Within the time and manner prescribed by
the Rules of Court, any party may elevate the decision of the
sanggunian concerned to the proper Regional Trial Court having
jurisdiction over the dispute by filing therewith the appropriate
pleading, stating among others, the nature of the dispute, the decision
of the sanggunian concerned and the reasons for appealing therefrom.
The Regional Trial Court shall decide the case within one (1) year from
the filing thereof. Decisions on boundary disputes promulgated jointly
by two (2) or more sangguniang panlalawigans shall be heard by the
Regional Trial Court of the province which first took cognizance of the
dispute.
ARTICLE 18. Maintenance of Status Quo. — Pending
final resolution of the dispute, the status of the affected area prior
to the dispute shall be maintained and continued for all purposes.
ARTICLE 19. Official Custodian. — The DILG shall be
the official custodian of copies of all documents on boundary disputes
of LGUs.
RULE
IV
Naming of Local Government
Units,
Public Places, Streets, and
Structures
ARTICLE 20. Naming by the Sangguniang Panlalawigan. —
The sangguniang panlalawigan, in consultation with the National
Historical Institute (NHI), referred to as the Philippine Historical
Commission in the Code, may change the name of the following within its
territorial jurisdiction:
(a) Component cities and municipalities, upon the
recommendation of the sangguniang panlungsod or sangguniang bayan, as
the case may be;
(b) Provincial roads, streets, avenues, boulevards,
thoroughfares, and bridges;
(c) Provincial public vocational or technical schools
and other post-secondary and tertiary schools;
(d) Provincial hospitals, health centers, and other
health facilities; and
(e) Any other public place or building owned by the
province.
ARTICLE 21. Naming by the Sanggunians of
Highly-Urbanized Cities and Independent Component Cities. — The
sanggunians of highly-urbanized cities and component cities whose
charters prohibit their voters from voting for provincial elective
officials, hereinafter referred to as independent component cities may,
in consultation with NHI, change the name of the following within their
respective territorial jurisdictions:
(a) City barangays, upon the recommendation of the
sangguniang barangay;
(b) City and barangay roads, streets, avenues,
boulevards, thoroughfares, and bridges;
(c) City public elementary, secondary, and vocational
or technical schools, community colleges, and non-chartered colleges;
(d) City hospitals, health centers, and other health
facilities; and
(e) Any other public place or building owned by the
city.
ARTICLE 22. Naming by the Sanggunians of Component
Cities and Municipalities. — The sanggunians of component cities and
municipalities may, in consultation with the NHI, change the name of
the following within their respective territorial jurisdictions:
(a) City and municipal barangays, upon the
recommendation of the sangguniang barangay;
(b) City, municipal, and barangay roads, streets,
avenues, boulevards, thoroughfares, and bridges;
(c) City and municipal public elementary, secondary,
and vocational or technical schools, post-secondary and other tertiary
schools;
(d) City and municipal hospitals, health centers, and
other public health facilities; and
(e) Any other public place or building owned by the
city or municipality.
ARTICLE 23. Guidelines and Limitations. — (a) No name
of LGUs, public places, streets, and structures with historical,
cultural, or ethnic significance shall be changed, unless by unanimous
vote of the sanggunian and in consultation with NHI.
(b) No change in name of an LGU shall be effective
unless ratified in a plebiscite called for the purpose.
(c) Naming shall be subject to the following
conditions:
(1) Naming after a living person shall not be
allowed;
(2) A change in name shall be made only for a
justifiable reason;
(3) Any change shall not be made more than once every
ten (10) years;
(4) A change in name of a local public school shall
be made only upon the recommendation of the local school board;
(5) A change in name of local public hospitals,
health centers, and other health facilities shall be made only upon the
recommendation of the local health board;
(6) The whole length of a street shall have only one
name; and
(7) The name of a family in a particular community
whose members significantly contributed to the welfare of the Filipino
people may be used;
(d) The Office of the President, the representative
of the legislative district concerned, and the Postal Services Office
shall be notified of any change in name of LGUs, public places,
streets, and structures.
RULE
V
Basic Services and Facilities
ARTICLE 24. Devolution. — (a) Consistent with local
autonomy and decentralization, the provision for the delivery of basic
services and facilities shall be devolved from the National Government
to provinces, cities, municipalities, and barangays so that each LGU
shall be responsible for a minimum set of services and facilities in
accordance with established national policies, guidelines, and
standards.
(b) For purposes of this Rule, devolution shall mean
the transfer of power and authority from the National Government to
LGUs to enable them to perform specific functions and responsibilities.
(c) Any subsequent change in national policies,
guidelines, and standards shall be subject to prior consultation with
LGUs.
ARTICLE 25. Responsibility for Delivery of Basic
Services and Facilities. — The LGUs shall, in addition to their
existing functions and responsibilities, provide basic services and
facilities devolved to them covering, but not limited to, the following:
Barangay
(a) Agricultural support services through a
distribution system for agriculture and fishery inputs and the
operation of agricultural and fishery produce collection and buying
stations;
(b) Health and social welfare services, through
maintenance of barangay health and daycare centers;
(c) Services and facilities related to general
hygiene and sanitation, beautification, and solid waste collection;
(d) Administration and maintenance of the Katarungang
Pambarangay;
(e) Maintenance of barangay roads and bridges and
water supply systems;
(f) Infrastructure facilities such as multipurpose
hall, multipurpose pavement, plaza, sports center, and other similar
facilities;
(g) Information and reading center; and
(h) Satellite public market, where viable.
Municipality
(a) Agriculture and fishery extension and on-site
research through:
(1) dispersal of livelihood and poultry, fingerlings,
and other seeding materials for agriculture;
(2) establishment and maintenance of seed farms for
palay, corn, and vegetables; medicinal plant gardens; seedling
nurseries for fruit trees, coconuts, and other trees or crops; and
demonstration farms;
(3) Enforcement of standards for quality control or
copra and improvement and development of local distribution channels,
preferably through cooperatives;
(4) Maintenance and operation of interbarangay
irrigation system;
(5) Implementation of water and soil resource
utilization and conservation projects; and
(6) Enforcement of fishery laws in municipal waters,
including conservation of mangroves.
(b) In accordance with national policies and subject
to supervision, control, and review of DENR, implementation of
community-based forestry projects through:
(1) Integrated social forestry programs and similar
projects;
(2) Management and control of communal forests with
an area not exceeding fifty (50) square kilometers; and
(3) Establishment of tree parks, greenbelts, and
similar forest development projects.
(c) Subject to the provisions of Rule XXIII on local
health boards and in accordance with the standards and criteria of the
Department of Health (DOH), provision of health services through:
(1) Implementation of programs and projects on
primary health care, maternal and child care, and communicable and
non-communicable disease control services;
(2) Access to secondary and tertiary health services;
and
(3) Purchase of medicines, medical supplies, and
equipment needed to carry out the devolved health services.
(d) Provision of social welfare services through:
(1) Programs and projects for the welfare of the
youth and children, family and community, women, the elderly, and the
disabled;
(2) Community-based rehabilitation programs for
vagrants, beggars, street children, scavengers, juvenile delinquents,
and victims of drug abuse;
(3) Livelihood and other pro-poor projects;
(4) Nutrition services; and
(5) Family planning services.
(e) Provision of information services through
investment and job placement information systems, tax and marketing
information systems, and maintenance of a public library;
(f) Provision of solid waste disposal or
environmental management systems and services or facilities related to
general hygiene and sanitation;
(g) Construction and maintenance of infrastructure
facilities funded by the municipality to serve the needs of the
residents including, but not limited to:
(1) Municipal roads and bridges;
(2) School buildings and other facilities for public
elementary and secondary schools;
(3) Clinics, health centers, and other health
facilities necessary to carry out health services;
(4) Communal irrigation, small water impounding
projects, and other similar projects;
(5) Fish ports;
(6) Artesian wells, spring development, rainwater
collectors, and water supply systems;
(7) Seawalls, dikes, drainage and sewerage, and flood
control;
(8) Traffic signals and road signs; and
(9) Other similar facilities.
(h) Construction, maintenance, and operation of
municipal public markets, slaughterhouses, and other economic
enterprises;
(i) Construction, maintenance, and operation of
municipal cemeteries;
(j) Construction, maintenance, and operation of
tourism facilities and other tourist attractions, including acquisition
of equipment, regulation and supervision of business concessions, and
security services for such facilities; and
(k) Provision of sites for police and fire stations
and substations and municipal jail.
Province
(a) Agricultural extension and on-site research
services and facilities through:
(1) Prevention and control of plant and animal pests
and diseases;
(2) Establishment and maintenance of dairy farms,
livestock markets, animal breeding stations, and artificial
insemination centers;
(3) Assistance in the organization of farmer's and
fishermen's cooperatives and other collective organizations; and
(4) Transfer of appropriate technology.
(b) Industrial research and development services, as
well as transfer of appropriate technology;
(c) Pursuant to national policies and subject to
supervision, control, and review of 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-hydroelectric projects for local purposes;
(d) Subject to the provision of Rule XXIII on local
health boards, health services which include hospitals and other
tertiary health services;
(e) Social welfare services which include programs
and projects on rebel returnees and evacuees, relief operations, and
population development services;
(f) Construction and maintenance of provincial
buildings, provincial jails, freedom parks and public assembly areas,
and other similar facilities;
(g) Construction and maintenance of infrastructure
facilities funded by the province to serve the needs of the residents
including, but not limited to:
(1) Provincial roads and bridges;
(2) Intermunicipal waterworks, drainage, and
sewerage, flood control, and irrigation systems;
(3) Reclamation projects; and
(4) Other similar facilities.
(h) Planning and implementation of the programs and
projects for low-cost housing and other mass dwellings, except those
funded by the Social Security System, Government Service Insurance
System, and the Home Development Mutual Fund. National funds for these
programs and projects shall be equitably allocated to the regions in
proportion to the ratio of the homeless to the population;
(i) Provision for investment support services,
including access to credit financing;
(j) Upgrading and modernization of tax information
and collection services through the use of computer hardware and
software and other means;
(k) Provision for intermunicipal telecommunications
services, subject to national policy guidelines and standards; and
(l) Planning and implementation of tourism
development and promotion programs.
City
All services and facilities provided by the municipality and the
province and, in addition thereto, the following:
(a) Adequate communication and transportation
facilities; and
(b) Support services and facilities for education,
police, and fire protection.
ARTICLE 26. Exceptions. — Public works and
infrastructure projects and other facilities, programs, and services
funded by the National Government under the annual General
Appropriations Act, other special laws, and pertinent executive orders,
and those wholly or partially funded from foreign sources, are not
covered by the devolution of basic services and facilities under this
Rule, except in those cases where the LGU concerned is duly designated
as the implementing agency for such projects, facilities, programs, and
services.
ARTICLE 27. Specification and Testing of Materials
and Procurement Systems. — The designs, plans, specifications, testing
of materials, and procurement of equipment and materials from both
foreign and local sources necessary for the provision of basic services
and facilities shall be undertaken by the LGU based on national
policies, standards, and guidelines.
ARTICLE 28. Period of Devolution. — The NGAs
concerned shall devolve to LGUs the responsibility for the provision of
basic services and facilities enumerated in this Rule within six (6)
months after the effectivity of the Code on January 1, 1992.
ARTICLE 29. Funding. — Basic services and facilities
shall be funded from the share of LGU in the proceeds of national
taxes, other local revenues, and funding support from the National
Government and its instrumentalities including GOCCs, tasked by law to
establish and maintain such services or facilities. Any available fund
or resource of LGUs shall first be allocated for the provision of basic
services and facilities before using such fund or resource for other
purposes, unless otherwise provided under these Rules.
ARTICLE 30. Commercialization and Privatization. —
(a) LGUs may, by ordinance, sell, lease, encumber, or otherwise dispose
of public economic enterprises owned by them in their proprietary
capacity to ensure active participation of the private sector in local
governance.
(b) Without prejudice to the social attributes of
basic services and facilities, LGUs may tap the private sector in the
delivery of basic services and facilities.
(c) Reasonable costs may be charged by the private
sector concerned for the operation and management of economic
enterprises for the delivery of basic services and facilities.
(d) The guidelines issued by DILG in its Circular No.
90-104 dated December 3, 1990 (Annex A) may initially serve as bases
for determining the nature and scope of such services and facilities of
LGU that could be assigned to the private sector.
(e) The DILG shall formulate an accreditation scheme
for the private sector, and a system for cost recovery and
privatization of local public enterprises.
ARTICLE 31. Augmentation Scheme. — NGAS affected by
devolution or the next higher LGU may augment basic services and
facilities assigned to a lower LGU. Standards and guidelines for basic
services and facilities prescribed by NGAs shall be the bases for
determining non-availability or inadequacy of such services and
facilities in an LGU.
In the event an LGU cannot continually support the salaries of devolved
personnel, maintain the operation of transferred assets, or finance the
adequate delivery of basic services and facilities, the President may,
upon request of the LGU concerned, direct the appropriate NGA to
provide financial, technical, or other form of assistance. Such
assistance shall be extended at no extra cost on the part of the LGU.
RULE
VI
Eminent Domain
ARTICLE 32. When Exercised. — (a) An LGU may, through
its chief executive and acting pursuant to an ordinance, exercise the
power of eminent domain for public use, purpose, or welfare of the poor
and the landless, upon payment of just compensation, pursuant to the
provisions of the Constitution and pertinent laws.
(b) The power of eminent domain may not be exercised
unless a valid and definite offer has been previously made to the
owner, and such offer was not accepted.
ARTICLE 33. Public Use, Purpose, or Welfare. — The
following shall, among others, be considered as public use, purpose, or
welfare:
(a) Socialized housing;
(b) Construction or extension of roads, streets,
sidewalks, viaducts, bridges, ferries, levees, wharves, or piers;
(c) Construction or improvement of public buildings;
(d) Establishment of parks, playgrounds, or plazas;
(e) Establishment of market places;
(f) Construction of artesian wells or water supply
systems;
(g) Establishment of cemeteries or crematories;
(h) Establishment of drainage systems, cesspools, or
sewerage systems;
(i) Construction of irrigation canals or dams;
(j) Establishment of nurseries, health centers, or
hospitals;
(k) Establishment of abattoirs; and
(l) Building of research, breeding, or dispersal
centers for animals.
ARTICLE 34. Prerequisites. — In acquiring private
property for public use or purpose, LGU shall first establish the
suitability of the property to be acquired for the use intended, then
proceed to obtain from the proper authorities the necessary locational
clearance and other requirements imposed under existing laws, rules and
regulations.
ARTICLE 35. Offer to Buy and Contract of Sale. — (a)
The offer to buy private property for public use or purpose shall be in
writing. It shall specify the property sought to be acquired, the
reasons for its acquisition, and the price offered.
(b) If the owner or owners accept the offer in its
entirety, a contract of sale shall be executed and payment forthwith
made.
(c) If the owner or owners are willing to sell their
property but at a price higher than that offered to them, the local
chief executive shall call them to a conference for the purpose of
reaching an agreement on the selling price. The chairman of the
appropriation or finance committee of the sanggunian, or in his
absence, any member of the sanggunian duly chosen as its
representative, shall participate in the conference. When an agreement
is reached by the parties, a contract of sale shall be drawn and
executed.
(d) The contract of sale shall be supported by the
following documents:
(1) Resolution of the sanggunian authorizing the
local chief executive to enter into a contract of sale. The resolution
shall specify the terms and conditions to be embodied in the contract;
(2) Ordinance appropriating the amount specified in
the contract; and
(3) Certification of the local treasurer as to
availability of funds together with a statement that such fund shall
not be disbursed or spent for any purpose other than to pay for the
purchase of the property involved.
ARTICLE 36. Expropriation Proceedings. — (a) If the
LGU fails to acquire a private property for public use, purpose, or
welfare through purchase, LGU may expropriate said property through a
resolution of the sanggunian authorizing its chief executive to
initiate expropriation proceedings.
(b) The local chief executive shall cause the
provincial, city, or municipal attorney concerned or, in his absence,
the provincial or city prosecutor, to file expropriation proceedings in
the proper court in accordance with the Rules of Court and other
pertinent laws.
(c) The LGU may immediately take possession of the
property upon the filing of expropriation proceedings and upon making a
deposit with the proper court of at least fifteen percent (15%) of the
fair market value of the property based on the current tax declaration
of the property to be expropriated.
ARTICLE 37. Payment. — The amount to be paid for the
expropriated property shall be determined by the proper court, based on
the fair market value at the time of the taking of the property.
RULE
VII
Reclassification of Agricultural
Lands
ARTICLE 38. Authority to Reclassify Agricultural
Lands. — (a) A city or municipality may reclassify agricultural lands
through an ordinance enacted by the sanggunian after conducting public
hearings for the purpose provided that there exists an approved zoning
ordinance implementing its comprehensive land use plan.
(b) Agricultural lands may be classified in the
following cases:
(1) When land ceases to be economically feasible and
sound for agricultural purposes as determined by the Department of
Agriculture; or
(2) Where the land shall have substantially greater
economic value for residential, commercial, or industrial purposes as
determined by the sanggunian.
ARTICLE 39. Limitations. — (a) Reclassification shall
be limited to the following percentage of the total agricultural land
area at the time of the passage of the ordinance:
(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%).
(b) Agricultural lands distributed to agrarian reform
beneficiaries pursuant to Republic Act No. 6657, otherwise known as the
Comprehensive Agrarian Reform Law, shall not be affected by the
reclassification. Conversion of such lands into other purposes shall be
governed by Sec. 65 of said law.
(c) The city or municipality shall provide mechanisms
for the preservation and protection of the tenurial rights of agrarian
reform beneficiaries as provided under RA 3844, otherwise known as
Agricultural Land Reform Code, as amended, and other applicable laws in
the reclassification of agricultural lands not yet distributed under RA
6657.
(d) Nothing in this Rule shall be construed as
repealing, amending, or modifying in any manner the provisions of RA
6657.
ARTICLE 40. Reclassification in Excess of Percentage
Limitation. — The President may, when public interest so requires and
upon recommendation of the National Economic and Development Authority
(NEDA), authorize a city or municipality to reclassify lands in excess
of the percentage limitation set in the immediately preceding article.
Recommendation of NEDA shall be based on the requirements for food
production, human settlements, ecological considerations, and other
relevant factors in the city or municipality.
ARTICLE 41. Comprehensive Land Use Plans. — (a)
Subject to applicable laws, rules and regulations, cities and
municipalities shall continue to prepare their respective comprehensive
land use plans enacted through zoning ordinances. The requirements for
food production, human settlements, ecological balance, and industrial
expansion shall be considered in the preparation of such plans.
(b) The comprehensive land use plan shall be the
primary and dominant basis for future use of local resources and for
reclassification of agricultural lands.
(c) The sangguniang panlalawigan shall review the
comprehensive land use plans and zoning ordinances of component cities
and municipalities and shall adopt comprehensive provincial land use
plan, primarily based on the revised plans.
ARTICLE 42. Approval of Reclassification. — When
approval of an NGA is required for reclassification, such approval
shall not be unreasonably withheld. Failure to act on a proper and
complete application for reclassification within three months from
receipt of the same shall be deemed as approval thereof.
RULE
VIII
Closure and Opening of Roads or
Parks
ARTICLE 43. Authority to Close or Open. — An LGU may,
through an ordinance, permanently or temporarily close or open any
road, alley, park, or square within its jurisdiction.
ARTICLE 44. Permanent Closure. — (a) No permanent
closure of any local road, street, alley, park, or square shall be
affected unless there exists a compelling reason or sufficient
justification therefore such as, but not limited to, change in land
use, establishment of infrastructure facilities, projects, or such
other justifiable reasons as public welfare may require.
(b) When necessary, an adequate substitute for the
public facility that is subject to closure shall be provided. No
freedom park shall be closed permanently without provision for its
transfer or relocation to a new site.
(c) No such way or place or any part thereof shall be
permanently closed without making provisions for the maintenance of
public safety therein.
(d) A property permanently withdrawn from public use
may be used or conveyed for any purpose for which other real property
belonging to LGU may be lawfully used or conveyed.
(e) The ordinance authorizing permanent closure must
be approved by at least two-thirds (2/3) of all members of the
sanggunian. Public hearings shall first be conducted before any
ordinance authorizing permanent closure of any local roads, alley,
park, or square is enacted. Notices of such hearings and copies of the
proposed ordinance shall be posted for a minimum period of three (3)
consecutive weeks in conspicuous places in the provincial capitol, or
in the city, municipal, or barangay hall of LGU and within the vicinity
of the street or park proposed to be closed.
ARTICLE 45. Temporary closure. — (a) Any national or
local road, alley, park, or square may be temporarily closed during
actual emergency or fiesta celebrations, public rallies, agricultural
or industrial fairs, or undertaking of public works and highways,
telecommunications, and waterworks projects, the duration of which
shall be specified by the local chief executive concerned in a written
order, as follows:
(1) During fiesta celebrations — for a period not
exceeding nine (9) days;
(2) During agricultural or industrial fairs or
expositions — for a period as may be determined to be necessary and
reasonable;
(3) When public works projects or activities are
being undertaken for a period as may be determined necessary for the
safety, security, health, or welfare of the public or when such closure
is necessary to facilitate completion of the projects or activities.
(b) An LGU may temporarily close and regulate the use
of any local street, road, thoroughfare, or public place where shopping
malls, Sunday markets, flea or night markets, or shopping areas may be
established and where goods, merchandise, foodstuff, commodities, or
articles of commerce may be sold and dispensed to the general public.
(c) No national or local road, alley, park, or square
shall be temporarily closed for athletic, cultural, or civic activities
not officially sponsored, recognized, or approved by the LGU.
RULE
IX
Corporate Powers and Corporate
Seal
ARTICLE 46. Corporate Powers. — Every LGU, as a
corporation, shall exercise the following powers:
(a) To have continuous succession in its corporate
name;
(b) To sue and be sued;
(c) To have and use a corporate seal;
(d) To acquire and convey real or personal property;
(e) To enter into contracts; and
(f) To exercise such other powers as are granted to
corporations subject to the limitations provided under the Code and
other applicable laws.
ARTICLE 47. How Exercised. — (a) Unless otherwise
provided in the Code, no contract may be entered into by the local
chief executive in behalf of an LGU without prior authorization by the
sanggunian. A legible copy of such contract shall be posted at a
conspicuous place in the provincial capitol, or in the city, municipal,
or barangay hall.
(b) LGUs shall enjoy full autonomy in the exercise of
their proprietary functions and in the management of their economic
enterprises, subject to the limitations provided in the Code and other
applicable laws.
(c) An LGU shall duly register in its name all its
acquired real property and shall notify the Commission on Audit (COA)
of such registration.
ARTICLE 48. Corporate Seal. — LGUs may modify,
change, or continue using their existing corporate seals. Newly
established LGUs or those without corporate seals may create their own
corporate seals in consultation with NHI, and shall register such seals
with DILG. Any change of corporate seal shall also be registered with
DILG.
RULE
X
Authority to Negotiate and
Secure Grants
ARTICLE 49. Extent of Authority. — Local chief
executive may, upon authority of the sanggunian, negotiate and secure
financial grants or donations in kind, in support of the basic services
and facilities enumerated under Rule V of these Rules, from local or
foreign assistance agencies without necessity of securing clearance, or
approval therefore from any NGA or from any higher LGU. In cases where
the projects financed by such grants or assistance affect national
security, prior clearance shall be secured by the LGU from the NGA
concerned. If the NGA fails to act on the request for clearance within
thirty (30) days from receipt thereof, such request shall be deemed
approved.
ARTICLE 50. Monitoring System. — Within thirty (30)
days after the approval of these Rules, the NEDA shall, in coordination
with DILG and other NGAs concerned, design and formulate a clearing and
monitoring system to:
(a) Assist LGUs and the granting institutions in the
expeditious submission and approval of project proposals, respectively;
(b) Assist LGUs and the granting institutions in the
monitoring of project status and progress;
(c) Ensure the granting institutions that no project
shall be doubly funded by other institutions; and
(d) Ensure submission of satisfactory project status
reports to the granting institutions in compliance with grant
agreements.
ARTICLE 51. Directory and Quarterly Information. —
(a) The NEDA shall annually provide a directory of all local and
foreign granting institutions which shall contain the thrusts and
priorities of such institutions and guidelines on application for
grants as well as other relevant information.
(b) The NEDA and all other NGAs concerned shall
provide quarterly information to all LGUs on unutilized balances of
granting institutions.
ARTICLE 52. Report. — The local chief executive
shall, within thirty (30) days upon approval of the grant agreement or
deed of donation, report the nature, amount, and terms of such
assistance to both Houses of Congress and the President, through DILG.
RULE
XI
National-Local Government
Relations
ARTICLE 53. National Government Supervision and
Coordination. — (a) The President shall exercise general supervision
over LGUs to ensure that their acts are within the scope of their
prescribed powers and functions.
The President shall exercise supervisory authority directly over
provinces, highly-urbanized cities, and independent component cities;
through the province with respect to component cities and
municipalities; and through the city and municipality with respect to
barangays.
In exercising general supervision over LGUs the President shall be
assisted primarily by DILG, unless otherwise provided in the Code or
elsewhere in these Rules and other applicable laws.
(b) The President may, upon request of LGU concerned,
direct the appropriate NGA to provide financial, technical, or other
forms of assistance to LGU.
ARTICLE 54. Mandatory Consultations. — (a) All NGAs
shall conduct periodic consultations with appropriate LGUs, people's
organizations, NGOs, and other concerned sectors of the community
before any project or program is implemented in their respective
jurisdictions.
(b) NGAs or GOCCs authorizing or involved in 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 shall consult with LGUs, NGOs, and other sectors concerned and
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.
ARTICLE 55. Coordination with LGUs. — (a) NGAs with
project implementation functions shall coordinate with one another and
with LGUs concerned in the discharge of these functions. They shall
ensure the participation of LGUs both in the planning and
implementation of said national projects.
(b) NGAs and GOCCs with field units or branches in a
province, city, or municipality shall furnish the local chief executive
concerned, for his information and guidance, monthly reports, including
duly certified budgetary allocations and expenditures.
ARTICLE 56. Relationship of Local Chief Executive
with National Functionaries Stationed in LGUs. — (a) The local chief
executives may call upon any national official or employee stationed in
or assigned to an LGU to advise and regularly report to him on matters
affecting LGUs and make recommendations thereon; or to coordinate in
the formulation and implementation of all plans, programs, and
projects.
(b) When appropriate, the local chief executive may
initiate an administrative or judicial action against any National
Government official or employee who may have committed an offense in
the performance of his official duties while stationed or assigned in
the LGU concerned.
(c) The local chief executive shall inform the NGA
concerned if any services have adverse effects on the lives of the
citizen that is foreseen or is being felt and to submit proposals
intended to prevent or mitigate the same preferably before project
implementation.
ARTICLE 57. Relations with the Philippine National
Police. — The extent of operational supervision and control of local
chief executives over the police force, fire protection unit, and jail
management personnel assigned in their respective jurisdiction shall be
governed by the provisions of RA 6975, otherwise known as The
Department of the Interior and Local Government Act of 1990, and the
rules and regulations issued pursuant thereto (Annex B).
ARTICLE 58. Prior Approval or Clearance on Regular
and Recurring Transactions. — Six (6) months after the effectivity of
the Code, prior approval of or clearance from NGAs shall no longer be
required and recurring transactions and activities of LGUs.
RULE
XII
Inter-Local Government Relations
ARTICLE 59. General Supervision of the Province Over
Component Cities and Municipalities. — (a) The province, through its
governor, shall exercise supervisory authority over component cities
and municipalities within its territorial jurisdiction to ensure that
they act within the scope of their prescribed powers and functions.
Highly-urbanized cities and independent component cities shall be
independent of the province.
(b) The scope of supervision by the province over
component cities and municipalities shall include, but not limited to,
the following:
(1) The governor shall review executive orders issued
by the mayor of the component city or municipality, subject to the
concurrence of the sangguniang panlalawigan, except as otherwise
provided under the Constitution and special statutes. If the governor
and the sangguniang panlalawigan fail to act on said executive orders
within thirty (30) days from receipt thereof, the same shall be deemed
consistent with law and therefore valid.
(2) The sangguniang panlalawigan shall review all
approved city or municipal ordinances and resolutions approving the
development plans and public investment programs formulated by the city
or municipal development councils.
(3) The sangguniang panlalawigan shall review the
ordinance authorizing annual or supplemental appropriations of
component cities and municipalities in the same manner and within the
same period prescribed for the review of other ordinances of the LGU.
(4) The governor shall visit component cities and
municipalities of the province at least once every six (6) months to
fully understand their problems and conditions, listen and give
appropriate counsel to local officials and inhabitants, inform the
officials and inhabitants of component cities and municipalities of
general laws and ordinances which especially concern them, and conduct
visits and inspections to the end that the governance of the province
shall improve the quality of life of the inhabitants.
(5) The governor shall coordinate plans, measures,
and developmental activities with component cities and municipalities
as well as NGAs concerned to:
(i) Formulate peace and order plan of the province in
coordination with mayors of component cities and municipalities and the
National Police Commission;
(ii) Adopt adequate measures to safeguard and
conserve land, mineral, marine, forest, and other resources of the
province, in coordination with mayors of component cities and
municipalities;
(iii) Coordinate efforts of component cities and
municipalities in the national or regional palaro or sports development
activities; and
(iv) Call conventions, conferences, seminars, or
meetings of any elective and appointive officials of the province and
component cities and municipalities.
(6) 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 shall be shared by the province, municipality, and barangay in
the manner prescribed in Rule XXXI of these Rules.
(7) The province shall share its collections from the
tax on sand, gravel, and other quarry resources with its component city
and municipality, and the barangay where said resources are extracted.
ARTICLE 60. General Supervision of Cities and
Municipalities Over Barangays. — (a) The city and municipality, through
the city and municipal mayor, shall exercise supervisory authority over
every barangay in their respective territorial jurisdictions to ensure
that they act within the scope of their assigned powers and functions.
(b) The scope of supervision by the city and
municipality over their barangays shall include, but not limited to,
the following:
(1) The city or municipal mayor shall review all
executive orders promulgated by the punong barangay within his
jurisdiction, subject to the concurrence of the sangguniang panlungsod
or sangguniang bayan, except as otherwise provided under the
Constitution and special statutes.
(2) The sangguniang panlungsod or sangguniang bayan
concerned shall review all barangay ordinances to determine whether or
not such ordinances are consistent with law.
(3) The city or municipal mayor shall visit and
inspect his barangays at least once every six (6) months to fully
understand the problems and conditions therein, listen and give
appropriate counsel to barangay officials and inhabitants, and inform
them of general laws and ordinances which especially concern them, and
conduct visits and inspections to the end that the governance of the
city or municipality will improve the quality of life of the
inhabitants.
(4) Cities or municipalities shall provide an annual
aid of not less than One Thousand Pesos (P1,000.00) per barangay.
(5) Cities or municipalities shall coordinate with
their barangays in the adoption of complementary development plans and
programs for a more effective solution of problems or concerns
affecting the LGU.
(6) The sangguniang panlungsod or the sangguniang
bayan shall provide for group insurance or additional insurance
coverage for barangay officials, including members of barangay tanod
brigades and other service units, with public or private insurance
companies when finances of the city or municipality allow said coverage.
(7) 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 public auction
by the city or municipality shall be shared with their barangays in the
manner prescribed under these Rules.
ARTICLE 61. Inter-Local Government Loans, Grants,
Subsidies and Other Cooperative Undertakings. — (a) Provinces, cities,
and municipalities may, upon approval of a majority of all members of
the sanggunian concerned and in amounts not exceeding their surplus
funds, extend loans, grants, or subsidies to other LGUs under such
terms and conditions as may be agreed upon by the contracting parties.
(b) LGUs may, through appropriate ordinances, group
themselves, consolidate or coordinate their efforts, sources, and
resources for purposes commonly beneficial to them. In support of such
undertakings, LGUs may, upon approval by the sanggunian concerned after
public hearing conducted for the purpose, contribute funds, real
estate, equipment, and other kinds of property and appoint or assign
personnel under such terms and conditions as may be agreed upon by the
participating LGUs through a Memorandum of Agreement.
(c) LGUs may, upon approval of their respective
sanggunians, jointly or severally contract loans, credits and other
forms of indebtedness for purposes mutually beneficial to them.
(d) The procedures in contracting inter-local
government loans, credits and other forms of indebtedness as well as
other cooperative undertakings are as follows:
(1) The local chief executive, in consultation with
the local development council (LDC), shall identify the programs,
projects, and activities that may be considered;
(2) The local chief executive shall negotiate with
the prospective LGU partner or partners on the terms and conditions of
the agreement to be embodied in a Memorandum of Agreement.
(3) The local chief executives concerned may organize
a team to negotiate the terms and conditions of the joint loan. The
final terms and conditions shall be subject to the approval of the said
local chief executives.
(4) The local chief executives concerned shall submit
the Memorandum of Agreement to their respective sanggunians for
approval and authority to enter into inter-local government cooperative
undertaking or joint loan or credit. In the case of cooperative
undertakings, the sanggunian shall conduct as many public hearings as
may be required to obtain the views and opinions of the affected
sectors.
(5) The loan agreement shall be signed jointly by the
local chief executives concerned.
(6) Within ten (10) days from signing of the loan
agreement, the local chief executives concerned shall formally submit a
copy of the approved loan agreement to their respective sanggunians.
RULE XIII
Local Government Relations With People's Organizations, Nongovernmental
Organizations, and the Private Sector
ARTICLE 62. Role of People's Organizations,
Nongovernmental Organizations and the Private Sector. — LGUs shall
promote the establishment and operation of people's organizations,
NGOs, and the private sector, to make them active partners in the
pursuit of local autonomy. For this purpose, people's organizations,
NGOs, and the private sector shall be directly involved in the
following plans, programs, projects, or activities of LGUs:
(a) Local special bodies;
(b) Delivery of basic services and facilities;
(c) Joint ventures and cooperative programs or
undertakings;
(d) Financial and other forms of assistance;
(e) Preferential treatment for organizations and
cooperatives of marginal fishermen;
(f) Preferential treatment for cooperatives
development; and
(g) Financing, construction, maintenance, operation,
and management of infrastructure projects.
ARTICLE 63. Local Special Bodies. — (a) Local
Development Councils — The duly designated representatives of
accredited people's organizations, NGOs, and the private sector
operating in the provinces, cities, municipalities, or barangays shall
sit as members in the provincial, city, municipal, or barangay
development councils, as the case may be. The number of NGO
representatives in each LDC shall not be less than one-fourth (1/4) of
the total membership of the fully organized council.
The local chief executive shall undertake the necessary information
campaign to ensure participation of all NGOs operating within his
territorial jurisdiction.
(b) Local Prequalification, Bids and Awards
Committees — Two (2) representatives of people's organizations or NGOs
that are represented in the LDC concerned, to be chosen by the
organizations themselves, and a practicing certified public accountant
from the private sector, to be designated by the local chapter of the
Philippine Institute of Certified Public Accountant, if any, shall sit
as members of the provincial, city, and municipal prequalification,
bids and awards committees (PBACs).
(c) Local Health Boards — A representative from NGOs
or the private sector involved in health services in the province,
city, and municipality shall sit as member of the provincial, city or
municipal health boards, respectively.
(d) Local School Boards — The representatives of NGOs
or the private sector who shall sit as members of the local school
boards are as follows:
(1) Provincial school board — the duly elected
president of the provincial federation of parents-teachers
associations, the duly elected representative of teachers'
organizations in the province, and the duly elected representative of
the non-academic personnel of public schools in the province;
(2) City school board — the duly elected president of
the city federation of parents-teachers associations, the duly elected
representative of teachers' organizations in the city, and the duly
elected representative of the non-academic personnel of public schools
in the city;
(3) Municipal school board — the duly elected
president of the municipal federation of parents-teachers associations,
the duly elected representative of the teachers' organizations in the
municipality, and the duly elected representative of the non-academic
personnel of the public schools in the municipality;
(e) Local Peace and Order Councils — The
representatives of people's organizations or NGOs in the local peace
and order councils shall be the same as those provided under
Presidential EO 309, series of 1988, as amended, and the implementing
rules and regulations issued pursuant thereto (Annex B).
(f) People's Law Enforcement Boards — The
representatives of people's organizations or NGOs who sit as members of
the boards shall be the same as those provided under RA 6975, and the
rules and regulations issued pursuant thereto.
ARTICLE 64. Procedures and Guidelines for Selection
of Representatives of People's Organizations, Nongovernmental
Organizations, or the Private Sector in Local Special Bodies. — (a)
Call for application — Within thirty (30) days from the approval of
these Rules and thereafter, within thirty (30) days from the
organization of the newly elected sanggunian, each sanggunian concerned
shall call all community-based people's organizations or NGOs,
including business and professional groups, and other similar
aggrupations to apply with the LGU concerned for accreditation for
membership in the local special bodies. The application shall include a
duly approved board resolution of the people's organizations, NGOs or
the private sector concerned, certificate of registration, list of
officers, accomplishments, and financial data of the organization;
(b) Accreditation — The sanggunian concerned shall
accredit the organizations based on the following criteria:
(1) Registration with either the Securities and
Exchange Commission, Cooperatives Development Authority, Department of
Labor and Employment, Department of Social Welfare and Development, or
any recognized NGA that accredits people's organizations, NGOs, or the
private sector. If not formally registered, the said organizations may
be recognized by the sanggunian for purposes only of meeting the
minimum requirements for membership of such organizations in local
special bodies;
(2) Organizational purpose and objectives include
community organization and development, institution-building, local
enterprise development, livelihood development, capability-building,
and similar developmental objectives and considerations;
(3) Community-based with project development and
implementation track record of at least one (1) year;
(4) Reliability as evidenced by the preparation of
annual reports and conduct of annual meetings duly certified by the
board secretary of the organization; and
(5) In the case of PBACs, the organization or any of
its members shall have no conflict of interest in the awarding of
infrastructure or other projects.
(c) Completion of the accreditation process — The
sanggunian shall complete the accreditation process within sixty (60)
days from the promulgation of these Rules or within the same period
from the organization of the newly elected sanggunian.
(d) Meeting to choose representatives of people's
organizations, NGOs, or the private sector — Within fifteen (15) days
after the accreditation process, the DILG field officer assigned in the
LGU shall call all accredited people's organizations, NGOs, or the
private sector to a meeting where these organizations shall choose from
among themselves which people's organizations, NGOs or private sector
will be represented in the local special bodies. The selected people's
organizations, NGOs or private sector shall then designate their
principal and alternate representatives who are residents of the LGU
concerned. In no case shall an organization or a representative thereof
be a member of more than one local special body within a province,
city, or municipality.
(e) Term of office of selected representatives — The
term of office of a selected representative shall be coterminous with
that of the local chief executive concerned. Should a vacancy arise,
the selected people's organizations, NGOs, or the private sector shall
designate a replacement for the unexpired term.
ARTICLE 65. Delivery of Basic Services and
Facilities. — LGUs may, by ordinance, sell, lease, encumber, or
otherwise dispose of public economic enterprises owned by them in their
proprietary capacity to the private sector to ensure their active
participation in local governance.
ARTICLE 66. Joint Ventures and Cooperative Programs
or Undertakings. — LGUs may enter into joint ventures and such other
cooperative arrangements with people's organizations, NGOs or the
private sector, to engage in the delivery of certain basic services;
capability-building and livelihood projects; develop local enterprises
designed to improve productivity and income; diversify agriculture;
spur rural industrialization; promote ecological balance; and enhance
the economic and social well-being of the people.
ARTICLE 67. Financial and Other Forms of Assistance.
— An LGU may, through its chief executive and with the concurrence of
the sanggunian concerned, provide assistance, financial or otherwise,
to people's organizations, NGOs, or the private sector for economic,
socially-oriented, environmental, or cultural projects to be
implemented within its territorial jurisdiction. An LGU may likewise
grant tax exemptions, tax relief and other tax incentives to the said
organizations as provided in these Rules.
ARTICLE 68. Preferential Treatment for Organizations
and Cooperatives of Marginal Fishermen. — (a) The duly registered
organizations and cooperatives of marginal fishermen shall have
preferential right in the grant by the sanggunian to erect fish
corrals, oyster, mussel or aquatic beds or bangus fry areas, within a
definite zone of the municipal waters.
(b) The sanggunian may grant the privilege to gather,
take or catch bangus fry, prawn fry or kawag-kawag or fry of other
species and fish from the municipal waters by nets, traps or other
fishing gears to marginal fishermen free of any rental, fee, charge, or
any other imposition whatsoever.
ARTICLE 69. Preferential Treatment for Cooperatives.
— Upon approval by a majority vote of all its members, the sangguniang
panlungsod or sangguniang bayan may grant a franchise to any person,
partnership, corporation, or cooperative to establish, construct,
operate and maintain ferries, wharves, markets or slaughterhouses, or
such other similar activities within the city or municipality as may be
allowed by applicable laws. Cooperatives shall be given preference in
the grant of franchises as contemplated in this Article.
ARTICLE 70. Financing, Construction, Maintenance,
Operation, and Management of Infrastructure Projects by the Private
Sector. — LGUs may enter into a contract with any duly prequalified
individual contractor for the financing, construction, operation, and
maintenance of any financially viable infrastructure facilities, under
the build-operate-and-transfer (B-O-T) agreement, subject to the
applicable provisions of RA 6957 authorizing the financing,
construction, operation, and maintenance of infrastructure projects by
the private sector and the rules and regulations issued thereunder and
such other terms and conditions as may be agreed upon by the
contracting parties.
RULE
XIV
Common Provisions for Elective
Local Officials
ARTICLE 71. Local Officials. — The elective officials
of provinces, cities, municipalities, and barangays are the following:
Provinces
(a) governor;
(b) vice governor; and
(c) members of the sangguniang panlalawigan.
Cities
(a) city mayor;
(b) city vice mayor; and
(c) members of the sangguniang panlungsod.
Municipalities
(a) municipal mayor;
(b) municipal vice mayor; and
(c) members of the sangguniang bayan.
Barangays
(a) punong barangay;
(b) members of the sangguniang barangay; and
(c) members of the sangguniang kabataan.
ARTICLE 72. Qualifications. — All elective local
officials shall possess the following qualifications:
(a) A citizen of the Philippines;
(b) A registered voter in the province, city,
municipality, or barangay where he intends to be elected or, in the
case of a member of the sangguniang panlalawigan, sangguniang
panlungsod, or sangguniang bayan, the district where he intends to be
elected;
(c) A resident of the LGU concerned for at least one
(1) year immediately preceding the day of the election;
(d) Able to read and write Filipino or any other
Philippine language or dialect;
(e) Candidates for the position of governor, vice
governor, or member of the sangguniang panlalawigan, or city mayor,
vice mayor, or member of the sangguniang panlungsod of highly-urbanized
cities must be at least twenty-three (23) years of age on election day;
(f) Candidates for the position of mayor or vice
mayor of independent component cities, component cities, or
municipalities must be at least twenty-one (21) years of age on
election day;
(g) Candidates for the position of member of the
sangguniang panlungsod or sangguniang bayan must be at least eighteen
(18) years of age on election day;
(h) Candidates for the position of punong barangay or
member of the sangguniang barangay must be at least eighteen (18) years
of age on election day; and
(i) Candidates for the position of member of the
sangguniang kabataan must be at least fifteen (15) years of age but not
more than twenty-one (21) years of age on election day.
ARTICLE 73. Disqualifications. — The following
persons shall be disqualified from running for any elective local
position:
(a) Those sentenced by final judgment for an offense
involving moral turpitude or for an offense punishable by one (1) year
or more imprisonment, within two (2) years after serving sentence;
(b) Those removed from office as a result of an
administrative case;
(c) Those convicted by final judgment for violating
the oath of allegiance to the Republic of the Philippines;
(d) Those with dual citizenship;
(e) Fugitives from justice in criminal or
nonpolitical cases here or abroad. Fugitive from justice refers to a
person who has been convicted by final judgment.
(f) Permanent residents in a foreign country or those
who have acquired the right to reside abroad and continue to avail of
the same right after the effectivity of the Code; and
(g) The insane or the feeble-minded.
ARTICLE 74. Manner of Election. — (a) The governor,
vice governor, city mayor, city vice mayor, municipal mayor, municipal
vice mayor, and punong barangay shall be elected at large in their
respective LGUs by the qualified voters therein. The sangguniang
kabataan chairman for each barangay shall be elected by the registered
voters of the katipunan ng kabataan, as provided in Rule XXVII of these
Rules.
(b) The regular members of the sangguniang
panlalawigan, sangguniang panlungsod, and sangguniang bayan shall be
elected by district, as may be provided by law. Sangguniang barangay
members shall be elected at large.
(c) There shall be one (1) sectoral representative
from the women, one (1) from the workers, and one (1) from any of the
following sectors; the urban poor, indigenous cultural communities,
disabled persons, or any other sector as may be determined by the
sanggunian concerned within ninety (90) days prior to the holding of
the next local elections, as may be provided by law. The COMELEC shall
promulgate rules and regulations to effectively provide for the
election of such sectoral representatives.
ARTICLE 75. Date of Election. — Unless otherwise
provided by law, the elections for local officials shall be held every
three (3) years on the second Monday of May starting on the second
Monday of May 1992 except for the barangay officials which shall be on
the second Monday of May, 1994 and sangguniang kabataan officials which
shall be one hundred twenty days (120) after the second Monday of May,
1994.
ARTICLE 76. Term of Office. — (a) The term office of
all elective local officials shall be three (3) years, starting from
noon of June 30, 1992 or such date as may be provided by law except
that of elective barangay officials, which shall begin after the
regular elections for barangay officials on the second Monday of May,
1994.
(b) No elective local official shall serve for more
than three (3) consecutive terms in the same position. Voluntary
renunciation of the office for any length of time shall not be
considered as an interruption in the continuity of service for the full
term for which the elective official concerned was elected.
ARTICLE 77. Compensation and Benefits. — (a)
Compensation —
(1) Upon effectivity of the Code, an elective local
official shall receive a minimum monthly compensation corresponding to
the salary grade as prescribed under RA 6758, otherwise known as the
Salary Standardization Law, and the implementing guidelines issued
thereunder, as follows:
Provinces —
(i) governor SG-30
(ii) vice governor SG-28
(iii) members of the sangguniang
panlalawigan SG-27
Cities —
(i) city mayor SG-30
(ii) city vice mayor highly-urbanized
cities SG-28
component cities SG-26
(iii) members of the sangguniang panlungsod
highly-urbanized cities SG-27
component cities SG-25
Municipalities —
(i) municipal mayor within MMA
SG-28
outside MMA SG-27
(ii) municipal vice mayor within
MMA SG-26
outside MMA SG-25
(iii) members of the sangguniang bayan
within MMA SG-25
outside MMA SG-24
(2) The ex officio members in the sangguniang
panlalawigan shall receive their authorized salaries and emoluments
from the component city or municipality where they are representing
their respective ligas or federations. The province shall appropriate
funds for the additional allowances of said members such that their
total compensation shall be equivalent to the compensation actually
received by their elective counterparts in the sangguniang
panlalawigan.
(3) Any compensation beyond the minimum of the
authorized salary grade shall be determined by the sanggunian concerned
provided that 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 and provided further, that said
increase shall not exceed the budgetary limitation on personal services
and provided finally, that such compensation shall not be higher than
the maximum fixed for their positions provided under applicable laws or
rules and regulations issued thereunder.
(4) Notwithstanding the prohibition under the
immediately preceding subparagraph (3), elective local officials may,
during their tenure, be allowed to receive the minimum rate of the
salary grade prescribed in this Article.
(5) Elective barangay officials shall receive
honoraria, allowances, and such other emoluments as may be authorized
by law or city, municipal or barangay ordinance in accordance with the
provisions of these Rules, but in no case shall it be less than One
Thousand Pesos (P1,000.000) per month for the punong barangay and Six
Hundred Pesos (P600.00) per month for the members of the sangguniang
barangay, subject to budgetary limitations prescribed in Rule XXXIV of
these Rules.
(b) Benefits —
(1) Elective local officials shall be entitled to the
same leave privileges those enjoyed by appointive local officials,
including the cumulation and commutation thereof.
(2) Elective barangay officials shall:
(i) Be entitled to a Christmas bonus of at least One
Thousand Pesos (P1,000.00) each, the funds for which shall be taken
from the general fund of the barangay or from such other funds
appropriated by the National Government for the purpose;
(ii) Be entitled, during their incumbency, to
insurance coverage which shall include, but not limited to temporary
and permanent disability, double indemnity, accident insurance, death
and burial benefits, in accordance with RA 6942 entitled An Act
Increasing the Insurance Benefits of Local Government Officials and
Providing Funds therefor.
The Government Service Insurance System shall establish and administer
an appropriate system under which the punong barangay, the members of
the sangguniang barangay, the barangay secretary, the barangay
treasurer, and the members of the barangay tanod shall enjoy insurance
coverage as provided in the immediately preceding paragraph. For this
purpose, the Government Service Insurance System shall undertake an
actual study, issue rules and regulations, determine the premiums
payable, and recommend to the Congress the amount of appropriations
needed to support the system. The amount needed for the implementation
of the said insurance system shall be included in the annual General
Appropriations Act.
(iii) Be entitled to free medical care including
subsistence, medicines, and medical attendance in any government
hospital or institution. Hospital care shall include surgery or
surgical expenses, medicines, x-rays, laboratory fees, and other
hospital expenses;
In case of extreme urgency where there is no available government
hospital or institution, the elective barangay official may submit
himself for immediate medical attendance to the nearest private clinic,
hospital or institution and the expenses not exceeding Five Thousand
Pesos (P5,000.00) that may be incurred therein shall be chargeable
against the funds of the barangay concerned;
(iv) Be exempted during their incumbency from paying
tuition and matriculation fees for their legitimate dependent children
attending state colleges or universities. He may likewise avail of such
educational benefits in a state college or university located within
the province or city to which the barangay belongs; and
(v) Be entitled to appropriate civil service
eligibility on the basis of the number of years of service to the
barangay, pursuant to the rules and regulations issued by the CSC.
(3) Elective barangay officials shall have preference
in appointments to any government position or in any GOCC, including
its subsidiaries, after their tenure of office, subject to the
requisite qualifications as CSC may prescribe.
(4) The sangguniang kabataan officials shall have the
same privileges enjoyed by other sangguniang barangay officials under
the Code, subject to such requirements and limitations provided in
these Rules. During their incumbency, sangguniang kabataan officials
shall be exempt from payment of tuition and matriculation fees. The
said officials shall enroll in the state college or university within
or nearest their area of jurisdiction to qualify for the privilege.
ARTICLE 78. Prohibition Against Withholding of
Benefits. — Willful and malicious withholding of any of the benefits
accorded to barangay officials under this Rule shall be punished with
suspension or dismissal from office of the official or employee
responsible therefore.
ARTICLE 79. Residence and Office. — During their
incumbency,
(a) Governors shall have his official residence in
the capital town or capital city of the province.
(b) All other provincial elective officials shall
hold office in the provincial capital provided that upon resolution of
the sangguniang panlalawigan, said officials may hold office in any
component city or municipality within the province for a period of not
more than seven (7) days for any given month.
(c) City and municipal mayors shall hold office in
their respective city and municipal halls.
ARTICLE 80. Prohibition on Appointment to Other
Public Office. — No elective local official shall be eligible for
appointment or designation in any capacity to any public office or
position during his tenure.
Unless otherwise allowed by law or by the primary functions of his
position, no elective local official shall hold any other office or
employment in the government or any subdivision, agency or
instrumentality thereof, including GOCCs, or in any of their
subsidiaries.
ARTICLE 81. Appointment of Candidates Who Lost in an
Election. — Except for losing candidates in barangay elections, no
candidate who lost in any election shall, within one (1) year after
such election, be appointed to any office in the government or any
GOCCs or in any of their subsidiaries.
ARTICLE 82. Resignation. — (a) Resignations of
elective local officials shall be deemed effective only upon acceptance
by the following authorities:
(1) By the President, in the case of governors and
vice governors, mayors and vice mayors of highly-urbanized cities,
independent component cities, and municipalities within MMA and other
metropolitan political subdivisions as may be created by law;
(2) By the governor, in the case of municipal mayors,
municipal vice mayors, mayors and vice mayors of component cities;
(3) By the sanggunian concerned, in the case of
sangguniang members; and
(4) By the city or municipal mayor, in the case of
barangay officials.
(b) The DILG shall be furnished copies of the
resignation letters of elective local officials, together with the
action taken by the authorities concerned.
(c) The resignation shall be deemed accepted if not
acted upon by the authority concerned within fifteen (15) working days
from receipt thereof.
(d) Irrevocable resignations by sanggunian members
shall be deemed accepted upon presentation before an open session of
the sanggunian concerned and duly entered in its records. This
provision shall not apply to sanggunian members who are subject to
recall elections or to cases where existing laws prescribe the manner
of acting upon such resignations.
ARTICLE 83. Vacancies and Succession of Elective
Local Officials. — (a) What constitutes permanent vacancy — A permanent
vacancy arises when an elective local official fills a higher vacant
office, refuses to assume office, fails to qualify, dies, is removed
from office, voluntarily resigns, or is otherwise permanently
incapacitated to discharge the functions of his office.
(b) Permanent vacancies in the offices of the
governor, vice governor, mayor and vice mayor —
(1) If a permanent vacancy occurs in the office of
the governor or mayor, the vice governor or vice mayor concerned shall
ipso facto become the governor or mayor. If a permanent vacancy occurs
in the offices of the governor, vice governor, mayor, or vice mayor,
the highest ranking sanggunian member or, in case of his permanent
inability, the second highest ranking sanggunian member, shall ipso
facto 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 in this Article.
(2) Permanent vacancy in the office of the punong
barangay — If a permanent vacancy occurs in the office of the punong
barangay, the highest ranking sangguniang barangay member or, in case
of his permanent inability, the second highest ranking sanggunian
member, shall ipso facto become the punong barangay.
(3) Resolution of ties — A tie between or among the
highest ranking sangguniang members shall be resolved by drawing of
lot.
(4) Term of successors — The successors as defined in
this Article shall serve only the unexpired terms of their
predecessors.
(5) Ranking in the sanggunian for purposes of
succession — Ranking in the sanggunian shall be determined on the basis
of the proportion of votes obtained by each winning candidate to the
total number of registered voters in each district in the immediately
preceding local elections. For this purpose, the COMELEC shall, within
sixty (60) days from the last local elections, prepare a ranking of
sanggunian members.
(c) Permanent vacancies in the sanggunian —
(1) Permanent vacancies not covered by automatic
succession — Permanent vacancies in the sanggunian where automatic
successions do not apply shall be filled by appointment in the
following manner:
(i) By the President, through the Executive
Secretary, in the case of the sangguniang panlalawigan, the sangguniang
panlungsod of highly-urbanized cities and independent component cities,
and the sangguniang bayan of municipalities within MMA and other
metropolitan political subdivisions as may be created by law;
(ii) By the governor, in the case of the sangguniang
panlungsod of component cities and the sangguniang bayan;
(iii) By the city or municipal mayor, in the case of
the sangguniang barangay, upon the recommendation of the sangguniang
barangay concerned.
(2) Eligible appointee —
(i) Except for the sangguniang barangay, only the
nominee of the political party under which the sanggunian member
concerned has been elected and whose elevation to the position next
higher in rank created the last vacancy in the sanggunian shall be
appointed in the manner provided in this Article. The appointee shall
come from the same political party as that of the sanggunian member who
caused the vacancy and shall serve the unexpired term of the vacant
office.
(ii) For appointments made in accordance with the
immediately preceding subparagraph (i), the appointing authority shall
see to it that a certificate of membership of the appointee and
nomination from the highest official of the political party concerned
are conditions sine qua non, and any appointment without such
certification and nomination shall be null and void ab initio and shall
be a ground for administrative action against the official responsible
therefore.
(3) Permanent vacancy caused by a sanggunian member
not belonging to any political party. — In case the permanent vacancy
is caused by a sanggunian member who does not belong to any political
party, the local chief executive shall, upon recommendation of the
sanggunian concerned, appoint a person who possesses all the
qualifications and none of the disqualifications for the position, to
fill the vacancy.
(4) Vacancy in the representation of the youth and
the liga ng mga barangay in the sanggunian. — In case of vacancy in the
representation of the youth and the liga ng mga barangay in the
sanggunian, the vice president or the official next-in-rank of the
pederasyon ng mga sangguniang kabataan and the local chapter of the
liga ng mga barangay concerned shall automatically fill up said
vacancy.
(d) Temporary vacancy in the office of the local
chief executive. —
(1) Temporary incapacity — When the governor, 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) working days.
(2) Termination of temporary incapacity — Temporary
incapacity shall terminate upon submission to the appropriate
sanggunian of a written declaration by the local chief executive
concerned that he has reported back to office. In cases where the
temporary incapacity is due to legal causes, the local chief executive
concerned shall also submit necessary documents showing that said legal
causes no longer exist.
(3) Temporary vacancy due to local travel —
(i) When the incumbent local chief executive is
traveling within the country but outside his territorial jurisdiction
for a period not exceeding three (3) consecutive days, he may designate
in writing the officer-in-charge of the office of the local chief
executive. Such authorization shall specify the powers and functions
that the local official concerned shall exercise in the absence of the
local chief executive except the power to appoint, suspend or dismiss
employees.
(ii) In the event that the local chief executive
concerned fails or refuses to issue such authorization, the vice
governor, the city or municipal vice mayor, as the case may be, shall
have the right to assume the powers, duties, and functions of the said
office on the fourth (4th) day of absence of the said local chief
executive, subject to the limitations provided in the immediately
preceding subparagraph (i).
(iii) Except as provided in this Article, the local
chief executive shall in no case authorize any local official to assume
the powers, duties, and functions of the office, other than the vice
governor, the city or municipal vice mayor, or the highest ranking
sangguniang barangay member, as the case may be.
ARTICLE 84. Leaves of Absence. — (a) Leaves of
absence of elective local officials shall be approved as follows:
(1) Leaves of absence of governors and mayors of
highly-urbanized cities, independent component cities, and
municipalities within MMA, shall be approved by the President or his
duly authorized representative;
(2) Leaves of absence of vice governors or city or
municipal vice mayors shall be approved by the local chief executive
concerned;
(3) Leaves of absence of the members of the
sanggunian and appointive employees therein shall be approved by the
vice governor or city or municipal vice mayor concerned;
(4) Leaves of absence of mayors of component cities
or municipalities shall be approved by the governor;
(5) Leaves of absence of punong barangays shall be
approved by the city or municipal mayor; and
(6) Leaves of absence of sangguniang barangay members
shall be approved by the punong barangay.
(b) Whenever the application for leave of absence is
not acted upon within five (5) working days after receipt thereof, such
application shall be deemed approved.
RULE
XV
Powers, Duties, and Functions of
Local Chief Executives
ARTICLE 85. Powers, Duties, and Functions of the
Governor. — (a) The governor, as the chief executive of the province,
shall exercise such powers and perform such duties and functions as
provided by the Code and other applicable laws.
(b) For efficient, effective and economical
governance the purpose of which is the general welfare of the province
and its inhabitants pursuant to Sec. 16 of the Code, the governor
shall:
(1) Exercise general supervision and control over all
programs, projects, services, and activities of the province, and in
this connection, shall:
(i) Determine the guidelines of provincial policies
and be responsible to the sangguniang panlalawigan for the program of
government;
(ii) Direct the formulation of the provincial
development plan, with the assistance of the provincial development
council, and upon approval thereof by the sangguniang panlalawigan,
implement the same;
(iii) Present the program of government and propose
policies and projects for the consideration of the sangguniang
panlalawigan at the opening of the regular session of the sangguniang
panlalawigan every calendar year and as often as may be deemed
necessary as the general welfare of the inhabitants and the needs of
the provincial government may require;
(iv) Initiate and propose legislative measures to the
sangguniang panlalawigan, and as often as may be deemed necessary,
provide such information and data needed or requested by said
sanggunian in the performance of its legislative functions;
(v) Appoint all officials and employees whose
salaries and wages are wholly or mainly paid out of provincial funds
and whose appointments are not otherwise provided in the Code, as well
as those he may be authorized by law to appoint;
(vi) Represent the province in all its business
transactions and sign in its behalf all bonds, contracts, and
obligations, and such other documents upon authority of the sangguniang
panlalawigan or pursuant to law or ordinance;
(vii) Carry out such emergency measures as may be
necessary during and in the aftermath of man-made and natural disasters
and calamities;
(viii) Determine the time, manner, and place of
payment of salaries or wages of the officials and employees of the
province, in accordance with law or ordinance;
(ix) Allocate and assign office space to provincial
and other officials and employees who, by law or ordinance, are
entitled to such space in the provincial capitol and other buildings
owned or leased by the province;
(x) Ensure that all executive officials and employees
of the province faithfully discharge their duties and functions as
provided by law and the Code, and cause to be instituted administrative
or judicial proceedings against any official or employee of the
province who may have committed an offense in the performance of his
official duties;
(xi) Examine the books, records and other documents
of all offices, officials, agents or employees of the province and, in
aid of his executive powers and authority, require all national
officials and employees stationed in the province to make available to
him such books, records, and other documents in their custody, except
those classified by law as confidential;
(xii) Furnish copies of executive orders issued by
him to the Office of the President within seventy-two (72) hours after
their issuance;
(xiii) Visit component cities and municipalities of
the province at least once every six (6) months to deepen his
understanding of problems and conditions, listen and give appropriate
counsel to local officials and inhabitants, inform the officials and
inhabitants of component cities and municipalities of general laws and
ordinances which especially concern them, and otherwise conduct visits
and inspections to ensure that the governance of the province will
improve the quality of life of the inhabitants;
(xiv) Act on leave applications of officials and
employees appointed by him and the commutation of the monetary value of
leave credits in accordance with law;
(xv) Authorize official trips of provincial officials
and employees outside of the province for a period not exceeding thirty
(30) days;
(xvi) Call upon any national official or employee
stationed in or assigned to the province to advise him on matters
affecting the province and to make recommendations thereon; coordinate
with said official or employee in the formulation and implementation of
plans, programs, and projects; and when appropriate, initiate an
administrative or judicial action against a national government
official or employee who may have committed an offense in the
performance of his official duties while stationed in or assigned to
the province;
(xvii) Authorize payment for medical care, necessary
transportation, subsistence, hospital or medical fees of provincial
officials and employees who are injured while in the performance of
their official duties and functions, subject to availability of funds,
(xviii) Represent the province in inter-provincial or
regional sports councils or committees, and coordinate the efforts of
component cities or municipalities in the national or regional palaro
or sports development activities;
(xix) Conduct an annual palarong panlalawigan, which
shall feature traditional sports and disciplines included in national
and international games, in coordination with the Department of
Education, Culture and Sports; and
(xx) Submit to the Office of the President the
following reports: an annual report containing a summary of all matters
pertinent to the management, administration and development of the
province and all information and data relative to its political, social
and economic conditions; and supplemental reports when unexpected
events and situations arise at any time during the year, particularly
when man-made or natural disasters or calamities affect the general
welfare of the province, region, or country;
(2) Enforce all laws and ordinances relative to the
governance of the province and the exercise of the appropriate
corporate powers provided in Rule IX of these Rules, implement all
approved policies, programs, projects, services, and activities of the
province and, in addition to the foregoing, shall:
(i) Ensure that the acts of the component cities and
municipalities of the province and of their officials and employees are
within the scope of their prescribed powers, duties, and functions;
(ii) Call conventions, conference, seminars, or
meetings of any elective and appointive officials of the province and
its component cities and municipalities, including national officials
and employees stationed in or assigned to the province, at such time
and place and on such subject as he may deem important for the
promotion of the general welfare of the province and its inhabitants;
(iii) Issue such executive orders for the faithful
and appropriate enforcement and execution of laws and ordinances;
(iv) Be entitled to carry the necessary firearm
within his territorial jurisdiction;
(v) In coordination with the mayors of component
cities and municipalities and the National Police Commission, formulate
the peace and order plan of the province and upon its approval,
implement the same in accordance with RA 6975; and
(vi) Call upon the appropriate national law
enforcement agencies to suppress disorder, riot, lawless violence,
rebellion, or sedition or to apprehend violators of the law when public
interest so requires, and the police forces of the component city or
municipality where the disorder or violation is happening are
inadequate to cope with the situation or the violators;
(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 in Rule XXX of
these Rules, particularly those resources and revenues programmed for
agro-industrial development and countrywide growth and progress and,
relative thereto, shall:
(i) Require each head of an officer or department to
prepare and submit an estimate or appropriations for the ensuing
calendar year, in accordance with the budget preparation process in
Rule XXXIV of these Rules;
(ii) Prepare and submit to the sanggunian for
approval the executive and supplemental budgets of the province for the
ensuing calendar year in the manner provided in Rule XXXIV of these
Rules;
(iii) Ensure that all taxes and other revenues of the
province are collected, and that provincial funds are applied to the
payment of expenses and settlement of obligations of the province, in
accordance with law or ordinance;
(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;
(v) Adopt adequate measures to safeguard and conserve
land, mineral, marine, forest and other resources of the province, in
coordination with the mayors of component cities and municipalities;
provide efficient and effective property and supply management in the
province; and protect the funds, credits, rights, and other properties
of the province; and
(vi) Institute or cause to be instituted
administrative or judicial proceedings for violation of ordinances in
the collection of taxes, fees or charges, and for the recovery of funds
and property; and cause the province to be defended against all suits
to ensure that its interests, resources and rights shall be adequately
protected.
(4) Ensure the delivery of basic services and the
provision of adequate facilities as provided in Rule V of these Rules,
and in addition thereto, shall:
(i) Ensure that the construction and repair of roads
and highways funded by the National Government shall, as far as
practicable, be carried out in a spatially contiguous manner and in
coordination with the construction and repair of the roads and bridges
of the province and of its component cities and municipalities; and,
(ii) Coordinate the implementation of technical
services by national offices for the province and its component cities
and municipalities, including public works and infrastructure programs
of the provincial government and its component cities and
municipalities.
(5) Exercise such other powers and perform such other
duties and functions as may be prescribed by law or ordinance.
ARTICLE 86. Powers, Duties, and Functions of the City
Mayor. — (a) The city mayor, as chief executive of the city, shall
exercise such powers and perform such duties and functions as provided
by the Code and other applicable laws.
(b) For efficient, effective and economical
governance the purpose of which is the general welfare of the city and
its inhabitants pursuant to Sec. 16 of the Code, the city mayor
shall:
(1) Exercise general supervision and control over all
programs, projects, services, and activities of the city, and this
connection, shall:
(i) Determine the guidelines of city policies and be
responsible to the sangguniang panlungsod for the program of
government;
(ii) Direct the formulation of the city development
plan, with the assistance of the city development council, and upon
approval thereof by the sangguniang panlungsod, implement the same;
(iii) Present the program of government and propose
policies and projects for the consideration of the sangguniang
panlungsod at the opening of the regular session of the sangguniang
panlungsod every calendar year and as often as the general welfare of
the inhabitants and the needs to the city may require;
(iv) Initiate and propose legislative measures to the
sangguniang panlungsod and as often as may be deemed necessary, provide
such information and data needed or requested by said sanggunian in the
performance of its legislative functions;
(v) Appoint all officials and employees whose
salaries and wages are wholly or mainly paid out of city funds as whose
appointments are not otherwise provided under the Code, as well as
those he may be authorized by law to appoint;
(vi) Represent the city in all its business
transactions and sign in its behalf all bonds, contracts, and
obligations, and such other documents upon authority of the sangguniang
panlungsod or pursuant to law or ordinance;
(vii) Carry out such emergency as may be necessary
during and in the aftermath of man-made and natural disasters or
calamities;
(viii) Determine the time, manner, and place of
payment of salaries or wages of the officials and employees of the
city, in accordance with law or ordinance;
(ix) Allocate and assign office space to city and
other officials and employees who, by law or ordinance, are entitled to
such space in the city hall and other buildings owned or leased by the
city;
(x) Ensure that all executive officials and employees
of the city faithfully discharge their duties and functions as provided
by law and the Code, and cause to be instituted administrative or
judicial proceedings against any official or employee of the city who
may have committed an offense in the performance of his official
duties;
(xi) Examine the books, records and other documents
of all offices, officials, agents, or employees of the city and, in aid
of his executive powers and authority, require all national officials
and employees stationed in or assigned to the city to make available to
him such books, records, and other documents in their custody, except
those classified by law as confidential;
(xii) Furnish copies of executive orders issued by
him, to the governor in the case of component city mayors, to the
Office of the President in the case of highly-urbanized city mayors,
and to their respective metropolitan council chairmen in the case of
mayors of cities within MMA and other metropolitan political
subdivisions as may be created by law, within seventy-two (72) hours
after their issuance;
(xiii) Visit barangays of the city at least once
every six (6) months to deepen his understanding of problems and
conditions, listen and give appropriate counsel to local officials and
inhabitants, inform the barangay officials and inhabitants of general
laws and ordinances which especially concern them, and otherwise
conduct visits and inspections to ensure that the governance of the
city will improve the quality of life of the inhabitants;
(xiv) Act on leave applications of officials and
employees appointed by him and the commutation of the monetary value of
their leave credits in accordance with law;
(xv) Authorize official trips of city officials and
employees outside of the city for a period not exceeding thirty (30)
days;
(xvi) Call upon any national official or employee
stationed in or assigned to the city to advise him on matters affecting
the city and to make recommendations thereon; coordinate with said
official or employee in the formulation and implementation of plans,
programs and projects; and, when appropriate, initiate an
administrative or judicial action against a National Government
official or employee who may have committed an offense in the
performance of his official duties while stationed in or assigned to
the city;
(xvii) Authorize payment for medical care, necessary
transportation, subsistence, hospital, or medical fees of city
officials and employees who are injured while in the performance of
their official duties and functions, subject to availability of
funds;
(xviii) Solemnize marriages, any provision of law to
the contrary notwithstanding;
(xix) Conduct an annual palarong panlungsod, which
shall feature traditional sports and disciplines included in national
and international games, in coordination with the Department of
Education, Culture and Sports; and
(xx) Submit to the governor, in the case of component
cities; to the Office of the President, in the case of highly-urbanized
cities; to the Metropolitan Manila Council chairman and to the Office
of the President, in the case of cities of the MMA and other
metropolitan political subdivisions as may be created by law, the
following reports: an annual report containing a summary of all matters
pertinent to the management, administration and development of the city
and all information and data relative to its political, social and
economic conditions; and supplemental reports when unexpected events
and situations arise at any time during the year, particularly when
unexpected events and situations arise at any time during the year,
particularly when man-made or natural disasters or calamities affect
the general welfare of the country, region, province, or city.
(2) Enforce all laws and ordinances relative to the
governance of the city and in the exercise of the appropriate corporate
powers provided in Rule IX of these Rules, implement all approved
policies, programs, projects, services, and activities of the city and,
in addition thereto, shall:
(i) Ensure that the acts of the city's barangays and
of their officials and employees are within the scope of their
prescribed powers, duties, and functions;
(ii) Call conventions, conferences, seminars, or
meetings of any elective and appointive officials of the city,
including provincial officials and national officials and employees
stationed in or assigned to the city, at such time and place and on
such subject as he may deem important for the promotion of the general
welfare of LGU and its inhabitants;
(iii) Issue such executive orders for the faithful
and appropriate enforcement and execution of laws and ordinances;
(iv) Be entitled to carry the necessary firearm
within his territorial jurisdiction;
(v) Act as the deputized representative of the
National Police Commission, formulate the peace and order plan of the
city and upon its approval, implement the same; and as such
representative, exercise general and operational control and
supervision over the local police forces in the city, in accordance
with RA 6975; and
(vi) Call upon the appropriate law enforcement
agencies to suppress disorder, riot, lawless violence, rebellion, or
sedition, or to apprehend violators of the law when public interest so
requires and the city police forces are inadequate to cope with the
situation or the violators.
(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 in Sec. 18 of
the Code, particularly those resources and revenues programmed for
agro-industrial development countryside growth and progress and,
relative thereto, shall:
(i) Require each head of an office or department to
prepare and submit an estimate of appropriations for the ensuing
calendar year, in accordance with the budget preparations process under
Rule XXXIV of these Rules;
(ii) Prepare and submit to the sanggunian for
approval the executive and supplemental budgets of the city for the
ensuing calendar year in the manner provided for under Rule XXXIV of
these Rules;
(iii) Ensure that all taxes and other revenues of the
city are collected, and that city funds are applied to the payment of
expenses and settlement of obligations of the city, in accordance with
law or ordinance;
(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;
(v) Issue permits, without need of approval therefore
from any national agency, for the holding of activities for any
charitable or welfare purpose, excluding prohibited games of chance or
shows contrary to law, public policy and public morals;
(vi) Require owners of illegally constructed houses,
buildings, or other structures to obtain the necessary permit, subject
to such fines and penalties as may be imposed by law or ordinance, or
to make necessary changes in the construction of the same when said
construction violates any law or ordinance, or to order the demolition
or removal of said house, building, or structure within the period
prescribed by law or ordinance;
(vii) Adopt adequate measures to safeguard and
conserve land, mineral, marine, forest, and other resources of the
city; provide efficient and effective property and supply management in
the city; and protect the funds, credits, rights, and other property of
the city; and
(viii) Institute or cause to be instituted
administrative or judicial proceedings for violation of ordinances in
the collection of taxes, fees, or charges, and for the recovery of
funds and property; and to cause the city to be defended against all
suits to ensure that its interests, resources, and rights shall be
adequately protected.
(4) Ensure the delivery of basic services and the
provision of adequate facilities as provided in Rule V of these Rules,
in addition thereto, shall:
(i) Ensure that the construction and repair of roads
and highways funded by the National Government shall, as far as
practicable, be carried out in a spatially contiguous manner and in
coordination with the construction and repair of the roads and bridges
of the city, and in the case of component cities, of the city and of
the province; and
(ii) Coordinate the implementation of technical
services, including public works and infrastructure programs, rendered
by NGAs in the case of highly urbanized and independent component
cities, and by national and provincial offices in the case of component
cities.
(5) Exercise such other powers and perform such other
duties and functions as may be prescribed by law or ordinance.
ARTICLE 87. Powers, Duties, and Functions of the
Municipal Mayor. — (a) The municipal mayor, as the chief executive of
the municipal government, shall exercise such powers and perform such
duties and functions as provided by the Code and other applicable laws.
(b) For efficient, effective and economical
governance the purpose of which is the general welfare of the
municipality and its inhabitants pursuant to Sec. 16 of the Code,
the municipal mayor shall:
(1) Exercise general supervision and control over all
programs, projects, services, and activities of the municipality, and
in this connection, shall:
(i) Determine the guidelines of municipal policies
and be responsible to the sangguniang bayan for the program of
government;
(ii) Direct the formulation of the municipal
development plan, with the assistance of the municipal development
council, and upon approval thereof by the sangguniang bayan, implement
the same;
(iii) At the opening of the regular session of the
sangguniang bayan for every calendar year and, as may be deemed
necessary, present the program of government and propose policies and
projects for the consideration of the sangguniang bayan as the general
welfare of the inhabitants and the needs of the municipal government
may require;
(iv) Initiate and propose legislative measures to the
sangguniang bayan and, from time to time as the situation may require,
provide such information and data needed or requested by said
sanggunian in the performance of its legislative functions;
(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 the Code, as well
as those he may be authorized by law to appoint;
(vi) Upon authorization by the sangguniang bayan,
represent the municipality in all its business transactions and sign on
its behalf all bonds, contracts, and obligations, and such other
documents made pursuant to law or ordinance;
(vii) Carry out such emergency measures as may be
necessary during and if the aftermath of man-made and natural disasters
and calamities;
(viii) Determine, according to law or ordinance, the
time, manner and place of payment of salaries or wages of the officials
and employees of the municipality;
(ix) Allocate and assign office space to municipal
and other officials and employees who, by law or ordinance, are
entitled to such space in the municipal hall and other buildings owned
or leased by the municipality;
(x) Ensure that all executive officials and employees
of the municipality faithfully discharge their duties and functions as
provided by law and the Code, and cause to be instituted administrative
or judicial proceedings against any official or employee of the
municipality who may have committed an offense in the performance of
his official duties;
(xi) Examine the books, records and other documents
of all offices, officials, agents employees of the municipality and in
aid of his executive powers and authority, require all national
officials and employees stationed in or assigned to the municipality to
make available to him such books, records, and other documents in their
custody, except those classified by law as confidential;
(xii) Furnish copies of executive orders issued by
him to the governor within seventy-two (72) hours after their issuance
provided that municipalities of MMA and that of any metropolitan
political subdivision, as may be created by law, shall furnish copies
of said executive orders to the metropolitan authority council chairman
and to the Office of the President;
(xiii) Visit barangays of the municipality at least
once every six (6) months to deepen his understanding of problems and
conditions therein, listen and give appropriate counsel to local
officials and inhabitants, inform the barangay officials and
inhabitants of general laws and ordinances which especially concern
them, and otherwise conduct visits and inspections to the end that the
governance of the municipality will improve the quality of the life of
the inhabitants;
(xiv) Act on leave applications of officials and
employees appointed by him and the commutation of the monetary value of
leave credits according law;
(xv) Authorize official trips outside of the
municipality of municipal officials and employees for a period not
exceeding thirty (30) days;
(xvi) Call upon any national official or employee
stationed in or assigned to the municipality to advise him on matters
affecting the municipality and to make recommendations thereon, or to
coordinate in the formulation and implementation of plans, programs and
projects, and when appropriate, initiate an administrative or judicial
action against national government official or employee who may have
committed an offense in the performance of his official duties while
stationed in or assigned to the municipality concerned;
(xvii) Subject to availability of funds, authorize
payment of medical care, necessary transportation, subsistence,
hospital or medical fees of municipal officials and employees who are
injured while in the performance of their official duties and
functions;
(xviii) Solemnize marriages, any provision of law to
the contrary notwithstanding;
(xix) Conduct a palarong bayan, in coordination with
the Department of Education, Culture and Sports, as annual activity
which shall feature traditional sports and disciplines included in
national and international games; and
(xx) Submit to the provincial governor the following
reports: an annual report containing a summary of all matters
pertaining to the management, administration and development of the
municipality and all information and data relative to its political,
social and economic conditions; and supplemental reports when
unexpected events and situations arise at any time during the year,
particularly when man-made or natural disasters or calamities affect
the general welfare of the municipality, province, region or country.
Mayors of municipalities of the MMA and other metropolitan political
subdivisions, as may be created by law, shall submit said reports to
their respective metropolitan council chairmen and to the Office of the
President.
(2) Enforce all laws and ordinances relative to the
governance of the municipality and the exercise of its corporate powers
provided in Rule IX of these Rules, implement all approved policies,
programs, projects, services and activities of the municipality and, in
addition, shall:
(i) Ensure that the acts of the municipality's
barangays and of their officials and employees are within the scope of
their prescribed powers, functions, duties and responsibilities;
(ii) Call conventions, conferences, seminars or
meetings of any elective and appointive officials of the municipality,
including provincial officials and national officials and employees
stationed in or assigned to the municipality at such time and place and
on such subject as he may deem important for the promotion of the
general welfare of the municipality and its inhabitants;
(iii) Issue such executive orders as are necessary
for the proper enforcement and execution of laws and ordinances;
(iv) Be entitled to carry the necessary firearm
within his territorial jurisdiction;
(v) Act as the deputized representative of the
National Police Commission, formulate the peace and order plan of the
municipality and upon its approval, implement the same and exercise
general and operational control and supervision over the local police
forces in the municipality in accordance with RA 6975;
(vi) Call upon the appropriate law enforcement
agencies to suppress disorder, riot, lawless violence, rebellion or
sedition or to apprehend violators of the law when public interest so
requires, and the municipal police forces are inadequate to cope with
the situation or the violators.
(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 under these Rules,
particularly those resources and revenues programmed for
agro-industrial development and countrywide growth and progress, and
relative thereto, shall:
(i) Require each head of an office or department to
prepare and submit an estimate of appropriations for the ensuing
calendar year, in accordance with the budget preparation process in
Rule XXXIV of these Rules;
(ii) Prepare and submit to the sanggunian for
approval the executive and supplemental budgets of the municipality for
the ensuing calendar year in the manner provided in Rule XXXIV of these
Rules;
(iii) Ensure that all taxes and other revenues of the
municipality are collected, and that municipal funds are applied in
accordance with law or ordinance to the payment of expenses and
settlement of obligations of the municipality;
(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;
(v) Issue permits, without need of approval therefore
from any NGA, for the holding of activities for any charitable or
welfare purpose, excluding prohibited games of chance or shows contrary
to law, public policy and public morals;
(vi) Require owners of illegally constructed houses,
buildings, or other structures to obtain the necessary permit, subject
to such fines and penalties as may be imposed by law or ordinance, or
to make necessary changes in the construction of the same when said
construction violates any law or ordinance, or to order the demolition
or removal of said house, building, or structure within the period
prescribed by law or ordinance;
(vii) Adopt adequate measures to safeguard and
conserve land, mineral, marine, forest, and other resources of the
municipality; provide efficient and effective supply and property
management in the municipality; and protect the funds, credits, rights
and other properties of the municipality; and
(viii) Institute or cause to be instituted
administrative or judicial proceedings for violation of ordinances in
the collection of taxes, fees or charges, and for the recovery of funds
and property; and cause the municipality to be defended against all
suits to ensure that its interests, resources and rights shall be
adequately protected.
(4) Ensure the delivery of basic services and the
provision of adequate facilities as provided in Rule V of these Rules
and, in addition thereto, shall:
(i) Ensure that the construction and repair of roads
and highways funded by the National Government shall, as far as
practicable, be carried out in a spatially contiguous manner and in
coordination with the construction and repair of the roads and bridges
of the municipality and the province; and
(ii) Coordinate the implementation of technical
services rendered by national and provincial offices, including the
public works and infrastructure programs in the municipality.
(5) Exercise such other powers and perform such other
duties and functions as may be prescribed by law or ordinance.
ARTICLE 88. Powers, Duties, and Functions of the
Punong Barangay. — (a) The punong barangay, as the chief executive of
the barangay, shall exercise such powers and perform such duties and
functions, as provided by the Code and other laws.
(b) For efficient, effective and economical
governance, the purpose of which is the general welfare of the barangay
and its inhabitants pursuant to Sec. 16 of the Code, the punong
barangay shall:
(1) Enforce all laws and ordinances which are
applicable within the barangay;
(2) Negotiate, enter into, and sign contracts for and
in behalf of the barangay, upon authorization of the sangguniang
barangay;
(3) Maintain public order in the barangay and, in
pursuance thereof, assist the city or municipal mayor and the
sanggunian members in the performance of their duties and functions;
(4) Call and preside over the sessions of the
sangguniang barangay and the barangay assembly, and vote only to break
a tie;
(5) Upon approval by a majority of all the members of
the sangguniang barangay, appoint or replace the barangay treasurer,
the barangay secretary, and other appointive barangay officials;
(6) Organize and lead an emergency group whenever the
same may be necessary for the maintenance of peace and order or on
occasions of emergency or calamity within the barangay;
(7) In coordination with the barangay development
council, prepare the annual executive and supplemental budgets of the
barangay;
(8) Approve vouchers relating to the disbursement of
barangay funds;
(9) Enforce laws and regulations relating to
pollution control and protection of the environment;
(10) Administer the operation of the katarungang
pambarangay in accordance with the provisions of the Code;
(11) Exercise general supervision over the activities
of the sangguniang kabataan;
(12) Ensure the delivery of basic services as
mandated in Rule V of these Rules;
(13) Conduct an annual palarong barangay which shall
feature traditional sports and disciplines included in national and
international games, in coordination with the Department of Education,
Culture and Sports;
(14) Promote the general welfare of the barangay; and
(15) Exercise such other powers and perform such
other duties and functions as may be prescribed by law of ordinance.
(c) In the performance of his peace and order
functions, the punong barangay shall be entitled to possess and carry
the necessary firearm within his territorial jurisdiction, subject to
appropriate rules and regulations.
RULE
XVI
Powers, Duties, and Functions of
Vice Governors,
City and Municipal Vice Mayors
ARTICLE 89. Powers, Duties, and Functions of the Vice
Governor. — The vice governor shall:
(a) Be the presiding officer of the sangguniang
panlalawigan and sign all warrants drawn on the provincial treasury for
all expenditures appropriated for the operation of the sangguniang
panlalawigan;
(b) Appoint all officials and employees of the
sangguniang panlalawigan, except those whose manner of appointment is
specifically provided under these Rules, subject to civil service law,
rules and regulations;
(c) Assume the office of the governor for the
unexpired term of the latter in the event of permanent vacancy as
provided under these Rules; and
(d) Exercise the powers and perform the duties and
functions of the governor in cases of temporary vacancy as provided
under these Rules.
ARTICLE 90. Powers, Duties, and Functions of the City
Vice Mayor. — The city vice mayor shall:
(a) Be the presiding officer of the sangguniang
panlungsod and sign all warrants drawn on the city treasury for all
expenditures appropriated for the operation of the sangguniang bayan;
(b) Appoint all officials and employees of the
sangguniang bayan, except those whose manner of appointment is
specifically provided under these Rules, subject to civil service law,
rules and regulations;
(c) Assume the office of the city mayor for the
unexpired term of the latter in the event of permanent vacancy as
provided under these Rules.
ARTICLE 91. Powers, Duties, and Functions of the
Municipal Vice Mayor. — The municipal vice mayor shall:
(a) Be the presiding officer of the sangguniang bayan
and sign all warrants drawn on the municipal treasury for all
expenditures appropriated for the operation of the sangguniang bayan;
(b) Appoint all officials and employees of the
sangguniang bayan, except those whose manner of appointment is
specifically provided under these Rules, subject to civil service law,
rules and regulations;
(c) Assume the office of the municipal mayor for the
unexpired term of the latter in the event of permanent vacancy as
provided under these Rules; and
(d) Exercise the powers and perform the duties and
functions of the municipal mayor in cases of temporary vacancy as
provided under these Rules.
RULE
XVII
Local Legislative Bodies and
Local Legislation
ARTICLE 92. Local Legislative Bodies. — Local
legislative power shall be exercised by the following legislative
bodies of the LGUs:
(a) Sangguniang panlalawigan for the province;
(b) Sangguniang panlungsod for the city;
(c) Sangguniang bayan for the municipality; and
(d) Sangguniang barangay for the barangay.
ARTICLE 93. Composition. — (a) Sangguniang
panlalawigan —
(1) The sangguniang panlalawigan shall be composed of
the vice governor as the presiding officer, the regular sangguniang
members, the president of the provincial chapter of the liga ng mga
barangay, the president of the panlalawigang pederasyon ng mga
sangguniang kabataan, the president of the provincial federation of
sanggunian members of municipalities and component cities, and the
sectoral representatives, as members.
(2) There shall be one (1) sectoral representative
from the women, one (1) from the workers, and one (1) from any of the
following sectors: the urban poor, indigenous cultural communities,
disabled persons, or any other sector as may be determined by the
sanggunian concerned within ninety (90) days prior to the holding of
the next local elections, as may be provided by law.
(b) Sangguniang panlungsod —
(1) The sangguniang panlungsod shall be composed of
the city vice mayor as the presiding officer, the regular sangguniang
members, the president of the city chapter of the liga ng mga barangay,
the president of the panlungsod na pederasyon ng mga sangguniang
kabataan, and the sectoral representatives, as members.
(2) There shall be one (1) sectoral representative
from the women, one (1) from the workers, and one (1) from any of the
following sectors: the urban poor, indigenous cultural communities,
disabled persons, or any other sector as may be determined by the
sanggunian concerned within ninety (90) days prior to the holding of
the next local elections, as may be provided by law.
(c) Sangguniang bayan —
(1) The sangguniang bayan shall be composed of the
municipal vice mayor as presiding officer, the regular sanggunian
members, the president of the municipal chapter of the liga ng mga
barangay, the president of the pambayang pederasyon ng mga sangguniang
kabataan, and the sectoral representatives, as members.
(2) There shall be one (1) sectoral representative
from the women, one (1) from the workers, and one (1) from any of the
following sectors: the urban poor, indigenous cultural communities,
disabled persons, or any other sector as may be determined by the
sanggunian concerned within ninety (90) days prior to the holding of
the next local elections, as may be provided by law.
(d) Sangguniang barangay — The sangguniang barangay
shall be composed of the punong barangay as presiding officer, and the
seven (7) regular sangguniang barangay members elected at large, and
sangguniang kabataan chairman, as members.
ARTICLE 94. Manner of Election and Number of Elective
Sanggunian Members. — (a) Sangguniang panlalawigan —
(1) For provinces with two (2) or more legislative
districts, the elective members of the sangguniang panlalawigan shall
be elected by legislative districts. For this purpose, they shall be
apportioned equitably provided that if equal division is not possible,
the remaining member or members shall be elected in the district or
districts with the greater number of population or, if they be the
same, with the greater number of voters; and provided further, that if
a legislative district comprises an independent component city such
that an equal distribution of sanggunian members does not result in
equitable apportionment on the basis of population of the province, the
COMELEC shall allocate the number among the districts in proportion to
the population or constituencies voting for the members of the
sangguniang panlalawigan.
(2) For provinces with only one (1) representative
district, the COMELEC shall divide the members into to (2) districts
for purposes of provincial representation as nearly as practicable
according to the number of inhabitants. Each district comprising a
compact, contiguous and adjacent territory, and the number of elective
members of their respective sanggunians shall be equitably apportioned
between the districts in accordance with the standard or formula
provided in the immediately preceding subparagraph (1).
(3) First and second class provinces shall each have
ten (10) elective members; third and fourth class provinces, eight (8);
and fifth and sixth class provinces, six (6) to be elected at large by
the qualified voters therein.
(b) Sangguniang panlungsod —
(1) For purposes of the regular elections on May 11,
1992, elective members of the sangguniang panlungsod shall be elected
at large in accordance with existing laws. Beginning with the regular
elections in 1995, said members shall be elected by district.
(2) The number and election of elective members of
the sangguniang panlungsod in the MMA, City of Cebu, City of Davao and
any other city with two (2) or more legislative districts shall
continue to be governed by the provisions of Section s 2 and 3 of RA
6636, as amended, to wit:
"Sec. 2.
Metro
Manila Area. — . . . the City of Manila,
Quezon City and the City of Caloocan shall have six (6) councilors for
each of their representative districts who shall be residents thereof
to be elected by the qualified voters therein. The City of Pasay ...
which comprises a representative district, shall have twelve (12)
councilors ... to be elected at large by the qualified voters of the
said city . . ."
"Sec. 3.
Other Cities. — . . . The City of Cebu, City of Davao, and any other
city with more than one representative district shall have eight (8)
councilors for each district who shall be residents thereof to be
elected by the qualified voters therein, provided that the cities of
Cagayan de Oro, Zamboanga, Bacolod, Iloilo and other cities comprising
a representative district shall have twelve (12) councilors each and
all other cities shall have ten (10) councilors each to be elected at
large by the qualified voters of the said cities provided that in no
case shall the present number of councilors according to their charters
be reduced."
(c) Sangguniang bayan —
(1) For purposes of the regular elections on May 11,
1992, elective members of the sangguniang bayan shall be elected at
large in accordance with RA 6636. Beginning with the regular elections
in 1995, they shall be elected by district.
(2) The number and election of elective members of
the sangguniang bayan of the municipalities in the MMA shall be
governed by the provisions of Sec. 2 of RA 6636, as amended, to wit:
"Sec. 2. Metro Manila Area. — . . . The
municipalities of Makati, Parañaque, Pasig, Marikina, and
Valenzuela, each of which comprises a representative district, shall
have twelve (12) councilors each to be elected at large by the
qualified voters of the said . . . municipalities. All the other
municipalities within the Metropolitan Manila Area shall have ten (10)
councilors each, with the exception of the municipality of Pateros
which shall have eight (8) councilors, to be elected at large by their
respective qualified voters."
(3) All municipalities shall have eight members to be
elected at large by the qualified voters therein.
(d) Sangguniang barangay —
(1) The sangguniang barangay members shall be elected
at large in their respective barangays by the qualified voters therein.
(2) The sangguniang kabataan chairman for each
barangay shall be elected by the registered voters of the katipunan ng
kabataan, as provided in Rule XXVII of these Rules.
ARTICLE 95. Manner of Election of Sectoral
Representatives in the Sanggunian. — The COMELEC shall promulgate rules
and regulations to effectively provide for the election of sectoral
representatives in the sangguniang panlalawigan, sangguniang
panlungsod, and sangguniang bayan.
ARTICLE 96. Term of Office. — The term of office of
sanggunian members is provided under Rule XIV of these Rules.
ARTICLE 97. Compensation and Other Benefits. —
Compensation and other benefits of sanggunian members are provided in
Rule XIV of these Rules.
ARTICLE 98. Powers, Duties, and Functions of the
Sangguniang Panlalawigan. — (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 Sec. 16 of the Code and in
the proper exercise of the corporate powers of the province as provided
in Rule IX of these Rules, and shall:
(1) Approve ordinances and pass resolutions necessary
for an efficient and effective provincial government and shall:
(i) Review all ordinances approved by the sanggunians
of component cities and municipalities and executive orders issued by
the mayors of said component units to determine whether these are
within the scope of the prescribed powers of the sanggunian and of the
mayor;
(ii) Maintain peace and order by enacting measures to
prevent and suppress lawlessness, disorder, riot, violence, rebellion,
or sedition and impose penalties for the violation of said ordinances;
(iii) Approve ordinances imposing imprisonment not
exceeding one (1) year or a fine not exceeding Five Thousand Pesos
(P5,000.00) or both imprisonment and fine at the discretion of the
court, for violation of a provincial ordinance;
(iv) Adopt measures to protect the inhabitants of the
province from the harmful effects of man-made or natural disasters and
calamities, and to provide relief services and assistance for victims
during and in the aftermath of said disasters and calamities and their
return to productive livelihood following said events;
(v) 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
province;
(vi) Protect the environment and impose appropriate
penalties for acts which endanger the environment, such as dynamite
fishing and other forms of destructive fishing, illegal logging and
smuggling of logs, smuggling of natural resources products and of
endangered species of flora and fauna, slash and burn farming, and such
other activities which result in pollution, acceleration of
eutrophication of rivers and lakes, or of ecological imbalance;
(vii) Subject to the provisions of the Code and
applicable laws, determine the powers and duties of officials and
employees of the province;
(viii) Determine the positions and the salaries,
wages, allowances and other emoluments and benefits of officials and
employees paid wholly or mainly from provincial funds and provide for
expenditures necessary for the proper conduct of programs, projects,
services, and activities of the provincial government;
(ix) Authorize the payment of compensation to a
qualified person not in the government service who fills up a temporary
vacancy, or grant honorarium to any qualified official or employee
designated to fill a temporary vacancy in a concurrent capacity, at the
rate authorized by law;
(x) Provide a mechanism and the appropriate funds
therefore, to ensure the safety and protection of all provincial
government property, public documents, or records such as those
relating to property inventory, land ownership, records of births,
marriages, deaths, assessments, taxation, accounts, business permits,
and such other records and documents of public interest in the offices
and departments of the provincial government; and
(xi) When the finances of the provincial government
allow, provide for additional allowances and other benefits to judges,
prosecutors, public elementary and high school teachers, and other
national government officials stationed or assigned to the province.
(2) Generate and maximize the use of resources and
revenues for the development plans, program objectives and priorities
of the province as provided in Sec. 18 of the Code, with particular
attention to agro-industrial development and countrywide growth and
progress and relative thereto, shall:
(i) Enact the annual and supplemental appropriations
of the provincial government and appropriate funds for specific
programs, projects, services and activities of the province, or for
other purposes not contrary to law, in order to promote the general
welfare of the province and its inhabitants;
(ii) Subject to the provisions of Book II of the Code
and applicable laws and upon the majority vote of the members of the
sangguniang panlalawigan, enact ordinances levying taxes, fees and
charges, prescribing the rates thereof for general and specific
purposes, and granting tax exemptions, incentives or reliefs;
(iii) Subject to the provisions of Book II of the
Code and applicable laws and upon a majority vote of all the members of
the sangguniang panlalawigan, authorize the provincial governor to
negotiate and contract loans and other forms of indebtedness;
(iv) Subject to the provisions of Book II of the Code
and applicable laws and upon a majority vote of all the members of the
sangguniang panlalawigan, enact ordinances authorizing the floating of
bonds or other instruments of indebtedness, for the purpose of raising
funds to finance development projects;
(v) Appropriate funds for the construction and
maintenance or the rental of buildings for the use of the province; and
upon a majority vote of all the members of the sangguniang
panlalawigan, authorize the provincial governor to lease to private
parties such public buildings held in a propriety capacity, subject to
applicable laws, rules and regulations;
(vi) Prescribe reasonable limits and restraints on
the use of property within the jurisdiction of the province;
(vii) Review the comprehensive land use plans and
zoning ordinances of component cities and municipalities and adopt a
comprehensive provincial land use plan, subject to applicable laws; and
(viii) Adopt measures to enhance the full
implementation of the national agrarian reform program in coordination
with the Department of Agrarian Reform;
(3) Subject to the provisions of Book II of the 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
or entities; and
(ii) Regulate and fix the license fees for such
activities as provided under the Code.
(4) Approve ordinances which shall ensure the
efficient and effective delivery of the basic services and facilities
as provided under Rule V of these Rules, and, in addition to said
services and facilities, shall:
(i) Adopt measures and safeguards against pollution
and for the preservation of the natural ecosystem in the province, in
consonance with approved standards on human settlements and
environmental sanitation;
(ii) Subject to applicable laws, facilitate or
provide for the establishment and maintenance of a waterworks systems
or district waterworks for supplying water to inhabitants of component
cities and municipalities;
(iii) Subject to the availability of funds and to
applicable laws, rules and regulations, provide for the establishment
and operation of vocational and technical schools and similar
post-secondary institutions; and, with the approval of the Department
of Education, Culture and Sports and subject to existing laws on
tuition fees, fix reasonable tuition fees and other school charges in
educational institutions supported by the provincial government;
(iv) Establish a scholarship fund for the poor but
deserving students in schools located within its jurisdiction or for
students residing within the province;
(v) Approve measures and adopt quarantine regulations
to prevent the introduction and spread of diseases within its
territorial jurisdiction;
(vi) Provide for the care of paupers, the aged, the
disabled, the sick, persons of unsound mind, abandoned minors, abused
children, juvenile delinquents, drug dependents, and other needy and
disadvantaged persons, particularly children and youth below eighteen
(18) years of age; subject to availability of funds, establish and
support the operation of 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;
(vii) Establish and provide for the maintenance and
improvement of jails and detention centers, institute a sound jail
management program, and appropriate funds for the subsistence of
detainees and convicted prisoners in the province;
(viii) Establish a provincial council whose purpose
is the promotion of culture and the arts, coordinate with government
agencies and non-governmental organizations and, subject to the
availability of funds, appropriate funds for the support and
development of the same;
(ix) Establish a provincial council for the elderly
which shall formulate policies and adopt measures mutually beneficial
to the elderly and to the province; and subject to the availability of
funds, appropriate funds to support programs and projects for the
elderly; and provide incentives for NGOs to support the programs and
projects of the elderly; and
(5) Exercise such other powers and perform such other
duties and functions as may be prescribed by law or ordinance.
ARTICLE 99. Powers, Duties, and Functions of the
Sangguniang Panlungsod. — (a) The sangguniang panlungsod, as the
legislative body of the city, shall enact ordinances, approve
resolutions and appropriate funds for the general welfare of the city
and its inhabitants pursuant to Sec. 16 of the Code and in the
proper exercise of the corporate powers of the city as provided in Rule
IX of these Rules, and shall:
(1) Approve ordinances and pass resolutions necessary
for an efficient and effective city government, and relative thereto,
shall:
(i) Review all ordinances approved by the sangguniang
barangay and executive orders issued by the punong barangay to
determine whether these are within the scope of the prescribed powers
of the sanggunian and of the punong barangay;
(ii) Maintain peace and order by enacting measures to
prevent and suppress lawlessness, disorder, riot, violence, rebellion
or sedition and impose penalties for the violation of said ordinances;
(iii) Approve ordinances imposing imprisonment not
exceeding one (1) year or a fine not exceeding Five Thousand Pesos
(P5,000.00) or both imprisonment and fine at the discretion of the
court, for violation of a city ordinance;
(iv) Adopt measures to protect the inhabitants of the
city from the harmful effects of man-made or natural disasters and
calamities, and to provide relief services and assistance for victims
during and in the aftermath of said disasters or calamities and their
return to productive livelihood following said events;
(v) 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;
(vi) Protect the environment and impose appropriate
penalties for acts which endanger the environment, such as dynamite
fishing and other forms of destructive fishing, illegal logging and
smuggling of logs, smuggling of natural resources products and of
endangered species of flora and fauna, slash and burn farming, and such
other activities which result in pollution, acceleration of
eutrophication of rivers and lakes, or of ecological imbalance;
(vii) Subject to the provisions of the Code and
applicable laws, determine the powers and duties of officials and
employees of the city;
(viii) Determine the positions and the salaries,
wages, allowances and other emoluments and benefits of officials and
employees paid wholly or mainly from city funds and provide for
expenditures necessary for the proper conduct of programs, projects,
services, and activities of the city government;
(ix) Authorize the payment of compensation to a
qualified person not in the government service who fills up a temporary
vacancy or grant honorarium to any qualified official or employee
designated to fill a temporary vacancy in a concurrent capacity, at the
rate authorized by law;
(x) Provide a mechanism and the appropriate funds
therefore, to ensure the safety and protection of all city government
property, public documents, or records such as those relating to
property inventory, land ownership, records of births, marriages,
deaths, assessments, taxation, accounts, business permits, and such
other records and documents of public interest in the offices and
departments of the city government;
(xi) When the finances of the city government allow,
provide for additional allowances and other benefits to judges,
prosecutors, public elementary and high school teachers, and other
national government officials stationed in or assigned to the city;
(xii) Provide legal assistance to barangay officials
who, in the performance of their official duties or on the occasion
thereof, have to initiate judicial proceedings or defend themselves
against legal action; and
(xiii) Provide group insurance or additional
insurance coverage for all barangay officials, including members of
barangay tanod brigades and other service units, with public or private
insurance companies, when the finances of the city government allow
said coverage;
(2) Generate and maximize the use of resources and
revenues for the development plans, program objectives and priorities
of the city as provided in Sec. 18 of the Code, with particular
attention to agro-industrial development and citywide growth and
progress, and relative thereto, shall:
(i) Approve the annual and supplemental budgets of
the city government and appropriate funds for specific programs,
projects, services and activities of the city, or for other purposes
not contrary to law, in order to promote the general welfare of the
city and its inhabitants;
(ii) Subject to the provisions of Book II of the Code
and applicable laws and upon a majority vote of all the members of the
sangguniang panlungsod, enact ordinances levying taxes, fees and
charges, prescribing the rates thereof for general and specific
purposes, and granting tax exemptions, incentives or reliefs;
(iii) Subject to the provisions of Book II of the
Code and upon a majority vote of all the members of the sangguniang
panlungsod, authorize the city mayor to negotiate and contract loans
and other forms of indebtedness;
(iv) Subject to the provisions of Book II of the Code
and applicable laws and upon a majority vote of all the members of the
sangguniang panlungsod, enact ordinances authorizing the floating of
bonds or other instruments of indebtedness, for the purpose of raising
funds to finance development projects;
(v) Appropriate funds for the construction and
maintenance or the rental of buildings for the use of the city; and,
upon a majority vote of all the members of the sangguniang panlungsod,
authorize the city mayor to lease to private parties such public
buildings held in a propriety capacity, subject to existing laws, rules
and regulations;
(vi) Prescribe reasonable limits and restraints on
the use of property within the jurisdiction of the city;
(vii) Adopt a comprehensive land use plan for the
city provided that in the case of component cities, the formulation,
adoption or modification of said plan shall be in coordination with the
approved provincial comprehensive land use plan;
(viii) Reclassify agricultural lands within the
jurisdiction of the city, subject to the provisions of Rule VII of
these Rules;
(ix) Enact integrated zoning ordinances in consonance
with the approved comprehensive land use plan, subject to existing
laws, rules and regulations; establish fire limits or zones,
particularly in populous centers; and regulate the construction, repair
or modification of buildings within said fire limits or zones in
accordance with the provisions of the Fire Code;
(x) Subject to national law, process and approve
subdivision plans for residential, commercial, or industrial purposes
and other development purposes, and to collect processing fees and
other charges, the proceeds of which shall accrue entirely to the city
provided that where approval of an NGA 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 said period
shall be deemed as approval thereof;
(xi) Subject to the provisions of Book II of the
Code, 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 city waters;
(xii) With the concurrence of at least two-thirds
(2/3) of all the members of the sangguniang panlungsod, grant tax
exemptions, incentives or reliefs to entities engaged in community
growth-inducing industries, subject to the provisions of Chapter 5,
Title I, Book II of the Code;
(xiii) Grant loans or provide grants to other LGUs or
to national, provincial, and city charitable, benevolent or educational
institutions provided that said institutions are operated and
maintained within the city;
(xiv) Regulate the numbering of residential,
commercial and other buildings; and
(xv) Regulate the inspection, weighing and measuring
of articles of commerce.
(3) Subject to the provisions of Book II of the Code,
enact ordinances granting franchises and authorizing the issuance of
permits or licenses, upon such conditions and for such purposes
intended to promote the general welfare of the inhabitants of the city
and pursuant to this legislative authority shall:
(i) Fix and impose reasonable fees and charges for
all services rendered by the city government to private persons or
entities;
(ii) Regulate or fix license fees for any business or
practice of profession within the city and the conditions under which
the license for said business or practice of profession may be revoked
and enact ordinances levying taxes thereon;
(iii) Provide for and set the terms and conditions
under which public utilities owned by the city shall be operated by the
city government, and prescribe the conditions under which the same may
be leased to private persons or entities, preferably cooperatives;
(iv) Regulate the display of and fix the license fees
for signs, signboards, or billboards at the place or places where the
profession or business advertised thereby is, in whole or in part,
conducted;
(v) Any law to the contrary notwithstanding,
authorize and license the establishment, operation, and maintenance of
cockpits, and regulate cockfighting and commercial breeding of
gamecocks provided that existing rights should not be prejudiced;
(vi) Subject to the guidelines prescribed by the
Department of Transportation and Communications, regulate the operation
of tricycles and grant franchises for the operation thereof within the
territorial jurisdiction of the city; and
(vii) Upon approval by a majority vote of all the
members of the sangguniang panlungsod: grant a franchise to any person,
partnership, corporation, or cooperative to do business within the
city; establish, construct, operate and maintain ferries, wharves,
markets or slaughterhouses; or undertake such other activities within
the city as may be allowed by applicable laws provided that
cooperatives shall be given preference in the grant of such a
franchise.
(4) Regulate activities relative to the use of land,
buildings and structures within the city in order to promote the
general welfare and for said purpose shall:
(i) Declare, prevent or abate any nuisance;
(ii) Require that buildings and the premises thereof
and any land within the city be kept and maintained in a sanitary
condition; impose penalties for any violation thereof; or, upon failure
to comply with said requirement, have the work done at expense of the
owner, administrator or tenant concerned; or require the filing up of
any land or premises to a grade necessary for proper sanitation;
(iii) Regulate the disposal of clinical and other
wastes from hospitals, clinics and other similar establishments;
(iv) Regulate the establishment, operation and
maintenance of cafes, restaurants, beerhouses, hotels, motels, inns,
pension houses, lodging houses, and other similar establishments,
including tourist guides and transports;
(v) Regulate the sale, giving away or dispensing of
any intoxicating malt, vino, mixed or fermented liquors at any retail
outlet;
(vi) Regulate the establishment and provide for the
inspection of steam boilers or any heating device in buildings and the
storage of inflammable and highly combustible materials within the
city;
(vii) Regulate the establishment, operation, and
maintenance of any entertainment or amusement facilities, including
theatrical performances, circuses, billiard pools, public dancing
schools, public dance halls, sauna baths, massage parlors, and other
places for entertainment or amusement; regulate such other events or
activities for amusement or entertainment, particularly those which
tend to disturb the community or annoy the inhabitants, or require the
suspension or suppression of the same; or, prohibit certain forms of
amusement or entertainment in order to protect the social and moral
welfare of the community;
(viii) Provide for the impounding of stray animals;
regulate the keeping of animals in homes or as part of a business, and
the slaughter, sale or disposition of the same; and adopt measures to
prevent and penalize cruelty to animals; and,
(ix) Regulate the establishment, operation and
maintenance of funeral parlors and the burial or cremation of the dead,
subject to applicable laws, rules and regulations.
(5) Approve ordinances which shall ensure the
efficient and effective delivery of the basic services and facilities
as provided in Rule V of these Rules, and in addition to said services
and facilities, shall:
(i) Provide for the establishment, maintenance,
protection, and conservation of communal forests and watersheds, tree
parks, greenbelts, mangroves, and other similar forest development
projects;
(ii) Establish markets, slaughterhouses or animal
corrals and authorize the operation thereof by the city government; and
regulate the construction and operation of private markets, talipapas,
or other similar buildings and structures;
(iii) Authorize the establishment, maintenance, and
operation by the city government of ferries, wharves, and other
structures intended to accelerate productivity related to marine and
seashore or offshore activities;
(iv) Regulate the preparation and sale of meat,
poultry, fish, vegetables, fruits, fresh dairy products, and other
foodstuffs for public consumption;
(v) Regulate the use of streets, avenues, alleys,
sidewalks, bridges, parks and other public places and approve the
construction, improvement, repair and maintenance of the same;
establish bus and vehicle stops and terminals or regulate the use of
the same by privately-owned vehicles which serve the public; regulate
garages and the operation of conveyances for hire; designate stands to
be occupied by public vehicles when not in use; regulate the putting up
of signs, signposts, awnings and awning posts on the streets; and
provide for the lighting, cleaning and sprinkling of streets and public
places;
(vi) Regulate traffic on all streets and bridges;
prohibit encroachments or obstacles thereon and, when necessary in the
interest of public welfare, authorize the removal of encroachments and
illegal constructions in public places;
(vii) Subject to applicable laws, establish and
provide for the maintenance, repair, and operation of an efficient
waterworks system to supply water for the inhabitants and to purify the
source of water supply; regulate the construction, maintenance, repair
and use of hydrants, pumps, cisterns and reservoirs; protect the purity
and quantity of the water supply of the city and, for this purpose,
extend the coverage of appropriate ordinances over all territory within
the drainage area of said water supply and within one hundred (100)
meters of the reservoir, conduit, canal, aqueduct, pumping station, or
watershed used in connection with the water service; and regulate the
consumption, use or wastage of water and fix and collect charges
therefore;
(viii) Regulate the drilling and excavation of the
ground for the laying of water, gas, sewer, and other pipes and the
construction, repair and maintenance of public drains, sewers,
cesspools, tunnels and similar structures; regulate the placing of
poles and the use of crosswalks, curbs, and gutters; adopt measures to
ensure public safety against open canals, manholes, live wires and
other similar hazards to life and property; and regulate the
construction and use of private water closets, privies, and other
similar structures in buildings and homes;
(ix) Regulate the placing, stringing, attaching,
installing, repair and construction of all gas mains, electric,
telegraph and telephone wires, conduits, meters and other apparatus;
and provide for the correction, condemnation or removal of the same
when found to be dangerous, defective, or otherwise hazardous to the
welfare of the inhabitants;
(x) Subject to availability of funds and to
applicable laws, rules and regulations, establish and provide for the
operation of vocational and technical schools and similar
post-secondary institutions and, with the approval of the Department of
Education, Culture and Sports and subject to existing law on tuition
fees, fix and collect reasonable tuition fees and other school charges
in education institutions supported by the city;
(xi) Establish a scholarship fund for poor but
deserving students in schools located within its jurisdiction or for
students residing within the city;
(xii) Approve measures and adopt quarantine
regulations to prevent the introduction and spread of diseases;
(xiii) Provide for an efficient and effective system
of solid waste and garbage collection and disposal; prohibit littering
and placing or throwing of garbage, refuse and other filths and wastes;
(xiv) Provide for the care of the disabled, the aged,
the sick, paupers, persons of unsound mind, abandoned minors, juvenile
delinquents, drug dependents, abuse 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 them;
(xv) Establish and provide for the maintenance and
improvement of jails and detention centers, institute a sound jail
management program, and appropriate funds for the subsistence of
detainees and convicted prisoners in the city;
(xvi) Establish a city council whose purpose is the
promotion of culture and the arts, coordinate with NGAs and NGOs and,
subject to availability of funds, appropriate funds for the support and
development of the same; and
(xvii) Establish a city council for the elderly which
shall formulate policies and adopt measures mutually beneficial to the
elderly and to the community; provide incentives for NGOs, subject to
the availability of funds, appropriate funds to support programs and
projects for the benefit of the elderly; and
(6) Exercise such other powers and perform such other
duties and functions as may be prescribed by law or ordinance.
ARTICLE 100. Powers, Duties, and Functions of the
Sangguniang Bayan. — (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 Sec. 16 of the Code and in the proper
exercise of the corporate powers of the municipality as provided in
Rule IX of these Rules, and shall:
(1) Approve ordinances and pass resolutions necessary
for an efficient and effective municipal governance, and relative
thereto, shall:
(i) Review all ordinances approved by the sangguniang
barangay and executive orders issued by the punong barangay to
determine whether these are within the scope of the prescribed powers
of the sanggunian and of the punong barangay;
(ii) Maintain peace and order by enacting measures to
prevent and suppress lawlessness, disorder, riot, violence, rebellion
or sedition and impose penalties for the violation of said ordinances;
(iv) Adopt measures to protect the inhabitants of the
municipality from the harmful effects of man-made or natural disasters
and calamities and to provide relief services and assistance for
victims during and in the aftermath of said disasters or calamities and
their return to productive livelihood following said events;
(v) 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 of publications, and such other
activities inimical to the welfare and morals of the inhabitants of the
municipality;
(vi) Protect the environment and impose appropriate
penalties for acts which endanger the environment, such as dynamite
fishing and other forms of destructive fishing, illegal logging and
smuggling of logs, smuggling of natural resources products and of
endangered species of flora and fauna, slash and burn farming, and such
other activities which result in pollution, acceleration of
eutrophication of rivers and lakes, or of ecological imbalance;
(vii) Subject to the provisions of the Code and
applicable laws, determine the powers and duties of officials and
employees of the municipality;
(viii) Determine the positions and the salaries,
wages, allowances and other emoluments and benefits of officials and
employees paid wholly or mainly from municipal funds and provide for
expenditures necessary for the proper conduct of programs, projects,
services, and activities of the municipal government;
(ix) Authorize the payment of compensation to a
qualified person not in the government service who fills up a temporary
vacancy or grant honorarium to any qualified official or employee
designated to fill a temporary vacancy in a concurrent capacity, at the
rate authorized by law;
(x) Provide a mechanism and the appropriate funds
therefore, to ensure the safety and protection of all municipal
government property, public documents, or records such as those
relating to property inventory, land ownership, records of births,
marriages, deaths, assessments, taxation, accounts, business permits,
and such other records and documents of public interest in the offices
and departments of the municipal government;
(xi) When the finances of the municipality allow,
provide for additional allowances and other benefits to judges,
prosecutors, public elementary and high school teachers, and other
national government officials stationed in or assigned to the
municipality;
(xii) Provide legal assistance to barangay officials
who, in the performance of their official duties or on the occasion
thereof, have to initiate judicial proceedings or defend themselves
against legal action; and
(xiii) Provide group insurance or additional
insurance coverage for barangay officials, including members of
barangay tanod brigades and other service units, with public or private
insurance companies, when the finances of the municipal government
allow said coverage.
(2) Generate and maximize the use of resources and
revenues for the development plans, program objectives and priorities
for the municipality as provided in Sec. 18 of the Code with
particular attention to agro-industrial development and countryside
growth and progress, and relative thereto, shall:
(i) Approve the annual and supplemental budgets of
the municipal government and appropriate funds for specific programs,
projects, services and activities of the municipality, or for other
purposes not contrary to law, in order to promote the general welfare
of the municipality and its inhabitants;
(ii) Subject to the provisions of Book II of the Code
and applicable laws and upon the majority vote of all the members of
the sangguniang bayan, enact ordinances levying taxes, fees and
charges, prescribing the rates thereof for general and specific
purposes, and granting tax exemptions, incentives or reliefs;
(iii) Subject to the provisions of Book II of the
Code and upon a majority vote of all the members of the sangguniang
bayan, authorize the municipal mayor to negotiate and contract loans
and other forms of indebtedness;
(iv) Subject to the provisions of Book II of the Code
and applicable laws and upon a majority vote of all the members of the
sangguniang bayan, enact ordinances authorizing the floatation of bonds
or other instruments of indebtedness, for the purpose of raising funds
to finance development projects;
(v) Appropriate funds for the construction and
maintenance or the rental of buildings for the use of the municipality
and, upon a majority vote of all the members of the sangguniang bayan,
authorize the municipal mayor to lease to private parties such public
buildings held in the propriety capacity, subject to existing laws,
rules and regulations;
(vi) Prescribe reasonable limits and restraints on
the use of property within the jurisdiction of the municipality;
(vii) Adopt a comprehensive land use plan for the
municipality provided that the formulation, adoption, or modification
of said plan shall be in coordination with the approved provincial
comprehensive land use plan;
(viii) Reclassify agricultural lands within the
jurisdiction of the municipality, subject to the provisions of Rule VII
of these Rules;
(ix) Enact integrated zoning ordinances in consonance
with the approved comprehensive land use plan, subject to existing
laws, rules and regulations; establish fire limits or zones,
particularly in populous centers; and regulate the construction, repair
or modification of buildings within the said fire limits or zones in
accordance with the provisions of the Fire Code;
(x) Subject to national law, process and approve
subdivision plans for residential, commercial, or industrial purposes
and other development purposes, and collect processing fees and other
charges, the proceeds of which shall accrue entirely to the
municipality provided 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 the
Code, grant the exclusive privilege of constructing fish corrals or
fish pens, or taking or catching of bangus fry, prawn fry or
kawag-kawag or fry of any species or fish within the municipal waters;
(xii) With the concurrence of at least two-thirds
(2/3) of all the members of the sangguniang bayan, grant tax
exemptions, incentives or reliefs to entities engaged in community
growth-inducing industries, subject to the provisions of Chapter 5,
Title I Book II of the Code;
(xiii) Grant loans or provide grants to another LGUs
or to national, provincial, and municipal charitable, benevolent or
educational institutions provided that said institutions are operated
and maintained within the municipality;
(xiv) Regulate the numbering of residential,
commercial and other buildings; and,
(xv) Regulate the inspection, weighing and measuring
of articles of commerce.
(3) Subject to the provisions of Book II of the Code,
grant franchises, enact ordinances authorizing 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 municipality, and pursuant to this
legislative authority shall:
(i) Fix and impose reasonable fees and charges for
all services rendered by the municipal government to private persons or
entities;
(ii) Regulate any business, occupation, or practice
of profession or calling which does not require government examination
within the municipality and the conditions under which the license for
said business or practice of profession may be issued or revoked;
(iii) Prescribe the terms and conditions under which
public utilities owned by the municipality shall be operated by the
municipal government or leased to private persons or entities,
preferably cooperatives;
(iv) Regulate the display of and fix the license fees
for signs, signboards, or billboards at the place or places where the
profession or business advertised thereby is, in whole or in part,
conducted;
(v) Any law to the contrary notwithstanding,
authorize and license the establishment, operation, and maintenance of
cockpits, and regulate cockfighting and commercial breeding of
gamecocks provided that existing rights should not be prejudiced;
(vi) Subject to the guidelines prescribed by the
Department of Transportation and Communications, regulate the operation
of tricycles and grant franchises for the operation thereof within the
territorial jurisdiction of the municipality;
(vii) Upon approval by a majority vote of all the
members of the sangguniang bayan, grant a franchise to any person,
partnership, corporation, or cooperative to establish, construct,
operate and maintain ferries, wharves, markets or slaughterhouses, or
such other similar activities within the municipality as may be allowed
by applicable laws provided that cooperatives shall be given preference
in the grant of such a franchise.
(4) Regulate activities relative to the use of land,
buildings, and structures within the municipality in order to promote
the general welfare and for said purpose shall:
(i) Declare, prevent or abate any nuisance;
(ii) Require that buildings and the premises thereof
and any land within the municipality be kept and maintained in a
sanitary condition; impose penalties for any violation thereof, or upon
failure to comply with said requirement, have the work done and require
the owner, administrator or tenant concerned to pay the expenses of the
same; or require the filling up of any land or premises to a grade
necessary for proper sanitation;
(iii) Regulate the disposal of clinical and other
wastes from hospitals, clinics and other similar establishments;
(iv) Regulate the establishment, operation and
maintenance of cafes, restaurants, beerhouses, hotels, motels, inns,
pension houses, lodging houses, and other similar establishments,
including tourist guides and transports;
(v) Regulate the sale, giving away or dispensing of
any intoxicating malt, vino, mixed or fermented liquors at any retail
outlet;
(vi) Regulate the establishment and provide for the
inspection of steam boilers or any heating device in buildings and the
storage of inflammable and highly combustible materials within the
municipality;
(vii) Regulate the establishment, operation, and
maintenance of entertainment or amusement facilities, including
theatrical performances, circuses, billiard pools, public dancing
schools, public dance halls, sauna baths, massage parlors, and other
places of entertainment or amusement; regulate such other events or
activities for amusement or entertainment, particularly those which
tend to disturb the community or annoy the inhabitants, or require the
suspension or suppression of the same; or, prohibit certain forms of
amusement or entertainment in order to protect the social and moral
welfare of the community;
(viii) Provide for the impounding of stray animals;
regulate the keeping of animals in homes or as part of a business, and
the slaughter, sale or disposition of the same; and adopt measures to
prevent and penalize cruelty to animals; and
(ix) Regulate the establishment, operation, and
maintenance of funeral parlors and the burial or cremation of the dead,
subject to applicable laws, rules and regulations.
(5) Approve ordinances which shall ensure the
efficient and effective delivery of the basic services and facilities
as provided in Rule V of these Rules, and in addition to said services
and facilities, shall:
(i) Provide for the establishment, maintenance,
protection, and conservation of communal forests and watersheds, tree
parks, greenbelts, mangroves, and other similar forest development
projects;
(ii) Establish markets, slaughterhouses, or animal
corrals and authorize the operation thereof, and regulate the
construction and operation of private markets, talipapas, or other
similar buildings and structures;
(iii) Authorize the establishment, maintenance and
operation of ferries, wharves, and other structures, and marine and
seashore or offshore activities intended to accelerate productivity;
(iv) Regulate the preparation and sale of meat,
poultry, fish, vegetables, fruits, fresh dairy products, and other
foodstuffs for public consumption;
(v) Regulate the use of streets, avenues, alleys,
sidewalks, bridges, parks and other public places and approve the
construction, improvement, repair and maintenance of the same;
establish bus and vehicle stops and terminals or regulate the use of
the same by privately-owned vehicles which serve the public; regulate
garages and the operation of conveyances for hire; designate stands to
be occupied by public vehicles when not in use; regulate the putting up
of signs, signposts, awnings and awning posts on the streets; and
provide for the lighting, cleaning and sprinkling of streets and public
places;
(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;
(vii) Subject to applicable laws, provide for the
establishment, operation, maintenance, and repair of an efficient
waterworks system to supply water for the inhabitants; regulate the
construction, maintenance, repair and use of hydrants, pumps, cisterns
and reservoirs; protect the purity and quantity of the water supply of
the municipality and, for this purpose, extend the coverage of
appropriate ordinances over all territory within the drainage area of
said water supply and within one hundred (100) meters of the reservoir,
conduit, canal, aqueduct, pumping station, or watershed used in
connection with the water service; and regulate the consumption, use or
wastage of water;
(viii) Regulate the drilling and excavation of the
ground for the laying of water, gas, sewer, and other pipes, and the
construction, repair and maintenance of public drains, sewers,
cesspools, tunnels and similar structures; regulate the placing of
poles and the use of crosswalks, curbs, and gutters; adopt measures to
ensure public safety against open canals, manholes, live wires and
other similar hazards to life and property; and, regulate the
construction and use of private water closets, privies and other
similar structures in buildings and homes;
(ix) Regulate the placing, stringing, attaching,
installing, repair and construction of all gas mains, electric,
telegraph and telephone wires, conduits, meters and other apparatus;
and, provide for the correction, condemnation, or removal of the same
when found to be dangerous, defective or otherwise hazardous to the
welfare of the inhabitants;
(x) Subject to the availability of funds and to
applicable laws, rules and regulations, establish and provide for the
operation of vocational and technical schools and similar
post-secondary institutions and with the approval of the Department of
Education, Culture and Sports, fix and collect reasonable fees and
other school charges on said institutions, subject to existing laws on
tuition fees;
(xi) Establish a scholarship fund for poor but
deserving students residing within the municipality in schools located
within its jurisdiction;
(xii) Approve measures and adopt quarantine
regulations to prevent the introduction and spread of diseases;
(xiii) Provide for an efficient and effective system
of solid waste and garbage collection and disposal and prohibit
littering and the placing or throwing of garbage, refuse and other
filth and wastes;
(xiv) Provide for the care of paupers, the aged, the
disabled, the sick, persons of unsound mind, 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 persons;
(xv) Establish and provide 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 a municipal council whose purpose is
the promotion of culture and the arts, coordinate with the NGAs and
NGOs and, subject to the availability of funds, appropriate funds for
the support and development of the same; and
(xvii) Establish a municipal council for the elderly
which shall formulate policies and adopt measures mutually beneficial
to the elderly and to the community; provide incentives for NGOs and,
subject to availability of funds, appropriate funds to support programs
and projects for the benefit of the elderly; and
(6) Exercise such other powers and perform such other
duties and functions as may be prescribed by law of ordinance.
ARTICLE 101. Powers, Duties, and Functions of the
Sangguniang Barangay. — (a) The sangguniang barangay, as the
legislative body of the barangay, shall:
(1) Enact ordinances as may be necessary to discharge
the responsibilities conferred upon it by law or ordinance and to
promote the general welfare of the inhabitants therein;
(2) Enact tax and revenue ordinances, subject to the
limitations imposed in the Code;
(3) Enact annual and supplemental budgets in
accordance with the provisions of these Rules;
(4) Provide for the construction and maintenance of
barangay facilities and other public works projects chargeable to the
general fund of the barangay or such other funds actually available for
the purpose;
(5) Submit to the sangguniang panlungsod or
sangguniang bayan such suggestions or recommendations as it may see fit
for the improvement of the barangay or for the welfare of the
inhabitants thereof;
(6) Assist in the establishment, organization, and
promotion of cooperative enterprises that will improve the economic
condition and well-being of the residents;
(7) Regulate the use of multi-purpose halls,
multi-purpose pavements, grain or copra dryers, patios and other
post-harvest facilities, barangay waterworks, barangay markets, parking
areas or other similar facilities constructed with government funds
with the jurisdiction of the barangay and charge reasonable fees for
the use thereof;
(8) Solicit or accept monies, materials and voluntary
labor for specific public works and cooperative enterprises of the
barangay from residents, landowners, producers and merchants in the
barangay; monies from grants-in-aid, subsidies, contributions, and
revenues made available to the barangays from national, provincial,
city or municipal funds; and monies from other private agencies and
individuals provided that monies or properties donated by private
agencies and individuals for specific purposes shall accrue to the
barangay as trust fund;
(9) Solicit or accept, in any or all the foregoing
public works and cooperative enterprises, such cooperation as is made
available by national, provincial, city, or municipal agencies
established by law to render financial, technical, and advisory
assistance to barangays and to barangay residents provided that in
soliciting or accepting such cooperation, the sangguniang barangay need
not pledge any sum of money for expenditure in excess of amounts
currently in the barangay treasury or encumbered for other purposes;
(10) Provide compensation, reasonable allowances, or
per diem as well as travel expenses for sangguniang barangay members
and other barangay officials, subject to the budgetary limitations
prescribed under Title Five, Book II of the Code provided that no
increase in the compensation or honoraria of the sangguniang barangay
members shall take effect until after the expiration of the full term
of all members of the sangguniang barangay approving such increase;
(11) Hold fund-raising activities for barangay
projects without the need of securing permits from any national or
local office or agency. The proceeds from such activities shall be
tax-exempt and shall accrue to the general fund of the barangay
provided that in the appropriation thereof, the specific purpose for
which such fund-raising activity has been shall be first satisfied and
provided further, that no fund-raising activities shall be held within
a period of sixty (60) days immediately preceding and after a national
or local election, recall, referendum, or plebiscite and provided
finally, that said fund-raising activities shall comply with national
policy standards and regulations on morals, health, and safety of the
persons participating therein. The sangguniang barangay, through the
punong barangay, shall render a public accounting of the funds raised
at the completion of the project for which the fund-raising activity
was undertaken;
(12) Authorize the punong barangay to enter into
contracts in behalf of the barangay, subject to the provisions of the
Code;
(13) Authorize the barangay treasurer to make direct
purchases in an amount not exceeding One Thousand Pesos (P1,000.00) at
any one time for the ordinary and essential administrative needs of the
barangay;
In the exercise of this power, the sangguniang barangay shall observe
the applicable guidelines on government procurement of supplies issued
by COA.
(14) Prescribe fines in amounts not exceeding One
Thousand Pesos (P1,000.00) for violation of barangay ordinances;
(15) Provide for the administrative needs of the
lupong tagapamayapa and the pangkat ng tagapagkasundo;
(16) Provide for the organization of community
brigades, barangay tanod, or community service units as may be
necessary;
(17) Organize regular lectures, programs, or fora on
community problems such as sanitation, nutrition, literacy, and drug
abuse, and convene assemblies to encourage citizen participation in
government;
(18) Adopt measures to prevent and control the
proliferation of squatters and mendicants in the barangay;
(19) Provide for the proper development and welfare
of children in the barangay by promoting and supporting activities for
the protection and total development of children, particularly those
below seven (7) years of age;
(20) Adopt measures towards the prevention and
eradication of drug abuse, child abuse, and juvenile delinquency;
(21) Initiate the establishment of a barangay high
school, whenever feasible, in accordance with law;
(22) Provide for the establishment of a non-formal
education center in the barangay whenever feasible, in coordination
with the Department of Education, Culture and Sports;
(23) Provide for the delivery of basic services; and
(24) Exercise such other powers and perform such
other duties and functions as may be prescribed by law or ordinance.
ARTICLE 102. Presiding Officer. — (a) The vice
governor shall be the presiding officer of the sangguniang
panlalawigan; the city vice mayor, of the sangguniang panlungsod; the
municipal vice mayor, of the sangguniang bayan; and the punong
barangay, of the sangguniang barangay.
(b) The presiding officer shall vote only to break a
tie.
(c) In the event of the inability of the regular
presiding officer to preside at a sanggunian session, the members
present and constituting a quorum shall elect from among themselves a
temporary presiding officer. He shall certify within ten (10) days from
the passage of ordinances enacted and resolutions adopted by the
sanggunian in the session over which he temporarily presided.
ARTICLE 103. Internal Rules of Procedure. — (a) On
the first regular session following the election of its members and
within ninety (90) days thereafter, the sanggunian concerned shall
adopt or update its existing rules of procedure.
(b) The rules of procedure shall provide for the
following:
(1) The organization of the sanggunian and the
election of its officers, as well as the creation of standing
committees which shall include among others, the committees on
appropriations, women and family, human rights, youth and sports
development, environmental protection, and cooperatives; the general
jurisdiction of each committee; and the election of the chairman and
members of each committee provided the sectoral representatives shall
automatically chair the committee corresponding to their sectoral
group. The president of the local chapters of the liga ng mga barangay
in provincial, city, or municipal level shall likewise automatically
chair the committee on barangay affairs or its equivalent.
(2) The order and calendar of business for each
session;
(3) The legislative process;
(4) The parliamentary procedures which include the
conduct of members during the sessions;
(5) The discipline of members for disorderly behavior
and absences without justifiable causes for four (4) consecutive
sessions, for which they may be censured, reprimanded, or excluded from
the session, suspended for not more than sixty (60) days, or expelled
provided that the penalty of suspension or expulsion shall require the
concurrence of at least two-thirds (2/3) vote of all the sanggunian
members and provided further that a member convicted by final judgment
to imprisonment of at least one (1) year for any crime involving moral
turpitude shall be automatically expelled from the sanggunian; and
(6) Such other rules as the sanggunian may adopt.
ARTICLE 104. Full Disclosure of Financial and
Business Interests of Sanggunian Members. — (a) Every sanggunian
members shall, upon assumption to office, make a full disclosure of his
business and financial interests. He shall also disclose any business,
financial, or professional relationship or any relation by affinity or
consanguinity within the fourth civil degree, which he may have with
any person, firm, or entity affected by any ordinance or resolution
under consideration by the sanggunian of which he is a member, which
relationship may result in conflict of interest. Such relationship
shall include:
(1) Ownership of stock, capital, or investment in the
entity or firm to which the ordinance or resolution may relate; and
(2) Contracts or agreements with any person or entity
which the ordinance or resolution under consideration may effect.
In the absence of a specific constitutional or statutory provision
applicable to this situation, conflict of interest refers in general to
one where it may be reasonably deduced that a member of a sanggunian
may not act in the public interest due to some private, pecuniary, or
other personal considerations that may tend to affect his judgment to
the prejudice to the service of the public.
(b) The disclosure required under this Rule shall be
made in writing and submitted to the secretary of the sanggunian or the
secretary of the committee of which he is a member. The disclosure
shall, in all cases, form part of the record of the proceedings and
shall be made in the following manner:
(1) Disclosure shall be made before the member
participates in the deliberations on the ordinance or resolution under
consideration provided that if the member did not participate during
the deliberations, the disclosure shall be made before voting on the
ordinance or resolution on second and third readings; and
(2) Disclosure shall be made when a member takes a
position or makes a privilege speech on a matter that may affect the
business interest, financial connection, or professional relationship
described in this Article.
ARTICLE 105. Sessions. — (a) The sessions of the
sanggunian may either be regular or special.
(1) Regular sessions — On the first day of the
session immediately following the election of its members, the
sanggunian shall, by resolution, fix the day, time, and place of its
regular sessions. The minimum number of regular sessions shall be once
a week for the sangguniang panlungsod, and sangguniang bayan, and twice
a month for the sangguniang barangay.
(2) Special sessions —
(i) When public interest so demands, special sessions
may be called by the local chief executive or by a majority of the
members of the sanggunian.
(ii) A written notice to the sanggunian members
stating the date, time and purpose of the meeting shall be served
personally or left with a member of his household at his usual place of
residence at least twenty-four (24) hours before the special session is
held.
(iii) Unless otherwise agrees upon by two-thirds
(2/3) vote of the members present, there being a quorum, no other
matter may be considered at a special session except those stated in
the notice.
(b) All sanggunian sessions shall be open to the
public unless a closed door session is ordered by an affirmative vote
of a majority of the members present, there being a quorum, in the
public interest or for reasons of security, decency, or morality. No
two (2) sessions, whether regular or special, may be held in a single
day.
(c) Each sanggunian shall keep a journal and record
of its proceedings which may be published upon resolution of the
sanggunian concerned.
ARTICLE 106. Quorum. — (a) A majority of all the
members of the sanggunian who have been elected and qualified shall
constitute a quorum to transact official business.
(b) Should a question of quorum be raised during a
session, the presiding officer shall immediately proceed to call the
roll of the members and thereafter announce the results.
(c) Where there is no quorum, the presiding officer
may declare a recess until such time as a quorum is constituted, or a
majority of the members present may adjourn from day to day and may
compel the immediate attendance of any member absent without
justifiable cause by designating a member of the sanggunian, to be
assisted by a member or members of the police force assigned in the
territorial jurisdiction of the LGU concerned, to arrest the absent
member and present him at the session.
(d) If there is still no quorum despite the
enforcement of the immediately preceding subsection, no business shall
be transacted. The presiding officer, upon proper motion duly approved
by the members present, shall then declare the session adjourned for
lack of quorum.
ARTICLE 107. Ordinances and Resolutions. — The
following rules shall govern the enactment of ordinances and
resolutions:
(a) Legislative actions of a general and permanent
character shall be enacted in the form of ordinances, while those which
are of temporary character shall be passed in the form of resolutions.
Matters relating to proprietary functions and to private concerns shall
also be acted upon by resolution.
(b) Proposed ordinances and resolutions shall be in
writing and shall contain an assigned number, a title or caption, an
enacting or ordaining clause, and the date of its proposed effectivity.
In addition, every proposed ordinance shall be accompanied by a brief
explanatory note containing the justification for its approval. It
shall be signed by the author or authors and submitted to the secretary
to the sanggunian who shall report the same to the sanggunian at its
next meeting.
(c) A resolution shall be enacted in the same manner
prescribed for an ordinance, except that it need not go through a third
reading for its final consideration unless decided otherwise by a
majority of all the sanggunian members.
(d) No ordinance or resolution shall be considered on
second reading in any regular meeting unless it has been reported out
by the proper committee to which it was referred or certified as urgent
by the local chief executive.
(e) Any legislative matter duly certified by the
local chief executive as urgent, whether or not it is included in the
calendar of business, may be presented and considered by the body at
the same meeting without need of suspending the rules.
(f) The secretary to the sanggunian of the province,
city or municipality shall prepare copies of the proposed ordinance or
resolution in the form it was passed on second reading, and shall
distribute to each sanggunian member a copy thereof, except that a
measure certified by the local chief executive concerned as urgent may
be submitted for final voting immediately after debate or amendment
during the second reading.
(g) No ordinance or resolution passed by the
sanggunian in a regular or special session duly called for the purpose
shall be valid unless approved by a majority of the members present,
there being a quorum. Any ordinance or resolution authorizing or
directing the payment of money or creating liability, shall require the
affirmative vote of a majority of all the sanggunian members for its
passage.
(h) Upon the passage of all ordinances and
resolutions directing the payment of money or creating liability, and
at the request of any member, of any resolution or motion, the
sanggunian shall record the ayes and nays. Each approved ordinance or
resolution shall be stamped with the seal of the sanggunian and
recorded in a book kept for the purpose.
ARTICLE 108. Approval of Ordinances. — (a) Every
ordinance enacted by the sanggunian shall be present to the local chief
executive. If the local chief executive concerned approves the same, he
shall affix his signature on each and every page thereof; otherwise, he
shall veto it and return the same with his objections to the
sanggunian, which may proceed to reconsider the same. The sanggunian
concerned may override the veto of the local chief executive by
two-thirds (2/3) vote of all its members thereby making the ordinance
or resolution effective for all legal intents and purposes.
(b) The veto shall be communicated by the local chief
executive concerned to the sanggunian within fifteen (15) days in the
case of a province, and ten (10) days in the case of a city or a
municipality; otherwise, the ordinance shall be deemed approved as if
he had signed it.
(c) Ordinances enacted by the sangguniang barangay
shall, upon approval by a majority of all its members, be signed by the
punong barangay.
ARTICLE 109. Veto Power of the Local Chief Executive.
— (a) The local chief executive may veto any ordinance of the
sangguniang panlalawigan, sangguniang panlungsod, or sangguniang bayan
on the ground that it is ultra vires or prejudicial to the public
welfare, stating his reasons therefore in writing.
(b) The local chief executive, except the punong
barangay shall have the power to veto any particular item or items of
an appropriations ordinance, an ordinance or resolution adopting a
local development plan and public investment program or an ordinance
directing the payment of money or creating liability. In such a case,
the veto shall not affect the item or items which are not objected to.
The vetoed item or items shall not take effect unless the sanggunian
overrides the veto in the manner as provided in the immediately
preceding Article; otherwise, the item or items in the appropriations
ordinance of the previous year corresponding to those vetoed, if any,
shall be deemed reenacted.
(c) The local chief executive may veto an ordinance
or resolution only once. The sanggunian may override the veto of the
local chief executive concerned by two-thirds (2/3) vote of all its
members, thereby making the ordinance effective even without the
approval of the local chief executive concerned.
ARTICLE 110. Review of Component City and Municipal
Ordinances or Resolutions by the Sangguniang Panlalawigan. — (a) Within
(3) days after approval, the secretary to the sangguniang panlungsod or
sangguniang bayan shall transmit to the sangguniang panlalawigan for
review, copies of approved ordinances and resolutions approving and
adopting the local development plans and public investment programs
formulated by the local development councils.
(b) Within thirty (30) days after receipt of copies
of such ordinances and resolutions, the sangguniang panlalawigan shall
examine the documents or transmit them to the provincial attorney, or
if there be none, to the provincial prosecutor for prompt examination.
The provincial attorney or provincial prosecutor shall, within a period
of ten (10) days from the receipt of the documents, inform the
sangguniang panlalawigan in writing of his comments or recommendations
which may be considered by the sangguniang panlalawigan in making its
decision.
(c) If the sangguniang panlalawigan finds that such
an ordinance or resolution is beyond the power conferred upon the
sangguniang panlungsod or sangguniang bayan concerned, it shall declare
such ordinance or resolution invalid in whole or in part. The
sangguniang panlalawigan shall enter its action in the minutes and
shall advise the corresponding city or municipal authorities of the
action it has taken.
(d) If no action has been taken by the sangguniang
panlalawigan within thirty (30) days after submission of such an
ordinance or resolution, the same shall be presumed consistent with the
law and, therefore, valid.
ARTICLE 111. Review of Barangay Ordinances by the
Sangguniang Panlungsod or Sangguniang Bayan. — (a) Within ten (10) days
after its enactment, the sangguniang barangay shall furnish copies of
all barangay ordinances to the sangguniang panlungsod or sangguniang
bayan concerned for review as to whether the ordinance is consistent
with law and city or municipal ordinances.
(b) If the sangguniang panlungsod or sangguniang
bayan, as the case may be, fails to take action on barangay ordinances
within thirty (30) days from receipt thereof, the same shall be deemed
approved.
(c) If the sangguniang panlungsod or sangguniang
bayan, as the case may be, finds the barangay ordinances inconsistent
with law or city or municipal ordinances, the sanggunian concerned
shall, within thirty (30) days from receipt thereof, return the same
with its comments and recommendations to the sangguniang barangay
concerned for adjustment, amendment or modification; in which case, the
effectivity of the barangay ordinance is suspended until such time as
the revision called for is effected.
ARTICLE 112. Enforcement of Ordinances or Resolutions
After Disapproval by Reviewing Authority. — Any attempt to enforce any
disapproved ordinance or resolution adopting the local development plan
and public investment program. After disapproval by the local chief
executive or by the reviewing authority shall be sufficient ground for
the suspension or dismissal of the official or employee concerned.
ARTICLE 113. Effectivity of Ordinances and
Resolutions. — Unless otherwise stated in the ordinance or resolution
approving the local development plan and public investment program, the
same shall take effect after ten (10) days from the date a copy thereof
is posted in a bulletin board at the entrance of the provincial capitol
or city, municipal, or barangay hall, as the case may be, and in at
least two (2) other conspicuous places in the LGU concerned.
ARTICLE 114. Posting and Publication of Ordinance
with Penal Sanctions. — (a) Ordinances with penal sanctions shall be
posted at conspicuous places in the provincial capitol, or city,
municipal or barangay hall, as the case may be, for a minimum period of
three (3) consecutive weeks. Such ordinances shall also be published in
a newspaper of general circulation, where available, within the
territorial jurisdiction of the LGU concerned, except in the case of
barangay ordinances. Unless otherwise provided therein, said ordinances
shall take effect on the day following its publication, or at the end
of the period of posting, whichever occurs later.
(b) Any public officer or employee who violates an
ordinance may be meted administrative disciplinary action, without
prejudice to the filing of the appropriate civil or criminal action.
(c) The secretary to the sanggunian concerned shall
transmit official copies of such ordinances to the chief executive
officer of the Official Gazette within seven (7) days following the
approval of said ordinance for publication. The Official Gazette may
publish ordinances with penal sanctions for archival and reference
purposes.
RULE
XVIII
Appointive Local Officials
ARTICLE 115. Appointive Provincial Officials. — (a)
The mandatory appointive provincial officials are as follows:
(1) secretary to the sangguniang panlalawigan;
(2) provincial treasurer;
(3) provincial assessor;
(4) provincial accountant;
(5) provincial budget officer;
(6) provincial planning and development coordinator;
(7) provincial engineer;
(8) provincial health officer;
(9) provincial administrator;
(10) provincial legal officer;
(11) provincial agriculturist;
(12) provincial social welfare and development
officer;
(13) provincial veterinarian; and
(14) provincial general services officer.
(b) In addition thereto, the governor may appoint the
following officials:
(1) provincial environment and natural resources
officer;
(2) provincial architect;
(3) provincial information officer;
(4) provincial cooperatives officer; and
(5) provincial population officer.
The appointment of provincial population officer shall be optional in
the province provided that provinces which have existing population
offices shall continue to maintain such offices for a period of five
(5) years from the date of the effectivity of the Code after which,
said offices shall become optional.
ARTICLE 116. Appointive City Officials. — (a) The
mandatory appointive city officials are as follows:
(1) secretary to the sangguniang panlungsod;
(2) city treasurer;
(3) city assessor;
(4) city accountant;
(5) city budget officer;
(6) city planning and development coordinator;
(7) city engineer;
(8) city health officer;
(9) city civil registrar;
(10) city administrator;
(11) city legal officer;
(12) city veterinarian;
(13) city social welfare and development officer; and
(14) city general services officer.
(b) In addition thereto, the city mayor may appoint
the following officials:
(1) city architect;
(2) city information officer;
(3) city agriculturist;
(4) city population officer;
(5) city environment and natural resources officer;
and
(6) city cooperatives officer.
The appointment of city population officer shall be optional in the
city provided that cities which have existing population offices shall
continue to maintain such offices for a period of five (5) years from
the date of the effectivity of the Code after which, said offices shall
become optional.
ARTICLE 117. Appointive Municipal Officials. — (a)
The mandatory appointive municipal officials are as follows:
(1) secretary to the sangguniang bayan;
(2) municipal treasurer;
(3) municipal assessor;
(4) municipal accountant;
(5) municipal budget officer;
(6) municipal planning and development coordinator;
(7) municipal engineer/building official;
(8) municipal health officer; and
(9) municipal civil registrar.
(b) In addition thereto, the municipal mayor
may appoint the following officials:
(1) municipal administrator;
(2) municipal legal officer;
(3) municipal agriculturist;
(4) municipal environment and natural resources
officer,
(5) municipal social welfare and development officer;
(6) municipal architect; and
(7) municipal information officer.
ARTICLE 118. Appointive Barangay Officials. — (a) The
mandatory appointive barangay officials are as follows:
(1) barangay secretary; and
(2) barangay treasurer.
ARTICLE 119. Appointment of Appointive Local
Officials. — (a) Unless otherwise provided in this Rule, heads of
offices and departments in the LGUs shall be appointed by the local
chief executive concerned with the concurrence of a majority of all the
members of the sanggunian, subject to civil service laws, rules and
regulations.
(b) The sanggunian concerned shall act on the
appointment within fifteen (15) days from the date of its submission;
otherwise, the same shall be deemed confirmed.
(c) The term of office of the local administrator,
local legal officer, and local information officer is coterminous with
that of their appointing authority.
ARTICLE 120. Other Local Government Offices. — The
sanggunian may:
(a) Maintain existing offices not mentioned in this
Rule;
(b) Create such other offices as may be necessary to
carry out the purposes of the LGU; or
(c) Consolidate the functions of any office with
those of another in the interest of efficiency and economy.
ARTICLE 121. Residency Requirement. — The requirement
for an appointive local official to be a resident of the LGU concerned
shall be construed to mean as actual residence in the locality for at
least six (6) months immediately preceding his appointment.
ARTICLE 122. Qualifications, Powers, and Duties of
Appointive Local Officials. —
(a) The secretary to the sanggunian. —
(1) The secretary to the sanggunian shall be a career
official with rank and salary equal to a head of office or department.
(2) No person shall be appointed secretary to the
sanggunian unless he is a citizen of the Philippines, a resident of the
LGU concerned, of good moral character, a holder of a college degree,
preferably in law, commerce, or public administration from a recognized
college or university, and a holder of a first grade civil service
eligibility or its equivalent.
(3) The secretary to the sanggunian shall take charge
of the office of the secretary to the sanggunian and shall:
(i) Attend meetings of the sanggunian and keep a
journal of its proceedings;
(ii) Keep the seal of the LGU and affix the same with
his signature to all ordinances, resolutions, and other official acts
of the sanggunian and present the same to the presiding officer for his
signature;
(iii) Forward to the governor or mayor, as the case
may be, for approval, copies of ordinances enacted by the sanggunian
and duly certified by the presiding officer;
(iv) Transmit to the sangguniang panlungsod or
sangguniang bayan concerned, in the case of the sangguniang barangay,
and to the sangguniang panlalawigan concerned, in the case of the
sangguniang panlungsod of component cities or sangguniang bayan, copies
of duly approved ordinances;
(v) Furnish, upon request of any interested party,
certified copies of records of public character in his custody, upon
payment to the local treasurer of such fees as may be prescribed by
ordinance;
(vi) Record in a book kept for the purpose, all
ordinances and resolutions enacted or adopted by the sanggunian, with
the dates of passage and publication thereof;
(vii) Keep his office and all non-confidential
records therein open to the public during the usual business hours;
(viii) Translate into the dialect used by a majority
of the inhabitants all ordinances and resolutions immediately after
their approval, and cause the publication thereof, together with the
original version in the manner provided in Rule XVII of these Rules;
(ix) Take custody of the local archives and, where
applicable, the local library and annually account for the same; and
(x) Exercise such other powers and perform such other
duties and functions as may be prescribed by law or ordinance relative
to his position.
(xi) In the case of the barangay secretary, he shall
keep custody of all records of the sangguniang barangay and the
barangay assembly meetings; prepare and keep the minutes of all
meetings of the sangguniang barangay and the barangay assembly; prepare
a list of members of the barangay assembly, and have the same posted in
conspicuous places within the barangay; assist in the preparation of
all necessary forms for the conduct of barangay elections, initiatives,
referenda or plebiscites, in coordination with the COMELEC; assist the
municipal civil registrar in the registration of births, deaths, and
marriages; keep an updated record of all inhabitants of the barangay
containing the following items of information: name, address, place and
date of birth, sex, civil status, citizenship, occupation, and such
other items of information as may be prescribed by law or ordinance;
submit a report on the actual number of barangay residents as often as
may be required by the sangguniang barangay; and exercise such other
powers and perform such other duties and functions as may be prescribed
by law or ordinance.
(b) The Treasurer —
(1) The provincial, city, and municipal treasurers
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.
(2) No person shall be appointed treasurer unless he
is a citizen of the Philippines, a resident of the LGU concerned, of
good moral character, a holder of a college degree, preferably in
commerce, public administration or law from a recognized college or
university, and a holder of a first grade civil service eligibility 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 (3) years in the case of the
municipal treasurer.
(3) 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 the tax collection efforts in the LGU.
(4) The treasurer shall take charge of the treasury
office, perform the duties provided under Book II of the Code, and
shall:
(i) Advise the governor or mayor, as the case may be,
the sanggunian, and other local and national government officials
concerned regarding disposition of local government funds, and on such
other matters relative to public finance;
(ii) Take custody of, and exercise proper management
of the funds of the LGU concerned;
(iii) Take charge of the disbursement of all and such
other funds the custody of which may be entrusted to him by law or
other competent authority;
(iv) Inspect private commercial and industrial
establishments within the jurisdiction of the LGU concerned in relation
to the implementation of tax ordinances, pursuant to the provisions
under Book II of the Code;
(v) Maintain and update the tax information system of
the LGU;
(vi) In the case of the provincial treasurer,
exercise technical supervision over all treasury offices of component
cities and municipalities; and
(vii) Exercise such other powers and perform such
other duties and functions as may be prescribed by law or ordinance.
(viii) In the case of the barangay treasurer, he
shall keep custody of barangay funds and properties; collect and issue
official receipts for taxes, fees, contributions, monies, materials,
and all other resources accruing to the barangay treasury and deposit
the same in the account of the barangay as provided under Title Five,
Book II of the Code; disburse funds in accordance with the financial
procedures provided in the Code; submit to the punong barangay a
statement covering the actual and estimates of income and expenditures
for the preceding and ensuing calendar years, respectively, subject to
the provisions of Title Five, Book II of the Code; render a written
accounting report of all barangay funds and property under his custody
at the end of each calendar year, and ensure that such report shall be
made available to the members of the barangay assembly and other
government agencies concerned; certify as to the availability of funds
whenever necessary; plan and attend to the rural postal circuit within
his jurisdiction; and exercise such other powers and perform such other
duties and functions as may be prescribed by law or ordinance.
(5) 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.
No person shall be appointed assistant treasurer unless he is a citizen
of the Philippines, a resident of the LGU concerned, of good moral
character, a holder of a college degree preferably in commerce, public
administration, or law from a recognized college or university, and a
holder of first grade civil service eligibility or its equivalent. He
must have acquired at least five (5) years experience in the treasury
or accounting service in the case of the provincial or city assistant
treasurer, and three (3) years in the case of the municipal assistant
treasurer.
The assistant treasurer shall assist the treasurer and perform such
duties as the latter may assign to him. He shall have authority to
administer oaths concerning notices and notifications to those
delinquent in the payment of the real property tax and concerning
official matters relating to the accounts of the treasurer or otherwise
arising in the offices of the treasurer and the assessor.
The position of assistant treasurer, while considered optional under
the code, shall be maintained by the LGU concerned if occupied by a
person holding a permanent appointment.
(c) The Assessor —
(1) No person shall be appointed assessor unless he
is a citizen of the Philippines, a resident of the LGU concerned, of
good moral character, a holder of a college degree preferably in civil
or mechanical engineering, commerce, or any other related course from a
recognized college or university, and a holder of a first grade civil
service eligibility or its equivalent. He must have acquired experience
in real property assessment work or in any related field for at least
five (5) years in the case of the provincial or city assessor, and
three (3) years in the case of the municipal assessor.
(2) The assessor shall take charge of the assessor's
office, perform the duties provided under Book II of the Code, and
shall:
(i) Ensure that all laws and policies governing the
appraisal and assessment of real properties for taxation purposes are
properly executed;
(ii) Initiate, review, and recommend changes in
policies and objectives, plans and programs, techniques, procedures,
and practices in the valuation and assessment of real properties for
taxation purposes;
(iii) Establish a systematic method of real property
assessment;
(iv) Install and maintain a real property
identification and accounting system;
(v) Prepare, install, and maintain a system of tax
mapping, showing graphically all property subject to assessment and
gather all data concerning the same;
(vi) Conduct frequent physical surveys to verify and
determine as to whether or not all real properties within the province
are properly listed in the assessment rolls;
(vii) Exercise the functions of appraisal and
assessment primarily for taxation purposes of all real properties in
the LGU concerned;
(viii) Prepare a schedule of fair market values for
the different classes of real properties, in accordance with Title Two,
Book II of the Code;
(ix) Issue, upon request of any interested party,
certified copies of assessment records of real property and all other
records relative to its assessment, upon payment of a service charge or
fee to the treasurer;
(x) Submit every semester a report of all
assessments, as well as cancellations and modifications of assessments,
to the local chief executive and the sanggunian concerned;
(xi) In the case of the assessor of a component city
or municipality, attend personally or through an authorized
representative all sessions of the local board of assessment appeals
whenever his assessment is the subject of the appeal, and present or
submit any information or record in his possession as may be required
by the said board;
(xii) In the case of the provincial assessor,
exercise technical supervision and visitorial functions over all
component city and municipal assessors, coordinate with component city
or municipal assessors in the conduct of tax mapping operations and all
other assessment activities, and provide all forms of assistance
therefore. Upon full provision by the competent city or municipality
concerned for its assessor's office of the minimum personnel,
equipment, and funding requirements as may be prescribed by the
Secretary of Finance, such functions shall be delegated to the city or
municipal assessor; and
(xiii) Exercise such other powers and perform such
other duties and functions as may be prescribed by law or ordinance.
(3) All incumbent assessors holding permanent
appointment shall continue in office without need of further
appointment. The local chief executive may exercise his power to
appoint the assessor only when vacancy occurs.
(4) An assistant assessor may be appointed by the
local chief executive, subject to civil service law, rules, and
regulations. No person shall be appointed assistant assessor unless he
is a citizen of the Philippines, a resident of the LGU concerned, of
good moral character, a holder of a college degree preferably in civil
or mechanical engineering, commerce, or any related course from a
recognized college or university, and a holder of a first grade civil
service eligibility or its equivalent. He must have acquired experience
in assessment or in any related field for at least three (3) years in
the case of the provincial or city assistant assessor, and one (1) year
in the case of the municipal assistant assessor.
The assistant assessor shall assist the assessor and perform such other
duties as the latter may assign to him. He shall have the authority to
administer oaths on all declarations of real property for purposes of
assessment.
All incumbent assistant assessors holding permanent appointments shall
continue in office without need of further appointment. The local chief
executive may exercise his power to appoint the assistant assessor only
when vacancy occurs.
(d) The Accountant —
(1) No person shall be appointed accountant unless he
is a citizen of the Philippines, a resident of the LGU concerned, of
good moral character, and a certified public accountant. He must have
acquired experience in the treasury or accounting service for at least
five (5) years in the case of the provincial of city accountant, and
three (3) years in the case of the municipal accountant.
(2) The accountant shall take charge of both the
accounting and internal audit services of the LGU concerned and shall:
(i) Install and maintain an internal audit system in
the LGU concerned;
(ii) Prepare and submit financial statements to the
governor or mayor, as the case may be, and to the sanggunian concerned;
(iii) Apprise the sanggunian and other local
government officials on the financial condition and operations of the
LGU concerned;
(iv) Certify to the availability of budgetary
allotment to which expenditures and obligations may be properly
charged;
(v) Review supporting documents before preparation of
vouchers to determine completeness requirements;
(vi) Prepare statements of cash advances,
liquidation, salaries, allowances, reimbursements and remittances
pertaining to the LGU;
(vii) Prepare statements of journal vouchers and
liquidation of the same and other adjustments related thereto;
(viii) Post individual disbursements to the
subsidiary ledger and index cards;
(ix) Maintain individual ledgers for officials and
employees of the LGU pertaining to payrolls and deductions;
(x) Record and post in index cards details of
purchased furniture, fixtures, and equipment, including disposal
thereof; if any;
(xi) Account for all issued requests for obligations
and maintain and keep all records and reports related thereto;
(xii) Prepare journals and the analysis of
obligations and maintain and keep all records and reports related
thereto; and
(xiii) Exercise such other powers and perform such
other duties and functions as may be provided by law or ordinance.
(3) The incumbent chief accountant in the office of
the treasurer shall be given preference in the appointment to the
position of accountant, subject to civil service law, rules and
regulations.
(e) The Budget Officer —
(1) No person shall be appointed budget officer
unless he is a citizen of the Philippines, a resident of the LGU
concerned, of good moral character, a holder of a college degree
preferably in accounting, economics, public administration, or any
related course from a recognized college or university, and a holder of
a first grade civil service eligibility or its equivalent. He must have
acquired experience in government budgeting or in any related field for
at least five (5) years in the case of the provincial or city budget
officer, and at least three (3) years in the case of the municipal
budget officer.
(2) The budget officer shall take charge of the
budget office and shall:
(i) Prepare forms, orders, and circulars embodying
instructions on budgetary and appropriation matters for the signature
of the governor or mayor, as the case may be;
(ii) Review and consolidate the budget proposals of
different offices and departments of the LGU;
(iii) Assist the governor or mayor, as the case may
be, in the preparation of the budget and during budget hearings;
(iv) Study and evaluate budgetary implications of
proposed legislation and submit comments and recommendations thereon;
(v) Submit periodic budgetary reports to DBM;
(vi) Coordinate with the treasurer, accountant, and
the planning and development coordinator for the purpose of budgeting;
(vii) Assist the sanggunian concerned in reviewing
the approved budgets of component LGUs;
(viii) Coordinate with the planning and development
coordinator in the formulation of the development plan of the LGU; and
(ix) Exercise such other powers and perform such
other duties and functions as may be prescribed by law or ordinance.
(3) The appropriations for personal services of the
budget officer provided under the budget of the DBM shall, upon
effectivity of the Code, be transferred to the LGU concerned.
Thereafter, the appropriations for personal services of the budget
officer shall be provided in full in the budget of the LGU.
(f) The Planning and Development Coordinator —
(1) No person shall be appointed planning and
development coordinator unless he is a citizen of the Philippines, a
resident of the LGU concerned, of good moral character, a holder of a
college degree preferably in urban planning, development studies,
economics, public administration, or any related course from a
recognized college or university, and a holder of a first grade civil
service eligibility or its equivalent. He must have acquired experience
in development planning or in any related field for at least five (5)
years in the case of the provincial or city planning and development
coordinator, and three (3) years in the case of the municipal planning
and development coordinator.
(2) The planning and development coordinator shall
take charge of the planning and development office and shall:
(i) Formulate integrated economic, social, physical,
and other development plans and policies for consideration of the local
government development council;
(ii) Conduct continuing studies, researches, and
training programs necessary to evolve plans and programs for
implementation;
(iii) Integrate and coordinate all sectoral plans and
studies undertaken by the different functional groups or agencies;
(iv) Monitor and evaluate the implementation of the
different development programs, projects, and activities in the LGU
concerned in accordance with the approved development plan;
(v) Prepare comprehensive plans and other development
planning documents for the consideration of the LDC;
(vi) Analyze the income and expenditure patterns, and
formulate and recommend fiscal plans and policies for consideration of
the finance committee of the LGU concerned as provided under Title
Five, Book II of the Code;
(vii) Promote people participation in development
planning within the LGU concerned;
(ix) Exercise such other powers and perform such
other functions and duties as may be prescribed by law or ordinance.
(g) The Engineer —
(1) No person shall be appointed engineer unless he
is a citizen of the Philippines, a resident of the LGU 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.
(2) The engineer shall take charge of the engineering
office and shall:
(i) Initiate, review and recommend changes in
policies and objectives, plans and programs, techniques, procedures and
practices in infrastructure development and public works in general of
the LGU concerned;
(ii) Advise the governor or mayor, as the case may
be, on infrastructure, public works, and other engineering matters;
(iii) Administer, coordinate, supervise, and control
the construction, maintenance, improvement, and repair of roads,
bridges, and other engineering and public works projects of the LGU
concerned;
(iv) Provide engineering services to the LGU
concerned, including investigation and survey, engineering designs,
feasibility studies, and project management;
(v) In the case of the provincial engineer, exercise
technical supervision over all engineering offices of component cities
and municipalities; and
(vi) Exercise such other powers and perform such
other duties and functions as may be prescribed by law or ordinance.
(h) The Health Officer —
(1) No person shall be appointed health officer
unless he is a citizen of the Philippines, a resident of the LGU
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.
(2) The health officer shall take charge of the
office on health and shall:
(i) Take charge of the office on health services,
supervise the personnel and staff of said office, formulate program
implementation guidelines and rules and regulations for the operation
of the said office for the approval of the governor or mayor, as the
case may be, in order to assist him in the efficient, effective, and
economical implementation of a health services program geared to
implementation of health-related projects and activities;
(ii) Formulate measures for the consideration of the
sanggunian and provide technical assistance and support to the governor
or mayor, as the case may be, in carrying out activities to ensure the
delivery of basic services and provision of adequate facilities
relative to health services provided in Rule V of these Rules;
(iii) Develop plans and strategies on health programs
and projects, and implement them upon approval thereof by the governor
or mayor as the case may be;
(iv) Formulate and implement policies, plans,
programs and projects to promote the health of the people in the LGU
concerned;
(v) Advise the governor or mayor, as the case may be,
and the sanggunian on matters pertaining to health;
(vi) Execute and enforce all laws, ordinances, and
regulations relating to public health;
(vii) Recommend to the sanggunian, through the local
health board, the passage of such ordinances as he may deem necessary
for the preservation of public health;
(viii) Recommend the prosecution of any violation of
sanitary laws, ordinances, or regulations;
(ix) Direct the sanitary inspectors to inspect all
business establishments selling food items or providing accommodations
such as hotels, motels, lodging houses, pension houses, and the like,
in accordance with the Sanitation Code;
(x) Conduct health information campaigns and render
health intelligence services;
(xi) Coordinate with other government agencies and
NGO's involved in the promotion and delivery of health services;
(xii) In the case of the provincial health officer,
exercise general supervision over health officers of competent cities
and municipalities;
(xiii) Be in the frontline of the delivery of health
services, particularly during and in the aftermath of man-made and
natural disasters and calamities; and
(xiv) Exercise such other powers and perform such
other duties and functions as may be prescribed by law or ordinance.
(i) The Civil Registrar —
(1) No person shall be appointed civil registrar
unless he is a citizen of the Philippines, a resident of the LGU
concerned, of good moral character, a holder of a college degree from a
recognized college or university, and a holder of a first grade civil
service eligibility or its equivalent. He must have acquired experience
in civil registry work for at least five (5) years in the case of the
city civil registrar and three (3) years in the case of the municipal
civil registrar.
(2) The civil registrar shall be responsible for the
civil registration program in the LGU concerned, pursuant to the Civil
Registry Law, the Civil Code, and other pertinent laws, rules and
regulations issued to implement them.
(3) The Civil Registrar shall take charge of the
office of the civil registry and shall:
(i) Develop plans and strategies on civil registry
programs and projects and implement them upon approval thereof by the
governor or mayor, as the case may be;
(ii) Accept all registrable documents and judicial
decrees affecting the civil status of persons;
(iii) File, keep, and preserve in a secure place the
books required by law;
(iv) Transcribe and enter immediately upon receipt
all registrable documents and judicial decrees affecting the civil
status of persons in the appropriate civil registry books;
(v) Transmit to the Office of the Civil
Registrar-General, within the prescribed period, duplicate copies of
registered documents required by law;
(vi) Issue certified transcripts or copies of any
certificate or registered documents upon payment of the prescribed fees
to the treasurer;
(vii) Receive applications for the issuance of a
marriage license and, after determining that the requirements and
supporting certificates and publication thereof for the prescribed
period have been complied with, issue the license upon payment of the
authorized fee to the treasurer;
(viii) Coordinate with the NSO in conducting
educational campaigns for vital registration and assist in the
preparation of demographic and other statistics for the LGU concerned;
and
(ix) Exercise such other powers and perform such
other duties and functions as may be prescribed by law or ordinance.
(j) The Administrator —
(1) No person shall be appointed administrator unless
he is a citizen of the Philippines, a resident of the LGU concerned, of
good moral character, a holder of a college degree preferably in public
administration, law, or any other related course from a recognized
college or university, and a holder of a first grade civil service
eligibility or its equivalent. He must have acquired experience in
management and administration work for at least five (5) years in the
case of the provincial or city administrator, and three (3) years in
the case of the municipal administrator.
(2) The administrator shall take charge of the office
of the administrator and shall:
(i) Develop plans and strategies on management and
programs and projects and implement them upon approval thereof by the
governor or mayor, as the case may be;
(ii) Assist in coordinating the work of all the
officials of the LGU under the supervision, direction, and control of
the governor or mayor, and for this purpose, he may convene the chiefs
of offices and other officials of the LGU;
(iii) Establish and maintain a sound personnel
program for the LGU designed to promote career development and uphold
the merit principle in the local government service;
(iv) Conduct a continuing organizational development
of the LGU with the end in view of instituting effective administrative
reforms;
(v) Be in the frontline of the delivery of
administrative support services, particularly those related to
situations during and in the aftermath of man-made and natural
disasters and calamities;
(vi) Recommend to the sanggunian and advise the
governor and mayor, as the case may be, on all other matters relative
to the management and administration of the LGU; and
(vii) Exercise such other powers and perform such
other duties and functions as may be prescribed by law or ordinance.
(k) The Legal Officer —
(1) No person shall be appointed legal officer unless
he is a citizen of the Philippines, a resident of the LGU concerned, of
good moral character, and a member of the Philippine Bar. He must have
practiced his profession for at least five (5) years in the case of the
provincial or city legal officer, and three (3) years in the case of
the municipal legal officer.
(2) The legal officer, as chief legal counsel of the
LGU, shall take charge of the office of legal services and shall:
(i) Formulate measures for the consideration of the
sanggunian and provide legal assistance and support to the governor or
mayor, as the case may be, in carrying out the delivery of basic
services and provisions of adequate facilities as provided in Rule V of
these Rules;
(ii) Develop plans and strategies on programs and
projects related to legal services and implement upon approval thereof
by the governor or mayor, as the case may be;
(iii) Represent the LGU in all civil actions and
special proceedings wherein the LGU or any official thereof, in his
official capacity, is a party; provided that, in actions or proceedings
where a component city or municipality is a party adverse to the
provincial government or to another component city or municipality, a
special legal officer may be employed to represent the adverse party;
(iv) When required by the governor, mayor, or
sanggunian, draft ordinances, contracts, bonds, leases, and other
instruments involving any interest of the LGU; and provide comments and
recommendations on any instruments already drawn;
(v) Render his opinion in writing on any question of
law when requested to do so by the governor, mayor, or sanggunian;
(vi) Investigate or cause to be investigated any
local official or employee for administrative neglect or misconduct in
office, and recommend appropriate action to the governor, mayor, or
sanggunian, as the case may be;
(vii) Investigate or cause to be investigated any
person, firm, or corporation holding any franchise or exercising any
public privilege for failure to comply with any term or condition in
the grant of such franchise or privilege, and recommend appropriate
action to the governor, mayor, or sanggunian, as the case may be;
(viii) When directed by the governor, mayor, or
sanggunian, initiate and prosecute in the interest of the LGU concerned
any civil action on any bond, lease, or other contract upon any breach
or violation thereof;
(ix) Review and submit recommendations on ordinances
approved and executive orders issued by component LGUs;
(x) Recommend measures to the sanggunian and advise
the governor or mayor, as the case may be, on all other matters related
to upholding the rule of law;
(xi) Be in the frontline of protecting human rights
and prosecuting any violations thereof, particularly those which occur
during and in the aftermath of man-made or natural disasters or
calamities; and
(xii) Exercise such other powers and perform such
other duties and functions as may be prescribed by law or ordinance.
(l) The Agriculturist —
(1) No person shall be appointed agriculturist unless
he is a citizen of the Philippines, a resident of the LGU 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
holder of a first grade civil service eligibility 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 and city agriculturist, and three (3) years in the
case of the municipal agriculturist.
(2) The agriculturist shall take charge of the office
for agricultural services, and shall:
(i) Formulate measures for the approval of the
sanggunian and provide technical assistance and support to the governor
or mayor, as the case may be, in carrying out said measures to ensure
the delivery of basic services and provision of adequate facilities
relative to agricultural services as provided in Rule V of these Rules;
(ii) Develop plans and strategies on agricultural
programs and projects and implement them upon approval thereof by the
governor or mayor, as the case may be;
(iii) Ensure that maximum assistance and access to
resources in the production, processing and marketing of agricultural
and aquacultural and marine products are extended to farmers, fishermen
and local entrepreneurs;
(iv) Conduct or cause to be conducted
location-specific agricultural researches and assist in making
available the appropriate technology arising out of, and disseminate
information on, basic research on crops, prevention and control of
plant diseases and pests, and other agricultural matters which will
maximize productivity;
(v) Assist the governor or mayor, as the case may be,
in the establishment and extension services of demonstration farms or
aquaculture and marine products;
(vi) Enforce rules and regulations relating to
agriculture and aquaculture;
(vii) Coordinate with NGAs and NGOs which promote
agricultural productivity through appropriate technology compatible
with environmental integrity;
(viii) Be in the frontline of delivery of basic
agricultural services, particularly those needed for the survival of
the inhabitants during and in the aftermath of man-made and natural
disasters;
(ix) Recommend to the sanggunian and advise the
governor or mayor, as the case may be, on all other matters related to
agriculture and aquaculture which will improve the livelihood and
living conditions of the inhabitants; and
(x) Exercise such other powers and perform such other
duties and functions as may be prescribed by law or ordinance.
(m) The Social Welfare and Development Officer —
(1) No person shall be appointed social welfare and
development officer unless he is a citizen of the Philippines, a
resident of the LGU concerned, of good moral character, a duly licensed
social worker or a holder of a college degree preferably in sociology
or any other related course from a recognized college or university,
and a holder of a first grade civil service eligibility 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.
(2) The social welfare and development officer shall
take charge of the office on social welfare and development services
and shall:
(i) Formulate measures for the approval of the
sanggunian and provide technical assistance and support to the governor
or mayor, as the case may be, in carrying out measures to ensure the
delivery of basic services and provision of adequate facilities
relative to social welfare and development services as provided in Rule
V of these Rules;
(ii) Develop plans and strategies on social welfare
programs and projects and implement them upon approval thereof by the
governor or mayor, as the case may be;
(iii) Identify the basic needs of the needy, the
disadvantaged and the impoverished and develop and implement
appropriate measures to alleviate their problems and improve their
living conditions;
(iv) Provide relief and appropriate crisis
intervention for victims of abuse and exploitation and recommend
appropriate measures to deter further abuse and exploitation;
(v) Assist the governor or mayor, as the case may be,
in implementing the barangay program for the total development and
protection of children up to six (6) years of age;
(vi) Facilitate the implementation of welfare
programs for the disabled, the elderly, and victims of drug addiction,
the rehabilitation of prisoners and parolees, the prevention of
juvenile delinquency and such other activities which would eliminate or
minimize the ill-effects of poverty;
(vii) Initiate and support youth welfare programs
that will enhance the role of the youth in nation-building;
(viii) Coordinate with government agencies and NGOs
which have for their purpose the promotion and protection of all needy,
disadvantaged, underprivileged or impoverished groups or individuals,
particularly those identified to be vulnerable and high-risk to
exploitation, abuse and neglect;
(ix) Be in the frontline of service delivery,
particularly those concerning immediate relief and assistance during
and in the aftermath of man-made and natural disaster and calamities;
(x) Recommend to the sanggunian and advise the
governor or mayor, as the case may be, on all other matters related to
social welfare and development services which will improve the
livelihood and living conditions of the inhabitants; and
(xi) Exercise such other powers and perform such
other duties and functions as may be prescribed by law or ordinance.
(n) The Environment and Natural Resources Officer —
(1) No person shall be appointed environment and
natural resources officer unless he is a citizen of the Philippines, a
resident of the LGU 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 holder of
a first grade civil service eligibility 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.
(2) The environment and natural resources officer
shall take charge of the office on environment and natural resources
and shall:
(i) Formulate measures for the consideration of the
sanggunian and provide technical assistance and support to the governor
or mayor, as the case may be, in carrying out measures to ensure the
delivery of basic services and provision of adequate facilities
relative to environment and natural resources services as provided in
Rule V of these Rules;
(ii) Develop plans and strategies on environment and
natural resources programs and projects and implement them upon
approval thereof by the governor or mayor, as the case may be;
(iii) Establish, maintain, protect and preserve
communal forests, watersheds, tree parks, mangroves, greenbelts and
similar forest projects and commercial forest, like industrial tree
farms and agro-forestry projects;
(iv) Provide extension services to beneficiaries of
forest development projects and technical, financial and infrastructure
assistance;
(v) Manage and maintain seed banks and produce
seedlings for forests and tree parks;
(vi) Provide extension services to beneficiaries of
forest development projects and render assistance to natural
resources-related conservation and utilization activities consistent
with ecological balance;
(vii) Promote small-scale mining and utilization of
mineral resources, particularly mining of gold;
(viii) Coordinate with government agencies and NGOs
in the implementation of measures to prevent and control land, air, and
water pollution with the assistance of the DENR;
(ix) Be in the frontline of the delivery of services
concerning the environment and natural resources, particularly in the
renewal and rehabilitation of the environment during and in the
aftermath of man-made and natural calamities and disasters;
(x) Recommend to the sanggunian and advise the
governor or mayor, as the case may be, on all matters relative to the
protection, conservation, maximum utilization, application of
appropriate technology, and other matters related to the environment
and natural resources; and
(xi) Exercise such other powers and perform such
other duties and functions as may be prescribed by law or ordinance.
(o) The Architect —
(1) No person shall be appointed architect unless he
is a citizen of the Philippines, a resident of the LGU concerned, of
good moral character, and a duly licensed architect. He must have
practiced his profession for at least five (5) years in the case of the
provincial or city architect, and three (3) years in the case of the
municipal architect.
(2) The architect shall take charge of the office on
architectural planning and design and shall:
(i) Formulate measures for the consideration of the
sanggunian and provide technical assistance and support to the governor
or mayor, as the case may be, in carrying out measures to ensure the
delivery of basic services and provision of adequate facilities
relative to architectural planning and design as provided in Rule V of
these Rules;
(ii) Develop plans and strategies on architectural
planning and design programs and projects and implement them upon
approval thereof by the governor or mayor, as the case may be;
(iii) Prepare and recommend for consideration of the
sanggunian the architectural plan and design for the LGU or a part
thereof, including the renewal of slums and blighted areas, land
reclamation activities, the greening of land, and appropriate planning
of marine and foreshore areas;
(iv) Review and recommend for appropriate action of
the sanggunian, governor or mayor, as the case may be, the
architectural plans and design submitted by governmental and
non-governmental entities or individuals, particularly those for
undeveloped, underdeveloped, and poorly-designed areas;
(v) Coordinate with government and non-government
entities and individuals involved in the aesthetics and the maximum
utilization of land and water within the jurisdiction of the LGU,
compatible with environmental integrity and ecological balance;
(vi) Be in the frontline of the delivery of services
involving architectural planning and design, particularly those related
to the redesigning of spatial distribution of basic facilities and
physical structures during and in the aftermath of man-made and natural
calamities and disasters;
(vii) Recommend to the sanggunian and advise the
governor or mayor, as the case may be, on all other matters relative to
the architectural planning and design as it relates to the total
socioeconomic development of the LGU; and
(viii) Exercise such other powers and perform such
other duties and functions as may be prescribed by law or ordinance.
(p) The Information Officer —
(1) No person shall be appointed information officer
unless he is a citizen of the Philippines, a resident of the LGU
concerned, of good moral character, a holder of a college degree,
preferably in journalism, mass communication or any related course from
a recognized college or university, and a holder of a first grade civil
service eligibility or its equivalent. He must have experience in
writing articles and research papers, or in writing for print,
television or broadcast media of at least three (3) years in the case
of the provincial or city information officer, and at least one (1)
year in the case of municipal information officer.
(2) The information officer shall take charge of the
office on public information and shall:
(i) Formulate measures for the consideration of the
sanggunian and provide technical assistance and support to the governor
or mayor, as the case may be, in providing information and research
data required for the delivery of basic services and provision of
adequate facilities so that the public becomes aware of said services
and may fully avail of the same;
(ii) Develop plans and strategies on programs and
projects related to public information and, implement them upon
approval thereof by the governor or mayor, as the case may be;
(iii) Provide relevant, adequate, and timely
information to the LGU and its residents;
(iv) Furnish information and data on LGUs to NGAs, as
may be required by law or ordinance, including those on NGOs;
(v) Maintain effective liaison with various sectors
of the community on matters and issues that affect the livelihood and
the quality of life of the inhabitants and encourage support for
programs of the local and national government;
(vi) Be in the frontline in providing information
during and in the aftermath of man-made and natural calamities and
disasters, with special attention to the victims thereof, to help
minimize injuries and casualties during and after the emergency, and to
accelerate relief and rehabilitation;
(vii) Recommend to the sanggunian and advise the
governor or mayor, as the case may be, on all matters relative to
public information and research data as it relates to the total
socioeconomic development of the LGU; and
(viii) Exercise such other powers and perform such
other duties and functions as may be prescribed by law or ordinance.
(q) The Cooperatives Officer —
(1) No person shall be appointed cooperatives officer
unless he is a citizen of the Philippines, a resident of the LGU
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 holder of a first grade civil service eligibility or
its equivalent. He must have experience in cooperatives organization
and management of at least five (5) years in the case of the provincial
or city cooperatives officer, and three (3) years in the case of the
provincial or city cooperatives officer, and three (3) years in the
case of municipal cooperatives officer.
(2) The cooperatives officer shall take charge of the
office for the development of cooperatives and shall:
(i) Formulate measures for consideration of the
sanggunian, and provide technical assistance and support to the
governor or mayor, as the case may be, in carrying out measures to
ensure the delivery of basic services and provision of facilities
through the development of cooperatives, and providing access to such
services and facilities;
(ii) Develop plans and strategies on cooperatives
programs and projects and, implement them upon approval thereof by the
governor or mayor, as the case may be;
(iii) Assist in the organization of cooperatives;
(iv) Provide technical and other forms of assistance
to existing cooperatives to enhance their viability as an economic
enterprise and social organization;
(v) Assist cooperatives in establishing linkages with
NGAs and NGOs involved in the promotion and integration of the concept
of cooperatives in the livelihood of the people and other community
activities;
(vi) Be in the frontline of cooperatives
organization, rehabilitation or viability-enhancement, particularly
during and in the aftermath of man-made and natural calamities and
disasters, to aid in their survival and, if necessary, subsequent
rehabilitation;
(vii) Recommend to the sanggunian, and advise the
governor or mayor, as the case may be, on all other matters relative to
cooperatives development and viability-enhancement which will improve
the livelihood and quality of life of the inhabitants; and
(viii) Exercise such other powers and perform such
other duties and functions as may be prescribed by law or ordinance.
(r) The Population Officer —
(1) No person shall be appointed population officer
unless he is a citizen of the Philippines, a resident of the LGU
concerned, of good moral character, a holder of a college degree with
specialized training in population development from a recognized
college or university, and a holder of a first grade civil service
eligibility or its equivalent. He must have experience in the
implementation of programs on population development or responsible
parenthood for at least five (5) years in the case of the provincial or
city population officer and three (3) years in the case of the
municipal population officer.
(2) The population officer shall take charge of the
office on population development and shall:
(i) Formulate measures for the consideration of the
sanggunian and provide technical assistance and support to the governor
or mayor, as the case may be, in carrying out measures to ensure the
delivery of basic services and provision of adequate facilities
relative to the integration of population development principles and in
providing access to said services and facilities;
(ii) Develop plans and strategies and upon approval
thereof by the governor or mayor, as the case may be, implement the
same, particularly those concerning the integration of population
development principles and methods in programs and projects which the
governor or mayor is empowered to implement and which the sanggunian is
empowered to provide under the Code;
(iii) Assist the governor or mayor, as the case may
be, in the implementation of the constitutional provisions relative to
population development and the promotion of responsible parenthood;
(iv) Establish and maintain an updated data bank for
program operations, development, planning and an educational program to
ensure the people's participation in and understanding of population
development;
(v) Implement appropriate training programs
responsive to the cultural heritage of the inhabitants; and
(vi) Exercise such other powers and perform such
other duties and functions as may be prescribed by law or ordinance.
(s) The Veterinarian —
(1) No person shall be appointed veterinarian unless
he is a citizen of the Philippines, a resident of the LGU concerned, of
good moral character, and a licensed doctor of veterinary medicine. He
must have practised his profession for at least three (3) years in the
case of provincial or city veterinarian and at least one (1) year in
the case of the municipal veterinarian.
(2) The veterinarian shall take charge of the office
for veterinary services and shall:
(i) Formulate measures for consideration of the
sanggunian, and provide technical assistance and support to the
governor or mayor, as the case may be, in carrying out measures to
ensure the delivery of basic services and provision of adequate
facilities pursuant to Rule V of these Rules;
(ii) Develop plans and strategies on
veterinary-related activities and implement them upon approval thereof
by the governor or mayor, as the case may be;
(iii) Advise the governor or mayor, as the case may
be, on all matters pertaining to the slaughter of animals for human
consumption and the regulation of slaughterhouses;
(iv) Regulate the keeping of domestic animals;
(v) Regulate and inspect poultry, milk and dairy
products for public consumption;
(vi) Enforce all laws and regulations for the
prevention of cruelty to animals;
(vii) Take necessary measures to eradicate, prevent,
or cure all forms of animal diseases;
(viii) Be in the frontline of veterinary related
activities, such as is in the outbreak of highly-contagious and deadly
diseases, and in situations resulting in the depletion of animals for
work and human consumption, particularly those arising from the
aftermath of man-made and natural calamities and disasters;
(ix) Recommend to the sanggunian and advise the
governor or mayor, as the case may be, on all other matters relative to
veterinary services which will increase the number and improve the
quality of livestock, poultry and other domestic animals used for work
or human consumption; and
(x) Exercise such other powers and perform such other
duties and functions as may be prescribed by law or ordinance.
(t) The General Services Officer —
(1) No person shall be appointed general services
officer unless he is a citizen of the Philippines, a resident of the
LGU concerned, of good moral character, a holder of a college degree on
public administration, business administration and management from a
recognized college or university, and a holder of a first grade civil
service eligibility or its equivalent. He must have acquired experience
in general services, including management of supply, property, solid
waste disposal, and general services officer, of at least five (5)
years in the case of the provincial or city general services officer,
and at least three (3) years in the case of the municipal general
services officer.
(2) The general services officer shall take charge of
the office on general services and shall:
(i) Formulate measures for the consideration of the
sanggunian and provide technical assistance and support to the governor
or mayor, as the case may be, in carrying out measures to ensure the
delivery of basic services and provision of adequate facilities
pursuant to Rule V of these Rules and which require general services
expertise and technical support services;
(ii) Develop plans and strategies on general services
supportive of the welfare of the inhabitants and implement them upon
approval thereof by the governor or mayor, as the case may be;
(iii) Take custody of and be accountable for all
properties, real or personal, owned by the LGU and those granted to it
in the form of donation, reparation, assistance and counterpart of
joint projects;
(iv) With the approval of the governor or mayor, as
the case may be, assign building or land space to local officials or
other public officials, who by law, are entitled to such space;
(v) Recommend to the governor or mayor, as the case
may be, the reasonable rental rates for local government properties,
whether real or personal, which will be leased to public or private
entities by the LGU;
(vi) Recommend to the governor or mayor, as the case
may be, reasonable rental rates of private properties which may be
leased for the official use of the LGU;
(vii) Maintain and supervise janitorial, security,
landscaping and other related services in all public buildings and
other real property, whether owned or leased by the LGU;
(viii) Collate and disseminate information regarding
prices, shipping, and other costs of supplies and other items commonly
used by the LGU;
(ix) Perform archival and record management with
respect to records of offices and departments of the LGU;
(x) Perform all other functions pertaining to supply
and property management heretofore performed by the treasurer; and
enforce policies on records creation, maintenance, and disposal;
(xi) Be in the frontline of general services related
activities, such as the possible or imminent destruction or damage to
records, supplies, properties, and structures and the orderly and
sanitary clearing up of waste materials or debris, particularly during
and in the aftermath of man-made and natural calamities and disasters;
(xii) Recommend to the sanggunian and advise the
governor or mayor, as the case may be, on all other matters relative to
general services; and
(xiii) Exercise such other powers and perform such
other duties and functions as may be prescribed by law or ordinance.
ARTICLE 123. Resignations. — Resignation of
appointive local officials and employees must be in writing and shall
be deemed effective upon acceptance by the local chief executive
concerned. In the case of the provincial, city, and municipal
treasurers, and their respective assistants, their resignations shall
be deemed effective upon acceptance by the Secretary of Finance.
RULE
XIX
Disciplinary Actions
ARTICLE 124. Grounds for Disciplinary Actions. — (a)
An elective local official may be censured, reprimanded, suspended, or
removed from office after due notice and hearing on any of the
following grounds:
(1) Disloyalty to the Republic of the Philippines;
(2) Culpable violation of the Constitution;
(3) Dishonesty, oppression, misconduct in office,
gross negligence, or dereliction of duty;
(4) Commission of any offense involving moral
turpitude or an offense punishable by at least prision mayor which is
from six (6) years and one (1) day to twelve (12) years imprisonment;
(5) Abuse of authority;
(6) Unauthorized absence for fifteen (15) consecutive
working days, in the case of local chief executives and four (4)
consecutive sessions in case of members of the sangguniang
panlalawigan, sangguniang panlungsod, sangguniang bayan, and
sangguniang barangay;
(7) Application for, or acquisition of, foreign
citizenship or residence or the status of an immigrant of another
country; and
(8) Such other grounds as may be provided by the
Code; RA 6713; RA 3019; Administrative Code of 1987; the Revised Penal
Code and all other applicable general and special laws.
(b) An elective local official may be removed from
office on the grounds enumerated in paragraph (a) of this Article by
order of the proper court or the disciplining authority whichever first
acquires jurisdiction to the exclusion of the other.
ARTICLE 125. Form and Filing of Administrative
Complaints. — A verified complaint against any erring elective local
official shall be prepared and filed as follows:
(a) Against any elective official of a province, a
highly-urbanized city, a component city, a municipality within MMA, an
independent component city, before the Office of the President;
(b) Against any elective official of a municipality,
before the sangguniang panlalawigan whose decision may be appealed to
the Office of the President.
(c) Against any elective barangay official, before
the sangguniang panlungsod or sangguniang bayan concerned whose
decision shall be final and executory.
Copies of the complaints shall be furnished the office of the governor,
in the case of component cities and municipalities, and in all cases,
the DILG.
ARTICLE 126. Hearings. — (a) Within seven (7) days
after the administrative complaint is filed, the Office of the
President or the sanggunian concerned, as the case may be, shall
require the respondent to submit his verified answer within fifteen
(15) days from receipt thereof, and commence the investigation of the
case within ten (10) days after receipt of such answer of the
respondent.
(1) Unreasonable failure of the respondent to file
his verified answer within fifteen (15) days from receipt of the
complaint shall be considered a waiver of his rights to present
evidence in his behalf.
(2) Unreasonable failure to commence the
investigation within the prescribed period by the person or persons
assigned to investigate shall be a ground for disciplinary action.
(b) When the respondent is an elective official of a
province or highly-urbanized city, such hearing and investigation shall
be conducted in the place where he renders or holds office. For all
other elective local officials, the venue shall be the place where the
sanggunian concerned is located.
(c) No investigation shall be held within ninety (90)
days immediately prior to any local elections, and no preventive
suspension shall be imposed within the same period. If preventive
suspension has been imposed prior to the 90-day period immediately
preceding local elections, it shall be deemed automatically lifted upon
the start of the said period.
ARTICLE 127. 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 city, an
independent component city or a municipality within MMA;
(2) By the governor, if the respondent is an elective
official of a component city or municipality;
(3) By the mayor, if the respondent is an elective
official of the barangay.
(b) Preventive suspension may be imposed at any time
after the issues are joined, when the evidence of guilt is strong, and
given the gravity of the offense, there is great probability that the
continuance in office of the respondent could influence the witnesses
or pose a threat to the safety and integrity of the records and
evidence.
(c) Any single preventive suspension of an elective
local official shall not extend beyond sixty (60) days.
(d) In the event that several administrative cases
are filed against an elective local official, he cannot be placed under
preventive suspension for more than ninety (90) days within a single
year on the same ground or grounds existing and known at the time of
the first suspension.
(e) Upon expiration of the preventive suspension, the
suspended elective local official shall be deemed reinstated in office
without prejudice to the continuation of the proceedings against him,
which shall be terminated within one hundred twenty (120) days from the
time he was formally notified of the case against him. If the delay in
the proceedings of the case is due to his fault, neglect, or request,
other than the appeal duly filed, the duration of such delay shall be
counted in computing the time of termination of the case.
(f) Any abuse of the exercise of the power of
preventive suspension shall be penalized as abuse of authority.
ARTICLE 128. Salary of Respondent Pending Suspension.
— The respondent elective local official who is under preventive
suspension shall receive no salary or compensation during such
suspension. Upon subsequent exoneration and reinstatement, however, he
shall be paid his full salary or compensation including other
emoluments accruing during his suspension.
ARTICLE 129. Rights of Respondent. — The respondent
shall be accorded full opportunity to appear and defend himself in
person or by counsel, to confront and cross-examine the witnesses
against him, and to require the attendance of witnesses and the
production of documentary evidence in his favor through the compulsory
process of subpoena or subpoena duces tecum.
ARTICLE 130. Investigation and Decision. — (a) The
investigation of the case shall be terminated within ninety (90) days
from the start thereof. Unreasonable failure to complete the
investigation after same period of ninety (90) days by the person or
persons assigned to investigate shall be a ground for disciplinary
action.
(b) Within thirty (30) days after the end of the
investigation, the Office of the President or the sanggunian concerned
shall render a written decision stating clearly and distinctly the
facts and reasons for such decision. Copies of decision shall be
immediately furnished the respondent and all interested parties. In
case of failure of the sanggunian concerned to render a decision on the
resolution recommended on the investigation within thirty (30) days
after the end of the investigation, the recommended resolution shall be
considered the decision.
(c) The penalty of suspension shall not exceed the
unexpired term of the respondent or a period of six (6) months for
every administrative offense, nor shall said penalty be a bar to the
candidacy of the respondent so suspended as long as he meets the
qualifications required for the office.
(d) The penalty of removal from office shall be
considered a bar to the candidacy of the respondent for any elective
position.
ARTICLE 131. Administrative Appeals. — Decisions in
administrative cases may, within thirty (30) days from receipt thereof,
be appealed to the following:
(a) The sangguniang panlalawigan, in the case of
decisions of the sangguniang panlungsod of component cities and the
sangguniang bayan; and
(b) The Office of the President, in the case of
decisions of the sangguniang panlalawigan, the sangguniang panlungsod
of highly-urbanized cities and independent component cities, and the
sangguniang bayan of municipalities within MMA.
Decisions of the Office of the President shall be final and executory.
(c) If no appeal is made within thirty (30) days from
receipt of the decision, the decision shall become final and executory.
ARTICLE 132. Execution Pending Appeal. — An appeal
shall not prevent a decision from becoming final or executory. The
respondent shall be considered as having been placed under preventive
suspension during the pendency of an appeal. In the event the appeal
results in an exoneration, he shall be paid his salary and such other
emoluments accruing during the pendency of the appeal.
RULE
XX
Local Initiative and Referendum
ARTICLE 133. Local Initiative Defined. — Local
initiative is the legal process whereby the registered voters of an LGU
may directly propose, enact, or amend any ordinance through an election
called for the purpose.
ARTICLE 134. Who may Exercise. — The power of
initiative may be exercised by all the registered voters of provinces,
cities, municipalities, or barangays, and metropolitan political
subdivisions as may be created by law.
ARTICLE 135. Procedure in Local Initiative. — (a) The
exercise of the power of initiative shall commence with the filing of a
petition with the sanggunian concerned.
(b) 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.
(c) If no favorable action thereon is taken by the
sanggunian concerned within thirty (30) days from the presentation of
the petition, the proponents, through their duly authorized and
registered representatives, may invoke their power of initiative,
giving notice thereof to the sanggunian concerned.
ARTICLE 136. Petition. — A petition is a written
instrument containing the proposition and the required number of
signatories in the form to be prescribed by the COMELEC.
A petition shall state the following:
(a) Contents or text of the proposed ordinance sought
to be enacted, approved or rejected, amended or repealed, as the case
may be;
(b) The proposition;
(c) The reasons therefore;
(d) That it is not one of the limitations provided in
Article 150 of this Rule;
(e) Signatures of the petitioners or registered
voters;
(f) A formal designation of their duly authorized
representatives;
(g) An abstract or summary proposition in not more
than one hundred (100) words which shall be legibly written or printed
at the top of every page of the petition.
ARTICLE 137. The Proposition. — (a) The proposition
is the measure proposed by the voters.
(b) The proposition shall be numbered serially
starting from Roman Numeral I.
(c) Two (2) or more propositions may be submitted in
an initiative.
(d) The COMELEC or its designated representative
shall extend assistance in the formulation of the proposition.
ARTICLE 138. Copies of Petition and Notice. — (a) If
the subject of the initiative is a provincial ordinance, the proponents
shall furnish the provincial election supervisor sufficient number of
copies of the petition and notice for distribution to the election
registrars in the province.
(b) If the subject is a city ordinance, the
proponents shall furnish the election registrar sufficient number of
copies of the petition and notice for distribution to the barangays
within the city.
(c) If the subject is a municipal ordinance, the
proponents shall furnish the provincial election registrar sufficient
number of copies of the petition and notice for distribution to the
barangays in the municipality.
(d) If the subject is a barangay ordinance, the
proponents shall furnish the provincial election registrar sufficient
number of copies of the petition and notice.
(e) The proponents shall likewise furnish copies of
the petition and notice to the COMELEC in Manila, through its executive
director and its Election Records and Statistics Department.
ARTICLE 139. Posting. — Upon receipt of the petition
and notice, all election officers concerned shall cause copies thereof
to be posted conspicuously in public places in the LGU concerned,
together with a notice of the dates of signing in accordance with the
following article.
ARTICLE 140. Schedule of Signing of Petition. — Upon
receipt of the notice and petition, the election officer in the LGU
concerned shall schedule the signing of the petition in the LGU.
The collection of signatures shall commence on the first Saturday and
Sunday following receipt thereof, and every Saturday and Sunday
thereafter for a period of ninety (90) days for provinces and cities,
sixty (60) days for municipalities, and thirty (30) days for barangays.
Signing may also be done on weekdays in the office of the proper
election registrar.
ARTICLE 141. Signature Stations. — Stations for
collecting signatures may be established in as many places as may be
warranted and as far as practicable, in public school buildings nearest
the residence of the voters. For this purpose, the election registrar
may cluster existing precincts into signature stations at a ratio of
one (1) signature station for every ten (10) precincts.
Each signature station shall be under the supervision of a public
school teacher designated by the election registrar.
ARTICLE 142. Procedure for Signing of Petition. — On
any of the days scheduled for the signing of the petition, any
registered voter in an LGU concerned, may assign the petition. The
petition shall be signed before the election registrar, or his
designated representatives, in the presence of a representative of the
proponent and a representative of the sanggunian concerned, in a public
place in the LGU concerned.
The signatures of the voters shall be affixed on the form prescribed by
the COMELEC. Each voter shall affix his signature over his printed name
and address. All illiterate or disabled voter, who is currently
registered as such, shall be assisted by a person of his confidence.
The election registrar shall have custody of all the forms used during
the signing.
ARTICLE 143. Verification of Signatures. — The
election registrar or his representative shall , during the period of
signing, verify the genuineness and authenticity of the signatures by
referring to the book of voters, voter's affidavits and voters'
identification cards used in the immediately preceding election. The
election registrar shall cancel any signature on the ground that it is
forged or falsified, or that the signatory is not a registered voter,
or that the signature of the voter appears more than once in the same
or other forms. The determination by the election registrar of the
genuineness and authenticity of the signatures shall be final.
ARTICLE 144. Certification of Number of Registered
Voters. — Upon receipt of a copy of the notice referred to in Article
139 of this Rule, the Election Records and Statistics Department of the
COMELEC shall certify to the total number of registered voters in the
constituency to which the initiative pertains, and immediately, send
the certification to the highest local election officer of the LGUs
affected. For initiatives on local laws before the 1992 general
elections, the said Election Records and Statistics Department shall,
wherever proper, use as basis the registration records for the January
18, 1988 local elections. Thereafter, the basis shall be the
registration records of the general and local elections immediately
preceding the initiative.
Upon receipt of the certification from the Election Records and
Statistics Department, the regional election directors, provincial
election supervisor, or election registrar, as the case may be, shall
post a copy of the certification on the bulletin board of his office.
ARTICLE 145. Number of Signatures Required. — (a) A
local initiative affecting an ordinance passed by the sanggunian of a
province or a city is deemed validly initiated if the petition
therefore is signed by at least ten percent (10%) of the registered
voters in the province or city, of which every legislative district
must be represented by at least three percent (3%) of the registered
voters therein. If the province or city is composed of only one
legislative district, at least each municipality in the province or
each barangay in a city must be represented by at least three percent
(3%) of the registered voters therein.
(b) An initiative on municipal ordinance shall be
deemed validly initiated if the petition therefore is signed by at
least ten percent (10%) of the registered voters in the municipality,
of which every barangay must be represented by at least three percent
(3%) of the registered voters therein.
(c) An initiative on a barangay ordinance is deemed
validly initiated if signed by at least ten percent (10%) of the
registered voters in said barangay.
ARTICLE 146. Determination of Percentage and
Certification, and Action by the COMELEC. — Upon the lapse of the
period for collecting signatures, the COMELEC, through its office in
the LGU concerned, shall determine and certify whether or not the
required number of signatures has been obtained. Failure to obtain the
required number defeats the proposition. Within fifteen (15) days from
receipt of the certification, the COMELEC shall act on the findings of
sufficiency or insufficiency of the petition for initiative.
ARTICLE 147. Call for Initiative by the COMELEC. — If
the required number of signatures is obtained, the COMELEC shall set a
date for the initiative during which the proposition shall be submitted
to the registered voters in the LGU concerned for their approval within
sixty (60) days from the date of certification by the COMELEC in case
of provinces and cities, forty-five (45) days in case of
municipalities, and thirty (30) days in case of barangays. The
initiative shall then be held on the date set, after which the results
thereof shall be certified and proclaimed by the COMELEC.
ARTICLE 148. Effectivity of Local Propositions. — If
the proposition is approved by a majority of the votes cast, it shall
take effect fifteen (15) days after certification by the COMELEC as if
affirmative action thereon had been made by the local chief executive
and the sanggunian concerned.
If the proposition fails to obtain the required number of votes, the
proposition is considered defeated.
ARTICLE 149. Limitations on Local Initiative. — (a)
The power of local initiative shall not be exercised more than once a
year.
(b) An initiative shall extend only to subjects or
matters which are within the legal powers of the sanggunians to enact.
(c) If at any time before the initiative is held, the
sanggunian concerned adopts in toto the proposition presented and the
local chief executive approves the same, the initiative shall be
cancelled. Those against such action may, if they so desire, apply for
initiative in the manner provided in this Rule.
ARTICLE 150. Local Referendum Defined. — Local
referendum is the legal process whereby the registered voters of LGUs
may approve, amend, or reject any ordinance enacted by the sanggunian
through an election held for the purpose.
ARTICLE 151. Procedure in Local Referendum. — (a) Any
sanggunian may submit to the registered voters of any province, city,
municipality, and barangay for approval or rejection any ordinance or
resolution duly enacted or approved by said sanggunian.
(b) The local referendum shall be held under the
control and direction of the COMELEC within sixty (60) days in the case
of a province or a city, forty-five (45) days in case of a
municipality, and thirty (30) days in case of a barangay. The COMELEC
shall certify and proclaim the results of the said referendum.
(c) The manner of securing the required number of
signatures and other requisites for local referendum shall be the same
as those for local initiative.
ARTICLE 152. Limitations Upon Sanggunian. — Any
proposition or ordinance approved through the system of initiative and
referendum shall not be repealed, modified or amended by the sanggunian
concerned within six (6) months from the date of approval thereof. Such
proposition or ordinance may, however, be amended, modified or repealed
by the sanggunian three (3) years thereafter by a vote of three-fourths
(3/4) of all its members provided that in case of barangays, the period
shall be eighteen (18) months after the approval thereof.
ARTICLE 153. Authority of Courts. — Nothing in this
Rule shall prevent or preclude the proper courts from declaring null
and void any proposition or ordinance approved in accordance with this
Rule for violation of the Constitution or want of capacity of the
sanggunian concerned to enact the said measure.
RULE
XXI
Recall
ARTICLE 154. By Whom Exercised. — The power of recall
for loss of confidence shall be exercised by the registered voters of
an LGU to which the elective local official subject to such recall
belongs.
ARTICLE 155. Who May Be Recalled. — Any elective
provincial, city, municipal or barangay official may be recalled for
loss of confidence in the manner prescribed in this rule provided that
no recall may be instituted against said elective local official who
has been the subject of a previous recall election held during the same
term of office.
ARTICLE 156. Preparatory Recall Assembly. — There
shall be a preparatory recall assembly in every province, city,
legislative district, and municipality which shall be composed of the
following:
(1) Province — all mayors, vice-mayors and sanggunian
members of component cities and municipalities;
(2) City — all punong barangay and sangguniang
barangay members of the city;
(3) Legislative District — all elective barangay
officials of the district; and
(4) Municipality — all punong barangay and
sangguniang barangay members of the municipality.
ARTICLE 157. Recall Procedures. — (a) Recall may be
initiated by the preparatory recall assembly or by the registered
voters of the LGU to which the elective local official subject to such
recall belongs.
(b) Recall of any elective provincial, city,
municipal or barangay official may also be validly initiated upon
petition of at least twenty-five percent (25%) of the total number of
registered voters in an LGU concerned during the election in which the
elective local official sought to be recalled was elected.
(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 local official in the LGU 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 purpose.
(d) A written petition for recall duly signed before
the election registrar or his representative, and in the presence of a
representative of the petitioner and a representative of the official
sought to be recalled, and in a public place in the province, city,
municipality or barangay, as the case may be, shall be filed with the
COMELEC through its office in the LGU concerned. The COMELEC or its
duly authorized representative shall cause the publication of the
petition in a public and conspicuous place for a period of not less
than ten (10) days nor more than twenty (20) days, for the purpose of
verifying the authenticity and genuineness of the petition and the
required percentage of voters.
(e) Upon the lapse of the period for publication of
the petition, the COMELEC or its duly authorized representative shall
announce the acceptance of candidates to the position and thereafter
prepare the list of candidates which shall include the name of the
official sought to be recalled.
ARTICLE 158. Election on Recall. — Upon filing of a
valid resolution or petition for recall with the appropriate local
office of the COMELEC, the COMELEC 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 elective 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 duly registered candidate or
candidates to the pertinent positions and, like other candidates, shall
be entitled to be voted upon.
ARTICLE 159. Effectivity. — The recall of an elective
local official shall be effective only upon the election and
proclamation of a successor in the person of the candidate receiving
the highest number of votes cast during the election on recall. Should
the official sought to be recalled receive the highest number of votes,
confidence in him is thereby affirmed, and he shall continue in office.
ARTICLE 160. Prohibition from Resignation. — The
elective local official sought to be recalled shall not be allowed to
resign while the recall process is in progress.
ARTICLE 161. Limitations. — Any elective local
official may be the subject of a recall election only once during his
term of office for loss of confidence. No recall shall take place
within one (1) year from the date of the official's assumption to
office or one (1) year immediately preceding a regular local election.
ARTICLE 162. Expenses Incident to Recall Election. —
All expenses incidental to recall elections shall be borne by the
COMELEC. For this purpose, there shall be included in the annual
General Appropriations Act a contingency fund at the disposal of the
COMELEC for the conduct of recall elections.
RULE
XXII
Human Resource Management and
Development
ARTICLE 163. Organizational Structure and Staffing
Pattern. — Every LGU shall design and implement its own organizational
structure and staffing pattern taking into consideration its priority
needs, service requirements, and financial capabilities consistent with
the principles on simplicity, efficiency, economy, effectiveness,
dynamism, and public accountability, subject to the minimum standards
and guidelines prescribed therefore by CSC.
ARTICLE 164. Responsibility for Human Resource
Management and Development; Applicable Laws. — (a) An LGU may
reorganize through the sanggunian its present organizational structure
or alter its present staffing pattern in accordance with laws pertinent
to government reorganization and implementing rules and regulations
issued thereunder.
(b) The local chief executive shall be responsible
for human resource management and development in his LGU and shall take
all personnel actions in accordance with the constitutional provisions
on civil service, pertinent laws, rules and regulations, including such
policies, guidelines, and standards as CSC may prescribe. For this
purposes, the local chief executive may avail of the services of the
Local Government Academy and other learning institutions.
(c) The presiding officer of the sanggunian shall,
where applicable, be responsible for human resource management and
development and shall take all personnel actions in accordance with
civil service law, rules and regulations.
(d) The local chief executive may employ emergency or
casual employees or laborers paid on a daily wage or piecework basis
and hired through job orders for local projects authorized by the
sanggunian concerned, without need of approval or attestation by CSC
provided that the period of employment of emergency or casual laborers
shall not exceed six (6) months.
ARTICLE 165. Recruitment and Selection. — Opportunity
for employment in an LGU shall be open to all qualified candidates.
Utmost effort shall be exerted to attract the best qualified to enter
the local government service. Employees shall be selected on the basis
of merit and fitness.
ARTICLE 166. Personnel Selection Board. — (a) There
shall be established in every province, city or municipality a
personnel selection board to assist the local chief executive or, where
applicable, the presiding officer of the sanggunian, in the judicious
and objective selection of personnel for employment as well as for
promotion.
(b) The personnel selection board shall be composed
of the local chief executive or his duly authorized representative as
chairman, and members to be determined by resolution of the sanggunian
concerned in accordance with pertinent civil service law, rules and
regulations. A representative of CSC, if any, and the local human
resource management officer or his equivalent in the LGU concerned,
shall be ex officio members of the board.
(c) The personnel selection board shall formulate
screening procedures and shall adopt criteria for evaluating candidates
for employment or promotion in the first and second levels of the local
government career service.
(d) The personnel selection board shall formulate
screening policies on employee welfare in accordance with civil service
law, rules and regulations.
ARTICLE 167. Public Notice of Vacancy. — Whenever a
local chief executive decides to fill a vacant career position, notices
of vacancy shall be posted in at least three (3) conspicuous public
places for a period of not less than fifteen (15) days and published
once in a newspaper of general circulation in the LGU concerned.
ARTICLE 168. Appointments. — (a) Appointments to
positions in LGUs, except those classified by law or competent
authority as policy determining, primarily confidential, or highly
technical in nature, shall be made only according to merit and fitness
to be determined, as far as practicable, by competitive examinations.
(b) The local chief executive concerned or, where
applicable, the presiding officer of the sanggunian shall be the
appointing authority of all officials and employees paid wholly or
partially out of local government funds except as otherwise provided by
law or these Rules.
(c) Appointments to the career service shall either
be permanent or temporary:
(1) A permanent appointment shall be issued to a
person who meets all the requirements for the position to which he is
appointed, including the appropriate eligibility prescribed by law or
regulations.
(2) In the absence of a qualified civil service
eligible and whenever public interest so requires to fill a vacancy, a
temporary appointment shall be issued to a person who meets all the
requirements for the position to which he is being appointed except the
possession of the appropriate civil service eligibility. Such temporary
appointment shall not exceed twelve (12) months but may be terminated
sooner if a qualified eligible becomes available.
(d) A contractual appointment shall be issued only
under the following circumstances or conditions:
(1) The proposed appointee undertakes a specific work
or project to be completed within a limited period not to exceed one
(1) year;
(2) The proposed appointee has a special or technical
skill not available in the employing LGU;
(3) The proposed appointee performs or accomplishes
his work under his own responsibility with minimum direction and
supervision from the hiring LGU.
(4) In the case of aliens, a contractual appointment
may be extended only if it can be shown that there is no Filipino
expert available within the region as certified by the appointing
authority.
(5) Due to the temporary nature of contractual
appointment, the high quality of expertise desired, the difficulty of
recruitment, or the time constraint for the completion of the assigned
tasks, personnel hired on a contractual basis may be paid a higher
compensation than that given to employees occupying similar positions
or performing substantially the same duties and responsibilities but
not more than the ceiling fixed by the appropriate authority; and
(6) At least two (2) copies of a duly accomplished
Position Description Form shall be forwarded to the appropriate NGA
before the employment contract is finalized. A certification stating
the reason for resorting to contractual employment shall also be
submitted.
(e) All appointments shall be made in such form,
content and supporting documentation as CSC may prescribe.
(f) Except as otherwise provided by law, appointments
shall be submitted to CSC for attestation within thirty (30) days from
the date of issuance thereof; otherwise said appointments shall become
ineffective after the lapse of thirty (30) days.
(g) Appointments of those who do not meet the
appropriate eligibility and required qualifications shall not be made,
except in cases allowed by civil service law, rules and regulations.
(h) An appointment issued in accordance with
applicable laws, rules and regulations shall take effect immediately
upon its issuance by the appointing authority, and if the appointee has
assumed the duties of the position, he shall be entitled to receive his
salary at once without awaiting the attestation of his appointment by
CSC.
(i) The appointing authority shall be liable for the
payment of the salary of the appointee for actual services rendered if
the appointment is disapproved because the appointing authority issued
it in willful violation of applicable laws, rules and regulations
thereby making the appointment unlawful.
(j) No person shall be appointed in the local
government career service if he is related within the fourth civil
degree of consanguinity or affinity to the appointing or recommending
authority.
ARTICLE 169. Promotions. — (a) Promotions in the
local government career service shall be made in accordance with civil
service law, rules and regulations.
(b) No promotion shall be made unless recommended by
the personnel selection board.
ARTICLE 170. Compensation. — (a) Compensation of
local officials and employees shall be determined by the sanggunian
concerned, subject to the budgetary limitations on personal services
provided in Rule XXXIV of these Rules and other applicable laws.
(b) Barangay elective officials shall receive
honoraria, allowances and such other emoluments as may be authorized by
law, or city, municipal or barangay ordinance, in accordance with the
provisions of the Code, but in no case shall it be less than One
Thousand Pesos (P1,000.00) per month for the punong barangay and Six
Hundred Pesos (P600.00) per month for the sangguniang barangay members
provided that the annual appropriations for personal services shall be
subject to the budgetary limitations prescribed in Rule XXXIV of these
Rules.
(c) No elective or appointive local official or
employee shall receive additional, double, or indirect compensation,
unless specifically authorized by law, nor accept without the consent
of the Congress, any present, emoluments, office, or title of any kind
from any foreign government. Pensions or gratuities shall not be
considered as additional, double or indirect compensation.
ARTICLE 171. Working Hours and Attendance. — (a) All
appointive local officials and employees are required to render not
less than the official hours of work prescribed by law.
(b) When the interest of public service so requires,
the local chief executive may extend the daily hours of work of any or
all the officials or employees in his LGU, or require them to work on
Saturdays, Sundays and Holidays. Overtime shall be paid for such
additional hours rendered, subject to availability of funds and
applicable laws.
(c) The local chief executive shall require a daily
record of attendance of personnel under him to be kept in the proper
forms prescribed by CSC. A record shall also be made for each day of
all absences from duty of any local official or employee for any cause
and the duration thereof; and
(d) Elective local officials need not be required to
keep a daily record of attendance but their absences shall be properly
recorded.
ARTICLE 172. Leave Privilege. — Elective local
officials shall be entitled to the same leave privileges and such other
leave privileges as the law may provide, subject to standards set by
CSC, as those enjoyed by appointive local officials, including
cumulation and commutation thereof, as follows:
(a) Vacation Leave. — After six (6) months of
continuous and satisfactory service, officials and employees of an LGU
shall be entitled to fifteen (15) days of vacation leave with full pay
for each year of service. Such leave shall be computed exclusive of
Saturdays, Sundays, and Holidays. Local government personnel shall be
encouraged to take an annual five (5) days vacation leave if he has at
least a total of ten (10) days vacation leave credits earned during the
year.
(b) Sick Leave. — Officials and employees of an LGU
shall also be entitled to fifteen (15) days sick leave with full pay
for each year of service. Such leave shall be computed exclusive of
Saturdays, Sundays, and Holidays.
(c) Maternity Leave. — In addition to vacation and
sick leave privileges, a married woman in the service of an LGU shall
be entitled to maternity leave of sixty (60) days with pay, subject to
the following provisions:
(1) An official or employee shall be entitled to full
pay if she has rendered two or more years of continuous service.
(2) An official or employee shall be entitled to
one-half pay if she has rendered less than two (2) years of continuous
service.
ARTICLE 173. Permission to Leave Station. — (a) All
appointive local officials going on official travel shall apply and
secure written permission from their respective local chief executives
before departure. The application shall specify the reasons for such
travel and the permission shall be given or withheld based on
considerations of public interest, financial capability of the LGU
concerned, and urgency of the travel. Should the local chief executive
concerned fail to act on such application within four (4) working days
from receipt thereof, it shall be deemed approved.
(b) Mayors of component cities and municipalities
shall secure the permission of the governor concerned for any travel
outside of the province.
(c) Local government officials traveling abroad shall
notify their respective sanggunians provided that when the period of
travel extends to more than three (3) months, during periods of
emergency or crisis, or when the travel involves the use of public
funds, permission from the Office of the President shall be secured.
(d) Field officers of NGAs assigned in provinces,
cities, and municipalities shall not leave their official stations
without giving prior written notice to the local chief executive
concerned. Such notice shall state the duration of travel and the name
of the officer whom he shall designate to act for and in his behalf
during his absence.
ARTICLE 174. Grievances. — There shall be established
in every LGU a grievance committee to inquire into, act upon, resolve,
or settle complaints and grievances presented by local government
employees.
ARTICLE 175. Statements of Assets and Liabilities. —
(a) Officials and employees of LGUs except those who serve in an
honorary capacity, laborers, and casual or temporary workers, shall
file:
(1) sworn statements of assets, liabilities and net
worth;
(2) lists of relatives within the fourth civil degree
of consanguinity or affinity in government service;
(3) financial and business interests; and
(4) personal data sheets as required by law.
ARTICLE 176. Oath of Office. — All elective and
appointive local officials and employees shall, upon assumption to
office, subscribe to an oath or affirmation of office in the prescribed
form. The oath or affirmation of office shall be filed with the office
of the local chief executive concerned. A copy of the oath or
affirmation of office shall be preserved in the individual personal
record file under the custody of the personnel office, division, or
section, as the case may be, of the LGU concerned.
ARTICLE 177. Practice of Profession. — (a) All
governors, city and municipal mayors are prohibited from practicing
their profession or engaging in any occupation other than the exercise
of their functions as local chief executives.
(b) Sanggunian members may practice their
professions, engage in any occupation, or teach in schools except
during session hours provided that sanggunian members who are also
members of the Bar shall not:
(1) Appear as counsel before any court in any civil
case wherein an LGU or any office, agency, or instrumentality of the
government is the adverse party;
(2) Appear as counsel in any criminal case wherein an
officer or employee of the national or local government is accused of
an offense committed in relation to his office;
(3) Collect any fee for their appearance in
administrative proceedings involving the LGU of which he is an
official; and
(4) Use property and personnel of the government
except when the sanggunian member concerned in defending the interest
of the government.
(c) Doctors of medicine may practice their profession
even during official hours of work only on occasions of emergency
provided that the officials concerned do not derive monetary
compensation therefrom.
ARTICLE 178. Partisan Political Activity. — (a) No
local official or employee in the career service shall:
(1) Engage directly or indirectly in any partisan
political activity;
(2) Take part in any election, initiative,
referendum, plebiscite, or recall, except to vote;
(3) Use his official authority or influence to cause
the performance of any political activity by any person or body.
(b) The local official or employee may, however,
express his views on current issues, or mention the names of certain
candidates for public office whom he supports.
(c) Elective local officials may take part in
partisan political and electoral activities but it shall be unlawful
for them to solicit contributions from their subordinates or subject
these subordinates to any of the prohibited acts under the Omnibus
Election Code, as amended.
ARTICLE 179. Prohibited Business and Pecuniary
Interest. — (a) It shall be unlawful for any local government official
or employee whether directly or indirectly, to:
(1) Engage in any business transaction with the LGU
in which he is an official or employee or over which he has the power
of supervision, or with any of its authorized boards, officials,
agents, or attorneys, whereby money is to be paid, or property or any
other thing of value is to be transferred, directly of indirectly, out
of the resources of LGU to such person or firm;
(2) Hold such interests in any cockpit or other games
licensed by LGUs;
(3) Purchase any real estate or other property
forfeited in favor of an LGU for unpaid taxes or assessment, or by
virtue of a legal process at the instance of the said LGU;
(4) Be a surety for any person contracting or doing
business with an LGU for which a surety is required; and
(5) Possess or use any public property of an LGU for
private purposes.
(b) All other prohibitions governing the conduct of
national public officers relating to prohibited business and pecuniary
interest so provided in RA 6713, otherwise known as the Code of Conduct
and Ethical Standards for Public Officials and Employees, and other
laws, rules and regulations shall also be applicable to local
government officials and employees.
ARTICLE 180. Penalty for Engaging in Prohibited
Business Transactions or Possessing Illegal Pecuniary Interest. — Any
local official and any person or persons dealing with him who violate
the prohibitions provided under Article 180 of this Rule, shall be
punished with imprisonment of not less than six (6) months and one (1)
day but not exceeding six (6) years, or a fine of not less than Three
Thousand Pesos (P3,000.00) but not more than Ten Thousand Pesos
(P10,000.00), or both such imprisonment and fine, at the discretion of
the court.
RULE
XXIII
Local Special Bodies
ARTICLE 181. Local Special Bodies. — There shall be
organized in the LGU concerned the following local special bodies:
(a) Local Development Councils;
(b) Local Prequalification, Bids and Awards
Committees;
(c) Local School Boards;
(d) Local Health Boards;
(e) Local Peace and Order Councils; and
(f) People's Law Enforcement Boards.
ARTICLE 182. Local Development Councils. — Every LGU
shall have a comprehensive multi-sectoral development plan to be
initiated by the LDC concerned and approved by its sanggunian. For this
purpose, the provincial, city, municipal, or barangay development
council, shall assist the corresponding sanggunian in setting the
direction of economic and social development, and coordinating
development efforts within its territorial jurisdiction.
(a) Composition. —
(1) The provincial development council shall be
headed by the governor and shall be composed of the following
members:
(i) All mayors of component cities and
municipalities;
(ii) The chairman of the committee on appropriations
of the sangguniang panlalawigan;
(iii) The congressman or his representative; and
(iv) Representatives of NGOs operating in the
province, who shall constitute not less than one-fourth (1/4) of the
members of the fully organized council.
(2) The city or municipal development council shall
be headed by the mayor and shall be composed of the following members:
(i) All punong barangays in the city or municipality;
(ii) The chairman of the committee on appropriations
of the sangguniang panlungsod or sangguniang bayan concerned;
(iii) The congressman or his representative; and
(iv) Representatives of NGOs operating in the city or
municipality, as the case may be, who shall constitute not less than
one-fourth (1/4) of the members of the fully organized council.
(3) The barangay development council shall be headed
by the punong barangay and shall be composed of the following members:
(i) Members of the sangguniang barangay;
(ii) Representatives of NGOs operating in the
barangay, who shall constitute not less than one fourth (1/4) of the
members of the fully organized council.
(iii) A representative of the congressman.
(4) The LDC may call upon any local or national
official in the LGU to assist in the formulation of the development
plans and public investment programs of the said LGU.
(b) Representation of NGOs — Within a period of sixty
(60) days from organization of LDCs, NGOs shall choose from among
themselves their representatives to said LDCs. The sanggunian concerned
shall accredit NGOs, subject to such criteria as provided in Rule XIII
of these Rules.
(c) Reconstitution of LDCs — Upon effectivity of
these Rules, all existing LDCs organized under EO 319, series of 1988,
as amended, shall be reconstituted in accordance with this Rule.
(d) Functions of LDCs —
(1) The provincial, city, and municipal development
councils shall perform the following functions:
(i) Formulate long-term, medium-term, and annual
socioeconomic development plans and policies;
(ii) Formulate medium-term and annual public
investment programs;
(iii) Evaluate and prioritize socioeconomic
development programs and projects;
(iv) Formulate local investment incentives to promote
the inflow and direction of private investment capital;
(v) Coordinate, monitor, and evaluate the
implementation of development programs and projects; and
(vi) Perform such other functions as may be provided
by law or component authority.
(2) The barangay development council shall perform
the following functions:
(i) Mobilize people's participation in local
development efforts;
(ii) Prepare barangay development plans based on
local requirements;
(iii) Monitor and evaluate the implementation of
national or local programs and projects; and
(iv) Perform such other functions as may be provided
by law or component authority.
(e) Meetings — The LDCs shall meet at least once
every six (6) months or as often as may be necessary.
(f) Executive Committee — The provincial, city,
municipal, or barangay development council shall, by resolution and
within three (3) months from the date of reorganization of the LDC,
create an executive committee to represent and act in behalf of the LDC
when it is not in session.
(1) Composition —
(i) The executive committee of the provincial
development council shall be composed of the governor as chairman, the
representative of the component city and municipal mayors to be chosen
from among themselves, the chairman of the committee on appropriations
of the sangguniang panlalawigan, the president of the provincial liga
ng mga barangay, and a representative of NGOs that are represented in
the LDC, as members.
(ii) The executive committee of the city or municipal
development council shall be composed of the mayor as chairman, the
chairman of the committee on appropriations of the sangguniang
panlungsod or sangguniang bayan, the president of the city or municipal
liga ng mga barangay, and a representative of NGOs that are represented
in the LDC, as members.
(iii) The executive committee of the barangay
development council shall be composed of the punong barangay as
chairman, a representative of the sangguniang barangay to be chosen
from among its members, and a representative of NGOs that are
represented in the LDC, as members.
(2) Powers and Functions — The executive committee
shall exercise and perform the following powers and functions:
(i) Ensure that the decisions of the LDC are
faithfully carried out and implemented;
(ii) Act on matters that need immediate attention and
action of the LDC;
(iii) Formulate policies, plans, and programs based
on the objectives and priorities set by the LDC; and
(iv) Take final action on matters that may be
authorized by the LDC except the approval of local development plans
and annual investment plans.
(3) Meetings — The executive committee shall hold its
meetings at least once a month. Special meetings may be called by the
chairman or by a majority of its members.
(g) Sectoral and Functional Committees —
(1) The LDCs may form sectoral or functional
committees to assist them in the performance of their functions.
(2) To ensure policy coordination and uniformity in
operational directions, the sectoral and functional committees shall
directly establish linkages with NGAs and such sectoral or functional
committees organized by the government for development, investment and
consultative purposes.
(3) Consistent with national policies and standards,
the sectoral or functional committees shall:
(i) Provide the LDC with data and information
essential to the formulation of plans, programs, and activities;
(ii) Define sectoral or functional objectives, set
targets, and identify programs, projects, and activities for the
particular sector or function;
(iii) Collate and analyze information and statistics
and conduct related studies;
(iv) Conduct public hearings on vital issues
affecting the sector or function;
(v) Coordinate planning, programming, and
implementation of programs, projects, and activities within each
sector;
(vi) Monitor and evaluate programs and projects; and
(vii) Perform such other functions as may be assigned
by the LDC.
(h) Participation of LDC Members in Sectoral or
Functional Committees — Each member of the LDC shall, as far as
practicable, participate in at least one sectoral or functional
committee.
(i) Secretariat — There shall be constituted for each
LDC a secretariat responsible for providing technical and
administrative support, documenting proceedings, preparing reports; and
providing such other assistance as may be required by the LDC. The LDC
may avail of the services of any NGO or educational or research
institution for this purpose.
The secretariat of the provincial, city, and municipal development
councils shall be headed by their respective local planning and
development coordinators.
The secretariat of the barangay development council shall be headed by
the barangay secretary who shall be assisted by the city or municipal
planning and development coordinator concerned.
(j) Relation of LDCs to the Sanggunian and the
Regional Development Council —
(1) The policies, programs, and projects proposed by
the LDCs shall be submitted to the sanggunian concerned for appropriate
action.
(2) The local development plan approved by the
sanggunian shall be integrated into the development plan of the next
higher LDC.
(3) Approved development plans of provinces,
highly-urbanized cities, and independent component cities shall be
submitted to the regional development council, which shall be
integrated into the regional development plan for submission to NEDA,
in accordance with applicable laws, rules and regulations.
(k) Local Development Planning Process — The DILG
shall, in coordination and consultation with NEDA and the leagues of
LGUs, formulate the operational guidelines of the local development
planning process.
(l) Budget Information — The DBM shall furnish LDCs
information on financial resources and budgetary allocations applicable
to their respective jurisdictions to guide them in their planning
functions.
ARTICLE 183. A Local Prequalification, Bids and
Awards Committee. — (a) Creation and Composition — There shall be
created in every province, city, and municipality a PBAC which shall be
primarily responsible for the conduct of prequalification of
contractors, bidding, evaluation of bids, and the recommendation of
awards concerning local infrastructure projects. The governor, city or
municipal mayor shall act as chairman with the following as members:
(1) The chairman of the appropriations committee of
the sanggunian;
(2) A representative of the minority party in the
sanggunian, if any, or if there be none, one (1) chosen by the
sanggunian from among its members;
(3) The local treasurer;
(4) Two (2) representatives of NGOs that are
represented in the LDC concerned, to be chosen by the organizations
themselves; and
(5) Any 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.
Representatives of COA shall observe the proceedings of the PBAC and
shall certify that the rules and procedure for prequalification, bids
and awards have been complied with.
(b) Agenda and Meetings —
(1) The agenda and other information relevant to the
meetings of the PBAC shall be deliberated upon by the committee at
least one (1) week before the holding of such meetings.
(2) All meetings of the PBAC shall be held in the
provincial capitol or the city or municipal hall. The minutes of such
meetings of the committee and any decision made therein shall be duly
recorded, posted at conspicuous places in the provincial capitol or the
city or municipal hall, and delivered by the most expedient means to
elective local officials concerned.
(c) Technical Committee —
(1) A technical committee shall be created in every
province, city, and municipality to provide technical assistance to
PBACs. It shall be composed of the local engineer, the local planning
and development coordinator, and such other officials designated by the
local PBAC.
(2) The chairman of the technical committee shall be
designated by the local PBAC and shall attend its meetings in order to
present the reports and recommendations of the said technical
committee.
ARTICLE 184. Local School Boards. — (a) Creation and
Composition — There shall be established in every province, city or
municipality a provincial, city or municipal school board,
respectively, in accordance with the following:
(1) The provincial school board shall be composed of
the governor and the division superintendent of schools as co-chairmen;
the chairman of the education committee of sangguniang panlalawigan,
the provincial treasurer, the representative of the pederasyon ng mga
sangguniang kabataan in the sangguniang panlalawigan, the duly elected
president of the provincial federation of parents-teachers
associations, the duly elected representative of the teachers'
organizations in the province, and the duly elected representative of
the non-academic personnel of public schools in the province, as
members;
(2) The city school board shall be composed of the
city mayor and the city superintendent of schools as co-chairmen; the
chairman of the committee on education of the sangguniang panlungsod,
the city treasurer, the representative of pederasyon ng mga sangguniang
kabataan in the sangguniang panlungsod, the duly elected president of
the city federation of parents-teachers associations, the duly elected
representative of the teachers' organizations in the city, and the duly
elected representative of the non-academic personnel of public schools
in the city, as members; and
(3) The municipal school board shall be composed of
the municipal mayor and the district supervisor of schools as
co-chairmen; the chairman of the committee on education of the
sangguniang bayan, the municipal treasurer, the representative of the
pederasyon ng mga sangguniang kabataan in the sangguniang bayan, the
duly elected president of the municipal federation of parents-teachers
associations, the duly elected representative of the teachers'
organization in the municipality, and the duly elected representative
of the non-academic personnel of public schools in the municipality, as
members.
In the event that a province or city has two (2) or more school
superintendents, and in the event that a municipality has two (2) or
more district supervisors, the co-chairman of the local school board
shall be determined as follows:
(i) The Department of Education, Culture and Sports
(DECS) shall designate the co-chairman for the provincial and city
school boards; and
(ii) The division superintendent of schools shall
designate the district supervisor who shall serve as co-chairman of the
municipal school board.
(b) Functions — The provincial, city or municipal
school board shall:
(1) Determine, in accordance with the criteria set by
DECS, the annual supplemental budgetary needs for the operation and
maintenance of public schools within the province, city, or
municipality, as the case may be, and the supplementary local cost of
meeting such needs, which shall be reflected in the form of an annual
school board budget corresponding to its share of the proceeds of the
special levy on real property constituting the special education fund
and such other sources of revenue as the Code and other laws or
ordinances may provide;
(2) Authorize the provincial, city, or municipal
treasurer, as the case may be, to disburse funds from the special
education fund pursuant to the budget prepared in accordance with
applicable existing rules and regulations;
(3) Serve as advisory committee to the sanggunian
concerned on educational matters such as, but not limited to, the
necessity for and the uses of local appropriations for educational
purposes; and
(4) Recommend changes in the names of public schools
within the territorial jurisdiction of the LGU for enactment by the
sanggunian concerned.
(c) Consultation — The DECS shall consult the local
school board on the appointment of division superintendents, district
supervisors, school principals, and other school officials.
(d) Prohibition from Delegation — The performance of
the duties and responsibilities of the officials mentioned in paragraph
(a) of this Article in their respective local school boards shall not
be delegated.
(e) Meetings and Quorum —
(1) The local school board shall meet at least once a
month or as often as may be necessary.
(2) Any of the co-chairmen may call a meeting. A
majority of all its members shall constitute a quorum. When both
co-chairmen are present in a meeting, the local chief executive
concerned, as a matter of protocol, shall be given preference to
preside over the meeting.
(f) Budget — The division superintendent, city
superintendent, or district supervisor, as the case may be, shall
prepare the budget of the school board concerned. Such budget shall be
supported by programs, projects and activities of the school board for
the ensuing fiscal year. A majority of all the members shall be
necessary to approve the budget.
The annual school board shall give priority to the following:
(1) Construction, repair and maintenance of school
buildings and other facilities of public elementary and secondary
schools;
(2) Establishment and maintenance of extension
classes when necessary; and
(3) Holding of sports activities at the division,
district, municipal, and barangay levels.
(g) Special Education Fund — 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 in case of provinces, the proceeds
shall be divided equally between the provincial and municipal school
boards and provided further, that the proceeds shall be allocated in
accordance with Article 327 of Rule XXXI of these Rules, as determined
by the local school boards.
(h) Compensation and Remuneration —
The co-chairmen and members of the provincial, city, or municipal
school board shall perform their duties as such without compensation or
remuneration. Members thereof shall be entitled to necessary traveling
expenses and allowances chargeable against the funds of the local
school board concerned.
ARTICLE 185. Local Health Boards. — (a) Creation and
Composition — There shall be established in every province, city, or
municipality a local health board composed of the following:
(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 sanggunian
panlalawigan, a representative from the private sector or NGO involved
in health services, and a representative of the DOH 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 panlungsod, a
representative from the private sector or NGO involved in health
services, and a representative of the DOH in the city, as members;
(3) The municipal health board shall be headed by the
municipal mayor as chairman, the municipal health officer as vice
chairman, and the chairman of the committee on health of the
sangguniang bayan, a representative from the private sector or NGO
involved in health services and a representative of the DOH in the
municipality, as members.
(b) Functions — The provincial, city, and municipal
health boards shall:
(1) Propose to the sanggunian concerned, in
accordance with the standards and criteria set by DOH, annual budgetary
allocations for the operation and maintenance of health facilities and
services within the province, city, or municipality, as the case may
be;
(2) Serve as an advisory committee to the sanggunian
concerned on health matters such as, but not limited to, the necessity
for, and application of local appropriations for public health
purposes; and
(3) Create committees which shall advise, local
health agencies on matters such as, but not limited to, technical and
administrative standards of DOH, personnel selection and promotion,
bids and awards, grievances and complaints, personnel discipline,
budget review, operations review and similar functions.
(c) Meetings and Quorum —
(1) The board shall meet at least once a month or as
often as may be necessary.
(2) A majority of the members of the board shall
constitute a quorum, but the chairman or the vice chairman must be
present during meetings where budgetary proposals are being prepared or
considered. The affirmative vote of a majority of the members shall be
necessary to approve such proposals.
(d) Compensation and Remuneration — The chairman,
vice chairman, and members of the provincial, city, or municipal health
boards shall perform their duties as such without compensation or
remuneration. Members thereof who are not government officials or
employees shall be entitled to necessary traveling expenses and
allowances chargeable against the funds of the local health board
concerned, subject to existing accounting and auditing rules and
regulations.
(e) Direct supervision and control of DOH over local
health operations — 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 LGU concerned,
temporarily assume direct supervision and control over health
operations in any LGU for the duration of the emergency, but in no case
exceeding a cumulative period of six (6) months. With the concurrence
of the LGU concerned, the period for such direct national control and
supervision may be further extended.
ARTICLE 186. Local Peace and Order Councils. — There
shall be established in every province, city, and municipality a local
peace and order council pursuant to EO No. 309, series of 1988, as
amended (Annex C). The local peace and order councils shall have the
same composition and functions as those prescribed by said executive
order.
ARTICLE 187. People's Law Enforcement Boards. — There
shall be established in the LGU concerned a people's law enforcement
board (PLEB) pursuant to the pertinent provisions of RA 6975 (Annex D).
The PLEBs shall have the same composition and functions as those
prescribed by said law.
ARTICLE 188. Membership of NGOs. — Membership of NGOs
in local special bodies shall be determined in accordance with Rule
XIII of these Rules.
RULE
XXIV
Annual Reports
ARTICLE 189. Submission. — On or before March 31 of
each year, every local chief executive shall submit an annual report to
the sanggunian concerned on the socioeconomic, political and peace and
order conditions, and other matters concerning the LGU, which shall
cover the immediately preceding calendar year. A copy of the report
shall be forwarded to DILG. Component cities and municipalities shall
likewise provide the sangguniang panlalawigan concerned copies of their
respective annual reports.
ARTICLE 190. Contents of the Report. — The annual
report shall be comprehensive in scope and, as much as possible, be
prepared in accordance with the following form and contents:
(a) Message — contains important local policies,
programs, and activities of the LGU concerned; the status of their
implementation; and other relevant information that affects the lives
and welfare of its inhabitants. It may also contain information on what
the populace may expect for the coming year or years. This portion of
the report may be signed solely by the local chief executive or jointly
with the sanggunian members concerned.
(b) Executive Summary — contains the significant
results of local government operations of the year under review.
(c) Brief Description of the LGU — provides
information on the LGU's socioeconomic and demographic profile;
political and peace and order conditions; general and sectoral
development objectives; physical framework plans; land use plans; and
other related information.
(d) Organization and Management — identifies the
offices and personnel of the LGU, including a description of their
functions, duties, and responsibilities; and describes the role of each
office and key personnel. For each office, the report of
accomplishments shall be focused on the delivery of basic services and
facilities. Physical accomplishments may be stated in terms of the
number of people served, revenues collected, and kilometers of roads
constructed or maintained. In all cases, physical results correspond
with financial expenditures. These reports may include a comparative
statement showing actual accomplishment versus target.
(e) Budget Performance and Financial Statements —
report on the results of the budgetary and financial transactions of
the LGU for the preceding year. Such data shall include an analysis of
performance versus approved budget, disbursements, and cash balances;
comparative data for the year preceding the year under review;
revenue-expenditure pattern for three (3) to five (5) years; efficiency
and effectiveness of the LGU in the delivery of basic services
vis-a-vis budgetary expenditures on a sectoral and per capita basis;
and financial statements duly certified by COA.
(f) Plans, Programs, and Accomplishment — describe in
narrative and pictorial manner the major plans and programs of the LGU
and its accomplishments during the year under review. Presentation is
performance-oriented indicating types of services delivered and
projects undertaken in the social or economic fields.
(g) Local Legislation — contains the report of the
sanggunian in the exercise of its legislative powers such as budget
approval, concurrence with the appointments made by the local chief
executive, passage of significant ordinances and resolutions, and
results of oversight and review functions.
(h) Plans and Programs for the Ensuing Year —
describe the visions, directions, plans, and budgetary thrusts of the
LGU for the coming year.
ARTICLE 191. Distribution and Evaluation of Reports.
— (a) Two (2) copies of the annual reports shall be submitted to the
central and regional offices of DILG which shall evaluate these annual
reports and use the same for the development and recommendation of
integrated and comprehensive technical assistance packages for LGUs.
(b) Component cities and municipalities shall
likewise submit to the sangguniang panlalawigan copies of their annual
reports. Submission shall be done formally in a sanggunian session
called for the purpose of receiving and reviewing such reports. This
occasion may be used by the province to assist the component LGUs in
identifying and defining problems, issues and concerns, development
assistance requirements, and possible formulation of interlocal
linkages for consideration of the governor.
ARTICLE 192. Special Reports. — Whenever necessary,
all local chief executives may submit special reports to the Secretary
of DILG on any unusual or unexpected events and occurrences in their
localities particularly if such information deals with internal
security or promotes intergovernmental relations.
RULE
XXV
Barangay Assembly
ARTICLE 193. Composition. — There shall be a barangay
assembly in every barangay composed of all persons who are:
(a) actual residents of the barangay for at least six
(6) months;
(b) fifteen (15) years of age or over;
(c) citizens of the Philippines; and
(d) duly registered in the list of barangay assembly
members.
ARTICLE 194. Meetings. — (a) The barangay assembly
shall meet at least twice a year and discuss the semestral report of
the sangguniang barangay concerning its activities and finances as well
as problems affecting the barangay or of at least four (4) members of
the sangguniang barangay, or upon written petition of at least five
percent (5%) of the assembly members which shall be submitted to, and
favorably acted upon, by the punong barangay.
(b) A written notice to all barangay assembly members
stating the date, time, venue, and purpose of the meeting shall be
posted in three (3) conspicuous places within the barangay one (1) week
prior to the meeting except on matters involving public safety or
security, in which case notice within a reasonable time shall be
sufficient.
(c) The punong barangay, or in his absence, the
sangguniang barangay member acting as punong barangay, or any assembly
member selected during the meeting, shall act as presiding officer in
the meetings of the assembly.
(d) The barangay secretary, or in his absence, any
member designated by the presiding officer to act as secretary, shall
discharge the duties of secretary of the barangay assembly.
ARTICLE 195. Powers of the Barangay Assembly. — The
barangay assembly shall:
(a) Initiate legislative processes by recommending to
the sangguniang barangay the adoption of measures for the welfare of
the barangay and the city or municipality concerned;
(b) Decide on the adoption of initiative as a legal
process whereby the registered voters of the barangay may directly
propose, enact, or amend any ordinance; and
(c) Hear and pass upon the semestral report of the
sangguniang barangay concerning its activities and finances.
RULE
XXVI
Katarungang Pambarangay
ARTICLE 196. Lupong Tagapamayapa. — There shall be
created in each barangay a lupong tagapamayapa composed of the punong
barangay as chairman and ten (10) to twenty (20) members. The lupon
shall be constituted every three (3) years.
ARTICLE 197. Pangkat ng Tagapagkasundo. — There shall
be constituted for each dispute brought before the lupon a conciliation
panel to be known as the pangkat ng tagapagkasundo consisting of three
(3) members who shall be chosen by the parties to the dispute from the
list of members of the lupon.
ARTICLE 198. Economic or Other Incentives. — The DILG
shall provide a system of granting economic or other incentives to the
lupon or pangkat members who adequately demonstrate the ability to
judiciously and expeditiously resolve cases referred to them.
ARTICLE 199. Penalty for Refusal or Failure of Any
Party or Witness to Appear before the Lupon or Pangkat. — Refusal or
willful failure of any party or witness to appear before the lupon or
pangkat in compliance with summons issued pursuant to this Rule may be
punished by the city or municipal court as for indirect contempt of
court upon application filed therewith by the lupon chairman, the
pangkat chairman, or by any of the contending parties. Such refusal or
willful failure to appear shall be reflected in the records of the
lupon secretary or in the minutes of the pangkat secretary and shall
bar the complainant who fails to appear, from seeking judicial recourse
for the same course of action, and the respondent who refuses to
appear, from filing any counterclaim arising out of, or necessarily
connected with the complaint.
ARTICLE 200. Responsibility of the City or Municipal
Mayor. — The city or municipal mayor, as the case may be, shall be
responsible for the efficient and effective implementation of the
katarungang pambarangay.
ARTICLE 201. Implementing Rules and Regulations. —
The Secretary of Justice shall promulgate the rules and regulations to
implement this Rule which shall form part of these Rules.
RULE
XXVII
Sangguniang Kabataan
ARTICLE 202. Katipunan ng Kabataan. — (a)
Organization and Purpose — There shall be an assembly of youth in every
barangay, to be known as katipunan ng kabataan, whose primary objective
is to enhance the social, political, economic, cultural, intellectual,
moral, spiritual, and physical development of the youth of the country.
(b) Composition — The katipunan ng kabataan shall be
composed of all Filipino citizens actually residing in the barangay for
at least six (6) months, who are at least fifteen (15) but not more
than twenty-one (21) years of age, and who are duly registered in the
sanggunian ng kabataan or in the official barangay list in the custody
of the barangay secretary.
(c) Meetings — The katipunan ng kabataan shall meet
at least once every three (3) months, or at the call of the chairman of
the sangguniang kabataan or upon written petition of at least
one-twentieth (1/20) of its members to decide on important issues
affecting the youth of the barangay.
(d) Rights and Duties of Members — Every member of
the katipunan ng kabataan is eligible to vote and be elected in the
sangguniang kabataan elections and participate in the programs,
projects, and activities of the barangay as may be adopted by the
sangguniang kabataan or the sangguniang barangay, unless otherwise
provided in the Code and other applicable laws.
ARTICLE 203. Sangguniang Kabataan. — (a) Organization
and Composition —
(1) There shall be in every barangay a sangguniang
kabataan composed of a chairman, seven (7) members, a secretary, and a
treasurer.
(2) The chairman and the seven (7) members shall be
elected at large by the registered members of the katipunan ng
kabataan.
(3) The secretary and the treasurer shall be
appointed by the chairman from among the members of the sangguniang
kabataan, subject to their concurrence.
(b) Powers and Functions — The sangguniang kabataan
shall:
(1) Promulgate resolutions necessary to carry out the
objectives of the youth in the barangay in accordance with applicable
provisions of the Code;
(2) Initiate programs designed to enhance the social,
political, economic, cultural, intellectual, moral, spiritual, and
physical development of the members;
(3) Hold fund-raising activities, the proceeds of
which shall be tax-exempt and shall accrue to the general fund of the
sangguniang kabataan provided that, in the appropriation thereof, the
specific purpose for which such activity has been held shall be first
satisfied;
(4) Create such bodies or committees as it may be
deemed necessary to effectively carry out its programs and activities;
(5) Submit annual and end-of-term reports to the
sangguniang barangay on their projects and activities for the survival
and development of the youth in the barangay;
(6) Consult and coordinate with all youth
organizations in the barangay for policy formulation and program
implementation;
(7) Coordinate with the Presidential Council for
Youth Affairs (PCYA) and other NGAs concerned for the implementation of
youth development projects and programs at the national level; and
(8) Exercise such other powers and perform such other
duties and functions as the sangguniang barangay may determine or
delegate or as may be prescribed by law or ordinance.
(c) Meetings and Quorum — The sangguniang kabataan
shall meet regularly once a month on the date, time, and place 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
a written notice to all members of the date, time, place, and agenda of
the meetings at least one (1) day in advance. Notices of regular or
special meetings shall be furnished the punong barangay and the members
of the sangguniang barangay. A majority of the members of the
sangguniang kabataan shall constitute a quorum.
(d) Qualifications of Elective Members — An elective
official of the sangguniang kabataan must be:
(1) A citizen of the Philippines;
(2) A qualified voter of the katipunan ng kabataan;
(3) A resident in the barangay for at least one (1)
year immediately prior to election;
(4) At least fifteen (15) years but not more than
twenty one (21) years of age on the day of his election;
(5) Able to read and write Filipino, any Philippine
language or dialect, or English; and
(6) Such elective official must not have been
convicted of any crime involving moral turpitude.
(e) Elections and Term of Office — (1) The first
elections for the sangguniang kabataan to be conducted under the Code
shall be held on June 11, 1992. The members to be elected shall serve
from June 30, 1992 to September 30, 1994.
(2) The regular elections for the sangguniang
kabataan members shall be held one hundred twenty (120) days after the
barangay elections in 1994 and the succeeding election shall be held
every three (3) years thereafter. The regular term of office of the
sangguniang kabataan members shall be three (3) years, unless sooner
removed for cause as provided by law, permanently incapacitated, die,
or resign from office.
(3) The sangguniang kabataan chairman and members
will hold office for a period of three (3) years unless sooner removed
for cause as provided by law, permanently incapacitated, die or resign
from office.
(4) A sangguniang kabataan official who, during his
term of office, shall have passed the age of twenty-one (21) years
shall be allowed to serve the remaining portion of the term for which
he was elected.
(5) The conduct and administration of the elections
for sangguniang kabataan members shall be governed by the rules
promulgated by the COMELEC. These Rules shall be suppletory in
character.
(f) Powers and Duties of the Chairman — The
registered voters of the katipunan ng kabataan shall elect the chairman
of the sangguniang kabataan who shall:
(1) Serve automatically as ex officio member of the
sangguniang barangay upon his assumption to office. As an ex officio
member, he shall exercise the same powers, discharged the same duties
and functions and enjoy the same privileges as the regular sangguniang
barangay members, and shall be the chairman of the committee on youth
and sports development in the said sanggunian;
(2) Serve as member of the barangay development
council; and
(3) Represent the sangguniang kabataan in the
pederasyon ng mga sangguniang kabataan;
(4) Call and preside over all meetings of the
katipunan ng kabataan and the sangguniang kabataan;
(5) Implement policies, programs, and projects within
his jurisdiction in coordination with the sangguniang barangay;
(6) Exercise general supervision over the affairs and
activities of the sangguniang kabataan and the official conduct of its
members, and such other officers of the sangguniang kabataan within his
jurisdiction;
(7) Appoint with the concurrence of the sangguniang
kabataan from among the members of the sangguniang kabataan, the
secretary and the treasurer, and such other officers as may be deemed
necessary; and
(8) Exercise such other powers and perform such other
duties and functions as may be prescribed by law or ordinance;
(g) Duties of the Secretary — The sangguniang
kabataan secretary shall:
(1) Keep all records of the katipunan ng kabataan and
sangguniang kabataan;
(2) Prepare and keep the minutes of all meetings of
the katipunan ng kabataan and sangguniang kabataan;
(3) Prepare all forms necessary for the conduct of
registrations, elections, initiatives, referenda, or plebiscites, in
coordination with the barangay secretary and the COMELEC; and
(4) Perform such other duties and discharge such
other functions as the chairman of the sangguniang kabataan may
prescribe or direct.
(h) Duties of the Treasurer — The sangguniang
kabataan treasurer shall:
(1) Take custody of all sangguniang kabataan property
and funds not otherwise deposited with the city or municipal treasurer;
(2) Collect and receive contributions, monies,
materials, and all other resources intended for the sangguniang
kabataan and the katipunan ng kabataan;
(3) Disburse funds in accordance with an approved
budget of the sangguniang kabataan;
(4) Certify to the availability of funds whenever
necessary;
(5) 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; and
(6) Perform such other duties and discharge such
other functions as the sangguniang kabataan chairman may direct.
(i) Privileges — The sangguniang kabataan chairman
shall have the same privileges enjoyed by other sangguniang barangay
officials under Rule XIV of these Rules, subject to such requirements
and limitations provided in this Rule. 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, said
officials shall enroll in the state college or university within or
nearest their area of jurisdiction.
(j) Succession and Filing of Vacancies —
(1) In case a sangguniang kabataan chairman refuses
to assume office, fails to qualify, is convicted of felony, voluntarily
resigns, dies, is permanently incapacitated, is removed from office, or
has been absent without leave for more than three (3) consecutive
months, the sangguniang kabataan members 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 sangguniang kabataan member
obtaining the next highest number of votes shall assume the position of
the chairman for the unexpired portion of the term.
(2) Where two (2) or more sangguniang kabataan
members obtained the same next highest number of votes, the other
sangguniang kabataan members shall conduct and election to choose the
successor to the chairman from among the said members.
(3) After the vacancy shall have been filled, the
sangguniang kabataan chairman shall call a special election to complete
the membership of said sanggunian. The duly elected sangguniang
kabataan member shall hold office for the unexpired portion of the term
of the vacant seat.
(4) In case of suspension of the sangguniang kabataan
chairman, the successor, as determined in paragraphs (2) and (3) above,
shall assume the position during the period of such suspension.
ARTICLE 204. Pederasyon ng mga Sangguniang Kabataan —
(a) Organization — There shall be an organization of all the pederasyon
ng mga sangguniang kabataan to be known as follows:
(1) For municipalities, Pambayang Pederasyon ng
Sangguniang Kabataan;
(2) For cities, Panlungsod na Pederasyon ng
Sangguniang Kabataan;
(3) For provinces, Panlalawigang Pederasyon ng
Sangguniang Kabataan;
(4) For special metropolitan political subdivisions,
Pangmetropolitang Pederasyon ng Sangguniang Kabataan; and
(5) For the national level, Pambansang Pederasyon ng
Sangguniang Kabataan.
(b) Election — The pederasyon ng mga sangguniang
kabataan shall, at all levels, elect from among themselves the
president, vice president and such other officers as may be necessary.
Election of officer shall be held thirty (30) days after the
sangguniang kabataan elections.
(c) Composition — The pederasyon ng mga sangguniang
kabataan shall be organized in the following manner.
(1) The panlungsod and pambayang pederasyon shall be
composed of the sangguniang kabataan chairmen of barangays in the city
and municipality, respectively;
(2) The panlalawigan pederasyon shall be composed of
presidents of the panlungsod and pambayang pederasyon;
(3) The pangmetropolitang pederasyon shall be
composed of presidents of the panlungsod and pambayang pederasyon in
special metropolitan political subdivisions.
(d) Pambansang Katipunan ng mga Sangguniang Kabataan
— The elected presidents of the pederasyon at the provincial, highly
urbanized city and metropolitan political subdivision levels shall
constitute the pambansang katipunan ng mga sangguniang kabataan and
shall hold elections for the pambansang katipunan thirty (30) days
after the panlalawigan and pangmetropolitang pederasyon elections.
(e) Constitution and By-laws — The term of office,
manner of election, removal, and suspension of pederasyon officers
shall be governed by the constitution and by-laws of the pederasyon in
conformity with the provisions of the Code and national policies on
youth.
(f) Ex Officio Membership in the Sanggunian —
(1) A sangguniang kabataan chairman who is elected as
pederasyon president during his tenure of office and upon certification
as such by the COMELEC shall serve as ex officio member of the
sangguniang panlalawigan, sangguniang panlungsod, and sangguniang
bayan, as the case may be, without need of further appointment.
(2) The vice president of the pederasyon whose
president has been elected as president of a higher pederasyon shall
serve as ex-officio member of the sanggunian concerned without need of
further appointment.
(3) The pederasyon president or vise president, as
the case may be, shall be the chairman of the committee on youth and
sports development of the sanggunian concerned.
(g) Membership in the Local School Board — The
pederasyon ng mga sangguniang kabataan president shall serve as member
of the local school board in the province, city, and municipality, as
the case may be.
(h) Declaration of Vacancy — All seats reserved for
the pederasyon ng mga sangguniang kabataan in the different sanggunians
shall be deemed vacant until such time that the sangguniang kabataan
chairmen shall have been elected and the respective pederasyon
presidents shall have been selected.
(i) National Secretariat — The PCYA shall serve as
the national secretariat of the pambansang pederasyon.
ARTICLE 205. Funds for the Elections of Sangguniang
Kabataan. — (a) The amount pertaining to the ten percent (10%)
allocation for the kabataang barangay as provided in Sec. 103 of BP
337 is hereby reappropriated for the purpose of funding the first
election of the sangguniang kabataan to be held on June 11, 1992. The
balance of such funds, if there be any after said elections, shall be
administered by the PCYA for the purpose of training the newly elected
sangguniang kabataan officials in the discharge of their functions.
(b) For the regular elections of the sangguniang
kabataan, funds shall be taken from the ten percent (10%) of the
barangay funds reserved for the sangguniang kabataan, as provided under
these Rules.
ARTICLE 206. Kabataang Barangay Elections. —
Elections for the kabataang barangay conducted under BP 337 at any time
between January 1, 1988 and January 1, 1992 shall be considered as the
first elections provided in the Code. The term of office of the
kabataang barangay officials elected within the said period shall be
extended correspondingly to coincide with the term of office of those
elected under the Code.
ARTICLE 207. Training of Newly Elected Sangguniang
Kabataan Officials. — (a) The PCYA shall, in coordination with the
local chief executive concerned, administer a training program for the
newly elected sangguniang kabataan officials with the following
objectives:
(1) Develop their leadership abilities;
(2) Orient them on the pertinent provisions of these
Rules, the Code and such other applicable laws, rules and regulations;
(3) Enhance their organizational and managerial
skills;
(4) Increase their awareness and appreciation of such
relevant concepts as unity, nationalism, peace, cooperation, service,
concern for the environment, citizenship, and respect for the rule of
law; and
(5) Evolve a sustained development training program
for the youth in the LGU.
RULE
XXVIII
Linggo ng Kabataan
ARTICLE 208. Observance of Linggo ng Kabataan. — (a)
Every province, city, municipality, and barangay shall, in coordination
with the pederasyon ng mga sangguniang kabataan at all levels, conduct
an annual activity to be known as the Linggo ng Kabataan on such date
as shall be determined by the Office of the President.
(b) The observance of the Linggo ng Kabataan shall
include the election of the counterparts of all elective and appointive
local officials, as well as heads of NGAs stationed or assigned in the
territorial jurisdiction of the LGU, among in-school and community
youth residing in the LGU concerned from ages thirteen (13) to
seventeen (17). During said week, they shall hold office as boy and
girl officials and shall perform such duties and conduct such
activities as may be provided in the ordinance enacted pursuant to this
Rule.
ARTICLE 209. Linggo ng Kabataan Activities. — The
pederasyon ng sangguniang kabataan shall conduct the following
activities during the Linggo ng Kabataan:
(a) Commemoration of young Filipino heroes who made
significant contributions to the development of the country or the
locality;
(b) Recognition and awarding of outstanding youth
organizations for their achievements and contributions to development;
and
(c) Awareness campaign on environmental issues,
sports festivals and competitions, cultural festivals, arts and skills
exhibition, volunteer work, tour of historical places, and such
youth-oriented activities as may be deemed relevant.
RULE
XXIX
Leagues of Local Government
Units and Federations
of Other Elective Local
Officials
ARTICLE 210. Liga ng mga Barangay. — (a) Organization
and Purpose —
(1) There shall be an organization of all barangays,
to be known as the liga ng mga barangay.
(2) The said liga shall be organized for the primary
purpose of determining the representation of the liga in the sanggunian
and for ventilating, articulating, and crystallizing issues affecting
barangay government administration and securing, through proper and
legal means, solutions thereto.
(b) Representation — Every barangay shall be
represented in the liga by the punong barangay or, in his absence or
incapacity, by a sanggunian member duly elected for the purpose among
its members, who shall attend all meetings or deliberations called by
the different chapters of the liga.
(c) Local Chapters and National Liga — The liga shall
have chapters in the municipality, city, province, and metropolitan
political subdivision.
(1) Municipal and City Chapters — The municipal and
city chapters of the liga shall be composed of the barangay
representatives of municipal and city barangays, respectively. The
existing association of barangay councils in all municipalities and
cities shall be recognized as municipal and city chapters of the liga,
subject to the provisions of this Rule.
(2) Provincial Chapter — The duly elected presidents
of municipal and component city chapters shall constitute the
provincial chapter. The existing association of barangay councils in
the province shall be recognized as provincial chapters of the liga,
subject to the provisions of this Rule.
(3) Metropolitan Chapter — The duly elected
presidents of the municipal chapters within MMA or such other
metropolitan political subdivision as may be created by law, shall
constitute the metropolitan chapter.
(4) National Liga ng mga Barangay — The duly elected
presidents of highly urbanized city chapters, provincial chapters, and
metropolitan chapters shall constitute the national liga ng mga
barangay.
(d) Ex Officio Membership in the Sanggunian —
(1) The duly elected presidents of the liga at the
municipality, city, and province, including component cities and
municipalities within MMA, or any metropolitan political subdivision as
may be created by law, shall serve as ex officio members of the
sangguniang bayan, sangguniang panlungsod, and sangguniang
panlalawigan, as the case may be.
(2) They shall serve as ex officio members of the
sanggunian concerned only during their term of office as presidents of
the liga chapters, which in no case shall go beyond the term of office
of the sanggunian concerned.
(3) The incumbent presidents of the municipal, city,
and provincial chapters of the liga shall continue to serve as ex
officio members of the sanggunian concerned until the expiration of
their term of office, unless sooner removed for cause.
(e) Powers, Functions and Duties of the Liga ng mga
Barangay — The liga shall:
(1) Give priority to programs designed for the total
development of the barangays and consonance with the policies, programs
and projects of the National Government;
(2) Assist in the education of barangay residents for
people's participation in local government administration in order to
promote united and concerted action to achieve countrywide development
goals;
(3) Supplement the efforts of government in creating
gainful employment within the barangay;
(4) Adopt measures to promote the welfare of barangay
officials;
(5) Serve as a forum of the barangays in order to
forge linkages with NGAs and NGOs and thereby promote the social,
economic, and economic well-being of the barangay; and
(6) Exercise such other powers and perform such other
duties and functions which will bring about the stronger ties among
barangays and promote the welfare of barangay inhabitants.
(f) Organizational Structure —
(1) The national liga and its local chapters shall
directly elect their respective officers, namely: a president, vice
president, and five (5) members of the board of directors. The board
shall appoint its secretary and treasurer and create such other
positions as it may deem necessary for the management of the chapter.
Pending election of the presidents of the municipal, city, provincial,
and metropolitan chapters of the liga, the incumbent presidents of the
association of barangay councils in the municipality, city, province,
and Metropolitan Manila shall continue to act as presidents of the
corresponding liga chapters under this Rule.
(2) A secretary-general shall be elected from among
the members of the national liga who shall be responsible for the
overall operation of the liga. Pending election of a secretary-general
under this rule, the incumbent president of the pambansang katipunan ng
mga barangay shall act as the secretary-general. The incumbent members
of the board of the pambansang katipunan ng mga barangay, headed by the
secretary-general, who continue to be presidents of the respective
chapters of the liga to which they belong, shall constitute a committee
to exercise the powers and duties of the national liga and draft or
amend the constitution and by-laws of the national liga to conform to
the provisions of this Rule.
(3) The board of directors shall coordinate the
activities of the various chapters of the liga.
(g) Constitution and By-Laws of the Liga —
(1) All other matters not provided under this Rule
affecting the internal organization of the liga shall be governed by
its constitution and by-laws, unless inconsistent with the Constitution
and applicable laws, rules and regulations.
(2) The committee created in this Article shall
formulate uniform constitution and by-laws applicable to the national
liga and all local chapters. The committee shall convene the national
liga to ratify the constitution and by-laws within six (6) months from
issuance of these Rules.
(3) Election of the first set of officers of the
national liga and local chapters shall be held in accordance with the
duly adopted constitution and by-laws within six (6) months from
ratification by the barangay national assembly.
ARTICLE 211. League of Municipalities. — (a) There
shall be an organization of all municipalities to be known as the
league of municipalities. The existing municipal mayors league of the
Philippines shall be recognized as the league of municipalities,
subject to the provisions of this Rule.
(b) The league shall have the primary purpose of
ventilating, articulating, and crystallizing issues affecting municipal
government administration and securing, through proper and legal means,
solutions thereto.
(c) Every municipality shall be represented in the
league by the municipal mayor or, in his absence, by the vice mayor or
sangguniang bayan member duly elected for the purpose by the members,
who shall attend all meetings and participate in the deliberations of
the league.
(d) The league shall form the following local
chapters:
(1) Provincial chapters, composed of municipal mayors
or their duly authorized representatives for all municipalities of
every province; and
(2) Metropolitan chapters, composed of municipal
mayors within MMA or other metropolitan political subdivisions as may
be created by law.
The provincial and metropolitan chapters shall carry out the policies
and instructions formulated by the national board of directors.
(e) All municipal mayors in every province and in
Metropolitan Manila or a majority thereof shall, on the second Monday
of June, 1992 following their election as mayors, initially convene in
their capacity as representatives of their respective municipalities
and elect their provincial and metropolitan chapter presidents and
other officers from among themselves.
(f) A national board of directors shall be organized
composed of all provincial and metropolitan chapter presidents. The
national board shall be the policy governing body of the league whose
primary functions consist of formulating general policies for attaining
the purpose of the league and approving its annual budget.
ARTICLE 212. League of Cities. — (a) There shall be
an organization of all cities to be known as the league of cities. The
existing league of cities shall be recognized as the league of cities,
subject to the provisions of this Rule.
(b) The league shall have the primary purpose of
ventilating, articulating, and crystallizing issues affecting city
government administration and securing, through proper and legal means,
solutions thereto.
(c) Every city shall be represented in the league by
the city mayor or, in his absence, by the vice mayor or sanggunian
member duly elected for the purpose by the members, who shall attend
all meetings and participate in the deliberations of the league.
(d) Component cities of province and highly-urbanized
cities may form their respective local chapters.
(e) The national leagues shall be composed of the
presidents of the chapter of highly-urbanized cities and the chapter of
component cities of a province.
ARTICLE 213. League of Provinces. — (a) There shall
be an organization of all provinces to be known as the league of
provinces. The existing league of provincial governors shall be
recognized as the league of provinces, subject to the provisions of
this Rule.
(b) The league shall have the primary purpose of
ventilating, articulating, and crystallizing issues affecting
provincial and metropolitan government administration and securing,
through proper and legal means, solutions thereto. For this purpose,
the MMA and any metropolitan political subdivision as may be created by
law shall be considered as separate provincial units of the league.
ARTICLE 214. Common Provisions for the Leagues of
Municipalities, Cities, and Provinces. — (a) Powers and Functions — The
leagues shall:
(1) Assist the National Government in the formulation
and implementation of policies, programs and projects affecting LGUs;
(2) Promote local autonomy;
(3) Adopt measures for the promotion of the welfare
of the LGU concerned and its officials and employees;
(4) Encourage people's participation in local
government administration in order to promote united and concerted
action for the attainment of countrywide development goals.
(5) Supplement the efforts of the National government
in creating opportunities for gainful employment within the LGUs;
(6) Give priority to programs designed for the total
development of LGUs in consonance with the policies, programs, and
projects of the National Government;
(7) Serve as a forum for crystallizing and expressing
ideas, seeking the necessary assistance of the National Government, and
providing the private sector avenues for cooperation in the promotion
of the welfare of LGUs; and
(8) Exercise such other powers and functions as the
leagues may prescribe for the welfare of LGUs.
(b) Organizational Structure — The leagues of
municipalities, cities, and provinces shall elect their respective
chapter-level and national-level boards of directors and sets of
officers headed by the president. A secretary-general shall be chosen
from among the national league members to manage the day-to-day
operations and activities of the national league. The board of
directors on the chapter or national level may create such other
positions as may be deemed necessary for the management of the local
chapters and of the national leagues. The national board of directors
of the leagues of municipalities, cities, and provinces shall
coordinate programs, projects, and activities of the local chapters and
the national league.
The incumbent presidents of the leagues shall act as the concurrent
secretary-general of their respective leagues until their successors
shall have been elected and qualified.
(c) Term of Office — The term of office of all
officers of the leagues in the local chapters and the national board of
directors shall be coterminous with their term of office as municipal
or city mayors or provincial governors, as the case may be.
(d) Funding —
(1) Funds of the leagues and the liga ng mga barangay
shall be sourced from:
(i) Contributions of members LGUs the amount of which
shall be prescribed under the constitution and by-laws of the league.
The membership fee and annual due shall be charged against any
available fund of the LGU concerned.
(ii) Fund-raising projects and activities without the
necessity of securing permits therefore provided that the proceeds from
said fund-raising projects and activities shall be used primarily to
fund projects for which such proceeds have been raised, subject to the
pertinent provisions of the Code and the Omnibus Election Code, as
amended; and
(iii) Other lawful sources of funds which shall be
identified under the constitution and by-laws of the league.
(2) All funds of the league shall be deposited as
trust funds in the name of the league and administered by its treasurer
and shall be disbursed in accordance with the board of directors'
resolutions, subject to pertinent accounting and auditing rules and
regulations. The treasurer shall be bonded in an amount to be
determined by the board of directors.
The funds of a chapter shall be deposited as chapter funds and funds of
the national league shall be deposited as national funds.
(e) Constitution and By-Laws —
(1) The national board of directors shall promulgate
and adopt the constitution and by-laws of the league immediately after
the formal organization of the local chapters as provided in this Rule.
(2) The constitution and by-laws of the league shall
be ratified by a majority of the members present there being a quorum
in the general assembly to be called for the purpose.
(3) All other matters not provided under this Rule
affecting the internal organization of the league shall be governed by
its constitution and by-laws which shall conform to the provisions of
the Constitution, the Code, and other applicable laws.
ARTICLE 215. Federations of Other Elective Local
Officials. — (a) Organization — (1) Vice governors, vice mayors,
sanggunian members of barangays, municipalities, component cities,
highly-urbanized cities, and provinces, and other elective officials of
LGUs, including those of MMA and any metropolitan political subdivision
as may be created by law, may form their respective federations,
subject to applicable provisions of this Rule;
(2) Sanggunian members of component cities and
municipalities shall form a provincial federation and elect a board of
directors and a set of officers headed by the president.
(3) The duly elected president of the provincial
federation of sanggunian members of component cities and municipalities
shall be an ex officio member of the sangguniang panlalawigan concerned
and shall serve as such only during his term of office as president of
the said federation, which in no case shall go beyond the term of
office of the sangguniang panlalawigan concerned.
(b) Constitution and By-Laws — The federations shall
adopt their respective constitutions and by-laws which shall govern
their respective internal organizations and operations provided that
said constitutions and by-laws conform to the provisions of the
Constitution and applicable laws.
(c) Funding — The federations may derive their funds
from contributions of their members or from fund-raising projects or
activities. The LGU concerned may appropriate funds to support the
federations organized in accordance with this Rule, subject to
availability of funds.
ARTICLE 216. Assistance to the Leagues. — The DILG
may extend technical and financial assistance and secretariat services
to the leagues of LGUs and federations of other elective local
officials upon request.
RULE
XXX
Local Government Taxation
PART I
General Provisions
ARTICLE 217.
Scope. — The following rules and regulations shall govern the exercise
by provinces, cities, municipalities, and barangays of their taxing and
other revenue-raising powers.
ARTICLE 218. Power to Create Sources of Revenue. —
Consistent with the basic policy of local autonomy, each LGU shall
exercise its power to create its own sources of revenue and to levy
taxes, fees, or charges, subject to the provisions of this Rule. Such
taxes, fees, or charges shall accrue exclusively to the LGU.
ARTICLE 219. Fundamental Principles. — The following
fundamental principles shall govern the exercise of the taxing and
other revenue-raising powers of LGUs:
(a) Taxation shall be uniform in each LGU. The
uniformity required is only within the territorial jurisdiction of a
province, a city, a municipality, or a barangay;
(b) Taxes, fees, charges, or other impositions shall:
(1) Be equitable and based, as far as practicable, on
the taxpayer's ability to pay;
(2) Be levied and collected only for public purposes;
(3) Not be unjust, excessive, oppressive, or
confiscatory;
(4) Not be contrary to law, public policy, national
economic policy, or in restraint of trade;
(c) Collection of local taxes, fees, charges, or
other impositions shall in no case be let to any private person;
(d) The revenue collected pursuant to the provisions
of this Rule shall insure solely to the benefit of, and be subject to
disposition by, the LGU levying the tax, fee, charge, or other
imposition unless otherwise specifically provided in this Rules;
and
(e) Each LGU shall, as far as practicable, evolve a
progressive system of taxation.
ARTICLE 220. Definition of Terms. — (a) Agricultural
Product includes the yield of the soil, such as corn, rice, wheat, rye,
hay, coconuts, sugarcane, tobacco, root crops, vegetables, fruits,
flowers, and their by-products; ordinary salt; all kinds of fish;
poultry; and livestock and animal products, whether in their original
form or not.
The phrase whether in their original form or not refers to the
transformation of said products by the farmer, fisherman, producer or
owner through the application of processes to preserve or otherwise to
prepare said products for the market.
To be considered an agricultural product whether in its original form
or not, its transformation must have been undertaken by the farmer,
fisherman, producer or owner.
Agricultural products as defined include those that have undergone not
only simple but even sophisticated processes employing advanced
technological means in packaging like dressed chicken or ground coffee
in plastic bags or styropor or other packaging materials intended to
process and prepare the products for the market.
The term by-products shall mean those materials which in the
cultivation or processing of an article remain over, and which are
still of value and marketable, like copra cake from copra or molasses
from sugar cane;
(b) Amusement is a pleasurable diversion and
entertainment. It is synonymous to relaxation, avocation, pastime, or
fun;
(c) Amusement Places include theaters, cinemas,
concert halls, circuses and other places of amusement where one seeks
admission to entertain oneself by seeing or viewing the show or
performance;
(d) Business means trade or commercial activity
regularly engaged in as a means of livelihood or with a view to profit;
(e) Banks and Other Financial Institutions include
non-bank financial intermediaries, lending investors, finance and
investment companies, pawnshops, money shops, insurance companies,
stock markets, stock brokers and dealers in securities and foreign
exchange, as defined under applicable law, or rules and regulations
thereunder;
(f) Capital Investment is the capital which a person
employs in any undertaking, or which he contributes to the capital of a
partnership, corporation, or any other juridical entity or association
in a particular taxing jurisdiction;
(g) Charges refers to pecuniary liability, as rents
or fees against persons or property;
(h) Contractor includes persons, natural or
juridical, not subject to professional tax under Article 229 of this
Rule, whose activity consists essentially of the sale of all kind of
services for a fee, regardless of whether or not the performance of the
service calls for the exercise or use of the physical or mental
faculties of such contractor or his employees.
As used in this Article, the term contractor shall include general
engineering, general building and specialty contractors as defined
under applicable laws; filling, demolition and salvage works
contractors; proprietors or operators of mine drilling apparatus;
proprietors or operators of dockyards; persons engaged in the
installation of water system, and gas or electric light, heat, or
power, proprietors or operators of smelting plants; engraving, plating,
and plastic lamination establishments; proprietors or operators of
establishments for repairing, repainting, upholstering, washing or
greasing of vehicles, heavy equipment, vulcanizing, recapping and
battery charging; proprietors or operators of furniture shops and
establishments for planing or surfacing and recutting of lumber, and
sawmills under contract to saw or cut logs belonging to others;
proprietors or operators of dry-cleaning or dyeing establishment, steam
laundries, and laundries using washing machines; proprietors or owners
of shops for the repair of any kind of mechanical and electrical
devices, instruments, apparatus, or furniture and shoe repairing by
machine or any mechanical contrivance; proprietors or operators of
establishments or lots for parking purposes; proprietors or operators
of tailor shops, dress shops, milliners and hatters, beauty parlors,
barbershops, massage clinics, sauna, Turkish and Swedish baths,
slenderizing and body-building saloons and similar establishment;
photographic studios; funeral parlors; proprietors or operators of
hotels, motels, and lodging houses; proprietors or operators of
arrastre and stevedoring, warehousing, or forwarding establishments,
master plumbers, smiths, and house or sign painters; printers,
bookbinders, lithographers; publishers except those engaged in the
publication or printing of any newspaper, magazine, review or bulletin
which appears at regular intervals with fixed prices for subscription
and sale as which is not devoted principally to the publication of
advertisements; business agents, private detective or watchman
agencies, commercial and immigration brokers, and cinematographic film
owners, lessors and distributors;
(i) Corporation includes partnerships, no matter how
created or organized, joint-stock companies, joint accounts (cuentas en
participacion), associations or insurance companies but does not
include general professional partnerships and a joint venture or
consortium formed for the purpose of undertaking construction projects
or engaging in petroleum, coal, geothermal, and other energy operations
or consortium agreement under a service contract with the government.
General professional partnerships are partnerships formed by persons
for the sole purpose of exercising their common profession, no part of
the income of which is derived from engaging in any trade or business.
The term resident foreign when applied to a corporation means a foreign
corporation not otherwise organized under the laws of the Philippines
but engaged in trade or business within the Philippines;
(j) Countryside and Barangay Business Enterprise
refers to any business entity, association, or cooperative registered
under the provisions of RA 6810, otherwise known as Magna Carta For
Countryside And Barangay Business Enterprises (Kalakalan 20);
(k) Dealer means one whose business is to buy and
sell merchandise, goods and chattels as a merchant. He stands
immediately between the producer or manufacturer and the consumers and
depends for his profit not upon the labor he bestows upon his
commodities but upon the skill and foresight with which he watches the
market:
(l) Fee means a charge fixed by law or ordinance for
the regulation or inspection of a business or activity. It shall also
include charges fixed by law or agency for the services of a public
officer in the discharge of his official duties;
(m) Franchise is a right or privilege, affected with
public interest which is conferred upon private persons or
corporations, under such terms and conditions as the government and its
political subdivisions may impose in the interest of public welfare,
security, and safety;
(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 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);
(o) Manufacturer includes every person who, by
physical or chemical process, alters the exterior texture or form or
inner substance of any raw materials or manufactured or partially
manufactured product in such manner as to prepare it for special use or
uses to which it could not have been put in its original condition, or
who by any such process, alters the quality of any such raw material or
manufactured or partially manufactured products so as to reduce it to
marketable shape or prepare it for any of the use of industry, or who
by any such process, combines any such raw material or manufactured or
partially manufactured products with other materials or products of the
same or of different kinds and in such manner that the finished
products of such process or manufacture can be put to a special use or
uses to which such raw material or manufactured or partially
manufactured in their original condition could not have been put, and
who in addition, alters such raw material or manufactured or partially
manufactured products, or combines the same to produce such finished
products for the purpose of their sale or distribution to others and
not for his own use or consumption;
(p) Marginal Farmer or Fisherman refers or individual
engaged in subsistence farming or fishing which shall be limited to the
sale, barter or exchange of agricultural or marine products produced by
himself and his immediate family, and whose annual net income from such
farming of fishing does not exceed Fifty Thousand Pesos (P50,000.00) or
the poverty line established by NEDA for the particular region or
locality, whichever is higher;
(q) Motor Vehicle means any vehicle propelled by any
power other than muscular power using the public roads, but excluding
road rollers, trolley cars, street-sweepers, sprinklers, lawn mowers,
bulldozers, graders, forklifts, amphibian trucks, and cranes if not
used on public roads, vehicle which run only on rails or tracks, and
tractors, trailers, and traction engines of all kinds used exclusively
for agricultural purposes;
(r) Municipal Waters include not only streams lakes
and tidal waters within the municipality, not being the subject of
private ownership and not comprised within the national parks, public
forest, timber lands, forest reserves or fishery reserves, but also
marine waters included between two lines drawn perpendicularly to the
general coastline from points where the boundary lines of the
municipality or city touch the sea at low tide and a third line
parallel with the general coastline and fifteen (15) kilometers from
it. Where two (2) municipalities are so situated on the opposite shores
that there is less than fifteen (15) kilometers of marine waters
between them, the third line shall be equally distant from opposite
shores of the respective municipalities;
(s) Operator includes the owner, manager,
administrator, or any other person who operates or is responsible for
the operation of a business establishment or undertaking;
(t) Peddler means any person who, either for himself
or on commission, travels from place to place and sells his goods or
offers to sell and deliver the same. Whether a peddler is a wholesale
peddler or retail peddler of a particular commodity shall be determined
from the definition of wholesale dealer or retail dealer as provided in
this Rule;
(u) Persons mean every natural or juridical being,
susceptible of rights and obligations or of being the subject to legal
relations;
(v) Residents refer to natural persons who have their
habitual residence in the province, city, or municipality where they
exercise their civil rights and fulfill their civil obligations, and to
juridical persons for which the law or any other provision creating or
recognizing them fixes their residence in a particular province, city,
or municipality. In the absence of such law, juridical persons are
residents of the province, city or municipality where they have their
legal residence or principal place of business or where they conduct
their principal business or occupation;
(w) Retail means a sale where the purchaser buys the
commodity for his own consumption, irrespective of the quantity of the
commodity sold;
(x) Vessel includes every type of boat, craft, or
other artificial contrivance used, or capable of being used, as a means
of transportation on water;
(y) Wharfage means a fee assessed against the cargo
of a vessel engaged in foreign or domestic trade based on quantity,
weight, or measure received and/or discharged by vessel; and
(z) Wholesale means a sale where the purchaser buys
or imports the commodities for resale to persons other than the end
user regardless of the quantity of the transaction.
ARTICLE 221. Common Limitations on the Taxing and
Other Revenue-Raising Powers of Local Government Units. — Unless
otherwise provided in this Rule, the exercise of the taxing and other
revenue-raising powers of provinces, cities, municipalities and
barangays shall not extend to the levy of the following:
(a) Income tax, except when levied on banks and other
financial institutions as provided in Article 233(f) of this Rule;
(b) Documentary stamp tax;
(c) Taxes on estates, inheritance, gifts, legacies
and other acquisitions mortis causa, except as otherwise provided in
Article 225 of this Rule;
(d) Customs duties, registration fees of vessel and
wharfage on wharves, tonnage dues, and all other kinds of customs fee,
charges and dues except wharfage on wharves constructed and maintained
by the LGU concerned;
(e) Taxes, fee, and charges and other impositions
upon goods carried into or out of, or passing through the territorial
jurisdictions of LGUs in the guise of charges for wharfage, tolls for
bridges or otherwise, or other taxes, fees or charges in any form
whatsoever upon such goods or merchandise;
(f) Taxes, fee, or charges on agricultural and
aquatic products when sold by marginal farmers or fishermen;
(g) Taxes on business enterprises certified by the
Board of Investments as pioneer or non-pioneer for a period of six (6)
and four (4) years, respectively, from the date of registration;
(h) Excise taxes on articles enumerated under the
National Internal Revenue Code (NIRC), as amended, and taxes, fees or
charges on petroleum products;
(i) Percentage or Value Added Tax (VAT) on sales,
barters, or exchanges or similar transactions on goods or services,
except as otherwise provided herein;
(j) Taxes on the gross receipts of transportation
contractors and persons engaged in the transportation of passengers or
freight by hire and common carriers by air, land or water, except on
the operation and franchising of tricycles;
(k) Taxes on premiums paid by way of reinsurance or
retrocession;
(l) Taxes, fees, or charges for the registration of
motor vehicles and for the issuance of all kinds of licences or permits
for the driving thereof, except tricycles;
(m) Taxes, fees, or other charges on Philippine
products actually exported, except as otherwise provided in Article
233(c) of this Rule;
(n) Taxes, fees, or charges, on countryside and
barangay business enterprises and cooperatives duly registered under RA
6810, and RA 6938, otherwise known as the Cooperatives Code of the
Philippines, respectively; and
(o) Taxes, fees or charges of any kind on the
National Government, its agencies and instrumentalities, and LGUs.
ARTICLE 222. Local Taxing Authority. — The power to
impose a tax, fee, or charge or to generate revenue under the Code
shall be exercised by the sanggunian of the LGU concerned through an
appropriate tax ordinance or revenue measure.
PART
II
Provinces
ARTICLE 223. Taxing and Other Revenue-Raising Powers
of Provinces. Except as otherwise provided in this Rule, the province
may levy only the taxes, fees and charges as herein provided for.
ARTICLE 224. Tax on Transfer or Real Property
Ownership. — (a) The province may impose a tax on the sale, donation,
barter, or on any other mode of transferring ownership or title of real
property at the rate of not more than fifty percent (50%) of one
percent (1%) of the total consideration involved in the acquisition of
the property or of the fair market value in case the monetary
consideration involved in the transfer is not substantial, whichever is
higher. The sale, transfer, or other disposition of real property
pursuant to RA 6657 shall be exempt from this tax.
The fair market value as used herein shall be that reflected in the
prevailing schedule of fair market values enacted by the sanggunian
concerned.
(b) For this purpose, the registrar of deeds of the
province concerned shall, before registering any deed, require the
presentation of the evidence of payment of this tax. The provincial
assessor shall likewise make the same requirement before cancelling an
old tax declaration and issuing a new one in place thereof. Notaries
public shall furnish the provincial treasurer with a copy of any deed
transferring ownership or title to any real property within thirty (30)
days from the date of notarization.
It shall be the duty of the seller, donor, transferor, executor, or
administrator to pay the tax herein imposed within sixty (60) days from
the date of the execution of the deed or from the date of the property
owner's death.
ARTICLE 225. 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 other
printed materials of similar nature, at 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 percent (1%) of the capital investment. In
the succeeding calendar year, regardless of when business started to
operate, the tax shall be based on the gross receipts for the preceding
calendar year, or any fraction thereof as provided in this Rule.
The receipts from the printing and/or publishing of books or other
reading materials prescribed by DECS as school texts or references
shall be exempt from the tax herein imposed.
ARTICLE 226. Franchise Tax. — (a) Notwithstanding any
exemption granted by any law or other special law, the province may
impose a tax on businesses enjoying a franchise, at a rate not
exceeding fifty percent (50%) of one percent (1%) of the gross annual
receipts, which shall include both cash sales and sales on account
realized during the preceding calendar year within its territorial
jurisdiction, excluding the territorial limits of any city located in
the province.
(b) The province shall not impose the tax on business
enjoying franchise operating within the territorial jurisdiction of any
city located within the province.
(c) The term businesses enjoying franchise shall not
include holders of certificates of public convenience for the operation
of public utility vehicles for reason that such certificates are not
considered as franchises.
(d) In the case of a newly started business, the tax
shall not exceed one twentieth (1/20) of one percent (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 in this Article.
The capital investment to be used as basis of the tax of a newly
started business as herein provided shall be determined in the
following manner:
(1) In the locality where the principal office of the
business is located, the paid-up-capital stated in the articles of
incorporation, in case of corporations, or in any similar document in
case of other types of business organizations or enterprises shall be
considered as the capital investment.
(2) Where there is a branch or sales office which
commences business operations during the same year as the principal
office but which is located in another province or in a city outside
the province, the paid-up capital referred to above shall be reduced by
the amount of the capital investment made for the said branch or sales
office which shall be taxable instead by the province or city where it
is located.
(3) Where the newly started business is a branch or
sales office commencing business operations at a year later than that
of the principal office, capital investment shall mean the total funds
invested in the branch or sales office.
ARTICLE 227. Tax on Sand, Gravel, and Other Quarry
Resources. — (a) 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 quarry resources, such
as but not limited to marl, marble, granite, volcanic cinders, basalt,
tuff and rock phosphate, extracted from public lands or from the beds
of seas, lakes, rivers, streams, creeks, and other public waters within
its territorial jurisdiction.
(b) The permit to extract sand, gravel, and other
quarry resources shall be issued exclusively by the governor, pursuant
to the ordinance of the sangguniang panlalawigan.
(c) 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%)
(3) Barangay where the sand, gravel, and other quarry
resources are extracted Forty percent (40%)
ARTICLE 228. Professional Tax. — (a) The province may
levy an annual professional tax on each person engaged in the exercise
or practice of his profession requiring government examination at such
amount and reasonable classification as the sangguniang panlalawigan
may determine but shall in no case exceed Three Hundred Pesos
(P300.00).
(b) Every person legally authorized to practice his
profession shall pay the professional tax to the province where he
practice his profession or where he maintains his principal office in
case he practices his profession in several places, provided, however,
that such person who has paid the corresponding professional tax shall
be entitled to practice his profession in any part the Philippines
without being subjected to any other national or local tax, license, or
fee for the practice of such profession.
(c) Any individual or corporation employing a person
subject to professional tax shall require payment by that person of the
tax on his profession before employment and annually thereafter.
(d) The professional tax shall be payable annually,
on or before the thirty-first (31st) day of January. Any person first
beginning to practice a profession after the month of January must,
however, pay the full tax before engaging therein. A line of profession
does not become exempt even if conducted with some other profession for
which the tax has been paid. Professionals exclusively employed in the
government shall be exempt from the payment of this tax.
(e) Any person subject to the professional tax shall
write in deeds, receipts, prescriptions, reports, books of account,
plans and designs, surveys and maps, as the case may be, the number of
the official receipt issued to him.
(f) The professionals subject to tax herein imposed
are only those who have passed the bar examinations, or any board or
other examinations conducted by the Professional Regulation Commission
(PRC). For example, a lawyer who is also a Certified Public Accountant
(CPA) must pay the professional tax imposed on lawyers and that fixed
for CPAs, if he is to practice both professions.
For the purpose of collecting the tax, the provincial treasurer or his
duly authorized representative shall require from such professionals
their current annual registration cards issued by competent authority
before accepting payment of their professional tax for the current
year. The PRC shall likewise require the professionals presentation of
proof of payment before registration of proof of payment before
registration of professionals or renewal of their licenses.
ARTICLE 229. Amusement Tax. — (a) The province may
levy an amusement tax to be collected from the proprietors, lessees, or
operators of theaters, cinemas, concert halls, circuses, boxing stadia,
and other places of amusement at a rate of not more than thirty percent
(30%) of the gross receipts from admission fees.
(b) In the case of theaters or cinemas, the tax shall
first be deducted and withheld by their proprietors, lessees, or
operators and paid to the provincial treasurer before the gross
receipts are divided between said proprietors, lessees, or operators
and the distributors of the cinematographic films.
(c) The holding of operas, concerts, dramas,
recitals, paintings and art exhibitions, flower shows, musical
programs, literary and oratorical presentations except pop, rock or
similar concerts shall be exempted from the payment of the amusement
tax, subject to the guidelines issued by DOF.
(d) The sangguniang panlalawigan may prescribe the
time, manner, terms and conditions, including the issuance by
proprietor, lessee, or operator of the theater or amusement place of
admission tickets for the payment of tax. In case of fraud or failure
to pay the tax the sangguniang panlalawigan may impose such surcharges,
interests, and penalties as it may deem appropriate.
(e) The proceeds from the amusement tax shall be
shared equally by the province and the municipality where such
amusement places are located.
ARTICLE 230. 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 motor vehicle used by
manufacturers, producers, wholesalers, dealers or retailers in the
delivery or distribution of distilled spirits, fermented liquors, soft
drinks, 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).
(b) The manufacturers, producers, wholesalers,
dealers, and retailers referred to in the immediately preceding
paragraph (a) hereof shall be exempt from the tax on peddlers
prescribed in Article 233 (g) of this Rule.
PART
III
Municipalities
ARTICLE 231. Scope of Taxing and Other
Revenue-Raising Powers of Municipalities. — Unless provided in this
Rule, municipalities may levy taxes, fees, and charges not otherwise
levied by the province.
ARTICLE 232. Tax on Business. — The municipality may
impose taxes on the following businesses:
(a) On manufacturers, assemblers, repackers,
processors, brewers, distillers, rectifiers, and compounders of
liquors, distilled spirits, and wines or manufacturers of any article
of commerce of whatever kind or nature, in accordance with the
following schedule:
Gross Sales/Receipts Amount of
For the Preceding Calendar Year Tax Per Annum
Less than P10,000.00 P165.00
P10,000.00 or more but less than 15,000.00 220.00
15,000.00 or more but less than
20,000.00 302.00
20,000.00 or more but less than
30,000.00 440.00
30,000.00 or more but less than
40,000.00 660.00
40,000.00 or more but less than
50,000.00 825.00
50,000.00 or more but less than
75,000.00 1,320.00
75,000.00 or more but less than
100,000.00 1,650.00
100,000.00 or more but less than 150,000.00
2,200.00
150,000.00 or more but less than 200,000.00
2,750.00
200,000.00 or more but less than 300,000.00
3,850.00
300,000.00 or more but less than 500,000.00
5,500.00
500,000.00 or more but less than 750,000.00
8,000.00
750,000.00 or more but less than 1,000,000.00
10,000.00
1,000,000.00 or more but less than 2,000,000.00
13,750.00
2,000,000.00 or more but less than 3,000,000.00
16,500.00
3,000,000.00 or more but less than 4,000,000.00
19,800.00
4,000,000.00 or more but less than 5,000,000.00
23,100.00
5,000,000.00 or more but less than 6,500,000.00
24,375.00
6,500,000.00 M or more at a rate not exceeding
thirty seven and a half
percent (37 ½%)
of one percent (1%)
The preceding rates shall apply only to amount of domestic sales of
manufacturers, assemblers, repackers, processors, brewers, distillers,
rectifiers and compounders of liquors, distilled spirits, and wines or
manufacturers of any article of commerce whatever kind or nature other
than those enumerated in paragraph (c) of this Article.
(b) On wholesalers, distributors, or dealers in any
article of commerce of whatever kind or nature in accordance with the
following schedules:
Gross Sales/Receipts Amount of
For the Preceding Calendar Year Tax Per Annum
Less than P1,000.00 P18.00
P1,000.00 or more but less than 2,000.00 33.00
2,000.00 or more but less than 3,000.00 50.00
3,000.00 or more but less than 4,000.00 72.00
4,000.00 or more but less than 5,000.00 100.00
5,000.00 or more but less than 6,000.00 121.00
6,000.00 or more but less than 7,000.00 143.00
7,000.00 or more but less than 8,000.00 165.00
8,000.00 or more but less than 10,000.00 187.00
10,000.00 or more but less than 15,000.00 220.00
15,000.00 or more but less than 20,000.00 275.00
20,000.00 or more but less than 30,000.00 330.00
30,000.00 or more but less than 40,000.00 440.00
40,000.00 or more but less than 50,000.00 660.00
50,000.00 or more but less than 75,000.00 990.00
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 1,870.00
150,000.00 or more but less than 200,000.00 2,420.00
200,000.00 or more but less than 300,000.00 3,300.00
300,000.00 or more but less than 500,000.00 4,400.00
500,000.00 or more but less than 750,000.00 6,600.00
750,000.00 or more but less than 1,000,000.00
8,800.00
1,000,000.00 or more but less than 2,000,000.00
10,000.00
P2,000,000.00 or more at a rate not exceeding fifty
percent (50%) of one
percent (1%)
The businesses enumerated in paragraph (a) above shall no longer be
subject to the tax on wholesalers, distributors, or dealers provided in
this Article.
(c) On exporters, and on manufacturers, millers,
producers, wholesalers, distributors, dealers or retailers of essential
commodities enumerated hereunder at a rate not exceeding one-half (1/2)
of the rates prescribed in paragraphs (a), (b) and (d) of this Article:
(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.
For purposes of this Article, the term exporters shall refer to those
who are principally engaged in the business of exporting goods and
merchandise, as well as manufacturers and producers whose goods or
products are both sold domestically and abroad. The amount of export
sales shall be excluded from the total sales and shall be subject to
the rates not exceeding one half (1/2) of the rates prescribed under
paragraphs (a), (b) and (d) of this Article.
(d) On retailers,
Gross Sales/Receipts Rate of Tax
For the Preceding Year Per Annum
P400,000.00 or less 2%
more than P400,000.00 1%
The rate of two percent (2%) per annum shall be imposed on sales not
exceeding Four Hundred Thousand Pesos (P400,000.00), while the rate of
one percent (1%) per annum shall be imposed on sales in excess of the
first Four Hundred Thousand Pesos (P400,000.00).
Barangays, however, shall have the exclusive power to levy taxes, as
provided under Article 241 (a) of this Rule, 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:
Gross Sales/Receipts Amount of
For the Preceding Calendar Year Tax Per Annum
Less than P5,000.00 P27.50
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
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.
All other income and receipts of banks and financial institutions not
otherwise enumerated above shall be excluded from the taxing authority
of the LGU concerned.
(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.
Delivery trucks, vans, or motor vehicles used by manufacturers,
producers, wholesalers, dealers or retailers enumerated in Article 231
of this Rule shall be exempt from the peddler's tax imposed in this
Rule.
(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 exercise tax, VAT, or
percentage tax under the NIRC, as amended, the rate of tax shall not
exceed two percent (2%) of gross sales or receipts of the preceding
calendar year and provided further, that in line with existing national
policy, any business engaged in the production, manufacture, refining,
distribution or sale of oil, gasoline, and other petroleum products
shall not be subject to any local tax imposed in this Article.
The sanggunian concerned may prescribe a schedule of graduated tax
rates but in no case to exceed the rates prescribed in this Article.
ARTICLE 233. Fees and Charges. — The municipality may
impose and collect such reasonable fees and charges on businesses and
occupations and, except as reserved to the province in Article 229 of
this Rule, on the practice of any profession or calling before any
person may engage in such business or occupation, or practice such
profession or calling provided that such fees or charges shall only be
commensurate to the cost of issuing the license or permit and the
expenses incurred in the conduct of the necessary inspection or
surveillance.
No such fee or charge shall be based on capital investment or gross
sales or receipts of the person or business liable therefore.
ARTICLE 234. Fees for Sealing and Licensing of
Weights and Measures. — (a) The municipality may levy fees for the
sealing and licensing of weights and measures at such reasonable rates
as shall be prescribed by the sangguniang bayan.
(b) The sangguniang bayan shall enact an appropriate
ordinance prescribing the necessary regulations for the use of weights
and measures which shall be in accordance with such guidelines as may
be prescribed by the Department of Science and Technology. The
ordinance enacted for the purpose shall also prescribe the penalties
for violations, fraudulent practices, and unlawful possession or use of
instruments of weights and measures including the criminal penalty
therefore in accordance with Article 280 of this Rule provided,
however, that the sangguniang bayan concerned may authorize the
municipal treasurer to settle an offense not involving the commission
of fraud before a case therefore is filed in court, upon payment of a
compromise penalty of not less than Two Hundred Pesos (P200.00).
(c) The ordinance of the sangguniang bayan may also
embody such sanctions as may be deemed appropriate relative to the use
of any weight or measure not properly sealed or licensed in accordance
with paragraph (b) of this Article, such as the confiscation of said
illegal weight or measure, or the revocation of the permit or license
of the business, and/or the filing of appropriate charges against the
owner or operator of the business.
ARTICLE 235. Fishery Rentals, Fees, and Charges. —
(a) Municipalities shall have the exclusive authority to grant fishery
privileges in the municipal waters and impose rentals, fees, or charges
therefore in accordance with the provisions of this Article.
(b) The sangguniang bayan may:
(1) Grant fishery privileges to erect fish corrals,
oyster, mussel, or other aquatic beds or bangus fry areas, within a
definite zone of the municipal waters, as determined by the sangguniang
bayan. The sangguniang bayan may require the conduct of a public
bidding provided that duly registered organizations and cooperatives of
marginal fishermen shall have the preferential right to such fishery
privileges without being required to undergo the bidding and provided
further that in the absence of such organizations and cooperatives or
failure to exercise their preferential right, other parties may
participate in the said public bidding in conformity with this
provision.
(2) Grant the privilege to gather, take or catch
bangus fry, prawn fry, or kawag-kawag or fry of other species and fish
from the municipal waters by nets, traps or other fishing gears to
marginal fishermen free of any rental, fee, charge, or any other
imposition whatsoever.
(3) Issue licenses for the operation of fishing
vessels of three (3) tons or less for which purpose the sangguniang
bayan shall promulgate rules and regulations regarding the issuances of
such licenses to qualified applicants under existing laws provided,
however, that the sangguniang bayan concerned shall, by appropriate
ordinance, penalize the use of explosives, noxious or poisonous
substances, electricity, muro-ami, and other deleterious methods of
fishing and prescribe a criminal penalty therefore in accordance with
the provisions of this Rule and provided further that the sangguniang
bayan concerned shall have the authority to prosecute any violation of
the provisions of applicable fishery laws.
ARTICLE 236. Rates of Tax in Municipalities Within
the Metropolitan Manila Area. — (a) The municipalities within MMA may
levy the taxes on businesses enumerated in Article 233 of this Rule at
rates which shall not exceed by fifty percent (50%) the maximum rates
prescribed for said businesses.
(b) The said municipalities within MMA, pursuant to
Article 275 of this Rule, may levy and collect the taxes which may be
imposed by the province under Article 225, 226, 227, 228, 229, 230 and
231 of this Rule at rates not exceeding those prescribed therein.
PART
IV
Cities
ARTICLE 237. Scope of Taxing and Other
Revenue-Raising Powers of Cities. — The city may:
(a) Levy and collect any of the taxes, fees, charges
and other impositions that the province and the municipality may
impose. The rates of taxes that the city may levy may exceed the
maximum rates allowed for the province or municipality by not more than
fifty percent (50%) except the rates of professional and amusement
taxes; and
(b) Levy and collect a percentage tax on any business
not otherwise specified under paragraphs (a) to (g), Article 233 of
this Rule, at rates not exceeding three percent (3%) of the gross sales
or receipts of the preceding calendar year.
ARTICLE 238. Uniform Tax Rates. — The rates of the
following taxes shall be uniform for the city and the province:
(a) Professional tax under Article 229 of this Rule
which shall not exceed Three Hundred Pesos (P300.00); and
(b) Amusement tax on paid admission under Article 230
of this Rule, the rate of which shall not be more than thirty percent
(30%) of the gross receipts from admission fees.
ARTICLE 239. Sharing of Tax on Sand, Gravel, and
Other Quarry Resources. — The proceeds of the tax on sand, gravel and
other quarry resources in highly-urbanized cities shall be distributed
as follows:
Highly urbanized city — Sixty percent (60%)
Barangay where the sand, gravel, and other quarry resources are
extracted — Forty percent (40%)
PART
V
Barangays
ARTICLE 240. Scope of Taxing and Other
Revenue-Raising Powers of Barangays. — The barangays may levy the
following taxes, fees, and charges, which shall exclusively accrue to
them.
(a) Taxes on stores or retailers with fixed business
establishments with gross sales or receipts of the preceding calendar
year of Fifty Thousand Pesos (P50,000.00) or less, in the case of a
barangay within a city, and Thirty Thousand Pesos (P30,000.00) or less,
in the case of a barangay within a municipality, at rates not exceeding
one percent (1%) on such gross sales or receipts.
(b) Service fees or charges for services rendered in
connection with the regulation or the use of barangay-owned properties
or service facilities such as palay, copra, or tobacco dryers.
(c) Fee for the issuance of a barangay clearance for
any business or activity located or conducted within the territorial
jurisdiction of the barangay before the city or municipality may issue
a license or permit to said business or activity.
The application for barangay clearance shall be acted upon within seven
(7) working days from the filing thereof. In the event that a clearance
is not issued or the application is denied within the said period, the
city or municipality may issue the license or permit to the applicant.
The issuance of a barangay clearance shall not be required during CY
1992 in the case of existing businesses or activities applying only for
renewal of their respective permits or licenses with the city or
municipality concerned.
(d) Other fees and charges on:
(1) Commercial breeding of fighting cocks.
For purposes of imposing barangay fees and charges on the commercial
breeding of fighting cocks, commercial breeding shall mean an annual
sale of more than five (5) fighting cocks of a duly registered breeder.
(2) Cockfights and cockpits
(3) Places of recreation which charge admission fees.
Places of recreation shall include places of amusement where one seeks
admission to entertain himself by seeing or viewing the show or
performance or those where one amuses himself by direct participation.
(4) Billboards, signboards, neon signs, and outdoor
advertisements at rates not less than the following:
(i) Billboards or signboards for advertisement of
business, per square meter or fraction thereof:
Single-Faced — Ten Pesos (P10.00)
Double-Faced — Twenty Pesos (P20.00)
(ii) Billboards or signs for professionals, per
square meter or fraction thereof: Eight Pesos (P8.00)
(iii) Billboards, signs, or advertisements for
business and professions painted on any building or structures or
otherwise separated or detached therefrom, per square meter thereof:
Nine Pesos (P9.00)
(iv) Advertisement for business or professions by
means of slides in movies payable by the advertisers: One Hundred Pesos
(P100.00)
(v) Advertisements by means of vehicles, balloons,
kites, etc. per day or fraction thereof: Forty Pesos (P40.00); per week
or fraction thereof: Sixty Pesos (P60.00); and per month or fraction
thereof: Eighty Pesos (P80.00).
For the use of electric or neon lights in billboards under items (i) to
(iv) above, the amount of Ten Pesos (P10.00) per square meter or
fraction thereof shall be imposed in addition to the above prescribed
rates.
(vi) Signs, signboards, billboards, advertisements,
including stickouts, streamers, lighted signs, and other electronic
media, posters, privilege panels, stone signs, placards, price strips,
buntings, and the like, belonging to manufacturers or producers or
professionals, but displayed at the place where a business or
profession is conducted, or displayed on delivery or other service and
public utility vehicles, shall be exempt from such fees or charges
provided in paragraphs (i) and (ii) above and other impositions that
may be imposed by the barangay.
(vii) Privilege panels shall be subject to one half
(1/2) of the rates herein prescribed.
(viii) For purposes of this Article, the new rates to
be adopted by the barangay shall apply only to billboards, privilege
panels, signs, and outdoor advertisements which shall be constructed or
installed after the effectivity of the Code.
PART
VI
Special Provisions
ARTICLE 241. Retirement of Business. — (a) Any person
natural or juridical, subject to the tax on businesses under Article
233 of this Rule shall, upon termination of the business, submit a
sworn statement of the gross sales or receipts for the calendar year.
For purposes hereof, termination shall mean that business operations
are stopped completely. Any change in ownership, management and/or name
of the business shall not constitute termination as contemplated in
this Article. Unless stated otherwise, assumption of the business by
any new owner or manager or registration of the same business under a
new name will only be considered by the LGU concerned for record
purposes in the course of the renewal of the permit or license to
operate the business.
The local treasurer concerned shall see to it that the payment of taxes
of a business is not avoided by simulating the termination or
retirement thereof. For this purpose, the following procedural
guidelines shall be strictly observed:
(1) The local treasurer shall assign every
application for the termination or retirement of business to an
inspector in his office who shall go to the address of the business on
record to verify if it is really no longer operating. If the inspector
finds that the business is simply placed under a new name, manager
and/or new owner, the local treasurer shall recommend to the mayor the
disapproval of the application for the termination or retirement of
said business. Accordingly, the business continues to become liable for
the payment of all taxes, fees, and charges imposed thereon under
existing local tax ordinances; and
(2) In the case of a new owner to whom the business
was transferred by sale or other form of conveyance, said new owner
shall be liable to pay the tax or fee for the transfer of the business
to him if there is an existing ordinance prescribing such transfer tax.
(b) If it is found that the retirement or termination
of the business is legitimate, and the tax due therefrom be less than
the tax due for the current year based on the gross sales or receipts,
the difference in the amount of the tax shall be paid before the
business is considered officially retired or terminated.
(c) The permit issued to a business retiring or
terminating its operations shall be surrendered to the local treasurer
who shall forthwith cancel the same and record such cancellation in his
books.
ARTICLE 242. Related or Combined Businesses. — (a)
The conduct or operation of two or more related businesses provided in
Article 233 of this Rule by any one person, natural or juridical, shall
require the issuance of a separate permit or license to each business.
(b) If a person conducts or operates two (2) or more
related businesses which are subject to the same rate of imposition,
the tax shall be computed on the basis of the combined total gross
sales or receipts of the said two (2) or more related businesses.
(c) If, however, the businesses operated by one
person are governed by separate tax schedules or the rates of the taxes
are different, the taxable gross sales or receipts of each business
shall be reported independently and the tax thereon shall be computed
on the basis of the appropriate schedule.
ARTICLE 243. Situs of the Tax. — (a) Definition of
Terms —
(1) Principal Office — the head or main office of the
business appearing in the pertinent documents submitted to the
Securities and Exchange Commission, or the Department of Trade and
Industry, or other appropriate agencies, as the case may be.
The city or municipality specifically mentioned in the articles of
incorporation of official registration papers as being the official
address of said principal office shall be considered as the situs
thereof.
In case there is a transfer or relocation of the principal office to
another city or municipality, it shall be the duty of the owner,
operator or manager of the business to give due notice of such transfer
or relocation to the local chief executives of the cities or
municipalities concerned within fifteen (15) days after such transfer
or relocation is effected.
(2) Branch or Sales Office — a fixed place in a
locality which conducts operations of the business as an extension of
the principal office. Offices used only as display areas of the
products where no stocks or items are stored for sale, although orders
for the products may be received thereat, are not branch or sales
offices as herein contemplated. A warehouse which accepts orders and/or
issues sales invoices independent of a branch with sales office shall
be considered as a sales office.
(3) Warehouse — a building utilized for the storage
of products for sale and from which goods or merchandise are withdrawn
for delivery to customers or dealers, or by persons acting in behalf of
the business. A warehouse that does not accept orders and/or issue
sales invoices as aforementioned shall not be considered a branch or
sales office.
(4) Plantation — a tract of agricultural land planted
to trees or seedlings whether fruit bearing or not, uniformly spaced or
seeded by broadcast methods or normally arranged to allow highest
production. For purposes of this Article, inland fishing ground shall
be considered as plantation.
(5) Experimental Farms — agricultural land utilized
by a business or corporation to conduct studies, tests, researches or
experiments involving agricultural, agribusiness, marine, or aquatic,
livestock, poultry, dairy and other similar products for the purpose of
improving the quality and quantity of goods or products.
On-site sales of commercial quantity made in experimental farms shall
be similarly imposed the corresponding tax under Article 233 and
allocated in paragraph (b) of this Article.
(b) Sales Allocation —
(1) All sales made in a locality where there is a
branch or sales office or warehouse shall be recorded in said branch or
sales office or warehouse and the tax shall be payable to the city or
municipality where the same is located.
(2) In cases where there is no such branch, sales
office, or warehouse in the locality where the sale is made, the sale
shall be recorded in the principal office along with the sales made by
said principal office and the tax shall accrue to the city or
municipality where said principal office is located.
(3) In cases where there is a factory, project
office, plant or plantation in pursuit of business, thirty percent
(30%) of all sales recorded in the principal office shall be taxable by
the city or municipality where the principal office is located and
seventy percent (70%) of all sales recorded in the principal office
shall be taxable by the city or municipality where the factory, project
office, plant or plantation is located. LGUs where only experimental
farms are located shall not entitled to the sales allocation provided
in this subparagraph.
(4) In case of a plantation located in a locality
other than that where the factory is located, the seventy percent (70%)
sales allocation shall be divided as follows:
(i) Sixty percent (60%) to the city or municipality
where the factory is located; and
(ii) Forty percent (40%) to the city or municipality
where the plantation is located.
(5) In cases where there are two (2) or more
factories, project offices, plants or plantations located in different
localities, the seventy percent (70%) sales allocation shall be
prorated among the localities where such factories, project offices,
plants, and plantations are located in proportion to their respective
volumes of production during the period for which the tax is due. In
the case of project offices of service and other independent
contractors, the term production shall refer to the cost of projects
actually undertaken during the tax period.
(6) The sales allocation in paragraph (b) hereof
shall be applied irrespective of whether or not sales are made in the
locality where the factory, project office, plant or plantation is
located. In case of sales made by the factory, project office, plant or
plantation, the sale shall be covered by subparagraphs (1) or (2)
above.
(7) In case of manufacturers or producers which
engage the services of an independent contractor to produce or
manufacture some of their products, these rules on situs of taxation
shall apply except that the factory or plant and warehouse of the
contractor utilized for the production and storage of the
manufacturers' products shall be considered as the factory or plant and
warehouse of the manufacturer.
(c) Port of Loading — The city or municipality where
the port of loading is located shall not levy and collect the tax
imposable in Article 233 of this Rule unless the exporter maintains in
said city or municipality its principal office, a branch, sales office
or warehouse, factory, plant, or plantation in which case, the rule on
the matter shall apply accordingly.
(d) Sales made by route trucks, vans, or vehicles —
(1) For route sales made in a locality where a
manufacturer, producer, wholesaler, retailer or dealer has a branch or
sales office or warehouse, the sale are recorded in the branch, sales
office or warehouse and the tax due thereon is paid to the LGU where
such branch, sales office or warehouse is located.
(2) For route sales made in a locality where a
manufacturer, producer, wholesaler, retailer or dealer has no branch,
sales office or warehouse the sales are recorded in the branch, sales
office or warehouse from where the route trucks withdraw their products
for sale, and the tax due on such sales is paid to the LGU where such
branch, sales office or warehouse is located.
(3) Based on subparagraphs (1) and (2) above, LGUs
where route trucks deliver merchandise cannot impose any tax on said
trucks except the annual fixed tax authorized to be imposed by the
province in Article 231 of this Rule on every delivery truck or van or
any motor vehicle used by manufacturers, producers, wholesalers,
dealers, or retailers, in the delivery or distribution of distilled
spirits, fermented liquors, soft drinks, cigars and cigarettes, and
other products as may be determined by the sangguniang panlalawigan,
and by the city, pursuant to Article 223 of this Rule.
(4) In addition to this annual fixed tax, cities may
also collect from same manufacturers, producers, wholesalers,
retailers, and dealers using route trucks a mayor's permit fee which
shall be imposed in a local tax ordinance pursuant to Article 234 in
relation to Article 223 of this Rule.
PART
VII
Common Revenue-Raising Powers
ARTICLE 244. Common Revenue-Raising Powers. —
Provinces, cities, municipalities, and barangays:
(a) May impose and collect fees and service or user
charges for any service rendered by LGUs in an amount reasonably
commensurate to such service provided that no service charge shall be
based on capital investments or gross sales or receipts of the persons
or business liable therefore.
(b) Shall exercise the power to collect charges for
services rendered by LGUs in connection with the operation of public
utilities owned, operated, and maintained by them at rates to be fixed
by the sanggunian concerned.
LGUs may prescribe the terms and conditions, through an appropriate
ordinance enacted by their sanggunians, for the use of any public road,
pier or wharf, waterway, bridge, or ferry or telecommunication system,
funded and constructed by them, and fix reasonable toll fees and
service charges for the use thereof provided that the following persons
shall be exempted from the payment of said toll fees and charges:
(1) Officers and enlisted men of the Armed Forces of
the Philippines and members of the Philippine National Police on
mission;
(2) Post Office personnel delivering mail;
(3) Persons who are physically handicapped; and
(4) Disabled citizens who are sixty-five (65) years
or older.
(c) The collection of toll fees and charges may be
discontinued by the sanggunian concerned when public safety and welfare
so requires.
ARTICLE 245. Community Tax. — Cities or
municipalities may levy an annual community tax in lieu of the
residence tax formerly levied and collected in Sec. 38 of PD 231, as
amended. Accordingly, all cities and municipalities shall enact for the
purpose, a tax ordinance to take effect as of January 1, 1992.
For purposes of enactment of a local tax ordinance levying a community
tax, the conduct of a public hearing provided in Article 259 of this
Rule shall no longer be required.
ARTICLE 246. Levy or Imposition. — The levy or
imposition of community tax by a city or municipality shall be governed
by the following rules and guidelines:
(a) Individuals liable to the payment of community
tax —
(1) 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 years;
(2) An individual who is engaged in business or
occupation;
(3) An individual who owns real property with an
aggregate assessed value of One Thousand Pesos (P1,000.00) or more;
(4) An individual who is required by law to file an
income tax return.
(b) Rate of community tax payable by individuals —
(1) The rate of community tax that may be levied and
collected from said individuals shall be Five Pesos (P5.00) plus an
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, or from property but which in no case shall exceed Five
Thousand Pesos (P5,000.00).
(2) In case of husband and wife, each of them shall
be liable to pay the basic tax of Five Pesos (P5.00), but the
additional tax imposable on the husband and wife shall be One Peso
(P1.00) for every One Thousand Pesos (P1,000.00) of income from the
total property owned by them and/or the total gross receipts or
earnings derived by them.
(c) Juridical persons liable to the payment of
community tax — Every corporation, no matter how created or organized,
whether domestic or resident foreign, engaged in or doing business in
the Philippines shall pay community tax of Five Hundred Pesos (P500.00)
and an additional tax, which, in no case, shall exceed Ten Thousand
Pesos (P10,000.00) in accordance with the following schedule:
(1) For every Five Thousand Pesos (P5,000.00) worth
of real property in the Philippines owned by the juridical entity
during the preceding year, based on the assessed value used for the
payment of the real property tax under existing laws — Two pesos
(P2.00); and
(2) For every Five Thousand Pesos (P5,000.00) of
gross receipts or earnings derived from the business in the Philippines
during the preceding year — Two pesos (P2.00).
The dividends received by a corporation from another corporation shall,
for the purpose of the additional tax, be considered as part of the
gross receipts or earnings of said corporation.
(d) Exemptions — The following are exempt from the
payment of community tax:
(1) Diplomatic and consular representatives; and
(2) Transient visitors when their stay in the
Philippines does not exceed three (3) months.
(e) Place of Payment —
(1) Community tax shall be paid in the city or
municipality where the residence of the individual is located, or in
the city or municipality where the principal office of the juridical
entity is located.
(2) It shall be unlawful for any city or municipal
treasurer to collect community tax outside the territorial jurisdiction
of the city or the municipality.
(3) In case of branch, sales office or warehouse
where sales are made and recorded, corresponding community tax shall be
paid to the LGU where such branch, sales office or warehouse is
located.
(4) Any person, natural or juridical, who pays
community tax to a city or municipality other than the city or
municipality where his residence, or principal office in the case of
juridical persons, is located shall remain liable to pay such tax to
the city or municipality concerned.
(f) Time for Payment —
(1) Community tax shall accrue on the first (1st) day
of January of each year and shall be paid not later than the last day
of February of each year.
(2) If a person reaches the age of eighteen (18)
years or otherwise loses the benefit of exemption on or before the last
day of June, he shall be liable for the payment of community tax on the
day he reaches such age or upon the day the exemption on or before the
last day of March, he shall have twenty (20) days within which to pay
the community tax without becoming delinquent.
(3) Persons who come to reside in the Philippines or
reach the age of eighteen (18) years on or after the first (1st) day of
July of any year, or who cease to belong to an exempt class on or after
the same date, shall not be subject to community tax for that year.
(4) Corporations established and organized on or
before the last day of June shall be liable for the payment of
community tax for that year. Corporations established and organized on
or before the last day of March shall have twenty (20) days within
which to pay the community tax without becoming delinquent.
Corporations established and organized on or after the first day of
July shall not be subject to community tax for that year.
(g) Penalties for the payment — If the tax is not
paid within the prescribed period, there shall be added to the unpaid
amount an interest of twenty-four percent (24%) per annum from the due
date until it is paid.
ARTICLE 247. Community Tax Certificate. — A community
tax certificate shall be issued to every person or corporation upon
payment of community tax. A community tax certificate may also be
issued to any person or corporation not subject to community tax upon
payment of One Peso (P1.00).
ARTICLE 248. Presentation of Community Tax
Certificate. — (a) When an individual subject to community tax
acknowledges any document before a notary public, takes the oath of
office upon election or appointment to any position in the government
service; receives any license, certificate, or permit from any public
authority; pays any tax or fee; receives any money from any public
fund; transacts other official business; or receives any money from any
public fund; transacts other official business; or receives any salary
or wage from any person or corporation, it shall be the duty of any
person, officer, or corporation with whom such transaction is made or
business done or from whom any salary or wage is received to require
such individual to exhibit the community tax certificate.
The presentation of community tax certificate shall not be required for
the registration of a voter.
(b) When, through its authorized officers, any
corporation subject to community tax receives any license, certificate,
or permit from any public authority, pays any tax or fee, receives
money from public funds, or transacts other official business, it shall
be the duty of the public official with whom such transaction is made
or business done, to require such corporation to exhibit the community
tax certificate.
(c) The community tax certificate required in the two
preceding paragraphs shall be the one issued for the current year,
except for the period from January until the fifteenth (15th) of April
each year, in which case, the certificate issued for the preceding year
shall suffice.
ARTICLE 249. Printing of Community Tax Certificates
and Distribution of Proceeds. — The Bureau of Internal Revenue (BIR)
shall cause the printing of community tax certificates and distribute
the same to the cities and municipalities through the city and
municipal treasurers in accordance with prescribed regulations. To
facilitate distribution, the BIR may send on consignment to the
provincial treasurers blank forms of the community tax certificates and
the municipal treasurers of the province shall secure through the
provincial treasurer, their respective requirements. The city or
municipal treasurer concerned shall remit to the National Treasurer,
for the account of the BIR, the share of the National Government in the
proceeds of the tax, representing the cost of printing and
distribution, within ten (10) days after the end of each quarter. In
cases where the certificates were secured or requisitioned from the
provincial treasurer, the municipal treasurers shall remit payments to
the provincial treasurer who shall, in turn, effect the remittance to
the National Treasurer as required.
ARTICLE 250. Collection of Community Tax by the
Barangay Treasurer. — The tax ordinance levying the community tax shall
authorize the city or municipal treasurer to deputize the barangay
treasurers to collect the community tax in their respective
jurisdictions. Such deputation shall be limited to the community tax
payable by individual taxpayers and shall be extended only to barangay
treasurers who are properly bonded in accordance with applicable laws.
ARTICLE 251. Allocation of Proceeds of Community Tax.
— The proceeds of community tax actually and directly collected by the
city or municipal treasurer shall accrue entirely to the general fund
of the city or municipality concerned. The proceeds of community tax
collected through the barangay treasurers shall be apportioned as
follows:
(a) Fifty percent (50%) shall accrue to the general
fund of the city or municipality concerned; and
(b) Fifty percent (50%) shall accrue to the barangay
where the tax is collected.
ARTICLE 252. Authority to Use Blank Forms of
Residence Certificates. — The city and municipal treasurer shall be
authorized to use for the year 1992 blank forms of residence
certificates still in their stock, pending the distribution by the BIR
of the new form for the community tax certificate provided that:
(a) The word residence shall be cancelled and in its
place, the word community shall be superimposed;
(b) The maximum amount of additional tax payable by
individual and corporate taxpayers shall be changed from P3,000.00 to
P5,000.00 and from P6,000.00 to P10,000.00, respectively, in accordance
with the schedule provided in Article 247 of this Rule.
(c) Corresponding reports as to quantity and serial
numbers of old blank forms used during Calendar Year 1992 shall be
submitted by the city and municipal treasurers to the BIR pursuant to
applicable rules and regulations.
PART
IX
Collection of Taxes
ARTICLE 253. Tax Period and Manner of Payment. —
Unless otherwise provided in this Rule, the tax period of all local
taxes, fees, and charges shall be the calendar year. Such taxes, fees,
and charges may be paid in quarterly installments as may be provided in
the tax ordinance.
ARTICLE 254. Accrual of Tax. — Unless otherwise
provided herein, local taxes, fees, and charges shall accrue on the
first (1st) day of January of each year as regards tax subjects then
liable therefore, but an entirely new tax, fee or charge, or charges in
the rates of existing taxes, fees, or charges, shall accrue on the
first day of the quarter next following the effectivity of the
ordinance imposing such new levies or rates.
ARTICLE 255. Time of Payment. — Unless otherwise
specifically provided in this Rule, all local taxes, fees, and charges
due and accruing to the LGUs shall be paid within the first twenty (20)
days of January or of each subsequent quarter, as the case may be. The
sanggunian concerned may, for a justifiable reason or cause, extend the
time for payment of such taxes, fees, or charges without surcharges or
penalties, but only for a period not exceeding six (6) months.
ARTICLE 256. Surcharges and Penalties on Unpaid
Taxes, Fees, or Charges. — The sanggunian may impose a surcharge not
exceeding twenty-five percent (25%) of the amount of taxes, fees, or
charges not paid on time and an interest at the rate not exceeding two
percent (2%) per month of the unpaid taxes, fees, or charges including
surcharges, until such amount is fully paid but in no case shall the
total interest on the unpaid amount or portion thereof exceed
thirty-six (36) months.
ARTICLE 257. Interests on Other Unpaid Revenues. —
Where the amount of any other revenue due an LGU, except voluntary
contributions or donations, is not paid on the date fixed in the
ordinance, or in the contract, expressed or implied, or upon the
occurrence of the event which has given rise to its collection, there
shall be collected as part of that amount an interest thereon at the
rate not exceeding two percent (2%) per month from the date it is due
until it is paid, but in no case shall the total interest on the unpaid
amount or a portion thereof exceed thirty-six (36) months.
ARTICLE 258. Collection of Local Revenues. — All
local taxes, fees, and charges shall be collected by the provincial,
city, municipal, or barangay treasurer, or their duly authorized
deputies.
The provincial, city, or municipal treasurer may designate the barangay
treasurer as his deputy to collect local taxes, fees, or charges. In
case a bond is required for the purpose, the provincial, city, or
municipal government shall pay the premium thereon in addition to the
premiums of bond that may be required under these Rules.
ARTICLE 259. Examination of Books of Accounts and
Pertinent Records of Businessmen. — (a) For purposes of implementing
this Article, only the treasurer of the LGU imposing the tax, fee, or
charge, may examine the books of accounts and pertinent records of
businessmen in order to ascertain, assess, and collect the correct
amount of taxes, fees, and charges.
(b) The provincial, city, municipal, or barangay
treasurer may, by himself or through any of his deputies duly
authorized in writing, examine the books, accounts, and other pertinent
records of any person, partnership, corporation, or association subject
to local taxes, fees, and charges.
(c) The examination shall be made during regular
business hours not oftener than once a year for every tax period, which
shall be the year immediately preceding the examination, and shall be
certified by the examining official. Such certification shall be made
of record in the books of accounts of the taxpayer examined.
(d) In case the examination 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, accounts, and pertinent records
are to be examined, the date and place of such examination, and the
procedure to be followed in conducting the same.
(e) For this purpose, the records of the revenue
district office of the BIR shall be made available to the local
treasurer, his deputy or duly authorized representative.
(f) The Secretary of Finance shall prescribe the
necessary forms to be used and such guidelines which may be deemed
necessary for the proper and effective implementation of this Article.
PART
X
Civil Remedies for Collection of
Revenues
ARTICLE 260. Application. — The provisions of Part
Ten of this Rule and the remedies herein provided may be availed of for
the collection of any delinquent local tax, fee, charge, or other
revenues.
ARTICLE 261. Local Government's Lien. — Local taxes,
fees, charges, and other revenues constitute a lien, superior to all
liens, charges, or encumbrances in favor of any person, enforceable by
appropriate administrative or judicial action, not only upon any
property or rights therein which may be subject to the lien but also
upon property used in business, occupation, practice of profession or
calling, or exercise of privilege with respect to which the lien is
imposed. The lien may only be extinguished upon full payment of the
delinquent local taxes, fees, and charges including related surcharges
and interests.
ARTICLE 262. Civil Remedies. — The civil remedies for
the collection of local taxes, fees, or charges, and related surcharges
and interests resulting from delinquencies shall be:
(a) By administrative action through distraint of
goods, chattels, or effects, and other personal property of whatever
character, including stocks and other securities, debts, credits, bank
accounts, and interest in and rights to personal property, and by levy
upon real property and interest in or rights to real property; and
(b) By judicial action.
Either of these two (2) remedies or both may be pursued concurrently or
simultaneously at the discretion of the LGU concerned.
ARTICLE 263. Distraint of Personal Property. — The
remedy by distraint shall proceed as follows:
(a) Seizure — Upon failure of the person owing any
local tax, fee, or charge to pay the same at the time required, the
local treasurer or his deputy may, upon written notice, seize or
confiscate any personal property belonging to that person or any
personal property subject to the lien in sufficient quantity to satisfy
the tax, fee, or charge in question, together with any increment
thereto incident to delinquency and the expenses of seizure. In such
case, the local treasurer or his deputy shall issue a duly
authenticated certificate based upon the records of his office showing
the fact of delinquency and the amounts of the tax, fee, or charge and
penalty due. Such certificate shall serve as sufficient warrant for the
distraint of personal property aforementioned, subject to the
taxpayer's right to claim exemption under the provisions of applicable
laws. Distrained personal property shall be sold at public auction in
the manner provided in this Rule.
(b) Accounting of distrained goods — The officer
executing the distraint shall make or cause to be made an account of
the goods, chattels, or effects distrained, a copy of which signed by
himself shall be left either with the owner or person from whose
possession the goods, chattels, or effects are taken, or at the
dwelling or place of business of that person and with someone of
suitable age and discretion, to which list shall be added a statement
of the sum demanded and a note of the time and place of sale.
(c) Publication — The officer shall forthwith cause a
notification to be exhibited in not less than three (3) public and
conspicuous places in the territory of the LGU where the distraint is
made, specifying the time and place of sale, and the articles
distrained. The time of sale shall not be less than twenty (20) days
after notice to the owner or possessor of the property as above
specified and the publication or posting of the notice. One place for
the posting of the notice shall be at the office of the chief executive
of the LGU in which the property is distrained.
(d) Release of distrained property upon payment prior
to sale — If at any time prior to the consummation of the sale, all the
proper charges are paid to the officer conducting the sale, the goods
or effects distrained shall be restored to the owner.
(e) Procedure of sale — At time and place fixed in
the notice, the officer conducting the sale shall sell the goods or
effects so distrained at public auction to the highest bidder for cash.
Within five (5) days after the sale, the local treasurer shall make a
report of the proceedings in writing to the local chief executive
concerned.
Should the property distrained be not disposed of within one hundred
and twenty (120) days from the date of distraint, the same shall be
considered as sold to the LGU concerned for the amount of the
assessment made thereon by the committee on appraisal and to the extent
of the same amount, the tax delinquencies shall be cancelled.
The committee on appraisal shall be composed of the city or municipal
treasurer as chairman, with a representative of COA and the city or
municipal assessor, as members.
(f) Disposition of proceeds — The proceeds of the
sale shall be applied to satisfy the tax, including the surcharges,
interests, and other penalties incident to delinquency, and the
expenses of the distraint and sale. The balance over and above what is
required to pay the entire claim shall be returned to the owner of the
property sold. The expenses chargeable upon the seizure and sale shall
embrace only the actual expenses of seizure and preservation of the
property pending the sale, and no charge shall be imposed for the
services of the local officer or his deputy. Where the proceeds of the
sale are insufficient to satisfy the claim, other property may, in like
manner, be distrained until the full
amount due, including all expenses, is collected.
ARTICLE 264. Levy on Real Property. — After the
expiration of the time required to pay the delinquent tax, fee, or
charge, real property may be levied on, before, simultaneously, after
the distraint of personal property belonging to the delinquent
taxpayer. The provincial, city or municipal treasurer, as the case may
be, shall prepare a duly authenticated certificate showing the name of
the taxpayer and the amount of the tax, fee, or charge, and penalty due
from him. Such certificate shall operate with the force of a legal
execution throughout the Philippines. Levy shall be effected by writing
upon said certificate the description of the property upon which levy
is made. At the same time, written notice of the levy shall be mailed
to or served upon the local assessor and registrar of deeds of the
province or city where the property is located who shall annotate the
levy on the tax declaration and certificate of title of the property,
respectively, and the delinquent taxpayer or, if he be absent from the
Philippines, to his agent or the manager of the business in respect to
which the liability arose, or if there be none, to the occupant of the
property in question.
In case the levy on real property is not issued before or
simultaneously with the warrant of distraint on personal property, and
the personal property of the taxpayer is not sufficient to satisfy his
delinquency, the provincial, city or municipal treasurer, as the case
may be, shall within thirty (30) days after execution of the distraint,
proceed with the levy on the taxpayer's real property.
A report on any levy shall, within ten (10) days after receipt of the
warrant, be submitted by the levying officer to the sanggunian
concerned.
ARTICLE 265. Penalty for failure to Issue and Execute
Warrant. — Without prejudice to criminal prosecution under the Revised
Penal Code and other applicable laws, any local treasurer who fails to
issue or execute the warrant of distraint or levy after the expiration
of the time prescribed, or who is found guilty of abusing the exercise
thereof by competent authority, shall be automatically dismissed from
the service after due notice and hearing.
ARTICLE 266. Advertisement and Sale. — Within thirty
(30) days after levy, the local treasurer shall proceed to publicly
advertise for sale or auction the property or a usable portion thereof
as may be necessary to satisfy the claim and cost of sale; and such
advertisement shall cover a period of at least thirty (30) days. It
shall be effected by posting a notice at the main entrance of the city
or municipal hall, and in public and conspicuous places in the barangay
where the real property is located, and by publication once a week for
three (3) weeks in a newspaper of general circulation in the province,
city or municipality where the property is located. The advertisement
shall contain the amount of taxes, fees or charges, and penalties due
thereon, and the time and place of sale, the name of the taxpayer
against whom the taxes, fees, or charges are levied, and a short
description of the property to be sold. At any time before the date
fixed for the sale, the taxpayer may stay the proceedings by paying the
taxes, fees, charges, penalties, and interests. If he fails to do so,
the sale shall proceed and shall be held either at the main entrance of
the provincial capitol, city or municipal hall, or on the property to
be sold, or at any other place as determined by the local treasurer
conducting the sale and specified in the notice of sale.
Within thirty (30) days after the sale, the local treasurer or his
deputy shall make a report of the sale to the sanggunian concerned, and
which shall form part of his records. After consultation with the
sanggunian, the local treasurer shall make and deliver to the purchaser
a certificate of sale, showing the proceedings of the sale, describing
the property sold, stating the name of the purchaser and setting out
the exact amount of all taxes, fees, charges, and related surcharges,
interests, or penalties provided that any excess in the proceeds of the
sale over the claim and cost of sales shall be turned over to the owner
of the property. The local treasurer may, by a duly approved ordinance,
advance an amount sufficient to defray the costs of collection by means
of the remedies provided, in this Rule, including the preservation or
transportation, in case of personal property, and the advertisement and
subsequent sale, in cases of personal and real property including
improvements thereon.
ARTICLE 267. Redemption of Property Sold. — Within
one (1) year from the date of sale, the delinquent taxpayer or his
representative shall have the right to redeem the property upon payment
to the local treasurer of the total amount of taxes, fees, or charges,
and related surcharges, interest, or penalties from the date of
delinquency to the date of sale, plus interest of not more than two
percent (2%) per month on the purchase price from the date of purchase
to the date of redemption. Such payment shall invalidate the
certificate of sale issued to the purchaser and the owner shall be
entitled to a certificate of redemption from the provincial, city, or
municipal treasurer or his deputy.
The provincial, city, or municipal treasurer or his deputy, upon
surrender by the purchaser of the certificate of sale previously issued
to him, shall forthwith return to the latter the entire purchase price
paid by him plus the interest of not more than two percent (2%) per
month herein provided for, the portion of the cost of sale and other
legitimate expenses incurred by him, and said property thereafter shall
be free from the lien of such taxes, fees, or charges, related
surcharges, interests, and penalties.
The owner shall not be deprived of the possession of said property and
shall be entitled to the rentals and other income thereof until the
expiration of the time allowed for its redemption .
ARTICLE 268. Final Deed of Conveyance to Purchaser. —
In case the taxpayer fails to redeem the property as provided herein,
the local treasurer shall execute a deed conveying to the purchaser so
much of the property as has been sold, free from liens of any taxes,
fees, charges, related surcharges, interests, and penalties. The deed
shall succinctly recite all the proceedings upon which the validity of
the sale depends.
ARTICLE 269. Purchase of Property by the Local
Government Units for Want of Bidder. — In case there is no bidder for
the real property advertised for sale as provided herein, or if the
highest bid is for an amount insufficient to pay the taxes, fees, or
charges, related surcharges, interests, penalties, and costs, the local
treasurer conducting the sale shall purchase the property in behalf of
the LGU concerned to satisfy the claim and within two (2) days
thereafter shall make a report of his proceedings which shall be
reflected upon the records of his office. It shall be the duty of the
registrar of deeds concerned upon registration with his office of any
such declaration of forfeiture to transfer the title of the forfeited
property to the LGU concerned without the necessity of an order from a
competent court.
Within one (1) year from the date of such forfeiture the taxpayer or
any of his representative, may redeem the property by paying to the
local treasurer the full amount of the taxes, fees, charges, and
related surcharges, interests, or penalties, and the costs of sale. If
the property is not redeemed as provided herein, the ownership thereof
shall be fully vested on the LGU concerned.
ARTICLE 270. Resale of Real Estate Acquired for
Payment of Taxes, Fees, or Charges. — The sanggunian concerned may, by
a duly approved ordinance, and upon notice of not less than twenty (20)
days, sell and dispose of the real property acquired under the
preceding Article at public auction. The proceeds of the sale shall
accrue to the general fund of the LGU concerned.
ARTICLE 271. Collection of Delinquent Taxes, Fees,
Charges, or Other Impositions through Judicial Action. — The LGU
concerned may enforce the collection of delinquent taxes, fees,
charges, or other impositions by civil action in any court of competent
jurisdiction. The civil action shall be filed by the local treasurer
within the period prescribed in Article 285 of this Rule.
ARTICLE 272. Further Distraint or Levy. — The
remedies by distraint and levy may be repeated if necessary until the
full amount due, including all expenses, is collected.
ARTICLE 273. Personal Property Exempt from Distraint
or Levy. — The following property shall be exempt from distraint and
the levy, attachment or execution thereof for delinquency in the
payment of any local tax, fee, or charge, including related surcharges
and interests:
(a) Tools and implements necessarily used by the
delinquent taxpayer in his trade or employment:
(b) One (1) horse, cow, carabao, or other beast of
burden, such as the delinquent taxpayer may select, and necessarily
used by him in his ordinary occupation;
(c) His necessary clothing, and that of all his
family;
(d) Household furniture and utensils necessary for
housekeeping and used for that purpose by the delinquent taxpayer, such
as he may select, of a value not exceeding Ten Thousand Pesos
(P10,000.00);
(e) Provisions, including crops, actually provided
for individual or family use sufficient for four (4) months;
(f) The professional libraries of doctors, engineers,
lawyers and judges;
(g) One (1) fishing boat and net, not exceeding the
total value of Ten Thousand Pesos (P10,000.00), by the lawful use of
which a fisherman earns his livelihood; and
(h) Any material or article forming part of a house
or improvement of any real property.
PART
XI
Miscellaneous Provisions
ARTICLE 274. Power to Levy Other Taxes, Fees, or
Charges. — LGUs may exercise the power to levy taxes, fees, or charges
on any base or subject not otherwise specifically enumerated in this
Rule or taxed under the provisions of the NIRC, as amended, or other
applicable laws provided that the taxes, fees, or charges shall not be
unjust, excessive, oppressive, confiscatory, or contrary to declared
national policy provided further that the ordinance levying such taxes,
fees, or charges shall not be enacted without prior public hearing
conducted for the purpose.
ARTICLE 275. Procedure for Approval and Effectivity
of Tax Ordinances and Revenue Measures. — The procedure for approval of
local tax ordinances and revenue measures shall be in accordance with
the provisions of this Rule provided that public hearings shall be
conducted for the purpose prior to the enactment thereof provided
further that any question on the constitutionality or legality of tax
ordinances or revenue measures may be raised on appeal within thirty
(30) days from the effectivity thereof to the Secretary of Justice who
shall render a decision within sixty (60) days from the date of receipt
of the appeal provided furthermore that such appeal shall not have the
effect of suspending the effectivity of the ordinance and the accrual
and payment of the tax, fee, or charge levied therein and provided
finally that within thirty (30) days after receipt of the decision or
the lapse of the sixty-day period without the Secretary of Justice
acting upon the appeal, the aggrieved party may file appropriate
proceedings with a court of competent jurisdiction.
All tax ordinances or revenue measures shall be numbered consecutively
throughout the calendar year and continuously from year to year, using
the last two (2) digits of the calendar year in which it is enacted,
followed by denominated number. For example, an ordinance is passed in
January, 1992, and it is the first ordinance for that year. The
ordinance shall be denominated and numbered as Tax Ordinance No.
92-001. The next shall be Tax Ordinance No. 92-002, Tax Ordinance No.
92-003, and so forth.
ARTICLE 276. Publication of Tax Ordinances and
Revenue Measures. — (a) 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 newspaper of local circulation provided that in
provinces, cities, and municipalities where there are no newspapers of
local circulation, the same may be posted in at least two (2)
conspicuous and publicly accessible places.
If the tax ordinance or revenue measure contains penal provisions as
authorized in Article 280 of this Rule, the gist of such tax ordinance
or revenue measure shall be published in a newspaper of general
circulation within the province where the sanggunian concerned belongs.
In the absence of any newspaper of general circulation within the
province, posting of such ordinance or measure shall be made in
accessible and conspicuous public places in all municipalities and
cities of the province to which the sanggunian enacting the ordinance
or revenue measure belongs.
In case the effectivity of any tax ordinance or revenue measure falls
on any date other than the beginning of the quarter, the same shall be
considered as falling at the beginning of the next ensuing quarter and
the taxes, fees, or charges due shall begin to accrue therefrom.
(b) The conduct of public hearings shall be governed
by the following procedure:
(1) Within ten (10) days from filing of any proposed
tax ordinance or revenue measure, the same shall first be published for
three (3) consecutive days in a newspaper of local circulation or shall
be posted simultaneously in at least four (4) conspicuous public places
within the territorial jurisdiction of the LGU concerned.
(2) In addition to the requirement for publication or
posting, the sanggunian concerned shall cause the sending of written
notices of the proposed ordinance, enclosing a copy thereof, to the
interested or affected parties operating or doing business within the
territorial jurisdiction of the LGU concerned.
(3) The notice or notices shall specify the date or
dates and venue of the public hearing or hearing. The initial public
hearing shall be held not earlier than ten (10) days from the sending
out of notice or notices, or the last day of publication, or date of
posting thereof, whichever is later.
(4) At the public hearing or hearings, all affected
or interested parties shall be accorded an opportunity to appear and
present or express their views, comments and recommendations, and such
public hearing or hearings shall continue until all issues have been
presented and fully deliberated upon and/or consensus is obtained,
whether for or against the enactment of the proposed tax ordinance or
revenue measure.
(5) The secretary of the sanggunian concerned shall
prepare the minutes of such public hearing and shall attach to the
minutes the position papers, memoranda, and other documents submitted
by those who participated.
(c) No tax ordinance or revenue measure shall be
enacted or approved in the absence of a public hearing duly conducted
in the manner provided in this Article.
ARTICLE 277. Furnishing of Copies of Tax Ordinance
and Revenue Measures. — Copies of all provincial, city, municipal, and
barangay tax ordinances and revenue measures shall be furnished the
respective local treasurers concerned for public dissemination.
ARTICLE 278. Existing Tax Ordinances or Revenue
Measures. — (a) All existing tax ordinances or revenue measures of
provinces, cities, municipalities, and barangays imposing taxes, fees,
or charges shall continue to be in force and effect after the
effectivity of the Code, except those imposing levies on tax bases or
tax subjects which are no longer within the taxing and revenue-raising
powers of the LGU concerned and where the rates levied in the tax
ordinance are higher than the taxes, fees, or charges prescribed in
this Rule in which case, the lower rates shall be collected.
(b) In case of failure of the sanggunian to amend or
revoke tax ordinances or revenue measures inconsistent with, or in
violation of the provisions of this Rule, the same shall be deemed
rescinded upon the effectivity of the Code and these Rules.
ARTICLE 279. Penalties for Violation of Tax
Ordinances. — The sanggunian of an LGU is authorized to prescribe
imprisonment of fines or other penalties for violation of tax
ordinances but in no case shall such imprisonment be less than one (1)
month nor more than six (6) months or such fine be less than One
Thousand Pesos (P1,000.00) nor more than Five Thousand Pesos
(P5,000.00), or both such imprisonment or fine, at the discretion of
the court. The sanggunian barangay may prescribe a fine of not less
than One Hundred Pesos (P100.00) nor more than One Thousand Pesos
(P1,000.00).
ARTICLE 280. Attempt to Enforce Void or Suspended Tax
Ordinances and Revenue Measures. — Enforcement of any tax ordinance or
revenue measure after due notice of the disapproval or suspension
thereof shall be a sufficient ground for administrative disciplinary
action against the local officials and employees responsible therefore.
Any attempt to enforce any tax ordinance or revenue measure deemed
rescinded by operation of law, or the effectivity of which has been
suspended, or the passage of which has been declared illegal, shall
subject the local officials and employees responsible therefore to
administrative disciplinary action.
ARTICLE 281. Authority to Adjust Rates of Taxes. —
LGUs shall be authorized to adjust the tax rates prescribed in this
Rule not oftener than once every five (5) years, but in no case shall
such adjustments exceed ten percent (10%) of the rates fixed in this
Rules.
ARTICLE 282. Authority to Grant Tax Exemption
Privileges or Incentives. — (a) While sanggunians may grant tax
exemption, tax incentive, or tax relief, such grant shall not apply to
regulatory fees which are levied under the police power of LGUs. Tax
exemptions shall be conferred through the issuance of a tax exemption
certificate, which shall be non-transferable.
(b) The sanggunians granting tax exemptions, tax
incentives and tax reliefs may be guided by the following:
(1) On the grant of tax exemptions or tax reliefs:
(i) Tax exemption or tax relief may be granted in
cases of natural calamities, civil disturbance, general failure of
crops, or adverse economic conditions such as substantial decrease in
the prices of agricultural or agri-based products;
(ii) The grant of exemption or relief shall be
through an ordinance.
(iii) Any exemption or relief granted to a type or
kind of business shall apply to all business similarly situated; and
(iv) Any exemption or relief granted shall take
effect only during the next calendar year for a period not exceeding
twelve (12) months as may be provided in the ordinance. In the case of
shared revenues, the exemption or relief shall only extend to the LGU
granting such exemption or relief.
(2) On the grant of tax incentives:
(i) The tax incentive shall be granted only to new
investments in the locality and the ordinance shall prescribe the terms
and conditions therefore;
(ii) The grant of the tax incentive shall be for a
definite period not exceeding one (1) calendar year;
(iii) The grant of tax incentives shall be by
ordinance passed prior to the first (1st) day of January of any year;
and
(iv) Any tax incentive granted to a type or kind of
business shall apply to all businesses similarly situated.
ARTICLE 283. Withdrawal of Tax Exemption Privileges
or Incentives. — Unless otherwise provided in this Rule, beginning
January 1, 1992, all local tax exemption privileges or incentives
granted to and presently enjoyed by any person, whether natural or
juridical, including GOCCs, are considered withdrawn, except the
following:
(a) Local water districts;
(b) Cooperatives duly registered under RA 6938,
otherwise known as the Cooperative Code of the Philippines;
(c) Non-stock and non-profit hospitals and
educational institutions;
(d) Business enterprises certified by the Board of
Investments (BOI) as pioneer or non-pioneer for a period of six (6) and
four (4) years, respectively, from the date of registration;
(e) Business entity, association, or cooperatives
registered under RA 6810; and
(f) Printer and/or publisher of books or other
reading materials prescribed by DECS as school texts or references,
insofar as receipts from the printing and/or publishing thereof are
concerned.
Unless otherwise repealed by law, business and economic enterprises
operating within export processing zones administered by the Export
Processing Zone Authority shall continue to enjoy the tax exemption
privileges and tax incentives granted in PD 66, as amended.
PART
XII
Taxpayer's Remedies
ARTICLE 284. Period of Assessment and Collection. —
(a) Local taxes, fees, or charges shall be assessed within five (5)
years from the date they become due. No action for the collection of
such taxes, fees, or charges, whether administrative or judicial, shall
be instituted after the expiration of such period provided that taxes,
fees or charges which have accrued before the effectivity of the Code
may be assessed within a period of three (3) years from the date they
became due.
(b) In case of fraud or intent to evade the payment
of taxes, fees, or charges, the same may be assessed within ten (10)
years from discovery of the fraud or intent to evade payment.
(c) Local taxes, fees, or charges may be collected
within five (5) years from the date of assessment by administrative or
judicial action. No such action shall be instituted after the
expiration of said period provided that taxes, fees, or charges
assessed before the effectivity of the Code may be collected within a
period of three (3) years from the date of assessment.
(d) The running of the periods of prescription
provided in the preceding paragraphs shall be suspended for the time
during which:
(1) The treasurer is legally prevented from making
the assessment of collection;
(2) The taxpayer requests re-investigation and
executes a waiver in writing before expiration of the period within
which to assess or collect; and
(3) The taxpayer is out of the country or otherwise
cannot be located.
ARTICLE 285. Protest on 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 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) 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 cancelling wholly or
partially the assessment. 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 receipt of the denial of
the protest or from the lapse of the sixty-day period prescribed in
this Article within which to appeal with the court of competent
jurisdiction; otherwise, the assessment becomes conclusive and
unappealable.
ARTICLE 286. Claim for Refund or Tax Credit. — All
taxpayers entitled to a refund or tax credit provided in this Rule
shall file with the local treasurer a claim in writing duly supported
by evidence of payment (e.g., official receipts, tax clearance, and
such other proof evidencing overpayment within two (2) years from
payment of the tax, fee, or charge. No case or proceeding shall be
entertained in any court without this claim in writing, and after the
expiration of two (2) years from the date of payment of such tax, fee,
or charge, or from the date the taxpayer is entitled to a refund or tax
credit.
The tax credit granted a taxpayer shall not be refundable in cash but
shall only be applied to future tax obligations of the same taxpayer
for the same business. If a taxpayer has paid in full the tax due for
the entire year and he shall have no other tax obligation payable to
the LGU concerned during the year, his tax credits, if any, shall be
applied in full during the first quarter of the next calendar year on
the tax due from him for the same business of said calendar year.
Any unapplied balance of the tax credit shall be refunded in cash in
the event that he terminates operation of the business involved within
the locality.
ARTICLE 287. Authority of the Secretary of Finance. —
The Secretary of Finance shall, in consultation with the leagues of
LGUs formulate and prescribe, from time to time, procedures and
guidelines as may be necessary for the proper, efficient, and effective
implementation of this Rule.
RULE
XXXI
Real Property Taxation
ARTICLE 288. Scope. — This Rule shall cover the
administration, appraisal, assessment, levy, and collection of real
property tax.
ARTICLE 289. Fundamental Principles. — The appraisal,
assessment, levy, and collection of real property tax shall be governed
by the following fundamental principles:
(a) Real property shall be appraised at its current
and fair market value;
(b) Real property shall be classified for assessment
purposes on the basis of its actual use;
(c) Real property shall be assessed on the basis of a
uniform classification within each LGU;
(d) The appraisal, assessment, levy, and collection
of real property tax shall not be let to any private person; and
(e) The appraisal and assessment of real property
shall be equitable.
ARTICLE 290. Definition of Terms. —
(a) Acquisition Cost for newly-acquired machinery not
yet depreciated and appraised within the year of its purchase, refers
to the actual cost of the machinery to its present owner plus the cost
of transportation, handling, and installation at the present site;
(b) Actual Use refers to the purpose for which the
property is principally or predominantly utilized by the person in
possession thereof;
(c) Ad Valorem Tax is a levy on real property
determined on the basis of a fixed proportion of the value of the
property;
(d) Agricultural Land is land devoted principally to
the planting of trees, raising of crops, livestock and poultry,
dairying, salt making, inland fishing and similar aquacultural
activities and is not classified as mineral, timber, residential,
commercial or industrial land;
(e) Appraisal is the act or process of determining
the value of property as of a specific date for a specific purpose;
(f) Assessment is the act or process of determining
the value of a property, or proportion thereof subject to tax,
including the discovery, listing, classification, and appraisal of
properties;
(g) Assessment Level is the percentage applied to the
fair market value to determine the taxable value of the property;
(h) Assessed Value is the fair market value of the
real property multiplied by the assessment level. It is synonymous to
taxable value;
(i) Commercial Land is land devoted principally for
the object of profit and is not classified as agricultural, industrial,
mineral, timber, or residential land;
(j) Depreciated Value is the value remaining after
deducting depreciation from the acquisition cost;
(k) Economic Life is the estimated period over which
it is anticipated that a machinery or equipment may be profitably
utilized;
(l) Fair Market Value is the price at which a
property may be sold by a seller who is not compelled to sell and
bought by a buyer who is not compelled to buy;
(m) Improvement is a valuable addition made to a
property or an amelioration in its condition, which is intended to
enhance its value, beauty or utility or to adapt it for new or further
purposes, amounting to more than a mere repair or replacement of parts
involving capital expenditures and labor and normally requiring a
building permit;
(n) Industrial Land is land devoted principally to
industrial activity as capital investment and is not classified as
agricultural, commercial, timber, mineral, or residential land;
(o) Machinery embraces machines, equipment,
mechanical contrivances, instruments, appliances or apparatus, which
may or may not be attached, permanently or temporarily to the real
property.
Physical facilities for production, installations and appurtenant
service facilities, those which are mobile, self-powered, or
self-propelled and those not permanently attached to the real property
shall be classified as real property provided that:
(1)
They
are actually, directly, and exclusively used
to meet the needs of the particular industry, business, or activity;
and
(2) By their
very nature and purpose are designed
for, or necessary to manufacturing, mining, logging, commercial,
industrial, or agricultural purposes.
Machinery which are of general purpose use including but not limited to
office equipment, typewriters, telephone equipment, breakable or easily
damaged containers (glass or cartons), microcomputers, facsimile
machines, telex machines, cash dispensers, furniture and fixtures,
freezers, refrigerators, display cases or racks, fruit juice or
beverage automatic dispensing machines which are not directly and
exclusively used to meet the needs of a particular industry, business
or activity shall not be considered within the definition of machinery
under this Rule.
Residential machinery shall include machines, equipment, appliances or
apparatus permanently attached to residential land and improvements or
those immovable by destination.
(p) Mineral Lands are lands in which minerals,
metallic or non-metallic, exist in sufficient quantity or grade to
justify the necessary expenditures to extract and utilize such
materials;
(q) Reassessment is the assigning of new assessed
values to property, particularly real estate, as the result of a
general, partial, or individual reappraisal of the property;
(r) Remaining Economic Life is the period of time
expressed in years from the date of appraisal to the date when the
machinery becomes valueless;
(s) Remaining Value is the value corresponding to the
remaining useful life of the machinery;
(t) Replacement or Reproduction Cost is the cost that
would be incurred on the basis of current prices, in acquiring an
equally desirable property, on the basis of current prices with the
same or closely similar materials; and
(u) Residential Land is land principally devoted to
habitation.
ARTICLE 291. Administration of Real Property Tax. —
Provinces and cities, including municipalities within MMA, shall be
primarily responsible for the proper, efficient and effective
administration of the real property tax, subject to the rules and
regulations governing the classification, appraisal and assessment of
real property issued by DOF.
The DOF and the province shall exercise the authority to review and
examine on a continuing basis property, assessment, and real property
tax records to ensure the proper implementation of this Rule and
determine compliance with applicable laws, rules and regulations.
ARTICLE 292. Appraisal of Real Property. — Within
sixty (60) days from the effectivity of these Rules, DOF shall
promulgate rules and regulations and such procedural guidelines as may
be necessary for the proper classification, appraisal, and assessment
of real property in accordance with the provisions of this Rule.
ARTICLE 293. Declaration of Real Property by the
Owner or Administrator. —
(a)
All
persons, natural or judicial, or their duly
authorized representatives, owning or administering real property,
including improvements thereon, within a city or a municipality, shall
prepare or cause to be prepared, and file with the provincial, city, or
municipal assessor, a sworn statement declaring the true value of their
property or properties, whether previously declared or undeclared,
taxable or exempt, which shall be the current and fair market value of
the property as determined by the declarant.
(b) Such
declaration shall contain a description of
the property sufficient in detail to enable the local assessor or his
deputy to identify the same for assessment purposes.
(c) All
property owners or administrators or their
duly authorized representatives shall file the sworn declaration of
real property values once every three (3) years during the period from
January 1 to June 30 of the year commencing with Calendar Year 1992.
(d) The DOF
shall prescribe a standard form to be
known as Sworn Declaration of Property Values for the use of all local
assessors' offices, as well as the procedures to be observed in the
filing and safekeeping thereof.
The sangguniang panlungsod and sangguniang bayan may enact their
respective ordinances providing for the imposition of penalties or
pecuniary fines on property owners or administrators who fail to comply
with this Article.
ARTICLE 294. Duty of Persons Acquiring Real Property
or Making Improvement Thereon. — (a) All persons, natural or juridical,
or their duly authorized representatives, who acquire at any time a
parcel or parcels of land in any city or municipality, shall file with
the provincial, city, or municipal assessor of the locality where the
property is located, a sworn statement declaring the true value of
subject property within sixty (60) days after the acquisition of such
property as evidenced by a duly notarized or final deed of conveyance
executed between the contracting parties bearing proof of registration
from the registrar of deeds concerned. The sixty-day period shall
commence on the date of execution of the deed of conveyance.
(b) In the case of houses, buildings, or other
improvements acquired or newly constructed which will require building
permits, property owners or their authorized representatives shall
likewise file a sworn declaration of the true value of the subject
house, building, or other improvement within sixty (60) days after:
(1)
The
date of a duly notarized final deed of sale,
contract, or other deed of conveyance covering the subject property
executed between the contracting parties;
(2) The date
of completion or occupancy of the newly
constructed building, house, or improvement whichever comes earlier;
and
(3) The date
of completion or occupancy of any
expansion, renovation, or additional structures or improvements made
upon any existing building, house, or other real property, whichever
comes earlier.
(c) In the case of machinery, the sixty-day period
for filing the required sworn declaration of property values shall
commence on the date of installation thereof as determined by the city
or municipal assessor and, for this purpose, said local assessor may
secure certification of the building official or engineer or other
appropriate official stationed in the province, city, or municipality
concerned.
(d) The sangguniang panlalawigan, sangguniang
panlungsod, and sangguniang bayan shall enact their respective local
ordinances providing for the imposition of penalties or pecuniary fines
on property owners or administrators who fail to comply with this
Article.
ARTICLE 295. Declaration of Real Property by the
Local Assessor. — (a) The local assessor shall declare only real
property previously undeclared from taxation purposes.
(b) In the case of real property discovered whose
owner or owners are unknown, the provincial, city, or municipal
assessor shall likewise declare the same in the name of the Unknown
Owner, copy furnished the provincial assessor in the case of
declarations made by a component city or municipal assessor, until such
time that a person, natural or juridical, comes forth and files the
sworn declaration of property values required under either Article 294
or 295 of this Rule, as the case may be.
(c) No oath shall be required of any declaration made
by the provincial, city, or municipal assessor.
ARTICLE 296. Listing of Real Property in the
Assessment Rolls. —
(a) In every province and city, including the
municipalities within MMA, there shall be prepared and maintained by
the provincial, city, or municipal assessor an assessment roll wherein
all real property, whether taxable or exempt, located within the
territorial jurisdiction of the LGU concerned shall be listed. Real
property shall be listed, valued, and assessed in the name of the owner
or administrator, or anyone having legal interest in the property.
(b) The undivided real property of a deceased person
may be listed, valued, and assessed in the name of the estate or of the
heirs and devisees without designating them individually; and undivided
real property other than that owned by a deceased may be listed,
valued, and assessed in the name of one or more co-owners provided,
however, that such heir, devisee, or co-owner shall be liable severally
and proportionately for all obligations imposed by this Rule and the
payment of the real property tax with respect to the undivided
property.
(c) The real property of a corporation, partnership,
or association shall be listed, valued, and assessed in the same manner
as that of an individual.
(d) Real property owned by the Republic of the
Philippines, its instrumentalities and political subdivisions, the
beneficial use of which has been granted, for consideration or
otherwise, to a taxable person, shall be listed, valued, and assessed
in the name of the possessor, grantee, or of the public entity if such
property has been acquired or held for resale or lease.
ARTICLE 297. 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 Rule 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, by laws,
contracts, affidavits, certifications and mortgage deeds, and 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. If the property shall be proven to be tax exempt, the same shall
be dropped from the assessment roll.
ARTICLE 298. Real Property Identification System. —
All declarations of real property made under the provisions of this
Rule shall be kept and filed under a uniform classification system to
be established by the provincial, city, or municipal assessor pursuant
to such guidelines as may be issued by DOF for the purpose.
ARTICLE 299. Notification of Transfer of Real
Property Ownership. — (a) Any person, natural or juridical, who
transfers real property ownership to another shall accordingly notify
the provincial, city, or municipal assessor concerned within sixty (60)
days from the date of such transfer, which shall be determined on the
basis of documents required in Article 294 and 295 of this Rule.
(b) The notice of transfer shall include the mode of
conveyance, description of property alienated, and the name and address
of the transferee.
(c) In addition to the notice of transfer, the
previous property owner shall likewise surrender to the provincial,
city or municipal assessor concerned, the tax declaration covering the
subject property in order that the same may be cancelled from the
assessment records of the LGU. If, however, said previous owner still
owns property other than the property alienated, he shall, within the
prescribed sixty-day period, file with the provincial, city, or
municipal assessor concerned, as amended sworn declaration of the true
value of the property or properties he retains in accordance with the
provisions of Article 294 or 295 of this Rule.
ARTICLE 300. Duty of Registrar of Deeds to Apprise
Local Assessor of Real Property Listed in Registry. — (a) Within six
(6) months from the date of effectivity of the Code, and on or before
June 30th of every year thereafter, the registrar of deeds shall
prepare and submit to the provincial, city, or municipal assessor
concerned the abstract of his Registry of Property which include a
brief but sufficient description of the real property entered therein,
their present owners, and the date of their most recent transfer or
alienation accompanied by copies of corresponding deeds of sale,
donation, or partition or other forms of alienation.
(b) Before any document of transfer, alienation, or
encumbrance of real property may be registered, the registrar of deeds
shall require the presentation of a certificate or clearance issued by
the local treasurer concerned to the effect that all current year and
past year basic and additional special education fund, real property
taxes, and the tax on transfer of real property ownership in Rule XXX
of these Rules, due on the subject property, have been paid in full
including interests or penalties due thereon.
Failure to provide such certificate shall be a valid cause for the
registrar of deeds to refuse the registration of the document. In the
absence of such certification or tax clearance, the registration is
null and void.
(c) The registrar of deeds and notaries public shall
furnish the provincial, city, or municipal assessor with copies of all
contracts, selling, transferring, or otherwise conveying, leasing, or
mortgaging real property registered by, or acknowledged before them,
within thirty (30) days from the date of registration or
acknowledgment.
ARTICLE 301. Duty of Official Issuing Building Permit
or Certificate of Registration of Machinery to Transmit Copy to Local
Assessor. — (a) Any person entrusted by law with the issuance of
permits for the construction, renovation, addition, repair, or any
other permanent improvement on land, or those who are authorized to
issue certificates of registration or installation of any machinery,
including mechanical contrivances and apparatus attached to or affixed
on land or any other real property, shall transmit within thirty (30)
days from the date of issuance a copy of such permits or certificates
to the assessor of the province, city, or municipality where the
building or machinery is situated. Where it is found to be more
convenient or efficient, said official may, in lieu of individual
copies of the said permits or certificates, furnish the local assessor
concerned with monthly summaries of issued permits or certificates
within the first ten (10) days of the succeeding month.
(b) Any official referred to in paragraph (a) hereof
shall likewise furnish the local assessor concerned with copies of the
building floor plans and/or certificates of registration or
installation of other machineries which may not be permanently or
temporarily attached to land or another real property but falling under
the definition of the term machinery under Article 291 of this Rule and
the rules and guidelines issued by DOF.
ARTICLE 302. Duty of Geodetic Engineer to Furnish
Copy of Plans to Local Assessor. — All persons authorized by law to
conduct land surveys and to certify as to the validity of such survey,
whether public or private, shall furnish free of charge the assessor of
the province, city, or municipality where the property is located with
a white or blue print copy of all approved original or subdivision
plans or maps of surveys they have conducted within thirty (30) days
from receipt of such approved plans from LMB, National Land Titles and
Deed Registration Administration, or Housing and Land Use Regulatory
Board, as the case may be.
ARTICLE 303. Preparation of Schedule of Fair Market
Values. — (a) Before any general revision of property assessment is
made pursuant to the provisions of this Rule, there shall be prepared a
schedule of fair market values by the provincial and city assessors,
and the municipal assessors of the municipalities within MMA for the
different classes of real property situated in their respective LGUs
for enactment by ordinance of the sanggunian concerned. The schedule of
fair market values shall be published in a newspaper of general
circulation in the province, city, or municipality concerned, or in the
absence thereof, shall be posted in the provincial capitol, city or
municipal hall and in two (2) other conspicuous public places therein.
(b) In the preparation of schedules of fair market
values, the provincial and city assessors and the municipal assessors
of the municipalities within MMA shall be guided by the rules and
regulations issued by DOF.
ARTICLE 304. Authority of Local Assessors 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.
ARTICLE 305. Amendment of Schedule of Fair Market
Values. — (a) The provincial, city or municipal assessor may recommend
to the sanggunian concerned amendments to correct errors in valuation
in the schedule of fair market values. The sanggunian concerned shall,
by ordinance, act upon the recommendation within ninety (90) days from
receipt thereof.
(b) The provincial, city, or municipal assessor may
recommend to the sanggunian concerned amendments to the prevailing
schedule of fair market values of the locality to correct errors
arising from, or involving, omissions in the subject schedule of any
kind or type of real property, or any city, district or barangay, or
any road or street and/or the classification or sub-classification of
real property.
ARTICLE 306. Classes of Real Property for Assessment
Purposes. — Real property shall be classified as residential,
agricultural, commercial, industrial, mineral, timberland, or special
by the provincial and city assessors, including the municipal assessors
of MMA. The cities and municipalities within MMA shall, through their
respective sanggunians, exercise the power to classify lands as such in
accordance with their zoning ordinances provided that for purposes of
assessment, real property shall be classified on the basis of actual
use regardless of where located as provided in Article 309 of this
Rule.
ARTICLE 307. Special Classes of Real Property. — All
lands, buildings, and other improvements thereon actually, directly and
exclusively used for hospitals, cultural, or scientific purposes, and
those owned and used by local water districts, and GOCCs rendering
essential public services in the supply and distribution of water and
generation and transmission of electric power shall be classified as
special.
ARTICLE 308. Actual Use of Real Property as Basis for
Assessment. — Real property shall be classified, valued, and assessed
on the basis of its actual use regardless of where located, whoever
owns it, and whoever uses it.
ARTICLE 309. Assessment Levels. — (a) 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 MMA, at the rates not exceeding the following:
(1) On Lands:
Class Assessment Level
Residential 20%
Agricultural 40%
Commercial 50%
Industrial 50%
Mineral 50%
Timberland 20%
(2) On Buildings and Other Structures:
Residential
Fair Market Value
Over Not Over
Assessment Level
P175,000.00 0%
P175,000.00
300,000.00 10%
300,000.00
500,000.00 20%
500,000.00
750,000.00 25%
750,000.00
1,000,000.00 30%
1,000,000.00
2,000,000.00 35%
2,000,000.00
5,000,000.00 40%
5,000,000.00
10,000,000.00 50%
10,000,000.00 60%
Agricultural
Fair Market Value
Over Not Over
Assessment Level
P300,000.00 25%
P300,000.00
500,000.00 30%
500,000.00
750,000.00 35%
750,000.00
1,000,000.00 40%
1,000,000.00
2,000,000.00 45%
2,000,000.00 50%
Commercial or Industrial
Fair Market Value
Over Not Over
Assessment Level
P300,000.00 30%
P300,000.00
500,000.00 35%
500,000.00
750,000.00 40%
750,000.00
1,000,000.00 50%
1,000,000.00
2,000,000.00 60%
2,000,000.00
5,000,000.00 70%
5,000,000.00
10,000,000.00 75%
10,000,000.00 80%
Timberland
Fair Market Value
Over Not Over
Assessment Level
P300,000.00 45%
P300,000.00
500,000.00 50%
500,000.00
750,000.00 55%
750,000.00
1,000,000.00 60%
1,000,000.00
2,000,000.00 65%
2,000,000.00
70%
(3) On Machineries
Class Assessment Level
Agricultural 40%
Residential 50%
Commercial 80%
Industrial 80%
(4) On Special Classes: Assessment level for all
lands, buildings, machineries and other improvements;
Actual Use Assessment Level
Cultural 15%
Scientific 15%
Hospital 15%
Local Water District 10%
GOCCs engaged in the supply
and distribution of water and/
or generation and transmission
of electric power 10%
(b) Assessment levels in paragraph (a) hereof shall
be applied initially during the first general revision of real property
assessments to be undertaken pursuant to Article 310 of this Rule.
(c) Pending the enactment of a schedule of fair
market values under Articles 303 and 310 of this Rule and the
effectivity of the revised new assessment levels, the prevailing
schedules of market values and the levels currently used by the
provincial, city, and municipal assessors shall continue to be applied.
ARTICLE 310. General Revision of Assessments and
Property Classification. — (a) The provincial, city, or municipal
assessor shall undertake a general revision of real property assessment
within two (2) years after the effectivity of the Code and every three
(3) years thereafter.
(b) For this purpose, the provincial assessors, the
city assessors, and the municipal assessors of MMA shall prepare the
schedule of fair market values for the different kinds and classes of
real property located within their respective territorial jurisdictions
within one (1) year from the effectivity of the Code in accordance with
such rules and regulations issued by DOF.
(c) The general revision of assessments and property
classification shall commence upon the enactment of an ordinance by the
sanggunian concerned adopting the schedule of fair market values but
not later than two (2) years from the effectivity of the Code.
Thereafter, the provincial, city, or municipal assessor shall undertake
the general revision of real property assessment and property
classification once every three (3) years.
ARTICLE 311. 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 on-going 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 provisions of this Rule, 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 that the assessment of real property shall not be increased
oftener than once every three (3) years except in case of new
improvements substantially increasing the value of said property or of
any change in its actual use.
ARTICLE 312. Date of Effectivity of Assessment or
Reassessment. — All assessments or reassessment made after the first
(1st) day of January of any year shall take effect on the first (1st)
day of January of the succeeding year provided, however, that the
reassessment of real property due to its partial or total destruction,
or to a major change in its actual use, or to any great and sudden
inflation or deflation of real property values, or to the gross
illegality of the assessment when made, or to any other abnormal cause,
shall be made within ninety (90) days from the date any such cause or
causes occurred, and shall take effect at the beginning of the quarter
next following the reassessment.
ARTICLE 313. Assessment of Property Subject to Back
Taxes. — Real property declared for the first time shall be assessed
for the taxes for the period during which it would have been liable but
in no case for more than ten (10) years prior to the date of initial
assessment provided, however, that such taxes shall be computed on the
basis of the applicable schedule of values in force during the
corresponding period.
If such taxes are paid on or before the end of the quarter following
the date the notice of assessment was received by the owner or his
representative, no interest for delinquency shall be imposed thereon;
otherwise, such taxes shall be subject to an interest at the rate of
two percent (2%) per month or a fraction thereof from the date of
receipt of the assessment until such taxes are fully paid.
ARTICLE 314. 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.
ARTICLE 315. Appraisal and Assessment of Machinery. —
(a) The fair market value of a brand new machinery shall be the
acquisition cost. In all other cases, the fair market value shall be
determined by dividing the remaining economic life of the machinery by
its estimated economic life and multiplied by the replacement or
reproduction cost.
(b) If the machinery is imported, the acquisition
cost includes freight, insurance, bank and other charges, brokerage,
arrastre and handling, duties and taxes, plus cost of inland
transportation, handling, and installation charges at the present site.
The cost in foreign currency of imported machinery shall be converted
to peso cost on the basis of foreign currency exchange rates as fixed
by the Central Bank.
ARTICLE 316. Depreciation Allowance for Machinery. —
For purposes of assessment, a depreciation allowance shall be made for
machinery at a rate not exceeding five percent (5%) of its original
cost or its replacement or reproduction cost, as the case may be, for
each year of use provided that the remaining value for all kinds of
machinery shall be fixed at not less than twenty percent (20%) of such
original, replacement, or reproduction cost for so long as the
machinery is useful and in operation.
ARTICLE 317. Local Board of Assessment Appeals. — (a)
Any property owner or person having legal interest or claim in the
property who is not satisfied with the assessment of his property made
by the provincial, city, or municipal assessor pursuant to the
provisions of this Rule may, within sixty (60) days from the date of
receipt of the written notice of assessment, appeal to local board of
assessment appeals of the province or city where the subject property
is situated by filing a petition under oath in the standard form
prescribed therefore, together with copies of the tax declaration and
such affidavits or documents in support of the appeal.
(b) In the case of municipalities within MMA, the
appeals may be filed with the municipal board of assessment appeals of
each municipality as provided in Article 318 of this Rule.
ARTICLE 318. Organization, Powers, and Functions of
the Local Board of Assessment Appeals. — (a) In the determination and
resolution of assessment appeals, the provincial or city board of
assessment appeals shall be composed of the following:
Registrar of Deeds — Chairman
Provincial or City Prosecutor — Member
Provincial or City Engineer — Member
(b) In the case of municipalities within MMA, the
municipal board of assessment appeals shall be composed of the
following:
Registrar of Deeds of the
municipality or of the area
having custody and jurisdiction
over titles of land within the
jurisdiction of the municipality — Chairman
Prosecutor designated or assigned
to the municipality — Member
Municipal Engineer — Member
(c) The chairman and members of the local board of
assessment appeals shall serve in an ex officio capacity without
additional compensation.
(d) The chairman of the board shall have the power to
designate any employee of the province or city, or municipality within
MMA, to serve as secretary to the said board.
(e) In cases of provinces or cities, and
municipalities within MMA without a provincial, city, or municipal
engineer, the district engineer shall serve as member of the board
until a provincial or municipal engineer shall have been duly appointed
or designated. In the absence of the registrar of deeds, or the
prosecutor, or the local engineer, the persons performing their duties,
whether in an acting capacity or as a duly designated
officer-in-charge, shall automatically become the chairman or member of
the said board, as the case may be.
(f) The chairman and members of the local board of
assessment appeals shall assume their respective positions without need
of further appointment or special designation immediately upon
effectivity of the Code.
(g) Before the assumption of the official functions
or before discharging their duties as chairman and members of the local
board of assessment appeals, they shall take an oath or affirmation of
office in the manner herein set forth:
"I
___________________,
after
having been appointed to the position of
_________________________, in the province, city, or municipality of
______________, and now assuming my position as ____________ of the
Board of Assessment Appeals of the province, city or municipality of
________, hereby solemnly swear that I will faithfully discharge to the
best of my ability the duties of this position and of all others that I
am holding, or may hereafter hold, under the Republic of the
Philippines, and that I will support and defend the Constitution of the
Philippines; and that I will obey the laws and legal orders promulgated
by the duly constituted authorities of the Republic of the Philippines;
and that I will well and truly hear and determine all matters and
issues between taxpayers and the provincial or city assessor submitted
for my decision, and that I impose this obligation upon myself
voluntarily, without mental reservation or purpose of evasion.
So help me God.
_________________
Signature
Subscribed and sworn to before
me on this _______ day of ________, 19____, at _________ Philippines.
_____________________
Signature of Officer
Administering Oath
ARTICLE 319. Meetings and Expenses of the Local Board
of Assessment Appeals. — (a) The local board of assessment appeals
shall meet once a month and as often as may be necessary for the prompt
disposition of appealed cases without entitlement to per diem or
traveling expenses for their attendance in board meeting except when
conducting an ocular inspection of real properties whose assessment is
under appeal, in which case, such expenses shall be charged against the
general fund of the province or city, or municipality within MMA, as
the case may be.
(b) The sanggunian concerned shall include in their
general appropriations ordinance necessary funds to defray expenses of
the board.
ARTICLE 320. Action by the Local Board of Assessment
Appeals. — (a) From the date of receipt of an appeal, the local board
of assessment appeals shall, on the basis of substantial evidence or
such relevant evidence on record adequately acceptable to support a
conclusion, decide such appeal within one hundred twenty (120) days.
(b) In the exercise of its appellate jurisdiction,
the board shall have the power to summon witnesses, administer oaths,
conduct ocular inspection, take depositions, and issue subpoena and
subpoena duces tecum. The proceedings of the board shall be conducted
solely for the purpose of ascertaining the facts without necessarily
adhering to technical rules applicable in judicial proceedings.
(c) The secretary of the board shall furnish the
owner of the property or the person having legal interest therein and
the provincial or city assessor or municipal assessor within MMA with a
copy of the decision of the board. In case the provincial or city
assessor or municipal assessor within MMA concurs with 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 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) days
after receipt of the decision of the board, appeal to the Central Board
of Assessment Appeals as herein provided. The decision of the Central
Board shall be final and executory.
ARTICLE 321. Central Board of Assessment Appeals. —
The Central Board shall be composed of a chairman and two (2) members
to be appointed by the President, who shall serve for a term of seven
(7) years, without reappointment. Of those first appointed, the
chairman shall hold office for seven (7) years, one member for five (5)
years, and the other member of three (3) years. Appointment to any
vacancy shall be only for the unexpired portion of the term of the
predecessor. In no case shall any member be appointed or designated in
a temporary or acting capacity. The chairman and the members of the
Central Board shall be Filipino citizens, at least forty(40) years old
at the time of their appointment, and members of the Bar or Certified
Public Accountants for at least ten (10) years immediately preceding
their appointment. The chairman of the Central Board shall have the
salary grade equivalent to the rank of Director III under the Salary
Standardization Law exclusive of allowances and other emoluments. The
members of the Central Board shall have the salary grade equivalent to
the rank of Director II under the Salary Standardization Law exclusive
of allowances and other emoluments. The Central Board shall have
appellate jurisdiction over all assessment cases decided by the local
board and assessment appeals.
There shall be hearing officers to be appointed by the Central Board
pursuant to civil service law, rules and regulations, one each of
Luzon, Visayas, and Mindanao, who shall hold office in the City of
Manila, Cebu City, and Cagayan de Oro City, respectively, and who shall
serve for a term of six (6) years, without reappointment until their
successors shall have been appointed and qualified. The hearing
officers shall have the same qualifications as those of the Judges of
the Municipal Trial Courts.
The hearing officers shall each have a salary grade equivalent to the
rank of Director I under the Salary Standardization Law exclusive of
allowances and other emoluments. The hearing officers shall try and
receive evidences on the appealed assessment cases as may be directed
by the Central Board.
The Central Board, in the performance of its powers and duties, may
establish and organize staffs, offices, or units, prescribe the titles,
functions and duties of their members, and adopt its own rules and
regulations.
Unless otherwise provided by law, the annual appropriations for the
Central Board shall be included in the annual budget of DOF.
ARTICLE 322. Effect of Appeal on the Payment of Real
Property Tax. — Appeals on assessments of real property made under the
provisions of this Rule shall, in no case, suspend the collection of
the corresponding real property taxes on the property involved as
assessed by the provincial or city assessor, or the municipal assessor
within MMA, without prejudice to subsequent adjustment depending upon
the final outcome of the appeal.
ARTICLE 323. Power to Levy Real Property Tax. —
Provinces and cities, and municipalities within MMA, through their
respective sanggunians, may levy the annual ad valorem tax on real
property such as land, buildings, machinery, and other improvements not
specifically exempted under this Rule.
ARTICLE 324. Rates of Levy. — A province or a city,
or a municipality within MMA shall fix a uniform rate of basic real
property tax applicable in their respective jurisdictions as follows:
(a) For provinces: not exceeding one per cent (1%) of
the assessed value;
(b) For cities or for municipalities within MMA: not
exceeding two percent (2%) of the assessed value.
No public hearing shall be required before the enactment of a local tax
ordinance levying the basic real property tax.
ARTICLE 325. Exemption from Payment of Real Property
Tax. — The following are exempted from payment of the real property
tax:
(a) All real property owned by the Republic of the
Philippines or any of its political subdivisions, except when the
beneficial use thereof has been granted, for consideration or
otherwise, to a taxable person;
(b) Charitable institutions, churches, parsonages, or
convents appurtenant thereto, mosques, nonprofit or religious
cemeteries and all lands, buildings, and improvements actually,
directly, and exclusively used for religious, charitable or educational
purposes;
(c) All machineries and equipment that are actually,
directly and exclusively used by local water districts and GOCCs
engaged in the supply and distribution of water and/or generation and
transmission of electric power;
(d) All real property owned by duly registered
cooperatives as provided in RA 6938; and
(e) Machinery and equipment exclusively used for
pollution control and environmental protection.
Except as provided in this Rule, any exemption from payment of real
property tax previously granted to, or presently enjoyed by, all
persons, whether natural or juridical, including all GOCCs are
withdrawn upon the effectivity of the Code.
ARTICLE 326. Additional Levy on Real Property for the
Special Education Fund. — A province or city, or a municipality within
MMA, may levy and collect an annual tax of one percent (1%) on the
assessed value of real property which shall be in addition to the basic
real property tax. The proceeds thereof shall exclusively accrue to the
special education fund.
All provinces and cities, and the municipalities within MMA shall enact
their respective tax ordinances imposing the additional tax for the
special education fund.
No public hearing shall be required before the enactment of a local tax
ordinance levying the additional one percent (1%) special education
fund tax.
ARTICLE 327. Additional Ad Valorem Tax on Idle Lands.
— A province or city, or a municipality within MMA, may levy an annual
tax on idle lands at the rate not exceeding five percent (5%) of the
assessed value of the property which shall be in addition to the basic
real property tax.
ARTICLE 328. Idle Lands, Coverage. — For purposes of
real property taxation, idle lands shall include the following:
(a) Agricultural lands, more than one (1) hectare in
area, suitable for cultivation, dairying, inland fishery, and other
agricultural uses, one-half (½) of which remain uncultivated or
unimproved by the owner of the property or person having legal interest
therein. Agricultural lands planted to permanent or perennial crops
with at least fifty (50) trees to a hectare shall not be considered
idle lands. Lands actually used for grazing purposes shall likewise not
be considered idle lands.
(b) Lands, other than agricultural, located in a city
or municipality, more than one thousand (1,000) square meters in area
one-half (½) of which remain unutilized or unimproved by the
owner of the property or person having legal interest therein.
Regardless of land area, this Article shall likewise apply to
residential lots in subdivisions duly approved by proper authorities,
the ownership of which has been transferred to individual owners, who
shall be liable for the additional tax provided that individual lots of
such subdivisions, the ownership of which has not been transferred to
the buyer shall be considered as part of the subdivision, and shall be
subject to the additional tax payable by the subdivision owner or
operator.
ARTICLE 329. Idle Lands Exempt from Tax. — A province
or a city or a municipality within MMA may exempt idle lands from the
additional levy by reason of force majeure, civil disturbance, natural
calamity, or any cause or circumstance which physically or legally
prevents the owner of the property or person having legal interest
therein from improving, utilizing, or cultivating the same.
ARTICLE 330. Listing of Idle Lands by the Local
Assessor. — The provincial, city, or municipal assessor shall make and
keep an updated record of all idle lands located within his area of
jurisdiction. For purposes of collection, the provincial, city, or
municipal assessor shall furnish a copy thereof to the provincial or
city treasurer who shall notify, on the basis of such record, the owner
of the property or person having legal interest therein of the
imposition of the additional tax.
ARTICLE 331. Special Levy by Local Government Units.
— A province, city, or municipality may impose a special levy on the
lands comprised within its territorial jurisdiction specially benefited
by public works projects or improvements funded by the LGU concerned
provided that the special levy shall not exceed sixty percent (60%) of
the actual cost of such projects and improvements, including the costs
of acquiring land and such other real property in connection therewith
and provided further that the special levy shall not apply to lands
exempt from basic real property tax and the remainder of the land
portions of which have been donated to the LGU concerned for the
construction of such projects or improvements.
ARTICLE 332. Ordinance Imposing a Special Levy. — A
tax ordinance imposing a special levy shall describe with reasonable
accuracy the nature, extent, and location of the public works projects
or improvements to be undertaken, state the estimated cost thereof,
specify the metes and bounds by monuments and lines and the number of
annual installments for the payment of the special levy which in no
case shall be less than five (5) nor more than ten (10) years. The
sanggunian concerned shall not be obliged, in the apportionment and
computation of the special levy, to establish a uniform percentage of
all lands subject to the payment of the tax for the entire district,
but it may fix different rates for different parts or sections thereof,
depending on whether such land is more or less benefited by the
proposed work.
ARTICLE 333. Publication of Proposed Ordinance
Imposing a Special Levy. — Before the enactment of an ordinance
imposing a special levy, the sanggunian concerned shall conduct a
public hearing thereon and notify in writing the owners of the real
property to be affected or the persons having legal interest therein as
to the date and place thereof and afford the latter the opportunity to
express their positions or objections relative to the proposed
ordinance.
ARTICLE 334. Fixing the Amount of Special Levy. — The
special levy authorized herein shall be apportioned, computed, and
assessed according to the assessed valuation of the lands affected as
shown by the books of the local assessor concerned, or its current
assessed value as fixed by said assessor if the property does not
appear on record in his books. Upon the effectivity of the ordinance
imposing special levy, the assessor concerned shall forthwith proceed
to determine the annual amount of special levy assessed against each
parcel of land comprised within the area especially benefited and shall
send to each landowner a written notice thereof by mail, personal
service, or publication in appropriate cases.
ARTICLE 335. Taxpayers' Remedies Against Special
Levy. — Any owner of real property affected by a special levy or any
person having a legal interest therein may, upon receipt of the written
notice of assessment of the special levy, avail of the remedies
provided in Article 317 of this Rule.
ARTICLE 336. Accrual of Special Levy. — The special
levy shall accrue on the first day of the quarter next following the
effectivity of the ordinance imposing such levy.
ARTICLE 337. Date of Accrual of Tax. — The real
property tax for any year shall accrue on the first day of January and
from the date it shall constitute a lien on the property which shall be
superior to any other lien, mortgage, or encumbrance of any kind
whatsoever, and shall be extinguished only upon the payment of the
delinquent tax.
ARTICLE 338. Collection of Tax. — The collection of
the real property tax with interest thereon and related expenses, and
the enforcement of the remedies provided in this Rule or any applicable
laws, shall be the responsibility of the city or municipal treasurer
concerned.
Property owners, however, at their option or convenience, may pay their
real property taxes to the provincial treasurer of the province to
which the municipality where the subject property is located, belongs.
The city or municipal treasurer may deputize the barangay treasurer to
collect all taxes on real property located in the barangay provided
that the barangay treasurer is properly bonded for the purpose and
provided further that the premium on the bond shall be paid by the city
or municipality concerned.
ARTICLE 339. Local Assessor to Furnish Local
Treasurer with Assessment Roll. — The provincial, city, or municipal
assessor shall prepare and submit to the local treasurer concerned, on
or before the thirty-first (31st) day of December each year, an
assessment roll containing a list of all persons whose real properties
have been newly assessed or reassessed and the values of such
properties.
ARTICLE 340. Notice of Time for Collection of Tax. —
The city or municipal treasurer shall, on or before the thirty-first
(31st) day of January each year, in the case of the basic real property
tax and the additional tax for special education fund or on any other
date to be prescribed by the sanggunian concerned in the case of any
other tax levied in this Rule, post the notice of the dates when the
tax may be paid without interest at a conspicuous and publicly
accessible place at the city or municipal hall. Said notice shall
likewise be published in a newspaper of general circulation in the
locality once a week for two (2) consecutive weeks.
ARTICLE 341. Payment of Real Property Taxes in
Installments. — The owner of the real property or the person having
legal interest therein may pay the basic real property tax and the
additional tax for special education fund due thereon without interest
in four (4) equal installments; the first installment to be due and
payable on or before the thirty-first (31st) of March, the second
installment, on or before the thirtieth (30th) of June; the third
installment, on or before the thirtieth (30th) of September, and the
last installment on or before the thirty-first (31st) of December,
except the special levy for which the payment thereof shall be governed
by ordinance of the sanggunian concerned.
The date for payment of any other tax imposed in this Rule without
interest shall be prescribed by the sanggunian concerned.
Payments of real property taxes shall first be applied to prior years
delinquencies, interests, and penalties, if any, and only after said
delinquencies are settled may tax payments be credited for the current
period.
ARTICLE 342. Tax Discount for Advanced and Prompt
Payment. — If the basic real property tax and the additional tax
accruing to special education fund are paid on time or in advance in
accordance with the prescribed schedule of payment as provided in
Article 341 of this Rule, the sanggunian concerned may grant a discount
not exceeding twenty percent (20%) of the annual tax due.
For purposes of this Rule, prompt payments may be given a discount of
ten percent (10%), while advanced payments may be entitled to the
maximum discount of twenty percent (20%).
ARTICLE 343. Payment Under Protest. — (a) No protest
shall be entertained unless the taxpayer first pays the tax. There
shall be annotated on the tax receipts the words paid under protest.
The protest in writing must be filed within thirty (30) days from
payment of the tax to the provincial or city treasurer, or municipal
treasurer, in the case of a municipality within MMA, who shall decide
the protest within sixty (60) days from receipt.
(b) The tax or a portion thereof paid under protest
shall be held in trust by the local treasurer concerned. Fifty percent
(50%) of the tax paid under protest shall, however, be distributed in
accordance with the provisions of this Rule on the distribution of
proceeds.
(c) In the event that the protest is finally decided
in favor of the taxpayer, the amount or portion of the tax protested
shall be refunded to the protestant, or applied as tax credit against
his existing or future tax liability.
(d) In the event that the protest is denied or upon
the lapse of the sixty-day period prescribed in paragraph (a) hereof,
the taxpayer may avail of the remedies provided in Articles 317 and 320
of this Rule.
ARTICLE 344. Repayment of Excessive Collections. —
When an assessment of basic real property tax, or any other tax levied
in this Rule, is found to be illegal or erroneous and the tax is
accordingly reduced or adjusted, the taxpayer may file a written claim
for refund or credit for taxes and interests with the provincial or
city treasurer within two (2) years from the date the taxpayer is
entitled to such reduction or adjustment.
The provincial or city treasurer shall decide the claim for tax refund
or credit within sixty (60) days from receipt thereof. In case the
claim for tax refund or credit is denied, the taxpayer may avail of the
remedies as provided in this Rule.
ARTICLE 345. Notice of Delinquency in the Payment of
Real Property Tax. — (a) When the real property tax or any other tax
imposed in this Rule becomes delinquent, the provincial, city or
municipal treasurer shall immediately cause a notice of the delinquency
to be posted at the main entrance of the provincial capitol, or city or
municipal hall and in a publicly accessible and conspicuous place in
each barangay of the LGU concerned. The notice of delinquency shall
also be published once a week for two (2) consecutive weeks, in a
newspaper of general circulation in the province, city, or municipality
concerned.
(b) The notice shall specify the date upon which the
tax became delinquent and shall state that personal property may be
distrained to effect payment. It shall likewise state that at any time
before the distraint of personal property, payment of the tax with
surcharges, interests and penalties may be made in accordance with
Article 346 of this Rule, and unless the tax, surcharges, and penalties
are paid before the expiration of the year for which the tax is due,
except when the notice of assessment or special levy is contested
administratively or judicially pursuant to the provisions of this Rule,
the delinquent real property will be sold at public auction, and the
title to the property will be vested in the purchaser, subject,
however, to the right of the delinquent owner of the property or any
person having legal interest therein to redeem the property within one
(1) year from the date of sale.
ARTICLE 346. Interests on Unpaid Real Property Tax. —
Failure to pay the basic real property tax or any other tax levied in
this Rule upon the expiration of the periods prescribed in Article 341
hereof, or when due, as the case may be, shall subject the taxpayer to
the payment of interest at the rate of two percent (2%) per month on
the unpaid amount or a fraction thereof, until the delinquent tax shall
have been fully paid provided that in no case shall the total interest
on the unpaid tax or portion thereof exceed thirty-six (36) months.
ARTICLE 347. Remedies for the Collection of Real
Property Tax. — For the collection of the basic real property tax and
any other tax levied under this Rule, LGU may avail of remedies by
administrative or judicial action. The administrative remedies which
are summary in nature are:
(a) Levy on real property, and
(b) Sale of real property at public auction.
The judicial remedy is availed of in the court of appropriate
jurisdiction. These remedies are cumulative, simultaneous and
unconditional, that is, any or all of the remedies or combination
thereof may be resorted to and the use or non-use of one remedy shall
not be a bar against the institution of the others. Formal demand for
the payment of the delinquent taxes and penalties due is not a
pre-requisite to such remedies. The notice of delinquency required in
Article 346 of this Rule shall be sufficient for the purpose.
ARTICLE 348. Local Government Lien. — The basic real
property tax and any other tax levied under this Rule constitute a lien
on the property subject to tax, superior to all liens, charges or
encumbrances in favor of any person, irrespective of the owner or
possessor thereof, enforceable by administrative or judicial action,
and may only be extinguished upon payment of the tax and the related
interests and expenses.
ARTICLE 349. Levy on Real Property. — After the
expiration of the time required to pay the basic real property tax or
any other tax levied under this Rule, real property subject to such tax
may be levied upon through the issuance of a warrant on or before, or
simultaneously with the institution of the civic action for the
collection of the delinquent tax. Levy on real property shall be made
in the manner herein set forth.
(a) The provincial or city treasurer, or municipal
treasurer of a municipality within MMA when issuing a warrant of levy
shall prepare the duly authenticated certificate showing the name of
the delinquent property owner or person having legal interest therein,
the description of the property, the amount of the tax due and the
interest thereon.
(b) The warrant shall be mailed to or served upon the
delinquent real property owner or person having legal interest therein.
In case he is out or can not be located, to the occupant or
administrator of the subject property.
(c) Written notice of levy with the attached warrant
shall be mailed to or served upon the assessor and the registrar of
deeds of the province, city, or municipality within MMA where the
property is located.
(d) The assessor and registrar of deeds shall
annotate the levy on the tax declaration and the certificate of title,
respectively.
(e) The levying officer shall submit a written report
on the levy to the sanggunian concerned within ten (10) days after
receipt of the warrant by the property owner or person having legal
interest in the property.
ARTICLE 350. Penalty for Failure to Issue and Execute
Warrant. — Without prejudice to criminal prosecution under the Revised
Penal Code and other applicable laws, any local treasurer or his deputy
who fails to issue or execute the warrant of levy within one (1) year
from the time the tax becomes delinquent or within thirty (30) days
from the date of the issuance thereof, or who is found guilty of
abusing the exercise thereof in an administrative or judicial
proceeding shall be dismissed from the service.
ARTICLE 351. Advertisement and Sale. — Within thirty
(30) days after service of the warrant of levy, the local treasurer
shall proceed to publicly advertise for sale or auction the property or
a usable portion thereof as may be necessary to satisfy the tax
delinquency and expenses of sale. The advertisement shall be effected
by posting a notice at the main entrance of the provincial, city, or
municipal building, and in a conspicuous and publicly accessible place
in the barangay where the real property is located, and by publication
once a week for two (2) weeks in a newspaper of general circulation in
the province, city, or municipality where the property is located. The
advertisement shall specify the amount of the delinquent tax, the
interest due thereon and expenses of sale, the date and place of sale,
the name of the owner of the real property or person having legal
interest therein, and a description of the property to be sold. At any
time before the date fixed for the sale, the owner of the real property
or person having legal interest therein may stay the proceedings by
paying the delinquent tax, the interest due thereon and the expenses of
sale. The sale shall be held either at the main entrance of the
provincial, city, or municipal building, or on the property to be sold,
or any other place as specified in the notice of the sale.
Within thirty (30) days after the sale, the local treasurer or his
deputy shall make a report of the sale to the sanggunian concerned, and
which shall form part of his records. The local treasurer shall
likewise prepare and deliver to the purchaser a certificate of sale
which shall contain the name of the purchaser, a description of the
property sold, the amount of the delinquent tax, the interest due
thereon, the expenses of the sale and a brief description of the
proceedings provided that, proceeds of the sale in excess of the
delinquent tax, the interest due thereon, and the expenses of sale
shall be remitted to the owner of the real property or person having
legal interest therein.
The local treasurer may, by a duly approved ordinance, advance an
amount sufficient to defray the costs of collection through the
remedies provided for in this Rule, including the expenses of
advertisement and sale.
ARTICLE 352. Redemption of Property Sold. — Within
one (1) year from the date of sale, the owner of the delinquent real
property or person having legal interest therein, or his
representative, shall have the right to redeem the property upon
payment to the local treasurer of the amount of the delinquent tax,
including the interest due thereon, and the expenses of sale from the
date of delinquency to the date of sale, plus interest of not more than
two percent (2%) per month on the purchase price from the date of sale
to the date of redemption. Such payment shall invalidate the
certificate of sale issued to the purchaser and the owner of the
delinquent real property or person having legal interest therein shall
be entitled to a certificate of redemption which shall be issued by the
local treasurer or his deputy.
From the date of sale until the expiration of the period of redemption,
the delinquent real property shall remain in the possession of the
owner or person having legal interest therein who shall be entitled to
the income and other fruits thereof.
The local treasurer or his deputy, upon receipt from the purchaser of
the certificate of sale, shall forthwith return to the latter the
entire amount paid by him plus interest of not more than two percent
(2%) per month. Thereafter, the property shall be free from the lien of
such delinquent tax, interest due thereon and expenses of sale.
ARTICLE 353. Final Deed to Purchaser. — In case the
owner or person having legal interest therein fails to redeem the
delinquent property as provided herein, the local treasurer shall
execute a deed conveying to the purchaser said property, free from lien
of the delinquent tax, interest due thereon and expenses of sale. The
deed shall briefly state the proceedings upon which the validity of the
sale rests.
ARTICLE 354. Purchase of Property By the Local
Government Units for Want of Bidder. — In case there is no bidder for
the real property advertised for sale as provided herein, or if the
highest bid is for an amount insufficient to pay the real property tax
and the related interest and costs of the sale, the local treasurer
conducting the sale shall purchase the property in behalf of the LGU
concerned to satisfy the claim and within two (2) days thereafter shall
make a report of his proceedings which shall be reflected upon the
records of his office. It shall be the duty of the registrar of deeds
concerned, upon registration with his office of any such declaration of
forfeiture, to transfer the title of the forfeited property to the LGU
concerned without the necessity of an order from a competent court.
Within one (1) year from the date of such forfeiture, the taxpayer or
his representative, may redeem the property by paying to the local
treasurer the full amount of the real property tax and the related
interest and costs of sale. If the property is not redeemed as provided
herein, the ownership thereof shall be fully vested on the LGU
concerned.
ARTICLE 355. Resale of Real Estate Taken for Taxes,
Fees, or Charges. — The sanggunian concerned may, by a duly approved
ordinance, and upon notice of not less than twenty (20) days, sell and
dispose of the real property acquired under the preceding Article at
public auction. The proceeds of the sale shall accrue to the general
fund of the LGU concerned.
ARTICLE 356. Further Distraint or Levy. — Levy may be
repeated if necessary on the same property subject to tax until the
full amount due, including all expenses, is collected.
ARTICLE 357. Collection of Real Property Tax Through
the Courts. — The delinquent basic real property tax or any other tax
levied under this Rule shall constitute a lawful indebtedness of the
taxpayer to the LGU. Collection of such indebtedness can be enforced
thru civil action in any court of competent jurisdiction, as follows:
(a) The provincial or city treasurer, or municipal
treasurer of a municipality of MMA shall furnish the provincial
attorney or city or municipal legal officer a certified statement of
delinquency who, within fifteen (15) days after receipt, shall file the
civil action in the name of the province, city, or municipality in the
proper court of competent jurisdiction. The jurisdiction of the court
is determined by the amount sought to be recovered exclusive of
interests and costs. Thus, where the delinquent tax due does not exceed
Ten Thousand Pesos (P10,000.00), the competent court is the municipal
or city trial court, and where the amount due is in excess of Ten
Thousand Pesos (P10,000.00), the proper court is the regional trial
court.
(b) Where cognizable in an inferior court, the action
must be filed in the municipality or city where the delinquent property
is located. Where the regional trial court has jurisdiction, the
plaintiff LGU shall file the complaint in the city or province where
the property is situated.
(c) In both cases, that is, where the claim is either
cognizable by an inferior court or by the regional trial court, the
provincial or city treasurer shall furnish the provincial attorney or
the city or municipal legal officer concerned the exact address of the
defendant where he may be served with summons.
ARTICLE 358. Action Assailing Validity of Tax Sale. —
(a) No court shall entertain any action assailing the validity of any
sale at public auction of real property or rights therein under this
Rule until the taxpayer shall have deposited with the court the amount
for which the real property was sold, together with interest of two
percent (2%) per month from the date of sale to the time of the
institution of the action. The amount so deposited shall be paid to the
purchaser at the auction sale if the deed is declared invalid but it
shall be returned to the depositor if the action fails.
(b) No court shall declare a sale at public auction
invalid by reason of irregularities or informalities in the proceedings
unless the substantive rights of the delinquent owner of the real
property or the person having legal interest therein have been
impaired.
ARTICLE 359. Payment of Delinquent Taxes on Property
Subject of Controversy. — In any action involving the ownership or
possession of, or succession to, real property the court may, motu
proprio or upon representation of the provincial, city, or municipal
treasurer or their respective deputies, award such ownership,
possession, or succession to any party to the action upon payment to
the court of the taxes with interests due to the property and all other
costs that may have accrued, subject to the final outcome of the
action.
ARTICLE 360. Certification of Local Treasurer on
Delinquencies Remaining Uncollectible. — The provincial, city, or
municipal treasurer or their deputies shall prepare a certified list of
all real property tax delinquencies which remained uncollected or
unpaid for at least one (1) year in his jurisdiction, and a statement
of the reason or reasons for such non-collection or non-payment, and
shall submit said documents to the sanggunian concerned on or before
December thirty-first (31st) of the year immediately succeeding the
year in which the delinquencies were incurred, with a request for
assistance in the enforcement of the remedies for collection provided
in this Rule.
ARTICLE 361. Periods Within Which To Collect Real
Property Taxes. — The basic real property tax and any other tax levied
under this Rule shall be collected within five (5) years from the date
they become due. No action for collection of the tax, whether
administrative or judicial, shall be instituted after the expiration of
such period. In case of fraud or intent to evade payment of the tax,
such action may be instituted for the collection thereof within ten
(10) years from the discovery of such fraud or intent to evade payment.
The period of prescription within which to collect shall be suspended
for the time during which:
(a) The local treasurer is legally prevented from
collecting the tax;
(b) The owner of the property or the person having
legal interest therein requests for reinvestigation and executes a
waiver in writing before the expiration of the period within which to
collect; and
(c) The owner of the property or the person having
legal interest therein is out of the country or otherwise cannot be
located.
ARTICLE 362. Distribution of Proceeds. — (a) The
proceeds of the basic real property tax, including interest thereon,
and proceeds from use, lease or disposition, sale or redemption of
property acquired at a public auction, and fifty percent (50%) of the
tax paid under protest collected by the local treasurer shall be
distributed as follows:
Provinces
(1) Provincial Share — Thirty-five percent (35%)
shall accrue to the general fund.
(2) Municipal Share — Forty percent (40%) shall
accrue to the general fund of the municipality where the property is
located.
(3) Barangay Share — Twenty-five percent (25%) shall
accrue to the barangay where the property is located.
Cities
(1) City Share — Seventy percent (70%) shall accrue
to the general fund of the city.
(2) Barangay Share — 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%) share accrue to the barangay
where the property is located.
(ii) Fifty percent (50%) shall accrue equally to all
component barangays of the city.
Municipality within MMA
(1) Metropolitan Manila Authority Share — Thirty-five
percent (35%) shall accrue to the general fund of the Authority.
(2) Municipal Share — Thirty-five percent (35%) shall
accrue to the general fund of the municipality where the property is
located.
(3) Barangay Share — Thirty percent (30%) shall be
distributed among the component barangays of the municipality where the
real 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 municipality.
(b) The share of each barangay shall be released
directly to the barangay treasurer on a quarterly basis within five (5)
days after the end of each quarter, without need of any further action,
and shall not be subject to any lien or holdback for whatever purpose
subject to such rules as may be prescribed by COA for this purpose.
ARTICLE 363. Application of Proceeds of the
Additional One Percent (1%) Special Education Fund Tax. — (a) The
proceeds of the additional one percent (1%) real property tax accruing
to special education fund shall be automatically released to the local
school boards.
(b) In case of provinces, the process of the special
education fund shall be divided equally between the provincial and
municipal school boards.
(c) Said proceeds shall be allocated as determined
and approved by the local school board concerned only for the following
purposes:
(1) operation and maintenance of public schools;
(2) construction and repair of school buildings,
facilities and equipment;
(3) educational research;
(4) purchase of books and periodicals; and
(5) sports development.
ARTICLE 364. Proceeds of the Tax on Idle Lands. — The
collection of additional real property tax on the idle lands shall
accrue to the respective general fund of the province or city where the
land subject to tax is situated. In the case of a municipality within
MMA, the same shall accrue equally to the Metropolitan Manila Authority
and the municipality where the land is situated. Accordingly, the
proceeds of this tax shall be treated in the income account as revenue
from taxation.
ARTICLE 365. Proceeds of the Special Levy. — The
proceeds of the special levy of lands benefited by public works,
projects and other improvements shall accrue to the general fund of the
LGU which financed such public works, projects or other improvements.
Accordingly, all income derived from this special levy shall be treated
in the income account as revenue from taxation.
ARTICLE 366. General Assessment Revision; Expenses
Incident Thereto. — (a) The sanggunian of provinces, cities and
municipalities within MMA shall provide the necessary appropriations to
defray the expenses incident to the general revision of real property
assessment.
(b) All expenses incident to a general revision of
real property assessments shall, by ordinance of the sangguniang
panlalawigan, be apportioned between the province and the municipality
on the basis of the taxable area of the municipality concerned.
(c) The barangays may be required by the sanggunian
of the city or municipality to share in the expenses to be incurred for
the conduct of a general revision of real property assessments.
ARTICLE 367. Condonation or Reduction of Real
Property Tax and Interest. — In case of a general failure of crops or
substantial decrease in the price of agricultural or agribased
products, or calamity in any province, city, or municipality, the
sanggunian concerned, by ordinance passed prior to the first (1st) day
of January of any year and upon recommendation of the Local Disaster
Coordinating Council, may condone or reduce, wholly or partially, the
taxes and interest thereon for the succeeding year or years in the city
or municipality affected by the calamity.
ARTICLE 368. Condonation or Reduction of Tax by the
President of the Philippines. — The President of the Philippines may,
when public interest so requires, condone or reduce the real property
tax and interest for any year in any province or city or a municipality
within MMA.
ARTICLE 369. Duty of Registrar of Deeds and Notaries
Public to Assist the Provincial, City, or Municipal Assessor. — It
shall be the duty of the registrar of deeds and notaries public to
furnish the provincial, city, or municipal assessor with copies of all
contracts selling, transferring or otherwise conveying, leasing or
mortgaging real property received by, or acknowledged before them.
ARTICLE 370. Duty of Insurance Companies to Furnish
Information to Local Assessor. — Insurance companies are hereby
required to furnish the provincial, city, or municipal assessor copies
of any contract or policy insurance on buildings, structures, and
improvements insured by them or such other documents which may be
necessary for the proper assessment thereof.
ARTICLE 371. Fees in Court Actions. — All court
actions, criminal or civil, instituted at the instance of the
provincial, city, or municipal treasurer or assessor under the
provisions of this Rule, shall be exempt from the payment of court and
sheriff's fees.
ARTICLE 372. Fees in Registration of Papers or
Documents on Sale of Delinquent Real Property to Provinces, Cities, or
Municipalities. — All certificates, documents and papers covering the
sale of delinquent property to the province, city, or municipality, if
registered in the Registry of Property, shall be exempt from the
documentary stamp tax and registration fees.
ARTICLE 373. Real Property Assessment Notices or
Owner's Copies of Tax Declarations To Be Exempt from Postal Charges or
Fees. — All real property assessment notices or owner's copies of tax
declarations sent through the mails by the assessor shall be exempt
from payment of postal charges or fees.
ARTICLE 374. Sale and Forfeiture Before Effectivity
of the Code. — Tax delinquencies incurred, and sales and forfeitures of
delinquent real property effected, before the effectivity of the Code,
shall be governed by the provisions of applicable laws then in force.
ARTICLE 375. Penalties for Omission of Property from
Assessment or Tax Rolls by Officers and Other Acts. — Any officer
charged with the duty of assessing a real property who willfully fails
to assess, or who intentionally omits from the assessment or tax roll
any real property which he knows to be taxable, or who willfully or
negligently underassesses any real property, or who intentionally
violates or fails to perform any duty imposed upon him by law relating
to the assessment of taxable real property shall, upon conviction, be
punished by imprisonment of not less than one (1) month nor more than
six (6) months, or by a fine of not less than One Thousand Pesos
(P1,000.00) nor more than Five Thousand Pesos (P5,000.00), or both such
imprisonment and fine, at the discretion of the court.
The same penalty shall be imposed upon any officer charged with the
duty of collecting the tax due on real property who willfully or
negligently fails to collect the tax and institute the necessary
proceedings for the collection of the same.
Any other officer required by this Rule to perform acts relating to the
administration of the real property tax or to assist the assessor or
treasurer in such administration, who willfully fails to discharge such
duties shall, upon conviction, be punished by imprisonment of not less
than one (1) month nor more than six (6) months, or by a fine of not
less than Five Hundred Pesos (P500.00) nor more than Five Thousand
Pesos (P5,000.00), or both such imprisonment and fine, at the
discretion of the court.
ARTICLE 376. Penalties for Delaying Assessment of
Real Property and Assessment Appeals. — Any government official who
intentionally and deliberately delays the assessment of real property
or the filing of any appeal against its assessment shall, upon
conviction, be punished by imprisonment of not less than one (1) month
nor more than six (6) months, or by a fine of not less than Five
Hundred Pesos (P500.00), nor more than Five Thousand Pesos (P5,000.00),
or both such imprisonment and fine, at the discretion of the court.
ARTICLE 377. Penalties for Failure to Dispose of
Delinquent Real Property at Public Auction. — The local treasurer
concerned who fails to dispose of delinquent real property at public
auction in compliance with the pertinent provisions of this Rule, and
any other LGU official whose acts hinder the prompt disposition of
delinquent real property at public auction shall, upon conviction, be
subject to imprisonment of not less than one (1) month nor more than
six (6) months, or a fine of not less than One Thousand Pesos
(P1,000.00) nor more than Five Thousand Pesos (P5,000.00), or both such
imprisonment and fine, at the discretion of the court.
RULE
XXXII
Shares of Local Government Units
in the Proceeds of National Taxes
PART
I
Internal Revenue Allotment
ARTICLE 378. Allotment of Internal Revenue Taxes. —
The total annual internal revenue allotments (IRAs) due the LGUs shall
be determined on the basis of collections from national internal
revenue taxes actually realized as certified by the BIR during the
third fiscal year preceding the current fiscal year as follows:
(a) For the first year of effectivity of the Code
(1992), thirty percent (30%);
(b) For the second year (1993), thirty-five percent
(35%); and
(c) For the third year (1994), and thereafter, forty
percent (40%).
ARTICLE 379. Adjustment in the Internal Revenue
Allotment Share. — (a) In the event that an unmanageable public sector
deficit is incurred by the National Government, the Secretary of
Finance, the Secretary of the Interior and Local Government, and the
Secretary of Budget and Management shall submit to the President a
joint recommendation that will institute necessary adjustments in the
IRAs of LGUs.
(b) Upon receipt of the joint recommendation of the
Secretary of Finance, the Secretary of the Interior and Local
Government, and the Secretary of Budget and Management and subject to
consultation with the presiding officers of both Houses of Congress and
the presidents of the leagues of LGUs, the President shall authorize
the necessary adjustments of the total IRA to be distributed among LGUs
for the given year, provided that in no case shall the adjusted amount
be less than thirty percent (30%) of the national internal revenue tax
collections of the third fiscal year preceding the fiscal year during
which the reduction is to be made.
(c) Adjustment to the IRA share of LGUs shall be made
only after effecting a corresponding reduction of the National
Government expenditures including cash and non-cash budgetary aids to
GOCCs, government financial institutions (GFIs), the Oil Price
Stabilization Fund (OPSF), and the Central Bank (CB).
ARTICLE 380. Scope. — (a) The IRA of LGUs shall be an
integration of all allotments received by them under existing laws,
such as the regular internal revenue allotments, the specific tax
allotments (STA), and shares from the Local Government Revenue
Stabilization Fund (LGRSF).
(b) Without prejudice to the provisions of RA 6743,
the IRA of LGUs under the Autonomous Region in Muslim Mindanao shall be
governed by the Code and the related implementing guidelines, which in
no case shall be less than the amount as determined by the
computational formula provided in Article 382 of this Rule.
(c) The share of COA in the collections of internal
revenue taxes shall continue to be governed by Sec. 24 (3) of PD 1445,
as amended.
ARTICLE 381. Cost of Devolved Personal Services. —
For the first year of the effectivity of the Code, the thirty percent
(30%) IRAs due LGUs shall include the cost of devolved functions for
essential public services. The amount equivalent to the cost of
devolved personal services shall be remitted to LGUs concerned in
addition to their respective IRA for the year.
ARTICLE 382. Allocation of the Internal Revenue
Allotment. — (a) The total annual IRA shares due all LGUs shall be
allocated as follows:
Provinces — Twenty-three percent (23%)
Cities — Twenty-three percent (23%)
Municipalities — Thirty-four percent (34%)
Barangays — Twenty percent (20%)
(b) The share of every province, city, and
municipality shall be determined on the basis of the following
distribution formula:
Population — Fifty percent (50%)
Land Area — Twenty-five percent (25%)
Equal Sharing — Twenty-five percent (25%)
(c) Every barangay with a population of not less than
one hundred (100) inhabitants shall be entitled to an IRA share of not
less than Eighty Thousand Pesos (P80,000.00) per annum chargeable
against the 20% share of the barangays from the total IRA;
(d) After deducting the aggregate sum of the
individual barangay share of Eighty Thousand Pesos (P80,000.00) each
from the total twenty percent (20%) allocation for all barangays, the
remaining balance of said twenty percent (20%) allocation shall be
further distributed to the barangays on the basis of the following
formula:
(1) For Calendar Year 1992
Population — Forty percent (40%); and
Equal Sharing — Sixty percent (60%).
(2) For Calendar Year 1993
Population — Fifty percent (50%) and
Equal Sharing — Fifty percent (50%)
(3) For Calendar Year 1994; and thereafter
Population — Sixty percent (60%); and
Equal Sharing — Forty percent (40%).
(e) Financial requirements for the initial year of
existence of provinces, cities, and municipalities to be created after
the effectivity of the Code shall be specified in the law creating said
LGUs.
(f) Financial requirements of barangays created by
LGUs after the effectivity of the Code shall be the responsibility of
the LGU concerned.
ARTICLE 383. Automatic Release of IRA Shares of LGUs.
— (a) The individual shares in IRA of each LGU shall be automatically
released, without need of any further action, direct to the provincial,
city, municipal, or barangay treasurer, as the case may be, on a
quarterly basis but not beyond five (5) days after the end of each
quarter.
(b) For the purpose of implementing this Article, the
comprehensive Advice of Allotment for the IRA shares of LGUs for the
whole year shall be released by DBM within the first ten (10) days of
January of every year.
The corresponding Notices of Cash Allocation and checks, however, may
be released on a monthly basis but in no case shall the total amount
due any LGU for each quarter be released beyond five (5) days after the
end of the corresponding quarter.
(c) The IRA share of LGUs shall not be subject to any
lien or holdback that may be imposed by the National Government for
whatever purpose unless otherwise provided in the Code or other
applicable laws and loan contract or project agreements arising from
foreign loans and international commitments, such as premium
contributions of LGUs to the Government Service Insurance System and
loans contracted by LGUs under foreign-assisted projects.
(d) No LGU shall receive an annual IRA share that
will be less than the total amount it actually received in 1991.
ARTICLE 384. Allocation of Twenty Percent (20%) IRA
Share of LGUs for Development Projects. — It shall be mandatory for
each LGU to set aside in its annual budgets amounts no less than twenty
percent (20%) of its IRA for the year as appropriation for local
development projects that are embodied or contained in the local
development plans. Copies of local development plans shall be furnished
the DILG.
ARTICLE 385. Simplified Disbursement Scheme. — The
Secretary of Finance shall, in consultation with the Secretary of
Budget and Management, design and install a simplified disbursement
scheme that will ensure the prompt and regular release of the
individual IRA shares of all LGUs.
PART
II
Share of Local Government Units
in the National Wealth
ARTICLE 386. Share in the Proceeds from the
Development and Utilization of the National Wealth. — (a) LGUs 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.
(b) The term national wealth shall mean all natural
resources situated within the Philippine territorial jurisdiction
including lands of public domain, waters, minerals, coal, petroleum,
mineral oils, potential energy forces, gas and oil deposits, forest
products, wildlife, flora and fauna, fishery and aquatic resources, and
all quarry products.
ARTICLE 387. Amount of Share of Local Government
Units. — (a) LGUs shall, in addition to the IRA, have a share of forty
percent (40%) of the gross collection derived by the National
Government from the preceding fiscal year from the following:
(1) 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.
(2) Administrative charges enumerated herein accruing
to the National Government whether collected by the National Government
collecting agencies or, in certain cases, by LGUs.
(3) Proceeds from the development and utilization of
national wealth where the LGU actually collects and automatically
retains its share of at least forty percent (40%) of such proceeds
shall not form part of the revenue base in the computation of the forty
percent (40%) share.
ARTICLE 388. Share of the Local Government Units from
Any Government-Owned or Controlled Corporations. — LGUs shall have a
share based on the preceding fiscal year from the proceeds derived by
any NGA or GOCC engaged in the utilization and development of the
national wealth based on the following formula whichever will produce a
higher share for the LGU:
(a) One percent (1%) of the gross sales or receipts
of the preceding calendar year; or
(b) Forty percent (40%) of the mining taxes,
royalties, forestry and fishery charges and such other taxes, fees or
charges, including related surcharges, interests, or fines the NGA or
GOCC would have paid if it were not otherwise exempt.
ARTICLE 389. Allocation of Shares. — The share in the
immediately preceding Article shall be distributed in the following
manner:
(a) Where the natural resources are located in the
province:
Province — Twenty percent (20%)
Component City or
Municipality — Forty-five percent (45%); and
Barangay — Thirty-five percent (35%)
provided that where the natural resources are located in two (2) or
more provinces, or in two (2) or more component cities or
municipalities or in two (2) or more barangays, their respective shares
shall be computed on the basis of:
Population — Seventy percent (70%); and
Land Area — Thirty percent (30%).
(b) Where the natural resources are located in a
highly-urbanized or independent component city:
City — Sixty-five percent (65%); and
Barangay — Thirty-five percent (35%).
provided that where the natural resources are located in such two (2)
or more cities, the allocation of shares shall be based on the formula
on population and land area as specified in paragraph (a) hereof.
ARTICLE 390. Computation and Remittance of the Shares
of Local Government Units. — The computation and remittance of the
shares of LGUs shall be in accordance with the following procedures:
(a) The computation of the forty percent (40%) share
of each LGU in the proceeds from the development and utilization of the
national wealth from the preceding year, indicating the corresponding
share of each province, city, municipality, and barangay where the
national wealth is being developed and/or utilized, shall be submitted
by the revenue collecting agencies to DBM not later than the fifteenth
(15th) of March of each ensuing year.
(b) The allotment representing the share of each LGU
shall be released without need of any further action, directly to the
provincial, city, municipal, or barangay treasurers, as the case may
be, on a quarterly basis within five (5) days after the end of each
quarter, and which shall not be subject to any lien or holdback that
may be imposed by the National Government.
(c) Share of LGUs from the proceeds derived by any
NGA or GOCC engaged in the utilization and development of national
wealth shall be directly remitted by such agency or corporation to the
provincial, city, municipal, or barangay treasurer concerned within
five (5) days after the end of each quarter. Within three (3) days from
the date of remittance, the agency or corporation concerned shall
furnish the Treasurer of the Philippines with a copy of the remittance
advice.
ARTICLE 391. Development and Livelihood Projects. —
The proceeds from the share of LGUs referred to in Article 386 of this
Rule shall be appropriated by their respective sanggunian to finance
local development and livelihood projects provided that at least eighty
percent (80%) of the proceeds derived from the development and
utilization of hydrothermal, geothermal, and other sources of energy
shall be applied solely to lower the cost of electricity in the LGU
where such source of energy is located.
ARTICLE 392. Monitoring of Implementation. — The
DILG, in coordination with DOF and in actual consultation with the
leagues of LGUs, shall monitor the proper implementation of Part Two of
this Rule.
RULE
XXXIII
Local Government Credit
Financing
ARTICLE 393. Scope. — This Rule shall govern the
power of LGUs to create indebtedness and to enter into credit and other
financial transactions.
ARTICLE 394. General Policy. — (a) Any LGU 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) An LGU may avail of credit lines from government
or private banks and lending institutions for the purpose of
stabilizing local finances.
ARTICLE 395. Loans, Credits, and Other Forms of
Indebtedness of Local Government Units. — (a) An LGU may contract
loans, credits, 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 LGU and the lender. The proceeds from such
transactions shall accrue directly to the LGU concerned.
(b) An LGU may secure from any government bank and
lending institution short-, medium-, and long-term loans and advances
against security of real estate or other acceptable assets for the
establishment, development, or expansion of agricultural, industrial,
commercial, housing financing, and livelihood projects, and other
economic enterprises.
(c) Government financial and other lending
institutions are authorized to grant LGUs such loans, credit lines,
advances, and other forms of indebtedness for projects and purposes
referred in paragraph (b) hereof, preferably at concessional interest
rates lower than the prevailing rates as may be authorized by the
governing board of the financial or lending institution.
Prevailing rates shall mean the Central Bank standard reference rate
for medium-and long-term loans.
(d) The authority of an LGU to incur loans, credits,
or other forms of indebtedness shall be exercised through a sanggunian
resolution, which shall expressly authorize the governor, the city
mayor, the municipal mayor, or the punong barangay concerned to
negotiate and enter into contract for purposes of securing the loan,
credit, or indebtedness applied for.
ARTICLE 396. Deferred-Payment and Other Financial
Schemes. — Provinces, cities, and municipalities may likewise acquire
property, plant, machinery, equipment, and such necessary accessories
under a supplier's credit, deferred payment plan, or other financial
schemes under the following conditions:
(a) That the acquisition of such equipment,
machinery, and their accessories shall be governed by the pertinent
provisions of Rule XXXV of these Rules, whether such items are to be
supplied or purchased from a local or foreign supplier; and
(b) That the local chief executive, through a
sanggunian resolution, is authorized to negotiate the contract executed
under the deferred payment scheme.
ARTICLE 397. Bonds and Other Long-Term Securities. —
(a) Subject to the rules and regulations of the Central Bank and the
Securities and Exchange Commission, provinces, cities and
municipalities are authorized to issue bonds, debentures, securities,
collaterals, 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 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.
(b) In cases where the bond issue shall bear the
guarantee of the National Government, the approval of the Secretary of
Finance shall be required.
ARTICLE 398. Inter-Local Government Loans, Grants,
and Subsidies. — Provinces, cities, and municipalities may, upon
approval of a majority of all members of the sanggunian concerned and
in amounts not exceeding their surplus funds, extend loans, grants, or
subsidies to other LGUs under such terms and conditions as may be
agreed upon by the contracting parties.
LGUs may, upon approval of their respective sanggunians, jointly or
severally contract loans, credits, and other forms of indebtedness for
purposes mutually beneficial to them.
ARTICLE 399. Loans from Funds Secured by the National
Government from Foreign Sources. — (a) The President or his duly
authorized representative may, through any government financial or
other lending institution or agency, relend to any province, city,
municipality, or barangay, the proceeds of loans contracted with
foreign financial institutions or other international funding agencies
for the purpose of financing the construction, installation,
improvement, expansion, operation, or maintenance of public and
facilities, infrastructure facilities, or 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 President and the LGU concerned. The proceeds from
such loans shall accrue directly to the said LGU.
(b) The President may likewise authorize the
relending to LGUs of the proceeds of grants secured from foreign
sources, subject to the provisions of existing laws and applicable
grant agreements.
(c) Repayment or amortization of loans, including
accrued interest thereon, may be financed partly from the income of the
projects or services and from the regular income of the LGU, which must
be provided for and appropriated regularly in its annual budget until
the loan and the interest thereon have been fully paid.
ARTICLE 400. Financing, Construction, Maintenance,
Operation, and Management of Infrastructure Projects by the Private
Sector. — (a) LGUs may enter into contracts with any duly prequalified
individual contractor, for the financing, construction, operation, and
maintenance of any financially viable infrastructure facilities, under
the build-operate-and-transfer (B-O-T) agreement, subject to the
applicable provisions of RA 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 Article.
(b) LGUs 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 Article. It shall be the duty of the LGU concerned to
disclose to the public all projects eligible for financing, including
official notification of duly registered contractors and publication in
newspapers of general or local circulation and in conspicuous and
accessible public places. Local projects under the B-O-T agreement
shall be confirmed by the LDC concerned.
(c) Projects implemented under this Article shall be
subject to the following terms and conditions:
(1) The provincial, city, or municipal engineer, as
the case may be, upon formal request in writing by the local chief
executive, shall prepare the plans and specifications for the proposed
project, which shall be submitted to the sanggunian for approval.
(2) Upon approval by the sanggunian of the project
plans and specifications, the provincial, city, or municipal engineer
shall, as the case may be, cause to be published once every week for
two (2) consecutive weeks in at least one (1) local newspaper which is
circulated in the region, province, city or municipality in which the
project is to be implemented, a notice inviting all duly qualified
contractors to participate in a public bidding for the projects so
approved. The conduct of public bidding and award of contracts for
local government projects in this Article shall be in accordance with
the Code and other applicable laws, rules and regulations.
In the case of a B-O-T agreement, the contract shall be awarded to the
lowest complying bidder whose offer is deemed most advantageous to the
LGU and based on the present value of its proposed tolls, fees,
rentals, and charges over a fixed term for the facility to be
constructed, operated, and maintained according to the prescribed
minimum design and performance standards, plans, and specifications.
For this purpose, the winning contractor shall be automatically granted
by the LGU concerned the franchise to operate and maintain the
facility, including the collection of tolls, fees, rentals, and charges
in accordance with paragraph (c)(4) hereof.
In the case of a B-O-T agreement, the contract shall be awarded to the
lowest complying bidder based on the present value of its proposed
schedule of amortization payments for the facility to be constructed
according to the prescribed minimum design and performance standards,
plans, and specifications.
(3) Any contractor who shall undertake the
prosecution of any project in this Article shall post the required
bonds to protect the interest of the province, city, or municipality,
in such amounts as may be fixed by the sanggunian concerned and the
provincial, city, or municipal engineer shall, as the case may be, not
allow any contractor to initiate the prosecution of projects in this
Article unless such contractor presents proof or evidence that he has
posted the required bond.
(4) The contractor shall be entitled to a reasonable
return of his investment in accordance with his bid proposal as
accepted by the LGU concerned.
In the case of a B-O-T agreement, the repayment shall be made by
authorizing the contractor to charge and collect reasonable tolls,
fees, rentals, and charges for the use of the project facility not
exceeding those proposed in the bid and incorporated in the contract
provided that the LGU concerned shall, based on reasonableness and
equity, approve the tolls, fees, rentals, and charges provided,
further, that the imposition and collection of tolls, fees, rentals,
and charges shall be for a fixed period as proposed in the bid and
incorporated in the contract which shall in no case exceed fifty (50)
years and provided, finally, that during the lifetime of the contract,
the contractor shall undertake the necessary maintenance and repair of
the facility in accordance with standards prescribed in the bidding
documents and in the contract.
In the case of a B-O-T agreement, the repayment shall be made through
amortization payments in accordance with the schedule proposed in the
bid and incorporated in the contract.
In case of land reclamation or construction of industrial estates, the
repayment plan may consist of the grant of a portion or percentage of
the reclaimed land or the industrial estate constructed.
(5) Every infrastructure project undertaken in this
Article shall be constructed, operated, and maintained by the
contractor under the technical supervision of the LGU and in accordance
with the plans, specifications, standards, and costs approved by
it.
(d) The provincial, city or municipal legal officer
shall, as the case may be, review the contracts executed pursuant to
this Article to determine their legality, validity, enforceability, and
correctness of form.
(e) The pertinent Rules and Regulations Implementing
RA 6957 shall form part of this Rule (Annex D).
ARTICLE 401. Remedies and Sanctions. — LGUs shall
appropriate in their respective annual budgets such amount as are
sufficient to pay the loans and other indebtedness incurred or redeem
or retire bonds, debentures, securities, notes, and other obligations
issued pursuant to this Rule provided that failure to provide the
appropriations herein required shall render their annual budgets
inoperative.
Any LGU, through its local chief executive and upon authorization by
the sanggunian concerned, may authorize the National Government to
deduct or withhold a portion of its IRA share for the payment of its
contractual obligation, subject to the limitations in Article 419(b) of
Rule XXXIV of these Rules. For this purpose, the resolution of the
sanggunian shall clearly state the name of the creditor, the nature of
the indebtedness, the amount to be withheld, and a period of time that
such withholding of IRA shares shall be made.
ARTICLE 402. Prohibited Acts Related to the Awards of
Contract. — It shall be unlawful for any public official or employee in
the province, city or municipality, or their relatives within the
fourth civil degree of consanguinity or affinity, to enter into or have
any pecuniary interest in any contract for the construction,
acquisition, operation, or maintenance of any project awarded pursuant
to the provisions of this Rule, or for the procurement of any supplies,
materials, or equipment of any kind to be used in the said project. Any
person convicted for violation of the provisions of this Rule shall be
removed from office and shall be punished with imprisonment of not less
than one (1) month but not more than two (2) years, at the discretion
of the court, without prejudice to prosecution under other laws.
ARTICLE 403. Technical Assistance. — The DOF may
provide technical assistance to any LGU in the availment of credit
facilities, flotation of bonds, contracting of loans, and other
indebtedness and shall issue such guidelines as may be necessary for
the purpose.
RULE
XXXIV
Local Government Budgeting
ARTICLE 404. Scope. — This Rule shall cover the
budgeting operations of provinces, cities, municipalities, and
barangays.
ARTICLE 405. Fundamental Principles. — The following
fundamental principles shall govern local government budgeting:
(a) National planning shall be based on local
planning to ensure that the needs and aspirations of the people as well
as those of the LGUs shall be considered in the formulation of budgets
of NGAs;
(b) Local budget plans and goals shall, as far as
practicable, be harmonized with national development goals and
strategies in order to optimize the utilization of resources and to
avoid duplication in the use of fiscal and physical resources;
(c) LGUs shall formulate sound financial plans, and
local budgets shall be based on functions, activities, and projects, in
terms of expected results;
(d) LGUs shall ensure that their respective budgets
incorporate the requirements of their component LGUs and provide for
equitable allocation of resources among these LGUs;
(e) Local government budgets shall operationalize
approved local development plans;
(f) No money shall be paid out of the local treasury
except in pursuance of an appropriations ordinance or law;
(g) LGUs shall endeavor to have a balanced budget in
each fiscal year of operation;
(h) Local government funds and monies shall be spent
solely for public purposes;
(i) Trust funds in the local treasury shall not be
paid out except in fulfillment of the purpose for which the trust was
created or the funds received;
(j) Fiscal responsibility shall be shared by all
those exercising authority over financial affairs, transactions, and
operations of LGUs;
(k) Local revenue is generated only from sources
expressly authorized by law or ordinance, and collection thereof shall
at all times be acknowledged properly;
(l) All monies officially received by a local
government officer in any capacity or on any occasion shall be
accounted for as local funds, unless otherwise provided by law; and
(m) Every officer of LGU whose duties permit or
require the possession or custody of local funds shall be properly
bonded, and such officer shall be accountable and responsible for said
funds and for the safekeeping thereof in conformity with the provisions
of law.
ARTICLE 406. Definition of Terms. — (a) Annual Budget
refers to a financial plan embodying the estimates of income and
expenditures for one (1) fiscal year;
(b) Appropriation refers to an authorization made by
the ordinance directing the payment of goods and services from local
government funds under specified conditions or for specific purposes;
(c) Budget Document refers to the instruments used by
the local chief executive to present a comprehensive financial plan to
the sanggunian concerned;
(d) Capital Outlay refers to appropriation for the
purchase of goods and services, the benefits of which extend beyond the
fiscal year and which add to the assets of the LGU concerned, including
investments in public utilities such as public markets and
slaughterhouses;
(e) Continuing Appropriation refers to an
appropriation available to support obligation for a specified purpose
or project, such as those for the construction of physical structures
or for the acquisition of real property or equipment, even when these
obligations are incurred beyond the budget year;
(f) Current Operating Expenditures refer to
appropriations for the purchase of goods and services for the conduct
of normal local government operations within the fiscal year, including
goods and services that will be used or consumed during the budget
year;
(g) Expected Results refer to services, products, or
benefits that will accrue to the public, estimated in terms of
performance, measures, or physical targets;
(h) Fund refers to a sum of money or other assets
convertible to cash, set aside for the
purpose of carrying out specific activities or attaining certain
objectives in accordance with special regulations, restrictions, or
limitations and constitutes an independent fiscal and accounting
entity;
(i) Income refers to all revenues and receipts
collected or received forming the gross accretions of funds of the LGU;
(j) Obligations refer to an amount committed to be
paid by the LGU for any lawful act made by an accountable officer for
and in behalf of the LGU concerned;
(k) Personal Services refer to appropriations for the
payment of salaries, wages, and other compensation of temporary,
contractual, and casual employees of the LGU;
(l) Receipts refer to income realized from the
operations and activities of the LGU or are received by the LGU in the
exercise of its corporate functions, consisting of charges for services
rendered, conveniences furnished, or the price of a commodity sold, as
well as loans, contributions or aids from other entities, except
provisional advances for budgetary purposes;
(m) Revenues refer to income derived from the regular
system of taxation enforced under the authority of law or ordinance and
as such, accrue more or less regularly every year.
ARTICLE 407. Composition. — Local government budgets
shall primarily consist of two (2) parts:
(a) The estimates of income; and
(b) The total appropriations covering the current
operating expenditures and capital outlays.
ARTICLE 408. Form and Content. — The budget document
shall contain:
(a) A 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 plan;
(b) A brief summary of the functions, projects, and
activities to be accomplished in pursuit of the goals and objectives of
the LGU for the ensuing fiscal year, specifically the delivery of basic
services or facilities enumerated in Rule V of these Rules.
(c) Summary of financial statements setting forth:
(1) The actual income and expenditures during the
immediately preceding year;
(2) The actual income and expenditure of the first
two (2) quarters and the estimates of income and expenditure for the
last two (2) quarters of the current fiscal year;
(3) The estimates of income for the ensuing fiscal
year from ordinances and laws existing at the time the proposed budget
is transmitted, together with other revenue-raising proposals;
(4) The estimated expenditures necessary to carry out
the functions, projects, and activities of the LGU for the ensuing
fiscal year;
(5) All essential facts regarding the bonded and
other long-term obligations and indebtedness of the LGU, if any;
(6) Summary statement of all statutory and
contractual obligations due; and
(7) Such other financial statements and data as are
deemed necessary or desirable in order to disclose in all practicable
detail the financial condition of the LGU.
ARTICLE 409. Internal Revenue Allotment and Shares in
the Utilization of National Wealth. — For purposes of budget
preparation, DBM and other appropriate NGAs and GOCCs concerned, shall
provide LGUs, not later than the fifteenth (15th) day of June of each
year, information as to their allocation of, and shares from, the
utilization and development of national wealth, if any, for the budget
year.
ARTICLE 410. Submission of Local Development Plan. —
LDCs shall submit to the local finance committee a copy of the local
development plan and annual investment program prepared and approved
during the fiscal year before the calendar for budget preparation in
accordance with applicable laws, specifying therein projects proposed
for inclusion in the local government budget as well as in the budgets
of NGAs or GOCCs concerned.
The local finance committee shall use the plan to ensure that projects
proposed for local funding are included in the budget.
NGAs and GOCCs shall provide LGUs all necessary information on projects
already funded in their respective budgets. Such information shall
include specifically, among other things: name of project, location,
sources, and levels of funding for said projects. The same information
must be made available to the local finance committee concerned within
the first quarter of the year to avoid duplications in funding project
proposals.
ARTICLE 411. Submission of Detailed Statements of
Income and Expenditures. — On or before the fifteenth (15th) day of
July of each year, local treasurers shall submit to their respective
local chief executives a certified statement, covering the income and
expenditures of the preceding fiscal year, the actual income and
expenditures of the first two (2) quarters of the current year and the
estimated income and expenditures for the last two (2) quarters of the
current year.
All statements of income and expenditures referred to in this Article,
shall be jointly certified by the local treasurer and the local
accountant.
ARTICLE 412. Local Finance Committee. — There shall
be created in every province, city, or municipality a local finance
committee to be composed of the local planning and development
coordinator, the local budget officer, and the local treasurer. The
committee shall:
(a) Determine the income reasonably projected as
collectible for the ensuing fiscal year;
(b) Recommend appropriate tax and other revenue
measures or borrowing which may be required to support the budget;
(c) Recommend to the local chief executive concerned
the level of annual expenditures and ceilings of spending for economic,
social, and general services based on the approved local development
plans;
(d) Recommend to the local chief executive concerned
the proper allocation of expenditures for each development activity
between current operating expenditures and capital outlays;
(e) Recommend to the local chief executive concerned
the amount to be allocated for capital outlay under each development
activity or infrastructure project;
(f) Assist the sangguniang panlalawigan in the review
and evaluation of the budget of component cities and municipalities in
the case of the provincial finance committee, the barangay budgets in
the case of the city or the municipal finance committee, and recommend
appropriate action thereon;
(g) Assist the sanggunian concerned in the analysis
and review of annual regular and supplemental budgets of the respective
LGUs to determine compliance with statutory and administrative
requirements; and
(h) Conduct semi-annual review and general
examination of costs and accomplishments against performance standards
applied in undertaking development projects, and prepare a report
thereon. A copy of the report shall be furnished the local chief
executive and the sanggunian concerned, and shall be posted in
conspicuous and publicly accessible places in the provinces, cities,
municipalities, and barangays.
ARTICLE 413. Submission of Budget Proposals by Heads
of Offices or Departments. — (a) Each head of office or department
shall submit a budget proposal for his office or department to the
local chief executive on or before the fifteenth (15th) day of July of
each year.
The budget proposal of each office or department shall be categorized
under either economic, social, or general services. Each service shall
be covered by the budget of at least one (1) office or department of
the LGU.
(b) The basic services and facilities shall be funded
from the share of LGUs in the proceeds of national taxes and other
local revenues, and funding support from the National Government, its
instrumentalities and GOCCs which are tasked by law to establish and
maintain such services or facilities. Any fund or resource available
for the use of LGUs shall first be allocated for the provision of basic
services or facilities enumerated in Rule V of these Rules before
applying the same for other purposes, unless otherwise provided in
these Rules.
(c) The budget proposal shall be prepared in
accordance with such policy and program guidelines as the local chief
executive may issue in conformity with the local development plan, the
budgetary ceilings prescribed by the local finance committee, and the
budgetary requirements and limitations prescribed under this Rule.
(d) The budget proposal of offices or departments
shall be divided into two (2) parts:
(1) Current Operating Expenditures; and
(2) Capital Outlays.
(e) The budget proposal shall contain the following
information:
(1) Objectives, functions, and projects showing the
general character and relative importance of the work to be
accomplished or the services to be rendered, and the costs thereof;
(2) Organizational charts and staffing patterns
indicating the list of plantilla positions with their corresponding
salaries, and proposals for reclassification of positions and salary
changes, as well as the creation of new positions with their proposed
salary grade, duly supported by proper justification;
(3) Brief description of the functions, projects, and
activities for the ensuing fiscal year, expected results for each
function, project, and activity, and the nature of work to be
performed, including the objects of expenditure for each function,
project, and activity;
(4) Relation of the work and financial proposals to
approved local development plans;
(5) Estimated current operating expenditures and
capital outlays with comparative date for the last two (2) preceding
fiscal years, and current and ensuing fiscal years; and
(6) Accomplishment reports for the last two (2)
preceding and the current fiscal years.
(f) The budget proposal of the sanggunian shall be
submitted in the same manner and within the same period as those of the
other offices or departments in the LGU.
ARTICLE 414. Preparation of Executive Budget. — Upon
receipt of the statement of incomes and expenditures from the local
treasurer, the budget proposals of the heads of offices or departments,
and the estimates of income and budgetary ceilings from the local
finance committee, the local chief executive shall prepare the
executive budget for the ensuing fiscal year.
The local chief executive shall submit the executive budget to the
sanggunian concerned not later than the sixteenth (16th) day of October
of the current fiscal year. If the local chief executive fails to
submit the budget within the prescribed date, he shall be subject to
such criminal and administrative penalties as provided under these
Rules and other applicable laws.
ARTICLE 415. Budget Authorization. — (a) Legislative
Authorization of the Budget — On or before the end of the current
fiscal year, the sanggunian concerned shall enact, through an
ordinance, the annual budget of the LGU for the ensuing fiscal year on
the basis of the estimates of income and expenditures submitted by the
local chief executive.
In case the sanggunian concerned fails to pass the ordinance
authorizing the annual appropriations at the beginning of the ensuing
fiscal year, the ordinance authorizing the appropriations of the
preceding year shall be deemed reenacted. The sanggunian shall continue
to hold sessions without additional remuneration for its members until
the ordinance authorizing the annual appropriations 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) days from the
beginning of the fiscal year, the reenacted budget shall remain in
force and effect until such time that the ordinance authorizing the
annual appropriations is approved by the sanggunian concerned. 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.
In the implementation of the reenacted budget, the local treasurer
concerned shall exclude from estimates of income for the preceding year
those realized from non-recurring sources, like national aids, proceeds
from loans, sale of assets, prior year adjustments, and other analogous
sources of income. National aids shall not include the IRA of LGUs and
their shares in the utilization and development of national wealth.
No ordinance authorizing supplemental appropriations shall be passed in
place of annual appropriations.
In case the revised income estimates be less than the aggregate
reenacted appropriations, the local treasurer concerned shall
accordingly advise the sanggunian concerned which shall, within ten
(10) days from receipt of such advice, make necessary adjustments or
reductions. The revised appropriations authorized by the sanggunian
concerned shall then be the basis for disbursements.
The local sanggunian may not increase the proposed amount in the
executive budget nor include new items except to provide for statutory
and contractual obligations but in no case shall it exceed the total
appropriations in the executive budget.
(b) Veto Power of the Local Chief Executive — The
local chief executive may veto any ordinance of the sangguniang
panlalawigan, sangguniang panlungsod, or sangguniang bayan on the
ground that it is ultra vires or prejudicial to the public welfare,
stating his reasons therefore in writing.
The local chief executive, except the punong barangay, shall exercise
the power to veto any particular item or items of an appropriations
ordinance, or an ordinance or resolution adopting a local development
plan and public investment program, or an ordinance directing the
payment of money or creating liability. In such cases, the veto shall
not affect the item or items which are not objected to. The vetoed item
or items shall not take effect unless the sanggunian overrides the veto
in the manner provided in Rule XVII of these Rules; otherwise, the item
or items in the appropriations ordinance of the previous year
corresponding to those vetoed, if any, shall be deemed reenacted.
ARTICLE 416. Effectivity of Budgets. — (a) The
ordinance enacting the annual budget shall take effect at the beginning
of the ensuing calendar year.
(b) Supplemental budget shall take effect upon its
approval or on the date fixed in the ordinance.
The local chief executive shall be primarily responsible for the
execution and accountability for the annual and supplemental budgets.
ARTICLE 417. Changes in the Annual Budget. — Changes
in the annual budget may be done through supplemental budgets.
No ordinance providing for a supplemental budget shall be enacted
except for the following:
(a) When supported by funds actually available as
certified by the local treasurer; or by new revenue sources;
Funds actually available refers to the amount of money actually
collected as certified by the local treasurer during a given fiscal
year which is over and above the realized estimated income of that
year. An appropriation ordinance providing for the supplemental budget
sourced out of funds actually available shall be enacted only once
during the fiscal year.
(b) In times of public calamity by way of budgetary
realignment to set aside appropriations for the purchase of supplies
and materials or the payment of services which are exceptionally urgent
or absolutely indispensable to prevent imminent danger to, or loss of,
life or property, in the jurisdiction of the LGU or in other areas
declared in a state of calamity by the President. Such ordinance shall
clearly indicate the sources of funds available for appropriations, as
certified under oath jointly by the local treasurer and the local
accountant and attested by the local chief executive, and the various
items of appropriations affected, and the reasons for the change.
ARTICLE 418. Reversion of Unexpanded Balances of
Appropriations; Continuing Appropriations. — (a) Unexpected balances of
appropriations authorized in the appropriations ordinance shall revert
to the balance at the end of the fiscal year and shall not thereafter
be available for expenditure except by subsequent enactment.
Appropriations for capital outlays shall continue and remain valid
until fully spent or the project is completed.
(b) Reversions of continuing appropriations shall not
be allowed unless obligations therefore have been fully paid or
otherwise settled. Balances of continuing appropriations shall be
reviewed as part of the annual budget preparation. The sanggunian
concerned may approve, upon recommendation of the local chief
executive, the reversion of funds no longer needed in connection with
the activities funded by said continuing appropriations.
Continuing appropriations refer to appropriations available to support
obligations for a specified purpose or project, even when these
obligations are beyond the budget year.
ARTICLE 419. Budgetary Requirements. — The budgets of
LGUs for any fiscal year shall comply with the following requirements:
(a) The aggregate amount appropriated shall not
exceed the estimates of income;
(b) Full provision shall be made for all statutory
and contractual obligations of the LGU concerned provided that the
amount of appropriations for debt servicing shall not exceed twenty
percent (20%) of the regular income of the LGU concerned.
Regular income refers to the estimates of regular income for the budget
year as determined by the local finance committee.
(c) In the case of provinces, cities, and
municipalities, aid to barangays shall be provided in amounts of not
less than One thousand Pesos (P1,000.00) per barangay; and
(d) Five percent (5%) of the estimated revenue from
regular sources shall be set aside as an annual lump sum appropriation
for unforeseen expenditures arising from the occurrence of calamities
provided that such appropriation shall be used only in the area or a
portion thereof of the LGU, or other areas declared in a state of
calamity by the President.
ARTICLE 420. General Limitations. — (a) The total
appropriations, whether annual or supplemental, for personal services
of an LGU 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 or
lower class provinces, cities, and municipalities, of the total 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 public
utilities and economic enterprises owned, operated, and maintained by
the LGU concerned shall not be included in the annual budget and in the
computation of the maximum amount for personal services. The
appropriations for personal services of such economic enterprises shall
be charged to their respective budgets. The limitations prescribed
herein shall apply only after the LGU shall have complied with the
implementation of RA 6758 or Salary Standardization Law for existing
and mandatory positions.
(b) No official or employee shall be entitled to a
salary rate higher than the maximum fixed for his position or other
positions of equivalent rank by applicable laws, rules and regulations
issued thereunder;
(c) No local fund shall be appropriated to increase
or adjust salaries or wages of officials and employees of the National
Government, except as may be expressly authorized by law;
(d) In cases of abolition of positions and creation
of new ones resulting from the abolition of existing positions in the
career service, such abolition or creation shall be made in accordance
with pertinent provisions of these Rules and civil service law, rules
and regulations;
(e) Positions in the official plantilla for career
positions which are occupied by incumbents holding permanent
appointments shall be covered by adequate appropriations;
(f) No changes in designation or nomenclature of
positions resulting in a promotion or demotion in rank or increase or
decrease in compensation shall be allowed, except when the position is
actually vacant, and the filing of such positions shall be strictly
made in accordance with civil service law, rules and regulations;
(g) The creation of new positions and salary
increases or adjustments shall in no case be made retroactive; and
(h) The annual appropriations for discretionary
purposes of the local chief executive shall not exceed two percent (2%)
of the actual receipts derived from basic real property tax in the next
preceding calendar year. Discretionary funds shall be disbursed only
for public purposes to be supported by appropriate vouchers and subject
to such guidelines as may be prescribed by law. No amount shall be
appropriated for the same purpose except as authorized in this Article.
ARTICLE 421. Review of Appropriations Ordinances of
Provinces, Highly-Urbanized Cities and Independent Component Cities,
and Municipalities within the Metropolitan Manila Area. — DBM shall
review ordinances authorizing the annual or supplemental appropriations
of provinces, highly-urbanized cities, independent component cities,
and municipalities within MMA in accordance with the immediately
succeeding Article.
ARTICLE 422. Review of Appropriations Ordinances of
Component Cities and Municipalities. — (a) The Sangguniang Panlalawigan
shall review the ordinances authorizing annual or supplemental
appropriations of component cities and municipalities in the same
manner and within the same period prescribed for the review of other
ordinances.
(b) If within ninety (90) days from receipt of copies
of appropriations ordinances of component cities and municipalities,
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 budgetary requirements and limitations provided in this Rule, the
sangguniang panlalawigan shall, within the ninety-day period herein
prescribed, declare such ordinance inoperative in its entirety or in
part. Items of appropriation contrary to limitations prescribed in this
Rule or in excess of the amounts prescribed herein shall be disallowed
or reduced accordingly.
The sangguniang 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 disbursements of funds from any of the items of
appropriation declared inoperative, disallowed, or reduced.
(c) Appropriations for ordinary administrative
purposes not duly obligated shall terminate with the fiscal year and
all unexpended balances thereof shall be automatically reverted on the
thirty-first (31st) day of December of each year to the general fund of
LGU.
ARTICLE 423. Preparation of Barangay Budgets. — (a)
Unless otherwise provided in this Rule, all the income of the barangay
from whatever source 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 deposited in a bank,
preferably government-owned, situated in or nearest to its area of
jurisdiction. Such funds shall be disbursed in accordance with the
provisions of this Rule.
Ten percent (10%) of the general fund of the barangay shall be set
aside for the sangguniang kabataan. The said ten percent (10%) share
shall be appropriated and administered by the sangguniang kabataan and
shall be spent for the purposes provided in Rule XXVII of these Rules
except for personal services.
(b) On or before the fifth (5th) day of September
each year, the city or municipal treasurer, jointly with the city or
municipal accountant, shall issue a certified statement covering the
actual income of the past year and estimates of income of the current
and ensuing fiscal years from local sources for the barangay concerned.
Based on such certified statements, the barangay treasurer shall
submit, on or before the fifteenth (15th) day of September of each
year, to the punong barangay a statement covering the estimates of
income and expenditures for the past, current, and ensuing fiscal
years.
(c) Upon receipt of the statement of income and
expenditures from the barangay treasurer, the punong barangay shall
prepare the barangay budget for the ensuing fiscal year in the manner
and within the period prescribed in this Rule and submit the annual
barangay budget to the sangguniang barangay for enactment.
(d) The total annual appropriations of a barangay for
personal services, inclusive of benefits provided under applicable laws
for one (1) fiscal year, shall not exceed fifty-five percent (55%) of
the total annual income actually realized from local sources during the
next preceding fiscal year.
(e) The barangay budget including changes therein
shall be subject to the same budgetary requirements and limitations
applicable to other local government budgets.
(f) The barangay ordinance enacting the annual budget
shall take effect at the beginning of the ensuing calendar year. An
ordinance enacting a supplemental budget shall take effect upon its
approval or on the date fixed therein.
(g) The punong barangay shall be primarily
responsible for the execution of and the accountability for the annual
and supplemental budgets of the barangay.
ARTICLE 424. Review of Barangay Budgets. — (a) Within
ten (10) days from its approval, copies of the barangay ordinance
authorizing the annual appropriations shall be furnished the
sangguniang panlungsod or the sangguniang bayan, through the city or
municipal budget officer, as the case may be.
(b) The sanggunian concerned shall review the
barangay ordinance to ensure compliance thereof with all the budgetary
requirements and limitations provided in this Rule.
(c) If within sixty (60) days after receipt of the
barangay ordinance the sanggunian concerned takes no action thereon,
said ordinance shall continue to be in full force and effect. If within
the same period the sanggunian concerned shall have ascertained that
the subject ordinance contains appropriations in excess of the
estimates of income duly certified as collectible, or that the same has
not complied with the established budgetary requirement, said ordinance
shall be declared inoperative in its entirety or in part. Items of
appropriations contrary to or in excess of any of the general
limitations or the maximum amount prescribed in this Rule shall be
disallowed or reduced accordingly.
(d) Within the established reglementary period, the
sangguniang panlungsod or sangguniang bayan concerned shall return the
barangay ordinance, through the city or municipal budget officer, to
the punong barangay with the advice of action thereon in the form of a
resolution or letter of review, as may be prescribed by the sanggunian
concerned, for proper and appropriate adjustments and corrections; in
which case, the barangay shall operate on the ordinance authorizing
annual appropriations of the preceding fiscal year until such time that
the new ordinance authorizing annual appropriations for the year in
question shall have met the objections and disallowances raised by the
reviewing sanggunian.
Upon receipt of the review action on the budget, the barangay treasurer
or the city or municipal treasurer who has custody of the barangay
funds shall not make further disbursements from any items of
appropriation declared inoperative, disallowed, or reduced.
ARTICLE 425. Barangay Financial Procedures. — (a) The
barangay treasurer shall collect taxes, fees, and other charges due and
contributions accruing to the barangay. Official Receipts shall be
issued for all such collections.
(b) When deputized by the provincial or city or
municipal treasurer, the barangay treasurer shall collect real property
taxes and all other taxes as may be imposed by the province, city, or
municipality, as the case may be, due the barangay.
(c) Within five (5) days after receipt of
collections, the barangay treasurer shall deposit all collections with
the city, or municipal treasurer, or in the depository account
maintained in the name of the barangay.
(d) The barangay treasurer may be authorized by the
sangguniang barangay to:
(1) Hold petty cash that shall not exceed twenty
percent (20%) of the funds available and to the credit of the barangay
treasury; and
(2) Make direct purchases amounting to not more than
One Thousand Pesos (P1,000.00) at any time for the ordinary and
essential needs of the barangay.
(e) The financial records of the barangay such as
books of accounts, ledgers, statements of income and expenditures,
balance sheets, trial balances, and other documents shall be kept in
the office of the city or municipal accountant in a simplified manner
as may be prescribed by COA. The representatives of COA shall audit the
accounts and financial records of the barangay annually, or as often as
may be necessary, and shall submit an audit report thereon to the
sangguniang panlungsod or sangguniang bayan, as the case may be.
The COA shall prescribe simplified procedures for barangay finances
within six (6) months after approval of these Rules.
ARTICLE 426. Responsibility of the Department of
Budget and Management and the Commission of Audit. — (a) The DBM,
jointly with COA shall, within one (1) year from the effectivity of
these Rules, promulgate a Budget Operations Manual for LGUs to improve
and systematize methods, techniques, and procedures in local government
budget preparation, authorization, execution, and accountability.
(b) The DBM shall promulgate such administrative
issuances as may be needed from time to time relative to the
implementation of the provisions of this Rule.
(c) The DBM shall, upon request of LGUs, extend
technical assistance on local government budgeting.
RULE
XXXV
Local Government Supply and
Property Management
ARTICLE 427. Scope. — This Rule shall govern the
procurement, care, utilization, custody, and disposal of supplies and
the other aspects of supply management in an LGU.
This Rule shall not cover direct purchase made by the barangay
treasurer that may be authorized by the sangguniang barangay pursuant
to Article 101, Rule XVII of these Rules.
ARTICLE 428. Definition of terms. — (a) Lowest
Complying and Responsible Bid refers to the proposal of one who offers
the lowest price and meets all the technical specifications and
requirements of the supplies desired, and as a dealer in the line of
supplies involved, maintains a regular establishment, and has complied
consistently with previous commitments;
(b) Suitable Substitute refers to that kind of
article which would serve substantially the same purpose or produce
substantially the same results as the brand, type, or make of article
originally designed or requisitioned;
(c) Supplies include everything, except real
property, which may be needed in the transaction of public business or
in the pursuit of any undertaking, project, or activity, whether in the
nature of equipment, furniture, stationary materials for construction
or personal property of any sort, including non-personal or contractual
services such as the repair and maintenance of equipment and furniture,
as well as trucking, hauling, janitorial, security, and related
services; and
(d) Terms and Conditions refer to other requirements
not affecting the technical specifications and requirements of the
required supplies desired such as bonding, terms of delivery and
payment, and related preferences.
ARTICLE 429. General Rule in Procurement or Disposal.
— Except as otherwise provided in this Rule, acquisition of supplies by
LGUs shall be through competitive public bidding. Supplies which have
become unserviceable or are no longer needed shall be sold, whenever
applicable, at public auction, subject to applicable rules and
regulations.
The governor or city mayor, through the provincial or city general
services officer, respectively, and the municipal mayor or punong
barangay, through the municipal or barangay treasurer, shall provide
for the efficient and effective property management in an LGU.
ARTICLE 430. Procurement Organization. — The office
of the provincial or city general services officer shall exercise the
function of acquiring all necessary supplies for the province and the
city, respectively. The municipal treasurer and the barangay treasurer
shall exercise the same function for the municipality and barangay,
respectively.
ARTICLE 431. Annual Procurement Program. — (a) On or
before the fifteenth (15th) day of July each year, the local chief
executive shall prepare an annual procurement program for the ensuing
fiscal year which shall contain an itemized quantity of supplies needed
for the entire fiscal year, complete descriptions thereof as to kind,
quantity and quality, estimated cost, and the balance on hand. The
total estimated cost of the approved annual procurement program shall
not exceed the total appropriations authorized for the acquisition of
supplies.
LGUs may augment the supplies and equipment provided by the Supreme
Court to the lower courts located in their respective jurisdictions.
(b) Except in emergency cases or where urgent
indispensable needs could not have been reasonably anticipated, no
purchase of supplies or property shall be made unless included in, or
covered by, the approved procurement program.
(c) The conversion of excess cash into supplies or
stock is prohibited except to the extent of the kind and quantity
specified in the approved annual procurement plan.
(d) A violation of this Article shall be a ground for
suspension or dismissal of any official or employee responsible
therefore.
ARTICLE 432. Requisition Procedures. — (a)
Requirement of Requisition — Any order for supplies shall be filled by
the provincial general services officer, the city general services
officer, the municipal treasurer or barangay treasurer, as the case may
be, for any office or department of LGU concerned only upon written
requisition as hereinafter provided.
(b) Preparation of Requisition — Requisition shall be
prepared by the head of office or department, or the punong barangay
for the barangay, needing the supplies, who shall certify as to their
necessity for official use and shall specify the project or activity
where the supplies or property are to be used.
(c) Certification on Existence of Appropriations —
Every requisition must be accompanied by a request for obligation and
allotment showing the certification of the local budget officer, the
local accountant, and the local treasurer that an appropriation
therefore exists; that the estimated amount of such expenditure has
been obligated; and that funds are available for the purpose,
respectively.
In case of the barangays, every requisition must be accompanied by a
request for obligation and allotment showing the certifications of: the
chairman of the committee on appropriations or its equivalent of the
sangguniang barangay that an appropriation exists; the city or
municipal accountant that the amount has been obligated; and the
barangay treasurer that funds are available for the purpose.
(d) Forms to be Used — Requisitions shall be
accomplished using the following forms:
(1) Requisition and Issue Voucher (RIV) for supplies
carried in stock; and
(2) Purchase Request (PR) for supplies not carried in
stock.
(c) Approval of Requisitions — Approval of
requisition by the head of the office or department concerned who has
administrative control of the appropriation against which the proposed
expenditure is chargeable is deemed sufficient, except in case of
requisition for supplies to be carried in stock which shall be approved
by the local chief executive concerned provided that such supplies are
listed or included in the annual procurement plan and the maximum
quantity thereof does not exceed the estimated consumption
corresponding to a programmed three-month period and provided further
that nothing herein contained shall be construed as authorizing the
purchase of furniture and equipment for stock purposes.
The punong barangay shall approve all requisitions of the barangay.
ARTICLE 433. Call for Bids. — When procurement is to
be made by LGUs, the provincial general services officer or city
general services officer, or the municipal treasurer, or barangay
treasurer shall call bids for open public competition. The call for
bids shall show the complete specifications and technical descriptions
of the required supplies and shall embody all terms and conditions of
participation and award, terms of delivery and payment, and all other
covenants affecting the transaction. In all calls for bids, the right
to waive any defect in the tender as well as the right to accept the
bid most advantageous to the government shall be reserved. In no case,
however, shall failure to meet the specifications or technical
requirements of the supplies desired be waived.
ARTICLE 434. Publication of Call for Bids. — (a) The
call for bids shall be given the widest publicity possible, sending by
mail or otherwise, any known prospective participant in the locality,
copies of the call and by posting copies of the same in at least three
(3) publicly accessible and conspicuous places in the provincial
capitol or city, municipal, or barangay hall, as the case may be. The
provincial general services officer, or the city general services
officer, or municipal treasurer, or barangay treasurer, as the case may
be, shall certify to the effect that these requirements have been
complied with.
(b) The notice of the bidding may likewise be
published in a newspaper of general circulation in the territorial
jurisdiction of LGU concerned when the provincial general services
officer, city general services officer, or the municipal treasurer, or
the barangay treasurer, as the case may be, deems it necessary in order
to obtain the lowest responsible and complying bid.
Unless otherwise directed by the committee on awards, publication shall
be made at least ten (10) calendar days prior to the opening of bids.
ARTICLE 435. Committee on Awards. — (a) There shall
be in every province, city, or municipality a committee on awards which
shall exercise exclusive jurisdiction in deciding the winning bids and
questions of awards on procurement and disposal of supplies or property
except in cases of procurement through emergency purchase, or when the
amortization is specifically vested by law in another body.
(b) The committee on awards shall be composed of the
local chief executive as chairman; the local treasurer, the local
accountant, the local budget officer, the provincial general services
officer, the city general services officer, and the head of office or
department for whose use the supplies are being procured, 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.
(c) The committee on awards of the barangay shall be
the sangguniang barangay.
(d) In no case shall a National Government official
sit as a member of the committee on awards.
ARTICLE 436. Procedures on Awards. — (a) Roster of
Bidders — The provincial general services officer, the city general
services officer, the municipal treasurer, or the barangay treasurer,
respectively, shall maintain a list of bona fide bidders in their
respective LGUs.
(b) Obligations of Bidders — Every bidder shall be
presumed to know all terms and conditions of the call for bid and shall
assume all risks attendant thereto.
(c) Quotations — Quotations must be certain and
definite in amount. Unless otherwise called for in the call for bids,
all quotations must be in Philippine currency inclusive of all
government taxes, fees, imposts, or duties, if any, and all incidental
expenses.
The bidders shall state the period during which offer is good, which in
no case shall be less than sixty (60) days.
(d) Submission of Bids — On or before the time and
date of opening of bids, the bidders shall submit their bids in sealed
envelopes to the offices of the provincial general services officer and
city general services officer or in the offices of the municipal
treasurer or barangay treasurer, as the case may be. Said offices shall
stamp thereon the time and date of receipt.
(e) Opening of Bids — All bids submitted shall be
opened at the time, date and place set in the call for bids by the
committee on awards. Opening of bids shall be made only in the presence
of the provincial, city, or municipal auditor or his duly authorized
representative who shall initial and secure copies of the bids and
certify the abstract of the bidding.
Bidders or their representatives may witness the proceedings.
(f) Acceptance of Bids and Awards — Award in the
procurement of supplies shall be given to the lowest complying and
responsible bid which meets all the terms and conditions of the
contract or undertaking.
The results of the bidding shall be made public by posting the same in
the provincial capitol or city, municipal, or barangay hall, as the
case may be.
(g) Protest Against an Award — A losing bidder may
file with the committee on awards a protest within ten (10) days from
the date the winner was announced. The protest shall be in writing
based on justifiable grounds, accompanied with a protest bond, either
in cash, certified or cashier's check, or surety bond, in an amount
equivalent to ten percent (10%) of the total value involved. Within
seven (7) days from receipt of the protest, the committee on awards
shall render its decision.
ARTICLE 437. Procurement Without Public Bidding. —
The procurement of supplies may be made without the benefit of public
bidding under any of the following modes:
(a) 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
merchants or suppliers in the locality by a committee of three (3)
composed of the provincial or city 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. The award shall be decided by the
committee on awards.
Purchases through personal canvass under this paragraph shall not
exceed the amounts specified hereunder for all items in any one (1)
month for each LGU:
Provinces and Cities, and Municipalities within MMA:
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 outside MMA:
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);
Barangays in Cities, in Municipalities within the MMA, and in
other Metropolitan Subdivisions as may be created by law — Ten
Thousand Pesos (P10,000.00);
All other barangays — Five Thousand Pesos (P5,000.00).
(b) Emergency Purchase —
(1) In cases of emergency where the need for the
supplies is exceptionally urgent or absolutely indispensable and only
to prevent imminent danger to, or loss of, life or property, LGUs may,
though the local chief executive concerned, make emergency purchases or
place repair orders, regardless of amount, without public bidding.
Delivery of purchase orders or utilization of repair orders pursuant to
this Article shall be made within ten (10) days after placement
thereof. Immediately after the emergency purchase or repair order is
made, the head of office or department making the emergency purchase or
repair order shall draw a regular requisition to cover the same which
shall contain the following:
(i) Complete description of the supplies acquired or
work done or to be performed;
(ii) By whom furnished or executed;
(iii) Date of placing the order and date and time of
delivery or execution;
(iv) Unit price and total contract price;
(v) Brief and concise explanation of the
circumstances why procurement was of such urgency that the same could
not be done through regular course without involving danger to, or loss
of, life or property;
(vi) Certification of the provincial general services
officer, city general services officer, municipal treasurer, or
barangay treasurer, as the case may be, to the effect that the price
paid or contracted for was the lowest at the time of procurement; and
(vii) Certification of the local budget officer as to
the existence of appropriations for the purpose, of the local
accountant as to the obligation of the amount involved, and of the
local treasurer as to availability of funds.
(2) The goods or services procured in case of
emergency must be utilized or availed of within fifteen (15) days from
the date of delivery or availability.
(3) Without prejudice to criminal prosecution under
applicable laws, the local chief executive or the head of office making
the procurement shall be administratively liable for any violation of
the provisions on emergency purchase and shall be a ground for
suspension or dismissal from service.
(c) Negotiated Purchase —
(1) In cases where public biddings have failed for
two (2) consecutive times and no suppliers have qualified to
participate or win in the biddings, LGUs may, through the local chief
executive, undertake the procurement of supplies by negotiated
purchase, regardless of amount, without public bidding provided that
the contract covering the negotiated purchase shall be approved by the
sanggunian concerned. Delivery of purchase orders or utilization of
repair orders shall be made within seven (7) days after placement
thereof. Immediately after the negotiated purchase or repair order is
made, the local chief executive concerned shall draw a regular
requisition to cover the same which shall contain the following:
(i) Complete description of the supplies acquired or
the work done or to be performed;
(ii) By whom furnished or executed;
(iii) Date of placing the order and date and time of
delivery or execution;
(iv) Unit price and total contract price;
(v) Certification of the provincial general services
officer, city general services officer, municipal treasurer, or
barangay treasurer, as the case may be, to the effect that the price or
contracted for was the lowest at the time of procurement; and
(vi) Certification of the local budget officer as to
the existence of appropriations for the purpose; of the local
accountant as to the obligation of the amount involved; and of the
local treasurer as to availability of funds.
(2) In case of repeat orders for regular supplies,
procurement may be made by negotiated purchase provided that the repeat
order is made within three (3) months from the last procurement of the
same item and provided further, that the same terms and conditions of
sale are obtained for the same repeat order.
(d) Procurement from Duly Licensed Manufacturers —
Procurement of supplies or property may be made directly from duly
licensed manufacturers in cases of supplies of Philippine manufacture
or origin. The manufacturer must be able to present proof showing that
it is a duly licensed manufacturer of the desired product.
In case there are two (2) or more known manufacturers of the required
supplies or property, canvass of prices of the known manufacturers
shall be conducted to obtain the lowest price for the same quality of
said supplies or property.
The award for the procurement of supplies or property from duly
licensed manufacturers shall be made by the committee on awards.
(e) Procurement from Exclusive Philippine Agents or
Distributors —
(1) Procurement of supplies or property of foreign
origin may preferably be made directly from the exclusive or reputable
Philippine agents or distributors under the following terms and
conditions:
(i) That the Philippine agent or distributor has no
subagents or subdealers selling at lower prices; and
(ii) That no suitable substitutes of substantially
the same quality are available at lower prices.
(2) The award for the procurement of supplies from
exclusive Philippine agents or distributors shall be made by the
committee on awards.
(f) Procurement from Government Entities —
(1) Government entities that are possible sources of
supplies or property may be requested to fill the needs of LGUs.
Procurement procedures established by these entities shall be observed.
(2) Prior authority from the Office of the President
shall be secured in cases of procurement from units or agencies of
foreign governments with which the Philippines maintains diplomatic
relations.
ARTICLE 438. Archival System. — Upon the effectivity
of these Rules, every LGU shall provide for the establishment of an
archival system to ensure the safety and protection of all government
property, public documents or records such as records of births,
marriages, property inventory report, land assessments, land ownership,
tax payments, tax accounts, business permits, and such other records or
documents of public interest in the various offices and departments in
the province, city, or municipality, and the barangay concerned.
ARTICLE 439. Primary and Secondary Accountability for
Government Property. — (a) The head of office or department of a
province, city, or municipality or the punong barangay, shall be
primarily accountable for all supplies and property assigned or issued
to his office or department. The person or persons entrusted with the
possession or custody of supplies and property under the primary
accountability of the head of an office or department shall be
immediately accountable to said officer.
(b) The head of an office or department primarily
accountable for government property may require the person in
possession or having custody and control thereof under him to keep such
records and make reports as may be necessary for his own information
and protection.
(c) It shall be the duty of every head of an office
or department to keep a complete record of all supplies and property
under his charge and render his accounts thereof semi-annually to the
provincial or city general services officer or the municipal mayor or
punong barangay, as the case may be. The municipal or barangay
treasurer, as the case may be, shall be furnished with a copy of said
report.
(d) Buildings and other physical structures shall be
under the accountability and responsibility of the provincial or city
general services officer, municipal mayor or punong barangay, as the
case may be. He shall keep a separate and updated record of these
properties and shall submit an inventory report to the provincial,
city, or municipal auditor on or before the fifteenth (15th) day of
January each year showing, among other things, the condition of said
properties.
ARTICLE 440. Responsibility for Proper Use and Care
of Government Property. — The person in actual physical possession of
or entrusted with the custody or control of supplies or property shall
be responsible for the proper use and care of the same and shall
exercise due diligence in the utilization and safekeeping thereof. He
shall likewise keep a complete and updated record of such supplies and
property and shall render an account thereof semi-annually to the head
of office or department concerned.
ARTICLE 441. Measure of Liability of Persons
Accountable for Government Property. — (a) The person in possession of
or having custody or control of supplies or property shall be liable
for its money value in case of illegal, improper, or unauthorized use
or misapplication thereof, by himself or any other person whose acts he
may be responsible for, and shall be liable for all loss, damage, or
deterioration occasioned by negligence in the keeping or use of such
property, unless it is proven that he has exercised due diligence and
care in the utilization and safekeeping thereof.
(b) Unless he registers his objection in writing, an
accountable person shall not be relieved from liability by reason of
his having acted under the direction of a superior officer in using
supplies or property for which he is accountable. The officer directing
any illegal, unauthorized, or improper use of property shall first be
required to answer therefore.
(c) In cases of loss, damage, or deterioration of
government property arising from, or attributable to negligence in
security, the head of the local security unit shall be held liable
therefore.
ARTICLE 442. Credit for Loss Occurring in Transit or
Due to Casualty. — (a) When loss of government property occurs in
transit or is caused by fire, theft, force majeure, or other casualty,
it shall be the duty of the officer accountable therefore or having
custody thereof to immediately notify simultaneously within thirty (30)
days from such loss, the office or department head and the provincial,
city, or municipal auditor concerned. The office or department head
shall immediately conduct an investigation of the loss and refer the
matter to the proper government investigating agency. The provincial,
city, or municipal auditor shall conduct a separate inquiry of the
reported loss while the clues are still fresh to determine that the
alleged loss or other casualty had really occurred. An officer or
employee who fails to comply with these requirements shall not be
relieved of liability or allowed credit for any of such loss in the
settlement in his accounts.
(b) The request for relief shall be filed with the
provincial, city, or municipal auditor by the accountable officer
within the statutory period of thirty (30) days or of such longer
period as may be allowed by the auditor. The request shall be
accompanied by the following documents:
(1) Affidavit of the accountable officer containing a
statement of the facts and circumstances of loss;
(2) Affidavit of two (2) disinterested persons
cognizant of the facts and circumstances of loss;
(3) Final investigation report of the office or
department head and proper government investigating agency;
(4) A list and description including book value, date
of acquisition, property number, account classification, condition of
the property, and other additional relevant information of the
properties lost duly certified by the provincial general services
officer, city general services officer, municipal treasurer, or
barangay treasurer, as the case may be.
For this purpose, the request for relief shall be coursed through the
office or department head concerned and the provincial general services
officer, city general services officer, municipal treasurer, or
barangay treasurer, as the case may be.
(c) In case of bulk losses of property pertaining to
more than one office or department, the request for relief shall be
made by the local general services officer or local treasurer
concerned. The request shall also be accompanied by the latest
inventory report preceding the loss and the inventory report of
properties remaining after the loss, duly witnessed by the provincial,
city, or municipal auditor concerned.
(d) The same officials shall request relief for
losses occurring in transit.
(e) In all cases, the request shall be endorsed by
the local chief executive, together with his recommendations, to the
provincial, city or municipal auditor.
(f) Credit for losses shall be returned, through the
local chief executive, to the local accountant who shall on account
thereof, drop the lost properties from the books of accounts through
journal voucher attaching thereto the credit granted, together with all
supporting documents. The local accountant shall furnish the provincial
general services officer, city general services officer, municipal
treasurer, or barangay treasurer, as the case may be, and the
accountable officer concerned a copy of the journal voucher.
(g) A provincial, city, or municipal auditor shall
not allow credit for these losses unless so expressly authorized by
COA, to be exercised only if the loss is not in excess of Fifty
Thousand Pesos (P=50,000.00). In the event that the allowance of credit
is not within the competence of the provincial, city, or municipal
auditor, the application and evidence, with the recommendation of the
auditor concerned, shall be forwarded to the COA Chairman for his
appropriate action.
ARTICLE 443. Property Clearances. — When an employee
transfers to another government offices, retires, resigns, is
dismissed, or is separated from the service, he shall be required to
secure supplies or property clearance from the supply officer
concerned, the provincial or city general services officer concerned,
the municipal mayor and the municipal treasurer, or the punong barangay
and the barangay treasurer, as the case may be. The local chief
executive shall prescribe the property clearance form for this purpose.
ARTICLE 444. Modes of Disposition of Property. — As a
general rule, sale of property owned by the LGU shall be made only
through public auction. Other modes of disposal may be resorted to only
when public auction has failed.
(a) Public Auction — When the property of an LGU has
become unserviceable for any cause, or is no longer needed, the officer
immediately accountable therefore shall return the same to the head of
the office or department who shall cancel the corresponding Memorandum
Receipt. If no longer needed in the office or department, the head of
the office or department shall return the same to the provincial or
city general services officer, municipal treasurer, or barangay
treasurer, as the case may be, with the use of Property Return Slip.
The provincial or city general services officer, municipal or barangay
treasurer, as the case may be, shall, through the local chief
executive, file an application for its disposal through an Inventory
and Inspection Report with the provincial, city, or municipal auditor
for inspection and determination whether the subject property is with
or without value.
If a property of an LGU has become unserviceable for any cause or is no
longer needed but is found to be still valuable, the provincial, city
or municipal auditor shall indicate his findings in the Inventory and
Inspection Report and forward the same to the committee on awards. The
subject property shall then be sold at public auction to the highest
bidder under the supervision of the committee on awards and in the
presence of the provincial, city, or municipal auditor or his duly
authorized representative. Notice of public auction shall be posted in
at least three (3) conspicuous and publicly accessible places. If the
acquisition cost exceeds One Hundred Thousand Pesos (P100,000.00) in
the case of provinces and cities, and Fifty Thousand Pesos (P50,000.00)
in the case of municipalities, notices of auction shall be published at
least two (2) times within a reasonable period in a newspaper of
general circulation in the locality.
The provincial or city general services officer or the municipal or
barangay treasurer, as the case may be, shall be responsible for
disposal of supplies or property of the LGU.
The local chief executive shall be responsible for the disposal of real
property, building and other physical structures.
(b) Sale through Negotiation — Supplies and property
no longer needed may be disposed of through private sale at such price
as may be determined by the committee on awards, subject to the
approval of COA or its duly authorized representative when the
acquisition or transfer cost of the property exceeds Fifty Thousand
Pesos (P50,000.00) in the case of municipalities or barangays.
In case of real property, disposal shall be subject to the approval of
COA regardless of the value or cost involved.
(c) Transfer without Cost to Other Offices or
Departments or Other Government Agencies — Property which has become
unserviceable or is no longer needed may be transferred without cost to
another office, agency, subdivision or instrumentality of the National
Government or another LGU at an appraised valuation determined by the
committee on awards. Such transfer shall be subject to the approval of
the sanggunian concerned making the transfer and by the head of the
office, agency, subdivision, instrumentality or LGU receiving the
property.
(d) By Destruction — When property of an LGU has
become unserviceable for any cause or is no longer needed, it shall,
upon application of the head of the office or department accountable
therefore, be inspected and appraised by the provincial, city, or
municipal auditor, as the case may be, or his duly authorized
representative or that of the COA Chairman, and if found valueless or
unusable, shall be destroyed either by burning, pounding, throwing
beyond recovery, and the like, in the presence of the auditor.
ARTICLE 445. Tax Exemption Privileges of Local
Government Units. — LGUs shall be exempt from payment of duties and
taxes for the importation of heavy equipment or machinery which shall
be used for the construction, improvement, repair, and maintenance of
roads, bridges, and other infrastructure projects, as well as garbage
trucks, fire trucks, and other similar equipment provided that such
equipment or machinery shall not be disposed of, either by public
auction or negotiated sale as provided in this Rule, within five (5)
years from the importation thereof. In case the equipment or machinery
is sold within five-year period, the purchasers or recipients shall be
considered the importers thereof, and shall be liable for duties and
taxes computed on the book value of such importation.
For the effective implementation of this Article, the DOF shall issue
the necessary procedures in the availment of tax exemption privileges
on importation by LGUs of heavy equipment or machinery which shall be
used for the construction, improvement, repair, and maintenance of
roads, bridges, and other infrastructure projects, as well as garbage
trucks, fire trucks, and other similar equipment.
ARTICLE 446. Implementing Rules and Regulations. —
The COA shall promulgate the rules and regulations on supply and
property management of LGUs to effectively implement the provisions of
this Rule, including requirements as to testing, inspection, and
standardization of supplies and property.
RULE
XXXVI
Other Fiscal Matters
ARTICLE 447. Scope. — This Rule shall govern the
conduct and management of financial affairs, transactions, and
operations of provinces, cities, municipalities, and barangay not
treated in Rules XXX, XXXI, XXXII, XXXIII, XXXIV, and XXXV of these
Rules.
ARTICLE 448. Local Funds and Special Funds. — (a)
Local Funds — Every LGU shall maintain a General Fund which shall be
used to account for such monies and resources as may be received by and
disbursed from the local treasury. The General Fund shall consist of
monies and resources of the LGU which are available for the payment of
expenditures, obligations or purposes not specifically declared by law
as accruing and chargeable to, or payable from, any other fund.
(b) Special Funds — There shall be maintained in
every provincial, city, or municipal treasury the following special
funds which shall be deemed automatically appropriated for purposes
indicated therefore:
(1) Special Education Fund shall consist of the
respective shares of provinces, cities, municipalities, and barangays
in the proceeds of the additional tax on real property to be
appropriated to purposes prescribed in Article 327, Rule XXXI of these
Rules; and
(2) Trust Funds shall consist of private and public
monies which have officially come into the possession of the LGU or of
a local government official as trustee, agent or administrator, or
which have been received as a guaranty for the fulfillment of some
obligation. A trust fund shall only be used for the specific purpose
for which it was created or for which it came into the possession of
the LGU.
ARTICLE 449. Remittance of Government Monies to the
Local Treasury. — Officers of LGU authorized to receive and collect
monies arising from taxes, revenues, or receipts of any kind shall
remit the full amount received and collected to the treasury of such
LGU which shall be credited to the particular account or accounts to
which the monies in question properly belong.
ARTICLE 450. Separation of Books and Depository
Accounts. — Local accountants and local treasurers shall maintain
separate books and depository accounts, respectively, for each fund in
their custody or administration under such rules and regulations as COA
may prescribe.
ARTICLE 451. Depository Accounts. — Local treasurers
shall maintain depository accounts in the name of their respective LGUs
with banks, preferably government-owned, located in or nearest their
respective areas of jurisdiction. Earnings of each depository account
shall accrue exclusively thereto.
ARTICLE 452. Separation of Personal Money from Public
Funds. — Local treasurers and other accountable officers shall keep
personal monies separate and distinct from local public funds in their
custody and shall not make profit out of public money or otherwise
apply the same to any use not authorized by law or ordinance.
ARTICLE 453. Special Accounts to be Maintained
in the General Fund. — LGUs shall maintain special accounts in the
general fund for the following:
(a) Public utilities and other economic enterprises;
(b) Loans, interests, bond issues, and other
contributions for specific purposes; and
(c) Development projects funded from the share of the
LGU concerned in the IRA and such other special accounts which may be
created by law or ordinance.
Receipts, transfer, and expenditures involving the foregoing special
accounts shall be properly taken up thereunder.
Profits or income derived from the operation of public utilities and
other economic enterprises, after deduction for the cost of
improvement, repair and other related expenses of the public utility or
economic enterprise concerned, shall first be applied for the return of
the advances or loans made therefore. Any excess shall form part of the
General Fund of the LGU concerned.
ARTICLE 454. Expenditures, Disbursements, Accounting,
and Accountability. — (a) Prohibition Against Expenditures for
Religious or Private Purposes — No public money shall be appropriated
or applied for the benefit of any religious sect or activity not any
undertaking or purpose private in character.
(b) Use of Appropriated Funds and Savings — Funds
shall be available exclusively for the specific purpose for which they
have been appropriated. No ordinance shall be passed authorizing any
transfer of appropriations from one item to another. The local chief
executive or the presiding officer of the sanggunian concerned, may, by
ordinance, be authorized to augment any item in the approved annual
budget for their respective offices from savings in other items within
the same expense class of their respective appropriations.
For purposes of this Article, savings and augmentation shall mean:
(1) Savings refer to portions or balances of any
programmed appropriation free from any obligation or encumbrance still
available after the satisfactory completion or unavoidable
discontinuance or abandonment of the work, activity or purpose for
which the appropriation is authorized, or arising from unpaid
compensation and related costs pertaining to vacant positions and
leaves of absence without pay.
(2) Augmentation implies the existence in the budget
of an item, project, activity or purpose with an appropriation which
upon implementation or subsequent evaluation of needed resources is
determined to be deficient.
(c) Restrictions upon Limit of Disbursements —
Disbursements in accordance with appropriations in the approved annual
budget may be made from any local fund in the custody of the local
treasurer, but the total disbursements from any local fund shall in no
case exceed fifty percent (50%) of the uncollected estimated revenue
accruing to such local fund in addition to the actual collections
provided, however, that no cash overdraft in any local fund shall be
incurred at the end of the fiscal year.
In case of emergency arising from typhoon, earthquake, or any other
calamity, the sanggunian concerned may authorize the local treasurer to
continue making disbursements from any local fund in his possession in
excess of the limitations herein provided, but only for such purposes
and amounts included in the approved annual budgets. Any overdraft
which may be incurred at the end of the year in any local fund by
virtue of the provisions hereof shall be covered with the first
collections of the immediately succeeding fiscal year accruing to such
local fund.
(d) Disbursements of Appropriations for Development
Projects — Art. 391 of Rule XXXII of these Rules mandate each LGU to
appropriate their share in the proceeds from the development and
utilization of the national wealth to finance local development and
livelihood projects, respectively.
Disbursements from such special accounts under the General Fund shall
proceed from itemized appropriations in the budgets of LGU instead of
by lumpsum. Such itemized appropriations shall be for specific
development projects/activities embodied in the local development plan
and/or public investment program formulated and prioritized by the
Local Development Council and approved by the sanggunian concerned.
Provided also that copies of the development plan of LGU shall be
furnished DILG and that at least eighty (80) percent of the proceeds
derived from the development and utilization of hydrothermal,
geothermal and other sources of energy shall be applied solely to lower
the cost of electricity in the LGUs where such a source of energy is
located.
Appropriation for development projects shall not include those for
personal services including salaries standardization except for
contractual employees who may be, if necessary, contracted coterminous
with and compensation, against the project, subject to budget and COA
rules and regulations.
Development projects, activities for this purpose, are those component
project/activity incidental to the efficient and effective provision of
the basic services and facilities enumerated in Rule — of these Rule
and for the preservation and enhancement of the indigenous resources of
wealth of the LGU from which share is derived, as the case may
be.
(e) Prohibitions Against Advance Payments — No money
shall be paid on account of any contract under which no services have
been rendered or goods delivered.
(f) 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 COA may prescribe.
(g) Persons Accountable for Local Government Funds —
Any officer of the LGU whose duty permits or requires the possession or
custody of local government funds shall be accountable and responsible
for the safekeeping thereof in conformity with the provisions of this
Rule. Other local officers who, though not accountable by the nature of
their duties, may likewise be similarly held accountable and
responsible for local government funds through their participation in
the use or application thereof.
(h) Prohibitions Against Pecuniary Interest — Without
prejudice to criminal prosecution under applicable laws, any local
treasurer, local accountant, local budget officer, or other accountable
local officer having any pecuniary interest, direct or indirect, in any
contract, work or other business of the LGU of which he is an
accountable officer shall be administratively liable therefore.
(i) Liability for Acts Done Upon Direction of
Superior Officer, or Upon Participation of Other Officer or Department
Heads or Officers of Equivalent Rank — Unless he registers his
objection in writing, the local treasurer, local accountant, local
budget officer, or other accountable local officer shall not be
relieved of liability for illegal or improper use or application or
deposit of government funds or property by reason of his having acted
upon the direction of a superior officer, elective or appointive, or
upon participation of other office or department heads or officers of
equivalent rank. The superior officer directing, or the office or
department head participating in such illegal or improper use or
application or deposit of government funds or property, shall be
jointly and severally liable with the local treasurer, local
accountant, local budget officer, or other accountable local officer
for the sum or property so illegally or improperly used, applied or
deposited.
(j) Prohibition Against Expenses for Reception and
Entertainment — No money shall be appropriated, used, or paid for
entertainment or reception except to the extent of the representation
allowances authorized by law or for the reception of visiting
dignitaries of foreign governments or foreign missions, or when
expressly authorized by the President in specific cases.
(k) 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 office or department 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 shall be required whenever local funds are disbursed.
In cases of special or trust funds, disbursements shall be approved by
the administrator of the fund.
In case of temporary absence or incapacity of the office or department
head, the officer next-in-rank shall automatically perform his function
and he shall be fully responsible therefore.
(l) Officials Authorized to Draw Checks in Settlement
of Obligations — Checks in settlement of obligations shall be drawn by
the local treasurer and countersigned by the local administrator.
In case of temporary absence or incapacity of the foregoing officials,
these duties shall devolve upon their immediate assistants.
(m) Disbursements of Local Funds and Statements of
Accounts — Disbursements shall be made in accordance with the ordinance
authorizing the annual or supplemental appropriations without the prior
approval of the sanggunian concerned. Within thirty (30) days after the
close of each month, the local accountant shall furnish the sanggunian
with such financial statements as may be prescribed by COA. In the case
of the year-end statement of accounts, the period shall be sixty (60)
days after the thirty-first (31st) of December.
(n) Rendition of Accounts — Local treasurers, local
accountants and other accountable local officers shall render their
accounts within such time, in such form, style, and content and under
such regulations as COA may prescribe.
Provincial, city, and municipal auditors shall certify the balances
arising in the accounts settled by them to the COA Chairman and to the
local treasurer, local accountant, and other accountable local
officers. Copies of the certification shall be prepared and furnished
other local officers who may be held jointly and severally liable for
any loss or illegal, improper or unauthorized use or misappropriation
of local funds or property.
(o) Auditorial Visitation — The books, accounts,
papers, and cash of local treasurer, local accountant, local budget
officer, or other accountable local officers shall at all times be open
for inspection of COA or its duly authorized representative.
In case an examination of the accounts of a local treasurer discloses a
shortage in cash which should be on hand, it shall be the duty of the
examining officer to seize the office and its contents, notify COA, the
local chief executive concerned, and the local accountant. Thereupon,
the examining officer shall immediately turn over to the accountable
officer next-in-rank in the local treasury service, unless the said
officer is likewise under investigation, the auditor shall take full
possession of the office of the treasurer and its contents, and close
and render his accounts on the date of turnover.
In case the accountable officer next in rank is under investigation,
the auditor shall take full possession of the office and its contents,
close and render his accounts on the date of taking possession, and
temporarily continue the public business of such office until such time
that the local treasurer is restored or a successor has been duly
designated. The local treasurer or accountable officer found with such
shortage shall be automatically suspended from office.
(p) Accounting for Revenues — Estimated revenues
which remain unrealized at the close of the fiscal year shall not be
booked or credited to the unappropriated surplus or any other account.
(q) Accounting for Obligations — All lawful
expenditures and obligations incurred during a fiscal year shall be
taken up in the accounts of that year.
(r) General Liability for Unlawful Expenditures —
Expenditures of funds or use of property in violation of the applicable
provisions of these Rule and other laws shall be a personal liability
of the official or employee responsible therefore.
(s) Posting of the Summary of Income and Expenditures
— Local treasurers, local accountants, local budget offices, and other
accountable local officers shall, within thirty (30) days from the end
of each fiscal year, post in at least three (3) conspicuous and
publicly accessible places in the LGU a summary of all revenues
collected and funds received including the appropriations and
disbursement of such funds during the preceding fiscal year.
ARTICLE 455. The Official Fiscal Year. — The official
fiscal year of LGUs shall be the period beginning with the first (1st)
day of January and ending with the thirty-first (31st) day of December
of the same year.
ARTICLE 456. Administrative Issuances, Local Treasury
Operations Manual. — The DOF, jointly with the Chairman of COA, shall
within one (1) year from the effectivity of the Code, promulgate a
Treasury Operations Manual for LGUs.
RULE
XXXVII
Debt Relief for Local Government
Units
ARTICLE 457. Scope. — This Rule shall govern the
granting of debt relief for provinces, cities and municipalities.
ARTICLE 458. Coverage. — Debt relief for LGUs shall
cover the following:
(a) All debts owed by LGUs to the National Government
arising from statutory contributions to the Integrated National Police
Fund, the Special Education Fund, and the hospital fund.
(b) National government shares in taxes, fees, and
charges collected by LGUs that have been unremitted as of December 31,
1991.
(c) Program loans, either secured to LGUs by NGAs and
which were relent to private persons, natural or juridical, or granted
to LGUs by NGAs and which were utilized by LGUs for community
development, livelihood, and other small-scale projects.
(d) Debts due to GFIs, GOCCs and private utilities
that are outstanding as of December 31, 1988.
ARTICLE 459. Limitations. — Debt relief shall not
apply to the following:
(a) Statutory contribution of the cities and
municipalities of MMA to the Metropolitan Manila Authority that have
accrued as of December 31, 1991.
Beginning calendar year 1992, cities and municipalities within MMA are
no longer required to make such contributions to the Metropolitan
Manila Authority.
(b) Foreign loans or indebtedness of LGUs arising
from loan contracts or project agreements entered into with foreign
countries or international lending institutions and agencies.
(c) National taxes collected by the local treasurer
that accrue in full to the National Government.
(d) Debts incurred or contracted by LGUs from GFIs,
GOCCs, and private utilities after December 31, 1988, which shall be
settled by the LGU concerned. For this purpose, repayments of
outstanding obligations which are covered by existing withholding
agreement shall continue to be deducted from the IRA share of
debtor-LGU.
(e) Obligations to the Home Development Mutual Fund
(Pag-IBIG), Medicare, and those pertaining to premium contributions and
amortization payment of salary and policy loans to the Government
Service Insurance System.
ARTICLE 460. Manner of Settlement. — (a) Subject to
limitations provided under this Rule, all unremitted national
collections and statutory contributions and program loans shall be
written off in full provided that NGA tasked with the implementation of
program loans secured by LGU which were relent to private persons,
natural or juridical, shall continue to collect from debtors belonging
to the private sector concerned.
(b) The National Government shall assume all debts
incurred or contracted by LGUs from GFIs, GOCCs, and private utilities
that are outstanding as of December 31, 1988, in accordance with the
following schemes:
(1) The National Government may buy outstanding
obligations incurred by LGUs from GFIs at a discounted rate.
(2) The National Government may settle obligations
due GOCCs at a discounted rate through offsetting, only to the extent
of the obligations of LGUs against the outstanding advances made by the
National Treasury in behalf of the GOCC concerned.
(3) The National Government may settle debts due
private utilities at a discounted rate by offsetting against the
outstanding obligations of such private utilities to GOCCs. GOCCs may
in turn offset these obligations against the outstanding advances made
by the National Treasury in their behalf.
In the case of obligations owed by LGUs to private utilities which are
not indebted to any GOCC or NGA, the National Government may instead
buy the obligations of LGUs from the private utilities at a discounted
rate, upon concurrence by the private utilities concerned.
ARTICLE 461. Recovery Schemes for the National
Government. — (a) LGUs shall pay back the National Government whatever
amounts were advanced or offset by the National Government to settle
their obligations to GFIs, GOCCs, and private utilities. The National
Government shall not charge interest or penalties on the outstanding
balance owed by LGUs. These outstanding obligations shall be
restructured and an amortization schedule prepared, based on the
capability of LGU to pay.
(b) The National Government shall be authorized to
deduct from the quarterly share of each LGU in internal revenue
allotments an amount to be determined on the basis of the amortization
schedule of LGU concerned provided that such deduction shall not exceed
five percent (5%) of the monthly internal revenue allotment of LGU
concerned. ai
(c) As incentive to debtor-LGUs to increase fiscal
management efficiency, the National Government shall write off
outstanding debts of LGUs at the rate of five percent (5%) for every
one percent (1%) increase in revenues generated by LGU over the
collections of the preceding year. For this purpose, the annual
increase in local revenue collections shall be computed starting from
the year 1988.
ARTICLE 462. Appropriations. — Such amount as may be
necessary to implement the provisions of this Rule shall be included in
the annual General Appropriations Act.
ARTICLE 463. Implementation. — The Development Budget
Coordinating Committee through the Task Force on debt relief created
under DBCC Order No. 2 dated September 18, 1990, in consultation with
the presidents of the leagues of provinces, cities and municipalities,
shall prepare and implement a debt relief program for LGUs and issue
such guidelines as may be necessary for the effective implementation of
this Rule.
RULE
XXXVIII
Monitoring System for the
Implementation
of the Local Government Code of
1991
ARTICLE 464. Mandate. — Pursuant to the Code, the
Oversight Committee shall supervise the transfer of such powers and
functions mandated under the Code to the LGUs, together with the
corresponding personnel, properties, assets 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.
The Code likewise provides that the Congress shall conduct a mandatory
review of the Code at least once every five (5) years and as often as
it may deem necessary, with the primary objective of providing a more
responsive and accountable local government structure.
ARTICLE 465. Installation and Purpose of a Monitoring
System. — There shall be established a monitoring system for the
implementation of the code to hasten the decentralization process,
support the oversight committee in the supervision of the transfer of
powers and functions from the national government agencies to local
government units and provide valuable information to promote local
autonomy.
ARTICLE 466. Organization and Responsibility. — There
shall be established from the national to the local levels an
organization responsible for the operationalization of the monitoring
system. For this purpose, the DILG shall be the lead agency of the said
organization composed of the following:
(a)
National
(1) Department
of the Interior and Local Government
(2) Department
of Finance
(3) Department
of Budget and Management
(4) Senate
(5) House of
Representatives
(6) League of
Provinces
(7) League of
Cities
(8) League of
Municipalities
(9) Liga ng
mga Barangay
(10)
Commission on Audit
(11) Civil
Service Commission
(12) National
Government Agencies affected by Devolution
(b) Regional — All national government agencies
represented at the national organization of the monitoring system.
(c) Province, City, and Municipality — All
provincial, city, and municipal field offices of the DILG and NGAs
affected by devolution.
A National Secretariat for the monitoring system shall be created in
the DILG.
ARTICLE 467. Target Users and Their Information
Requirements. — The target users of the monitoring system are the
Oversight Committee, the NGAs concerned, the Congress, and the LGUs.
The information requirements of the target users cover the following
areas:
(a) Transfer of personnel, assets, projects, funds,
and records corresponding to the devolved functions;
(b) Deconcentration of requisite authority and power
of national government agencies from their central offices to
appropriate regional and field offices;
(c) Mandated fund allocations to LGUs;
(d) Reorganization of LGUs and affected NGAs;
(e) Formation and operation of local special bodies;
(f) Compliance with established standards,
guidelines, systems and procedures;
(g) LGU participation in the planning and
implementation of national projects;
(h) NGO-LGU joint ventures and cooperative programs
or undertakings;
(i) Grants, aids, and subsidies given to LGUs; and
(j) Other relevant information.
ARTICLE 468. Funding. — Funds for the implementation
of the monitoring system shall be taken the appropriations of the DILG.
Other national government agencies may augment funds out of their
savings. Likewise, the LGUs may set aside funds for this purpose from
any available local funds.
ARTICLE 469. Implementation. — The monitoring system
shall be implemented upon approval of these Rules.
The national organization shall provide the monitoring network with
module specifications, implementation strategy, and timetable.
RULE
XXXIX
Miscellaneous and Final
Provisions
ARTICLE 470. Inventory of Infrastructure and Other
Community Facilities. — (a) Every LGU 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 NGAs operating
within the province, city, municipality, or barangay concerned.
(b) No infrastructure or community project within the
territorial jurisdiction of an LGU shall be undertaken without
informing the local chief executive and the sanggunian concerned.
ARTICLE 471. Liability for Damages. — As provided in
Article 2189 of RA 386, otherwise known as the Civil Code of the
Philippines, as amended, provinces, cities, and municipalities shall be
liable for damages for the death of, or injuries suffered by, any
person by reason of the defective condition of roads, streets, bridges,
public buildings, and other public works under their control or
supervision. The extent of liability for damages shall be governed by
the provisions of the Civil Code on quasi-delicts.
ARTICLE 472. Failure to Post and Publish the Itemized
Monthly Collections and Disbursements. — Failure by the local treasurer
or the local accountant to post the itemized monthly collections and
disbursements of the LGU concerned, within ten (10) days following the
end of every month and for at least two (2) consecutive weeks at
prominent places in the provincial capitol, or city, municipal or
barangay hall, its plaza and main street, and to publish said
itemization in a newspaper of general circulation, where available, in
the territorial jurisdiction of the LGU concerned, shall be punished by
imprisonment not exceeding one (1) month or a fine not exceeding Five
Hundred Pesos (P500.00), or both such imprisonment and fine, at the
discretion of the court.
ARTICLE 473. Separability Clause. — If, for any
reason or reasons, any part or provision of these Implementing Rules
and Regulations shall be held unconstitutional or invalid, other parts
or provisions thereof which are not affected thereby shall continue to
be in full force and effect.
ARTICLE 474. Repealing Clause. — (a) Except as
otherwise provided in the Code, the following are repealed:
(1) BP 337, EO 112, series of 1987, and EO 319,
series of 1988;
(2) PDs 684, 1191, 1508, and such other decrees,
orders, instructions, memoranda, and issuances related to or concerning
the barangay;
(3) The provisions of Section s 2,3, and 4 of RA 1939
regarding hospital fund; Sec. 3, a(3) and b(2) of RA 5447 regarding
the special education fund; PD 144, as amended by PDs 559 and 1741; PD
231, as amended; PD 436, as amended by PD 558; and PDs 381, 436, 464,
477, 526, 632, 752, and 1136; and
(4) PD 1594 insofar as it governs locally-funded
projects.
(b) Insofar as they are inconsistent with the
provisions of the Code, the following are repealed, amended, or
modified accordingly:
(1) Section s 2, 16, and 29 of PD 704; Sec. 12 of
PD 87, as amended; Section s 52, 53, 66, 67, 68, 69, 70, 71, 72, 73, and
74 of PD 463, as amended; and Sec. 16 of PD 972, as amended; and
(2) 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 the Code.
ARTICLE 475. Effectivity. — These Rules shall take
effect upon publication thereof in a newspaper of general circulation.
The foregoing Implementing Rules and Regulations of the Local
Government Code of 1991 consisting of 250 pages including this page are
being issued in compliance with Sec. 533 of the Code.
Approved: February 21, 1992
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