Issues and Critical Actions in Local Governance

Eddie G. Dorotan, MD, MPA

Jay A. Carizo
 Issues and Critical Actions in Local Governance
Eddie G,. Dorotan, M.D., MPA. and Jay A. Carizo

Copyright © 2014
Galing Pook Foundation
All rights reserved.

ISBN 978-971-0567-20-1

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 Table of Contents

1. Introduction 1
2. Opportunities Offered by the LGC of 1991 3
3. A Personal Account as Mayor 1992-1998:
Making a Difference 8
3.1 Irosin as a Peace Zone 10
3.2 Dismantling of Jueteng Operations 11
3.3 Establishment of a Peoples’ Center 13
3.4 Improved Health, Education, Economic
Conditions and Environment Preservation 14
4. 22 Years of LGC: Are We Better Off? 17
4.1 National and Local Outcomes 17
5. Current Issues in Local Governance 21
5.1 Unequal and Biased Sharing of Wealth 21
5.2 Level and Architecture of Devolution 23
5.3 Term Limits and Numerous Elections 25
5.4 Weak Demand Side 25
5.5 Barangay Governance 26
6. Proposed Amendments and Critical
Recommendations 27
6.1 Proposals and Proposed Amendments 27
6.2 Challenges in Advancing the Proposed
Amendments 33
6.3 Proposed Recommendations and Next Steps 36

References 39
Annexes 45
 1
Introduction

R epublic Act 7160 otherwise known as the Local Government

Code of 1991 (henceforth, LGC or “the Code”) is one of the
major milestones in governance reform in the Philippines.

It provided the overarching framework for local governance by

introducing the concept of decentralization; laying down the
foundations for increased local autonomy and accountability;
and, opening the democratic space for citizen participation.
The Code re-structured central-local government relations
and provided the process of devolution by conferring power
and authority to local government units (LGUs) including the
assigning of service delivery, expenditure responsibilities, and
revenue mobilization powers from the provincial down to the
barangay governments.

Indeed, the LGC caused positive developments, particularly

in the aspects of service delivery and citizen participation due
primarily to the opportunities made available to LGUs.

This paper posits;

however, that the
benefits derived
from the Code
are still limited
particularly in terms
of national and local
outcomes, equitable and sustainable development, and inter-
local as well as national-local cooperation. The benefits cannot
be maximized because of the issues and challenges intrinsic

Introduction 1
in the Code along with the political-economic conditions that
were not considered during its passage (See Sections 2 and 3).
As a result, more than two decades after the passage of the Code,
LGUs and development partners continue to face issues and
challenges most of which are inherent in RA 7160 and its failure
to adapt to the changing needs of the time.

To support these claims, the paper conducted a review of studies

and proposals undertaken to amend the Code, including the bills
currently filed in the House of Representatives and the Senate.
The paper also made use of the technology of participation and
gathered various stakeholders in a workshop to identify priority
amendments and come up with recommendations on how to
move forward. The results of the reviews and the workshop are
presented in Sections 4, 5 and 6.

Lastly, the paper investigated the challenges why amendments

to the Code are stalled and provides workable recommendations
on how to overcome these challenges.

2 Issues and Critical Actions in Local Governance

 2

Opportunities offered by LGC of 1991

T he Local Government Code of 1991 is considered a ground-

breaking legislation. It reversed the highly centralized system
of Philippine governance and offered opportunities for self‐
development at the local level through decentralization, local
autonomy, participatory governance and the corporatization of
local governments. This is quite unlike the period preceding the
Code’s enactment.

At the core of the Code is decentralization, or “the process

of transferring decision-making powers to sub-national tiers
of government” (Martinez-Vasquez and Timofeev 2009). This
decentralization is characterized by: (a) the shift from national
to local, which involves the processes of deconcentration and
devolution, (b) the shift from state to private sector, and (c) the
shift from state to civil society (Gonzales 1997).

Characteristics of The shift from national

Decentralization Under the to local was introduced
1991 LGC “to bring the government
closer to the people”
• The shift from national to local based on the idea that
decentralization will
• The shift from state to private improve public service
sector delivery through greater
allocative efficiency – that
• The shift from state to civil is, matching public goods
society to local preferences – and

Opportunities offered by the LGC of 1991 3

better productive efficiency through greater accountability,
less bureaucracy, and better knowledge of local costs (Azfar
et al., 2000). This shift involves two processes: the process of
deconcentration wherein the central government transfers
power, authority and functions to the lower levels or sub-
national tiers of the government; and, the process of devolution
where power and authority are transferred from the national
government to LGUs. The latter is more tied to the concept of
local autonomy because of the nature of power transfer which is
political, and the approach is territorial (Gonzales 1997).

The shift from state to private sector, though better expounded

by other national laws and policies, was introduced under the
framework of market liberalization and on the recognition that
there are services which can be performed better by the private
sector. Alongside this shift is the strengthening of the corporate
powers of the LGUs that enables the latter to enter partnership
arrangements with the private sector for the provision of certain
goods and services.

Lastly, the Philippine decentralization is also characterized

by a shift from state to civil society whereby non-government
organizations (NGOs) and other members of the private
sector participate directly in government programs not just
as beneficiaries but as partners in projects or programs from
conceptualization to implementation and monitoring, and in
the systems of governance that go beyond elections (Gonzales
1997). Examples of these are the mechanisms that provide civil
society participation such as, but not limited to, the local special
bodies.

Another feature of the Code is the principle of local autonomy,

which is the exercise by local government unit’s certain basic
powers to serve the interest and promote the well-being of its
inhabitants. Under the principle of local autonomy, LGUs are
allowed to exercise police power, power to tax, power to legislate

4 Issues and Critical Actions in Local Governance

laws and ordinances, fiscal autonomy and corporate powers
provided that they do not violate the constitution, other laws
and statutes, their own charter, or the charter of other public
corporations. The spirit of local autonomy was laid down in
Section 14 Article 10 of the Constitution and given flesh by the
processes of deconcentration and devolution based on Sections
528 and 17 of the Code, respectively.

To ensure the delineation of functions between the national

and local governments, the Code specified the expenditure
responsibilities devolved. These expenditure responsibilities

include the provision of health and social services; environmental

management; agriculture-related services such as inter-
barangay irrigation systems, water and soil resource utilization
and conservation projects, and enforcement of fishery laws;
maintenance of select local infrastructures; and, tourism-related
services (See Table 1). Along with the devolved basic services are
the regulatory functions, which include the inspection of food
products; adoption of quarantine regulations; enforcement of
the National Building Code; regulations of tricycle operations;
regulation of the real estate trade; and, licensing of cockpits.

Opportunities offered by the LGC of 1991 5

 Table 1. Devolved basic services

Area Specific Services

Health and Social • Implementation of programs and projects in primary
Services health care, maternal and child care, communicable and
non-communicable disease control services;
• Health services which access to secondary and tertiary
health services;
• Purchase of medicines, medical supplies, and equipment
needed to carry out the services;
• Social welfare services which include programs and
projects on child and youth welfare, family and community
welfare, women’s welfare, the welfare of the elderly and
disabled persons
Environmental • Solid waste disposal system;
Management • Services or facilities related to general hygiene and
sanitation;
• Implementation of community-based forestry projects
which include integrated social forestry programs and
similar projects;
• Management and control of communal forests
Agriculture • Inter -Barangay irrigation system;
• Water and soil resource utilization and conservation
projects;
• Enforcement of fishery laws in municipal waters, including
the
• Conservation of mangroves;
Infrastructure • Maintenance and Rehabilitation of the following;
• Roads and bridges
• School buildings and other facilities for public
elementary and secondary schools;
• Clinics, health centers and other health facilities;
• Small water impounding projects;
• Fish ports; artesian wells, spring development,
rainwater collectors and water supply systems;
• Seawalls, dikes, drainage and sewerage, and flood
control;
• Traffic signals and road signs; and similar facilities;
Tourism • a. Tourism facilities and other tourist attractions,
• b. Acquisition of equipment
• c. Regulation and supervision of business concessions,
• d. Security services for such facilities

6 Issues and Critical Actions in Local Governance

The third feature of the Local Government Code is participative
governance. With the view that the government will become
more effective if it partners with other stakeholders, the Code
opened avenues for citizen participation including the local
special bodies such as the local development councils, local
school boards, local health boards, peace and order councils, and
agriculture and fisheries councils, among others. Mandatory in
these councils are the membership of the representatives from
civil society organizations, non-government organizations and
people’s organizations.
Because participative governance became a new institutional
framework for development, the number of NGOs and POs
skyrocketed (Wurfel 2004) with a great number embedding in
local special bodies. While some have been used for political
and personal gains (i.e., as vehicles for election or accumulation
of wealth as evidenced in the Napoles scandal ), there are
still legitimate ones that can be tapped for partnership and
convergence.

Another innovation introduced by the Local Government Code

is the conferment of corporate powers to LGUs as stipulated in
Section 15. As a corporation, LGUs were granted the powers:
(1) To have continuous succession in its corporate name; (2) To
sue and be sued; (3) To have and use a corporate seal; (4) To
acquire and convey real or personal property; (5) To enter into
contracts; and, (6) To exercise such other powers as are granted
to corporations, subject to the limitations of the Code and other
laws (Section 18, RA 7160). Because of these powers, LGUs
can now create and/or join alliances or clustering mechanisms,
build-operate and transfer schemes, joint ventures, bonds, loans
and credit, securing grants and forming corporations.

Opportunities offered by the LGC of 1991 7

 3
A Personal Account as Mayor from
1992-1998: Making A Difference

T he Local Government Code is a welcome development not

only among local officials but also among development
workers, particularly in the non-government sector. Though it
accorded additional responsibilities to LGUs, it also bestowed
more power and resources as well as opportunities that can
facilitate local development. This was personally experienced by
one of the authors when he was elected as a mayor of Irosin in
the province of Sorsogon for two terms from 1992 to 1998.

Irosin is the only landlocked municipality of Sorsogon. In

the 1990s, the municipal population was around 38,000 or
about a third of the provincial population. It was a Fifth Class
Municipality with an income of only PhP 4 million. The
municipal economy was (and is) dependent on agriculture and
there were very few local enterprises at that time despite its
strategic location and environmental assets.

Prior to his assumption as mayor, three in every four households

were poor with a greater number of the working force
unemployed. In part, because of poverty and unemployment, the
crime rate was high with almost all the 28 barangays controlled
by the New People’s Army (NPA).

The situation, however, was not hopeless. The local non-

government organization sector where the author was actively
engaged in was already making a difference. Even so, because
the sector was acting outside or independent of the local

8 Issues and Critical Actions in Local Governance

government, the gains were very limited and could not saturate
the rest of the municipality.

Thinking that bigger things can be achieved, the local NGO

community prodded the author to run for mayor and won in
1992 as a result of the sector's efforts along with the help of local
leaders who were also clamoring for change. That was the time
the 1991 Local Government Code was implemented.

With the opportunities brought by the Code, the local

administration was able to institute changes and expedite local
development that led to the reclassification of the municipality
as a Second Class LGU. Business enterprises opened, jobs
created, and poverty incidence dropped to around 40 percent
in 1998. The municipality also became a migration hub with
at least 43 dialects (including the variants of Waray, Bisaya and
Tagalog languages) being used.

Figure 1. Map of Irosin, Sorsogon

A Personal Account as Mayor from 1992-1998 9

Most noteworthy of the changes, however, occurred in the
aspects of peace and order, citizen participation, delivery of
basic services, and increase of local income.

3.1 Irosin as a Peace Zone

Irosin is an area dominated by members of the New People’s

Army (NPA). This is a challenge because: (1) their presence
signifies, and reinforces, poverty in the area, (2) implementation
of government projects will be difficult as there are NPA factions
that are into harassment or extortion, and (3) you have to
coordinate with these groups if you plan to implement projects,
particularly in the areas where the former has presence – an
onerous and tricky task that once mishandled, one may get
not only the ire of the NPAs but also of the armed forces of the
government.

The NPA presence, together with the high crime rate, explains
why during those times, almost nobody wanted to do serious
business in the municipality. The situation cannot be ignored
because that paralyzed nearly everything. To address these, and
with the help of the Sangguniang Bayan, Irosin was declared as
a peace zone and immediately a multi-sectoral peace and order
council composed of local government officials and different
non-government and peoples organizations was created.

The declaration was supported both by the armed forces of the

Philippines, the NPAs, the Philippine National Police (PNP) and
the different sectors of the community. To sustain this support, the
peace and order council members joined the 3-day multi-sector
development planning workshop and crafted Irosin’s Integrated
Area Development Plan. These proposals typically revolved
around the creation or development of social, institutional

10 Issues and Critical Actions in Local Governance

and physical infrastructures. Social infrastructure focused
more on the awareness and cooperation of the communities,
institutional infrastructure concerned with the strengthening
of the role of the barangay justice system and capacitating the
barangay police, while the physical infrastructures were more
on the construction of roads and public facilities that benefit the
people of the barangays.

Two of the more noteworthy projects of the council that, likewise,

strengthened the local peace and order include the creation of
livelihood opportunities and the opening of the circumferential
road that traverses the different barangays of the municipality.
The livelihood opportunities made the people busy, and so they
have lesser time for quarrels while the circumferential road
facilitated the transportation that the farmers were able to sell
their produce fresh and at a higher price and go home with
cooler heads.

On a bigger perspective, the infrastructures complemented

and even reinforced each other. Businessmen from other areas
were enticed to infuse and facilitate the circulation of money in
the municipality, which translated to more economic activities
including job creation, and eventually reduced poverty that
breeds discontent and insurgency. As a result, the crime rate
significantly dropped, and the NPA strongholds became limited
to isolated barangays.

3.2 Dismantling of Jueteng Operations

Jueteng is an illegal numbers game that was rampant in Irosin

just like in most parts of the country. Unlike other numbers
game, jueteng is grassroots-based and is ingrained in the social
system (PCIJ and IPD 1995).

A Personal Account as Mayor from 1992-1998 11

The illegal game is a PhP 100,000 a day enterprise in Irosin alone
and eradicating it appeared next to impossible. Apart from
being managed by operators with political and even military
connections, it provided a source of: (a) fund for campaign
kitties and maintenance of patron-client relationships, (b) fund
for responding to the requests of constituents (i.e., solicitation
for weddings, baptisms, burials and the like) or supplement the
local funds and pay for the hospitalization bills of indigents, (c)
livelihood and, most of all, (d) hope for the people that the game
will eventually lift them from poverty.

Relying on the mechanisms from the Local Government

Code and the relationship of the LGU and the local Philippine
National Police, the local administration under this author’s
stewardship pursued the dismantling of jueteng operations in
the municipality. This entailed not only catching the operators
but also providing incentives to those who will be negatively
affected. For instance, to address the legitimate requests of
constituents (i.e., hospitalization and other social services),

Figure 2. Outcomes from the opportunities under the 1991 LGC

12 Issues and Critical Actions in Local Governance

referrals were made to appropriate agencies including hospitals
and the social welfare department. For the livelihood concerns,
we gave the jueteng collectors small capitalization for livelihood
activities while the others were given short-term employment
in the projects of the government or civil society partners.
Of course, funding for campaign kitties and the maintenance
of patron-client relations cannot be directly addressed. But
because these are concerns that cannot be ignored, requests for
the assistance of civil society partners for a continuing voter
education and social conscientization were made.

3.3 Establishment of a Peoples’ Center

Immediately after taking the oath of office, the first agendum

of the local administration was to create a Peoples’ Center. The
Center was composed of various NGOs and POs that sit in
the Municipal Development Council, and other special bodies
including the Local School Board, Local Health Board and the
Municipal Peace and Order Council.

The Center became an avenue for partnerships and citizen-

government engagements, and for retooling the local
bureaucracy with a different development frame. The Center
also became an avenue to introduce to the members of the civil
society, and help them understand, the government system and
processes.

Because of the establishment of the Peoples’ Center, the people

of Irosin became active members of local special bodies and
partners in the conceptualization, planning, and implementation
of various local government programs and projects. In a number
of instances, they gave counterpart resources to ensure that the
programs and projects are implemented and realized.

A Personal Account as Mayor from 1992-1998 13

3.4 Improved Health, Education, Economic Conditions and
Environment Preservation

One of the initial outputs of the People’s Center is the Irosin

Integrated Area Development program. Dubbed as the “Laban
para sa Progresibong Irosin,” the program aims to develop
and promote livelihood, empower the people, and improve
basic social services. Under the livelihood development and
promotion component, the municipal government acted for
the dismantling of jueteng operations, placed a partial ban on
logging, provided loans to agricultural cooperatives for rice
mills and micro-finance support to the constituents engaged in
abaca making and coconut processing. The component was also
instrumental in the declaration of the entire municipality as an
agrarian reform community and arranged the transfer of nearly
500 hectares to farmer beneficiaries under the agrarian reform
program of the national government.

The people empowerment component, likewise, facilitated the

declaration of the municipality as a peace zone; the federation
of a strong municipal cooperative; construction of the People’s
Center building for the cooperative, POs and NGOs; and the
institutionalization of a participatory governance by organizing
the local special bodies.

The third component focused on the improvement of basic

services particularly on health and nutrition, and education. In
the field of health and nutrition, the local government did not
only distribute medicines and vaccines but also information on
proper sanitation and prevention of diseases. The people were
also taught how to grow and process nutritious food, which the
LGU later bought for school feeding activities. These resulted to
low malnutrition and child mortality rates, improved maternal
health, and control of diseases. In addition, an ambulance
considered a luxury of LGUs in those times was likewise
procured.

14 Issues and Critical Actions in Local Governance

The LGU, in partnership with different civil society organizations,
also instituted programs that led to the increase in the number
of students enrolling at schools but at the same time reducing
dropouts, particularly at the elementary and secondary levels.
The scheme where the LGU distributed planting materials
and bought the harvest as ingredients for the school feeding
is an example. Apart from the fact that the feeding program
encouraged the children to go to school, the parents were
likewise given the opportunity to earn, which they can use for
their daily needs as well as for the children’s school needs. To
address the supply side, the LGU also facilitated the opening
of schools as well as the construction and/or repair of school
facilities.

The first few years of the administration was likewise dedicated

to the construction of the necessary physical infrastructures,
including roads and the public market. There was no public
market then and because vendors and consumers were
scattered everywhere, unnecessary handling and transportation
costs exist to both the farmers who sell their produce and the
consumers who buy the goods. Hence, the construction of
the public market was prioritized and, complemented by the
opening of new roads, eliminated the excessive handling and
transportation costs.

The new infrastructures attracted businessmen and resulted to

the opening of new enterprises, the creation of jobs, and the
circulation of money albeit on a limited scale. Because goods
were traded and services rendered, the local government found
a reason to increase taxes, which were then translated to the
construction of more infrastructures and the delivery of social
services. As a result, from the PhP 4 million income that the
municipality received in 1992, the figure increased to PhP 40
million in 1998.

A Personal Account as Mayor from 1992-1998 15

On the aspect of environmental management, the municipal
government also spearheaded the advocacy against the
unwarranted exploitation of the Bulusan Volcano for geothermal
power generation. The exploitation could threaten the cold
and hot springs of the municipality and endanger the marine
and agricultural resources so the municipal government did
not permit any geothermal-related activities. To compensate
the possible number of jobs that may be generated under
the geothermal plant operations, the municipal government
strengthened the tourism industry, which led to the opening
of hot and cold spring resorts. The succeeding local officials
remained steadfast on the legacy and no company could still
exploit the Bulusan Volcano despite the go-signal given by the
Department of Environment and Natural Resources (DENR).

16 Issues and Critical Actions in Local Governance

 4
22 Years of LGC: Are We Better Off?

T he case of Irosin from 1992-1998 may not be reflective of

the experiences of most of the LGUs all over the country.
Sad to admit, even the initial gains of Irosin under the first
decade of LGC implementation were not sustained as the
municipality continued to remain as Second Class with poverty
increasing from 45 percent in 2003 to 65 percent in 2009 (NSCB
2009). As Azfar et al., (2001) noted, the implementation of the
decentralization under the LGC proceeded unevenly with the
progress getting stalled particularly starting 1995.

4.1 National and local outcomes

One of the positive impacts of the LGC is the increase of LGU

resources from the national wealth. The internal revenue
allotment (IRA) alone, a type of an intergovernmental fiscal
Figure 3. Total income of LGUs, 2001-2012

22 Years of LGC: Are We Better Off? 17

transfer, doubled from 20 percent before 1992 to 40 percent
under the Code (Llanto 2009). As a result, from the PhP 9.05
billion total LGU income in 1990 (Manasan 1992), the figure
increased to PhP 47.3 billion in 2001 and to PhP 111.7 billion in
2012 (See Figure 1).

LGUs were likewise capacitated to generate their own revenues.

Various taxes were assigned to LGUs (Table 2) along with
the power to levy user fees and charges on businesses and
occupations. As a result, own-source of revenue (OSR) of LGUs
continued to increase (see Figure 2). From the total PhP 43.3
billion OSR in 2001, the figure rose to PhP 112.14 billion. The
major beneficiary, however, are the cities since they have the
largest tax base.

The LGUs which exercised their corporate powers were able to

generate a cumulative average of PhP 22.45 billion annually. A
great portion of these are receipts from economic enterprises
Table 2. Tax assignment in cities, provinces, municipalities
and barangays under the 1991 LGC.

18 Issues and Critical Actions in Local Governance

with an annual average of PhP 9.14 billion followed by other
receipts with PhP 4.86 billion.

Because of the increase in income, LGUs were able to perform

their tasks and deliver basic services. The shares of LGU
expenditures, for instance, exhibited a steady increase from
1.7 percent in 1990 to 3.4 percent in 2002 in terms of the gross
national product or 11.2 percent to 19.3 percent in terms of
national government expenditures in the same years (Azfar et
al., 2000; Llanto 2009).

If the millennium development goals (MDGs) will be considered

as proxies for LGU performance, the expenditures could, in
part, translate to notable developments in the areas of health
and education. Under-five mortality, for instance, was reduced
from 80 percent in 1990 to 30 percent in 2011 while infant
mortality decreased from 57 percent to 22 percent in the same
period. Maternal mortality likewise declined as the proportion
of births attended by skilled health personnel increased from
58.8 percent to 74.9 percent (NSCB 2013).

In the education sector, the net enrollment ratio in primary

education increased from 84.6 percent in 1990 to 91.21 percent
in 2011 while the cohort survival rate hiked by four points from
69.7 percent to 73.76 in the same period.

Satisfaction on the delivery of other social services, however,

varies (Alinio 2008; Capuno 2008/9). One reason is the disparity
in terms of resources among, and eventually the development of,
LGUs. As shown in Table 2, cities benefit more from the set-up
provided by the Code as they have the largest tax base compared
with the other LGUs luring most municipalities to be converted
into cities.

Corruption is also another explanation. LGUs remain to be the

most-complained of government agency for the past several
years. In 2012, for instance, LGU officials comprised 43 percent

22 Years of LGC: Are We Better Off? 19

 Figure 4. Total non-tax revenue generated by LGU, 2001-2012

of the respondents to corruption cases filed by the Office of the

Ombudsman (Casauay 2013).

Studies have shown that corruption at the local level has

significant negative effects on household satisfaction to the
delivery of health and education services (Azfar, et al., 2000).
Rural areas which are rarely covered by the media, and those
with peace and order problems tend to be more corrupt. As
such, geographical classification tends to widen the development
divide and the satisfaction on social services delivery.

Lastly, patronage relations can also explain the varying degrees

of satisfaction as well as the disparity in development. Patronage
relations is widespread in the country, and this binds not only
politicians and their constituency but also local chief executives
(i.e., governors and mayors, and mayors or governors and
barangay chairmen), and national and local officials. Across
LGUs, those having close ties with the Congressmen and national
officials also have more access to resources which, eventually,
can be invested on better projects or services. In the province
of Isabela, for example, barangays and municipalities with local
chief executives who are closer to the Congressional District
Representatives tend to have better roads (Cruz 2010). Even
Senators admitted that they inserted pork-barrel allocations for
their favored LGUs in the 2014 general appropriations.

20 Issues and Critical Actions in Local Governance

 5
Current Issues in Local Governance

In general, it can be said that the Local Government Code

has transformed the policy and institutional framework for
governance and development. However, while there are positive
results from the transformation, there are also negative impacts
primarily because of procedural, financing and governance
constraints (Shaz, Thompson and Zuo 2004; Llanto 2009). These
constraints are summarized as follows: (a) unequal and biased
sharing of wealth, (b) level and architecture of devolution, (c)
term limits and numerous elections, (d) weak demand side, and
(e) weak barangay governance.

5.1 Unequal and biased sharing of wealth

Studies confirm that the decentralization embodied in the Code

is working (Capuno 2007; Llanto 2009; Alinio 2008; ADB 2005).
The Galing Pook Awards, for instance, confirm that because
of decentralization, a growing number of LGUs was able to
innovate and produce results. The downside, however, is that
decentralization created an increase in expectations, particularly
at the local level (Rodden 2002; Llanto 2009; Lavado and Pantig
2009).

The increase in expectations couldn’t have been an issue because

along with the devolution of functions is the devolution of
resources. But while it is true that resources were devolved, these
were not enough to satisfy the current demand. For instance,
while LGUs rated themselves “high” to “excellent” in terms of

Current Issues in Local Governance 21

local governance performance (DILG-LGPMS 2009-2012), the
magnitude of poor families continues to increase. From 3.8
million in 2006, the figure rose to 4.2 million in 2012. Even the
quality of life based on the human development index barely
improved from 0.616 in 1997 to 0.654 in 2012.

The issue on resources is rooted on the central government

– local government income sharing, and the sharing of
resources among and between LGUs. Based on the LGC, the
central government gets 60 percent of the total revenue while
the remaining 40 percent is to be shared by the LGUs. Hence,
while the formula for revenue distribution responds to financial
needs to a certain degree, the same remains insufficient to the
functions devolved to the LGUs (Carizo 2009a).

Second, IRA distribution favors the cities as against the

municipalities and provinces. While it is true that cities only get
23 percent of the LGU share, the amount is still equivalent to an
average of PhP 351 million per city in 2012 as opposed to the
PhP 55 million per municipality in the same year (Table 3).

The IRA is computed based on the formula-with-indicators-

based method, but this does not include the taxing power-related
determinant as a variable (Carizo 2009a). The indicators include
population, land area and equal sharing, which may indicate
that the cities receive more compared with the municipalities
because they have more inhabitants to respond to.

But while this is the case, cities were also awarded more taxing
powers (Table 2) Table 3. Share of IRA by LGU type, 2012.
that in the aggregate,
they generate more
income compared
with the rest of the
LGUs. As shown
in Figure 3, IRA

22 Issues and Critical Actions in Local Governance

only comprise 39 percent to 49 percent of the total income of
cities as against the 74 percent to 85 percent in the cases of the
provinces and municipalities. The bigger proportion of IRA in
the income sources of the municipalities and provinces implies
their dependence to the revenue allotment.

Third, because of the disparity in the distribution of resources,

local officials are pressured to enter into “special alliances or
arrangements” with congressmen, senators, national agencies
and the President to be able to access pork barrel or additional
budgetary allocations. But while there are gains in the said
alliances and arrangements, the same distorts governance and
feed into patronage relationships which is inimical to democracy.

Figure 5. Proportion of IRA in LGU’s income sources, 2001-2012

5.2 Level and Architecture of Devolution

Under the present set-up, the basic and frontline social services
are the responsibilities of the cities and the municipalities.
However, resources, including technical expertise, did not
follow function. In the case of the agriculture sector, for
instance, the experts only remained at the provincial LGUs. On
the other hand, in the case of the health sector, while there are
medical doctors at the municipal level, facilities and medicines

Current Issues in Local Governance 23

are also wanting. As such, there are municipal LGUs that would
just “ride on” to, or “cost-shift” the services being offered by the
district and provincial hospitals (Rodden 2002).

Second, the national-local government relationship is not

clearly defined and refined. As Brillantes et al., (forthcoming)
noted, Philippine decentralization goals remain ambiguous
and the detailed design of both the whole system and its
implementation strategies remain lacking. As such, instead
of performing a “steering” role under the devolved set-up,
the national government intensified the “rowing” role – the
function that should be performed by the local governments.
A very good example to this is the Pantawid Pamilyang Pilipino
Program or 4Ps, which is being implemented directly by the
central government and not by the local government units.

Even the Grassroots Planning and Budgeting Program (earlier

known as the Bottom-Up Budgeting for Local Poverty Reduction
Action Planning) is being considered as inconsistent with the
principle of decentralization. While the plans are considered to
emanate from the CSOs and LGUs through the local poverty
reduction action teams, the steering and the rowing roles still
remain with the central government being the one in control of
the menu of projects to be implemented, the fund manager, and
the project implementer especially if the LGUs do not comply
with the requirements.

There are also claims particularly among local chief executives

that LGU plans are not respected as national government agencies
would “parachute” programs directly to the local level. This lack
of respect not only muddles the roles of each agency but also
affects the local development planning and project prioritization.
For instance, there are anecdotal examples in Mindanao where,
to reduce school dropout rates, the Department of Education
poured investments on school buildings and facilities. Nothing
happened despite the investments because as noted by the local

24 Issues and Critical Actions in Local Governance

governments, the pupils only need a footbridge to enable them
to cross the river during the rainy season.

5.3 Term limits and numerous elections

At present, local officials are allowed three-term limits with three

years for every term. However, three years is too short for good
leaders and three terms may be too long for the bad ones. As
politicians would say, the first and third years of each term are
focused on elections and there is only one year for governance.

Three-year terms also result to non-continuity of good projects

especially if the mayor or governor who initiated the same fails to
get re-elected. Worse, there are reports that local chief executives
may tend to “over-fish” the resources and avail of the power of
the LGU to borrow especially when they are on their third term.
When these LCEs lose or are replaced, the succeeding officials
suffer because the local government is already buried in debt.

Others get around these limitations by resorting to dynastic

politics. As such, after the end of the term of the husband, the
wife or the children would succeed.

5.4 Weak Demand Side

While it is true that the LGC opened opportunities for

participation in governance, the demand side is still considered
weak either because the people’s organizations or NGOs in
the area are controlled by the local politicians or there are
no organizations to speak of. Those that appear in paper as
members of the local special bodies are only recorded for
compliance according to the unofficial account of monitors for
BUB-LPRAP. It should be noted that the BUB-LPRAP requires
LGU-civil society partnership.

Current Issues in Local Governance 25

There are also cases when the problem is transparency. Hence,
even if the NGOs and POs are active yet they don’t have the
proper data and information, their voice will just be out of tune.

Lastly, the recent scandal of Napoles’ NGOs is also expected to

affect the demand side. Because the credibility of the NGOs and
POs have been questioned as a result of the scandal, the people
might become wary of which organization to deal with, or use
as a medium in voicing their concerns.

5.5 Barangay Governance

The roles of the barangay government units were given recognition

and even advanced under the LGC. However, because the focus
centered on the city and municipal governments, efforts to
strengthen the capacities of the barangay LGUs became limited.
In effect, some not only became dependent on the upper-level
politicians but also became less active in performing their roles
as frontline units in responding to calamities and in delivering
or facilitating the delivery of basic services. There are notable
exceptions, though, such as the rich Barangay LGU of San
Antonio in Pasig noted for disaster response; Barangays Bugo of
Cagayan de Oro and Bagumbuhay in Quezon City for solid waste
management; and Barangays Sto. Cristo in Angeles City and
Tambaliza in Iloilo for good governance and anti-corruption.

Worse, there are also claims that resources are wasted because
of the inutile Sangguniang Kabataan. Hence, proposals linger in
Congress for its abolition.

The weak capacity of the barangay LGUs also make it prone

to politicization by upper-level politicians from the mayors,
Congressmen and governors. As a result, barangays are
politically divided during, and sometimes extending to the next,
elections.

26 Issues and Critical Actions in Local Governance

 6
Proposed Amendments and
Critical Recommendations

W ith the issues surrounding the Code, a number of

proposals are being raised to amend RA 7160. This
section presents these proposals and the reasons why they
didn’t materialize. The section also presents the challenges in
pursuing the amendments or revision to the Code and offers
some recommendations to address the same.

6.1 Proposals and Proposed Amendments

In 2004, the Local Government Academy (LGA) conducted an

inventory of proposals that seek to amend the LGC. It found
135 proposals coming from the four local government leagues
(leagues of provinces, cities, municipalities and barangays)
of the Philippines, and agencies such as the Bureau of Local
Government Supervision (BLGS), Bureau of Local Government
Development (BLGD), National Tax Studies Center (NTSC)
and Philippine Institute of Environmental Planners (PIEP). The
comparative proposals of these units and agencies are attached
as Annex A.

The Union of Local Authorities of the Philippines (ULAP),

attempted to consolidate the proposals of the leagues of local
governments and this is attached as Annex B along with the
comprehensive proposal of former Senator Aquilino Pimentel
who is known as the “Father of the Local Government Code”.

Proposed amendments and critical recommendations 27

None of the proposals mentioned, however, succeeded. For
this reason, 73 Congressional District Representatives and 14
Senators respectively filed as principal authors 198 House Bills
(Annex C) and 66 Senate Bills (Annex D) that seek to amend
the Local Government Code from July 2013 to February 2014.
As of this writing these bills are still with the respective local
government committees of the House of Representatives and
the Senate.

Based on the LGA inventory and on the bills database of

both the House of Representatives (HOR) and the Senate, the
proposals generally revolve around the following: (a) relations
and principles, (b) devolution of powers and functions, (c)
fiscal matters, (d) structures and systems, and (e) popular
participation.

The nature of the proposals or proposed amendments generally

reflect the background of the proponent. Legislators are
more concerned with structures and systems (48 percent for
Congressional District Representatives and 50 percent for
Senators) while representatives from LGUs and the executive
branch are more concerned with fiscal matters. Devolution-
related proposals rank third across groups with 11 percent for the
LGA and the HOR members, and 8 percent for the Senators. The
LGA inventory also considers proposals on inter-government
relations and principles to be equally important with the
proposals on devolution. Proposals on popular participation,
and inter-government relations as well as the governance-related
principles are among the least of the concerns of the legislators.

Proposals on fiscal matters can be classified into three: (a) those

concerned with IRA, (b) those concerned with local resource
generation, and (c) tax exemptions. These proposals can be
summed as follows (see also Diaz-Manalo 2007; Carizo 2009a):

28 Issues and Critical Actions in Local Governance

 Figure 6. Classification of amendments to the 1991 LGC

• Reformulation of the 60-40 central-local government

sharing to 50-50 or 30-70 in favor of the latter.

• Removal of the counter-equalizing factor in the

distribution formula as the current distribution is
determined regardless of the LGU’s expenditure needs
and potential resources. While this favors the LGUs
that are not even capable of providing the necessary
public services to its constituents in accordance with
minimum standards, the case is otherwise for LGUs
with a strong tax base but requires initial investments
to maximize such base.

• Provision of incentives for resource mobilization

or inclusion of a performance-based indicator in
IRA distribution formula. Most LGUs became IRA-
dependent because the present formulation assured
them of a regular and automatic share of revenue. The
problem, this burdens the national government and
those LGUs that are serious in resource generation.

• Redesigning of the local tax collection system to

consider the situs of taxation principle and the creation
of a local real property tax assessment team, among
others.

Proposed amendments and critical recommendations 29

 • Redesigning of the inter-governmental fiscal
transfer system. There are suggestions that greater
tax decentralization, paired with a well-designed
intergovernmental transfer system that includes
elements of fiscal equalization, should enhance the
gains of the decentralization process.

• Clarification on the rules of the classification of

LGUs. The tendency for the number of LGUs to
increase progressively, in order to take advantage
of IRA formula, is another critical problem on local
government finance. It is necessary to review the rules
for the fragmentation and upgrading of LGUs, and
make the granting procedures more transparent and
credible.

• Provision of tax incentives to sectors like the senior

citizens and the local music industry.

The second category of proposals are towards the modification

of structures and systems. These include the following:

• Limiting the power of the President and the DILG on

the imposition of disciplinary actions against local
officials.

• Expanding the power and functions of the barangays

and making them implementing agencies in the
delivery of the basic services.

• Institution of reforms to the Sangguniang Kabataan

or totally abolishing the youth council.

• Creation of new offices from the barangay to the

provincial levels.

30 Issues and Critical Actions in Local Governance

 • Amending the qualifications and term limits of city
and municipal officials such that they will only be
serving two terms with four years per term. This will
more or less allow the gestation of good programs and
projects.

Proposals pertaining to “Relations and Principles” generally

revolve around the following:

• Strengthening local autonomy by expanding the

coverage of the devolution of more powers to in favor
of the LGUs.

• Clarifying the concept of “general supervision over the

LGUs” which is connected to the proposal of limiting
the powers of the President and the DILG; and,

• Requiring the agencies which are not devolved,

including government-owned and controlled
corporations, to consult first with the LGUs before
implementing programs and projects.

The third one is consistent with the claims of non-respect of

local development plans and parachuting of projects by the
central government directly to the local communities.

Proposals concerned with devolution vary depending on the

proponents. Local government leagues are advancing the
concept of full devolution while there are legislators who are for
the reversion of functions to the central government.

There are only a few proposals for people participation except

for the creation of mechanisms to strengthen the civil society
organizations and ensure their effective participation in local
governance. The mechanisms vary from the selection and
accreditation of qualified CSOs but almost all proposals are
unanimous in making the participation mandatory.

Proposed amendments and critical recommendations 31

The findings of LGA and the review on the bills filed in the HOR
and the Senate are, in part, being affirmed by the participants to
the workshop-forum organized by the Galing Pook Foundation
in cooperation with the Union of Local Authorities of the
Philippines and the Friedrich Ebert Stiftung. The workshop-
forum, entitled “A Fresh Look at the Local Government Code of
1991,” aimed at taking a strategic look at the Local Government
Code of 1991; and, generate recommendations on critical
amendments and suggestions on how to move forward. It is
participated in by local chief executives (governors, municipal
and city mayors); national and local legislators (Congressmen
and select members of Sangguniang Bayan and Sangguniang
Panlalawigan); members of the academe; members of civil
society organizations; and, representatives of national
government agencies.

Table 4. List of priority amendments as proposed by stakeholder-participants

to the LGC workshop

32 Issues and Critical Actions in Local Governance

The participants unanimously agree that the amendments on
resource-sharing, particularly the IRA, and the term limits of
the local officials should be prioritized. Resources should follow
function and should there be considerations on resource-
sharing and IRA reformulation, these should be favorable to the
LGUs. On equal footing with regards resources is the issue on
term limits. Proposals, however, vary from four to five years per
term, and from two terms to no term limitations.

Other proposed amendments revolve around power relations

(lesser restrictions on the LGUs but instead increasing local
autonomy), increasing devolution, redesigning the Sangguniang
Kabataan, and creating an environment for a substantive civil
society participation.

6.2 Challenges in Advancing the Proposed Amendments

Since 1998, a number of bills seeking to amend the Local

Government Code have been filed before the Congress. Only a
few have been successful, however, and these are concerned with
the extension of the terms of the members of the Sangguniang
Barangay and Sangguniang Kabataan (RA No. 8524); the
composition and manner of election of the members of the local
legislative councils (RA 8553); the institutionalization of the
calamity fund (RA No. 8185); and, the increasing of the income
requirement for the creation of cities (RA No. 9009). The rest are
shelved in the local government committees of both the HOR
and the Senate.

Political economy factors primarily explain the “shelving” of

the bills.

In an assessment of the feasibility of reforming the Local

Government Code, Matsuda (2011) argues that there is a

Proposed amendments and critical recommendations 33

 Amendments to the LGC of 1991

• RA 8524 - Extension of the terms of the

members of the Sangguniang Barangay and
Sangguniang Kabataan

• RA 8553 - Amendment on the composition

and election members of the local legislative
councils

• RA 8185 - Institutionalization of the

calamity fund

• RA 9009 - Increasing of the income

requirement for the creation of cities

collective action problem and interest incompatibility among

the members of Congress. For instance, while 36 percent of
the HOR members and 54 percent of the Senators of the 14th
Congress have been local chief executives or have LCE relatives,
the numbers are not enough to ensure that a bill becomes a law
(Carizo 2009a). In some cases, the mindset of an LCE would
change the moment he/she becomes a Congressman or a Senator.
This, in part, is supported by Figure 4 where Congressmen see
the problem on the LGC as rooted primarily on structures and
systems, and secondarily on fiscal matters contrary to the view
of incumbent LGU officials.

Even among legislators, proposed amendments vary with some

going to the extremes. For instance, while some Congressmen
are advancing devolution, there are those who clamor for the
reversion of functions to the central government (i.e., HB No

34 Issues and Critical Actions in Local Governance

1322 which seeks to revert agricultural functions to the national
government). Others are also seeking for the strengthening of
the Sangguniang Kabataan (HB No. 27) while there are those
who clamor for their abolition (HB Nos. 1122 and 1125).

Complicating the matter is the tendency of the Congressional

committees to act as “gatekeepers” which sometimes tend to get
abused especially if the Committee Chairman has other interests
(Carizo 2012). This in part explains why around 90 percent of
the bills remain at the committee level.

In addition to legislation-related political economy, there are

also factors or issues that need to be considered in amending the
Code. These include the issues on climate change, migration,
rapid urbanization, and globalization. The current proposals
are generally reactive and very restricted, if not parochial –
hence, the focus on resources, systems and structures. None of
the proposals reviewed even tried to address the phenomena
or issues mentioned, and this is problematic because said
phenomena or issues will have, or are already making, an
impact on local governance. The Typhoon Yolanda (Haiyan)
devastation, for instance, not only laid bare the lack of readiness
of some local governments to respond to disasters but also the
lack of clarity on the roles of local and national government

Proposed amendments and critical recommendations 35

agencies in post-disaster response. Another is the inevitable
implementation of the ASEAN Free Trade Agreement which
will definitely alter the economic environment and affect not
only local competitiveness but also the exercise of powers of
local governments, particularly in regulating businesses in their
respective jurisdictions (Panadero 2014).

6.3 Next Steps

As stated, there are a number of proposals to amend the Code

in addition to the bills being filed in the Congress. What is
critical now is to move the important and strategic amendments
forward.

We need to do the following next steps:

• Create awareness and hype the necessity of amending the LGC.

As proposed during the LGC workshop-forum, these
include the utilization of the media both traditional
and social media; and, continuing the research and
diagnostic functions of the academe to provide evidence
in support of the amendments.

• Conduct an inventory and consolidation of LGC proposals. While

the LGA conducted its own inventory of proposals,
the same was only generated from the leagues of local
governments and select agencies. The inventory was
also conducted a decade ago, and the proposals may not
even be responsive to the current conditions. Include in
the inventory the proposals by other local governance
stakeholders such as development workers and other
members of the civil society.

36 Issues and Critical Actions in Local Governance

• Solicit proposals from other sectors including the business
sector and experts on international trade and cooperation,
climate change, migration and urban development. If time
warrants, conduct in-depth studies on how the issues
on climate change, migration, rapid urbanization, and
globalization will affect local governance and how the
negative effects can be mitigated.

• Draft a bill that is acceptable to all the stakeholders. The bill

should incorporate measures that could mitigate the
effects of the issues or phenomena mentioned. There
should be proper consultation to be able to generate the
consensus particularly on what is politically feasible.

• Conduct a mapping of supporters, champions, and potential

opposition on the draft LGC bill and the develop strategies how to
generate as much support as possible. These should include
plans on information and education on the necessity of
amending the Code.

• Lastly, get the support of Congress and the President to enact the
proposed bill into a law.

Proposed amendments and critical recommendations 37

38 Issues and Critical Actions in Local Governance
 References

A. Papers

Alinio, B.F. 2008. “Philippine Local Government Officials

Perceptions of Decentralization and its Effects on Local
Governments’ Administrative Capabilities”. Dissertation
submitted to George Washington University: WA
Azfar, Omar, Tugrul Gurgur, Satu Kähkönen, Anthony Lanyi,
and Patrick Meagher. 2000. “Decentralization and
governance: An empirical investigation of public service
delivery in the Philippines”. IRIS: Maryland, USA
Azfar, Omar, Satu Kähkönen, and Patrick Meagher. 2001.
“Conditions for effective decentralized governance: A
synthesis of research findings”. IRS: Maryland, USA
Boex, Jamie and Serdar Yilmaz. 2010. “An Analytical
Framework for Assessing Decentralized Local Governance
and the Local Public Sector”. Urban Institute Center on
International Development and Governance: WA
Brillantes, Alex Jr., James Alm, Gilbert Llanto, and Gaudioso
Sosmena. Forthcoming. 20 years of decentralization in the
Philippines: Issues, Concerns, Impact and Directions Book
1.
Capuno, Joseph J. 2008/2009. “A case study of the decentralization
of health and education services in the Philippines”. HDN
Discussion Paper Series
Capuno, J.J. and O. Solon. 1996. “The Impact of Devolution on
Local Health Expenditures: Anecdotes and Some Estimates

References 39
 from the Philippines”. Philippine Review of Economics and
Business
Carizo, Jay A. 2009a. “Policy Champions and Political Incentives:
The Prospects of IRA Reform in the 14th Philippine
Congress”. Mimeo. The World Bank
______________. 2009b. “Philhealth and political risks for
local reforms”. Mimeo. IPD
______________. 2012. “The Political Feasibility of Labor Code
Reforms in the Philippines.” Mimeo. The World Bank
Casauay, Angela. 2013. “Most Ombudsman cases filed vs
LGUs, PNP”. Retrieved from http://www.rappler.com/
nation/32247-lgu-pnp-ombudsman-cases on January 31,
2014
Cuevas-Miel, Likha. 2011. “The Local Government Code at 20:
Politics Still Messing Up Fiscal Autonomy”. Interaksyon.
com
Diaz-Manalo, Pamela. 2007. “Policy Advisory No. 2007-01:
Reform Directions on the IRA”. CPBD-HOR
Dorotan, Eddie. 2010. “Building an Archipelago of Good
Governance”. In: Sta. Ana Filomeno III S. Philippine
Institutions: Growth and Prosperity for All. AER: Manila
_______________. N.d. “Challenges and Opportunities in
Transferring Innovations in LDCs”.
Galing Pook Foundation. 2014. Proceedings of the Workshop-
Forum “A Fresh Look at the Local Government Code of
1991”
Gonzales, Raul P. 1997. “Case Studies on Decentralization:
Philippines”. SDA Technical Consultation on
Decentralization
Guevara, Milwida. N.d. “Real Property Taxation in the
Philippines”.

40 Issues and Critical Actions in Local Governance

Gomez, Maita. 2010. “The Failure of the Real Property Tax in
Local Governments”.
Gyun Cheol Gu. 2012. “Developing Composite Indicators for
Fiscal Decentralization: Which is the Best Measure for
Whom?”. MPRA
Hasnain, Zahid. “Devolution, Accountability and Service
Delivery”. The World Bank: 2008
HDN. “Philippine Human Development Report”
Herrera, Maria Elena, Roman Francisco and Maria Cristina
Alarilla. 2010. “Overview of Health Sector Reform in the
Philippines and Possible Opportunities for Public-Private
Partnerships”. AIM
Huther, Jeff and Anwar Shah. “Applying a Simple Measure of
Good Governance to the Debate on Fiscal Decentralization”.
Khemlani, Stuti. 2013. “Buying votes vs. supplying public
services: Political incentives to under-invest in pro-poor
policies.” Policy Research Working Paper. The World Bank.
LGA-DILG. 2004. Unpacking the Local Government Code of
1991.
Llanto, Gilberto M. 2009. “Fiscal Decentralization and Local
Reforms in the Philippines”. PIDS
Manasan, Rosario G. 1999. “Indicators of Good Governance:
Developing an Index of Governance Quality at the LGU
Level”. PIDS
Manasan, Rosario G. 2004. “Local Public Finance in the
Philippines: Balancing Autonomy and Accountability”.
PIDS
Martinez-Vazquez, Jorge, and Andrey Timofeev. 2009.
“Decentralization Measures Revisited”. Andrew Young
School of Policy Studies
Matsuda, Yasuhiko. 2012. “Operational Implications of Political

References 41
 Economy Analysis: Local Service Delivery in Health and
Roads”. World Bank Office of Manila
_______________. 2011. “Ripe for a Big Bang? Assessing the
Political Feasibility of Legislative Reforms in the Philippines’
Local Government Code”. The World Bank
Panadero, Austere. 2014. Interview by Eddie Dorotan and Jay
Carizo. DILG Quezon City. February 25.
Philippine Center for Investigative Journalism and Institute for
Popular Democracy. 1995. “Jueteng is embedded in local
culture”, retrieved 1/26/2014, http://pcij.org/stories/1995/
jueteng3.html)
Pinero, Mary Angeles, Eddie Dorotan et. al. “Local Health
Systems Inter-Local Health Zones, A New Approach to
Reform”.
Rodden, Jonathan. 2002. “The Dilemma of Fiscal Federalism:
Grants and Fiscal Performance around the World”.
American Journal of Political Science
Sarmiento, Mel Senen. 2006. “LGU Perspectives on Local
Government Finance Issues”. Presented during the
Consultation Workshop of the Working Group on
Decentralization and Local Government”
Shaz, Anwar, Theresa Thompson and Heng Fu Zuo. 2004. “The
impact of decentralization on service delivery, corruption,
fiscal management and growth in developing and emerging
market economies: A synthesis of empirical evidence”.
CESifo DICE Report.
Sikander, Muhammad Usman and Syed Ahsan Ahmad Shah.
2009. “Inter-District Inequalities in Social Service Delivery:
A Rationalized Approach Towards Funds Disbursement”
Uchimura, Hiroko and Yurika Suzuki. 2009. “Measuring Fiscal
Decentralization in the Philippines”. IDE
Wurfel, David. 2004. “Civil society and democratization in the
Philippines” in Growth and Governance in Asia.

42 Issues and Critical Actions in Local Governance

B. Legal Documents

Office of Senate Minority Leader Aquilino Pimentel, Jr.

“Proposed Amendments to the Local Government Code”.
R.A. 7160 otherwise known as the Local Government Code of
the Philippines

C. Data

14th Congress political economy data on Congressmen (political

alignments, clan memberships, etc.) generated for the paper
“Policy Champions and Political Incentives: The Prospects
of IRA Reform in the 14th Philippine Congress”
COA Report on LGU expenditures, various years
Human Development Network. Philippine Human Development
Index, 1997-2012
National Statistics Coordination Board. 2009 City and Municipal
Level Poverty Incidence.
_________. 2009 City and Municipal Level Poverty Incidence
Proposed amendments on the Local Government Code of 1991
filed at the Committee on Local Government, Philippine
HOR and HOS
Statement of Income and Expenditure of Local Government
Units (Provinces, Cities and Municipalities) from 2001-
2012
Statement of Income and Expenditure of Local Government
Units (Provinces) from 1996 to 2000

References 43
44 Issues and Critical Actions in Local Governance
Annexes

Annexes 45
 Annex A. Comparison of Proposed Amendments to the Local Government Code of 1991
Category League of League of Cities of the League of League of Others
Provinces of the Philippines Municipalities of Barangays of the
Philippines the Philippines Philippines
Relations and • Define the concept • Define the con- • Require all NGAs, BLGS:
Principles of “general super- cept of “general GOCCs and pub- • Emphasize that the
vision” in the Code supervision” in lic-quasi corpo- income requirement
[Secs. 25, 32] the Code [Secs. rations to consult for the creation or
• Strengthen Code 25] with LGUs, NGOs conversion of LGU
provision on man- • Require all NGAs, and other sectors should be based on
datory prior con- GOCCs and pub- before implement- locally-sourced reve-
sultation in imple- lic-quasi corpo- ing their programs nues [Sec. 7(a)]
menting National rations to consult or projects in the • EBaseline income
programs [Secs. with LGUs, LGU jurisdiction, requirement should
26-27] • NGOs and other on any undertak- not be less than
• President and sectors before im- ing, not only those Php50M for a mu-
DILG shall have no plementing their with potential ad- nicipality, Php100M
authority to review, programs or proj- verse effects on the for a component city

46 Issues and Critical Actions in Local Governance

revise or declare ects in the LGU environment as and Php300M for a
valid Ordinances, jurisdiction, on currently provided province [Sec. 7(a)]
resolutions and lo- any undertaking, [Sec. 26] • Define and clarify
cal executive orders not only those “consultation” [Sec.
[Sec. 30] with potential ad- 27]
verse effects on • The phrase subject to
the environment pertinent accounting
as currently pro- and auditing rules
vided [Sec. 26] and regulations

Based on the inventory conducted by the Local Government Academy as published in Unpacking the Local Government Code of 1991: A Comprehensive research and up to date
evaluation of the Local Government Code of 1991 conducted by the Local Government Academy.
 Category League of League of Cities of League of League of Others
Provinces of the the Philippines Municipalities of Barangays of
Philippines the Philippines the Philippines
Relations and • Require government au- • Require the na- should be amended to
Principles thorities to submit copies tional govern- refer to government ac-
of their project/program ment agencies counting and auditing
Documents to the LGUs concerned to rules and regulations
concerned [Sec. 27] pay for the ben- [Sec. 505]
• DBM and concerned na- efits, compensa- BLGD:
tional government agen- tion and other • The classification of posi-
cies should require reso- financial assis- tions must conform with
lutions of consultations tance given to the prescribed guidelines
from LGUs concerned their employees under RA 6758 and sub-
prior to initial release of working in the sequent laws that may
funds forprojects [Sec. LGU jurisdic- be enacted pursuant to
27] tion but allow constitutional mandates
• Require the national- to augment the [Sec. 76]
government agencies same [Sec. 81] • Salary adjustments ini-
concerned to pay for the tiated by the National
benefits, compensation Government shall be
and other financial assis- exempted from the pro-
tance given to their em- hibition of this section
ployees working in the [Sec. 81]
LGU jurisdiction but al- • Compensations should
low to augment the same be in accordance with
[Sec. 81] the existing salary stan-
dardization law [Secs.

Annex A
447, 458, 468(a)(1)]

47
 Category League of League of Cities of the League of League of Others
Provinces of the Philippines Municipalities of Barangays of the
Philippines the Philippines Philippines
Devolution • DENR shall not ex- • Explicitly allow • Explicitly allow LGUs BLGS:
of Powers ercise control and su- LGUs to exercise to exercise those powers • Empower capable
pervision over LGUs those powers that that are not otherwise provinces, cities or
[Secs. 7(b)(2)(ii), are not otherwise expressly prohibited by municipalities to
17(b)(3)(ii)] expressly prohib- law [Sec. 16] maintain, repair or
• Implementation, su- ited by law [Sec. • Return the operational rehabilitate pub-
pervision and admin- 16] control of local police lic works or infra-
istration of infrastruc- • Remove from forces to local chief ex- structure projects
ture projects of local the Secretary of ecutives [Sec. 28] [Sec. 17(c)]
nature should be de- Finance the cur- • Allow municipalities to • Distinguish be-
volved to LGUs [Sec. rent authority to regulate the operation tween the authority
17(c)] appoint the local of jeepneys and buses granted to the Con-
• School building pro- treasurer and as- plying within their re- gress and the de-
grams should be de- sistant local trea- spective territorial ju- volved power of the
volved to LGUs [Sec. surer, and give the risdiction [Sec. 443] province, to issue a

48 Issues and Critical Actions in Local Governance

17(c)] authority to the • Remove from the Secre- franchise [Sec. 137]
• Give LGUs more re- local chief execu- tary of Finance the cur-
sponsibility/authority tives [Secs. 470(a), rent authority to appoint BLGD:
for environmental 470(b), 471(a)] the local treasurer and • Include provision
protection by allow- assistant local treasurer, of fire protection
ing them to issue En- and give the authority to service [Sec. 17]
vironmental Com- the local chief executives • Integrate the func-
pliance Certificates [Secs. 470(a), 470(b), tions stated in 1, 2,
(ECC) [Sec. 26] 471(a)] 3 [Sec. 476(b)]
 Category League of League of Cities of the League of League of Others
Provinces of the Philippines Municipalities of Barangays of the
Philippines the Philippines Philippines
F i s c a l • Non-diminution of • Ensure the funding of • Ensure the funding of • Adjust from fifty BLGS:
Matters the IRA/IRS even in mandates later given mandates later given thousand pe- • In relation to
case of unmanage- to LGUs by subse- to LGUs by subsequent sos (P50,000.00) Sections 235
able public sector quent laws, executive laws, executive orders, or less to one and 272, the
deficit [Sec. 284] orders, and such other and such other issu- hundred thou- issues on the
• Gradual increase issuances [Sec. 3(d)] ances [Sec. 3(d)] sand pesos expense items
of IRA/IRS to fifty • Allow LGUs to let • Allow LGUs to let (P100,000.00) chargeable
percent (50%) of the private sector the the private sector the or less, in case against the
the national internal collection of local collection of local of cities, and Special Edu-
revenue [Secs. 284, taxes, fees, charges, taxes, fees, charges, from thirty cation Fund
290] and other impositions and other impositions thousand pe- should be clar-
• Automatic release of [Sec. 130(c)] [Sec. 130(c)] sos (P30,000.00) ified [Sec. 100]
IRA to be referred • Allow LGUs to col- • Allow LGUs to col- or less to sixty • Empower the
to as internal rev- lect registration fees lect registration fees thousand pesos localauthori-
enue share (IRS) from vessels three (3) from vessels three (3) (P60,000.00) or ties concerned
[Sec. 286] tons and below [Sec. tons and below [Sec. less, in case of to perform
• Automatic ap- 133(d)] 133(d)] municipalities, both the regis-
propriation of the • Give LGUs the power • Give LGUs the power the gross sales or tration and li-
LGUs’ share in the to impose excise taxes to impose excise taxes receipts of store censing for the
national taxes and on articles enumerated on articles enumerated or retailers with operation of
income [Sec. 286] in the National Inter- in the National Inter- fixed business es- fishing vessels
• Provide for penal- nal Revenue Code ex- nal Revenue Code ex- tablishments to weighingthree
ties for the non-im- cept petroleum [Sec. cept petroleum [Sec. be taxed by a rate (3) tons or less
plementation of the 133(h)] 133(h)] of not more than [Sec. 149]

Annex A
automatic release of one percent (1%)
IRA/IRS [Sec. 286] [Sec. 152]

49
 Category League of League of Cities of the League of League of Others
Provinces of the Philippines Municipalities of Barangays of the
Philippines the Philippines Philippines
Fiscal • Allow LGUs to col- • Allow LGUs to collect- • Restate or amend
Matters lecttaxes from GOCCs taxes from GOCCs and the provision by
and other public other public quasi- cor- stating the scope of
quasi- corporations porations [Sec. 133(o)] taxing powers and
[Sec. 133(o)] • Allow municipalities to not as a regulatory
• Allow municipalities collect community tax power [Sec. 152]
to collect community of not more than twenty • Supplement and
tax of not more than pesos (P20.00) from a amend the deter-
twenty pesos (P20.00) fixed amount of five pe- minants of the al-
from a fixed amount sos (P5.00) every year, location formula
of five pesos (P5.00) and two pesos, in lieu of such as population
every year, and two one peso (P1.00), for ev- growth rate instead
pesos, in lieu of one ery one thousand pesos of population (the
peso (P1.00), for every (P!,000.00) of income lower the growth
one thousand pesos [Sec.157] rate the higher the
(P!,000.00) of income • Allow the Sangguniang share); real prop-

50 Issues and Critical Actions in Local Governance

[Sec.157] Bayan to tax local water erty tax base in-
• Allow the Sanggu- districts, cooperatives, stead of land area;
niangBayan to tax lo- nonstock and non-profit equal sharing; pov-
cal water districts, co- hospitals and educa- erty incidence (the
operatives, nonstock tional institutions [Sec. higher the rate, the
and non-profit hospi- 193] higher the share);
tals and educational • Change the co- and state of devel-
institutions [Sec. 193] dal formula used opment and reve-
to determine the nue performance
[Sec. 285]
 Category League of League of Cities of the League of League of Others
Provinces of the Philippines Municipalities of Barangays of the
Philippines the Philippines Philippines
Fiscal • Define “national IRA shares of munici- • Define develop-
Matters wealth” [Sec. 289] palities by increasing it ment to mean pro-
• Increase LGU share from thirty-four percent grams or projects
from the use of na- (34%) to thirty-six per- [Sec. 287]
tional wealth from cent (36%) by including • Increase the mini-
forty percent (40%) to the fifteen (15) km. ra- mum requirement
sixty percent (60%) of dius from the coastal line of 20% IRA to at
the gross collection of in the IRA computation least 25% [Sec.
taxes, fees and charges in case of coastal munic- 287]
imposed on the use of ipalities [Sec. 285(c)] • The minimum of
development of such • Define “national wealth” 80% of the pro-
wealth; and require all [Sec. 289] ceeds should be
national government • Increase LGU share from dedicated to fi-
or private entities en- the use of national wealth nance develop-
gaged in the utiliza- from forty percent (40%) ment initiatives
tion of national wealth to fifty percent (50%) of and the remaining
to furnish the LGU the gross collection of amount be utilized
with their annual re- taxes, fees and charges to subsidize the
ports and the sharing imposed on the use of cost of electricity
computation [Secs. development of such in the concerned
290- 291] wealth; and require all LGU [Sec. 294]
• Allow LGUs to con- national government or • Give emphasis to
tract guarantees, private entities engaged paragraph (i) to
harmonize the
aside from the cur- in the utilization of na-

Annex A
budget with the
rent loans and credits tional wealth to furnish plan [Sec. 305]

51
 Category League of League of Cities of the League of League of Others
Provinces of the Philippines Municipalities of Barangays of the
Philippines the Philippines Philippines
Fiscal with banks andnon the LGU with their • Incorporate RA 8185
Matters -bank financing inter- annual reports and s. 1996 known as An
mediaries, not only lo- the sharing computa- Act Amending Sec-
cal but foreign as well, tion [Secs. 290- 291] tion324 (d) of the RA
subject to applicable • Allow LGUs to con- 7160, and the Joint
laws, rules and regula- tract guarantees, aside Memorandum Circu-
tions [Sec. 297] from the current lars of the DILG and
• Exempt long-term loans and credits with DBM, in the Code
bonds and similar banks and non-bank or the Implementing
obligations issued by financing intermedi- Rules [Sec. 324(d)]
LGUs from the pay- aries, not only local
ment of income tax, but foreign as well, BLGD:
documentary stamp subject to applicable • Amusement places
tax, and other national laws, rules and regu- should include coun-
or local taxes [Sec. lations [Sec. 297] try and sports clubs,
299] • golf-courses, beach

52 Issues and Critical Actions in Local Governance

• Lift the preference of • Exempt long-term and other resorts, rec-
government-owned bonds and similar reation parks, cockpits
banks and allow local obligations issued by and other areas where
treasurers to maintain LGUs from the pay- one also watches shows,
depository accounts ment of income tax, participate in the activ-
with the private banks documentary stamp ities or use the facilities
[Sec. 311] tax, and other na- there [Sec. 131(c)]
tional or local taxes
[Sec. 299]
 Category League of League of Cities of League of League of Others
Provinces of the the Philippines Municipalities of Barangays of the
Philippines the Philippines Philippines
Fiscal • Lift the prefer- • Gross sales or receipts shall be the
Matters ence of govern- amount of money or counterpart
ment-owned received during the taxable year
banks and allow [Sec. 131(n)]
local treasurers to • Should include the definition of
maintain deposi- National Wealth [Sec. 131]
tory accounts with • Provided other workingdefini-
the private banks tions for contractor, resident for-
[Sec. 311] eign corporation, fee, gross sales
or receipts, peddler, retailer, and
wholesale [Sec. 131]
• Grant the city or municipal
mayor the recommendatory
power in issuing permit to
extract quarry resources [Sec.
138]
• Exporter contractors should
be included [Sec. 143]
• Simplify the local business tax
by specifying a maximum rate
of 50% of 1% of gross sales
and receipts [Sec. 143]
• Impose a reasonable fee of
PhP500 for application of

Annex A
clearance [Sec. 152(c)]

53
 Category League of League of Cities of League of League of Others
Provinces of the the Philippines Municipalities of Barangays of the
Philippines the Philippines Philippines
Fiscal • Proposal for a new tax sched-
Matters ule [Sec. 157]
• Persons over sixty-five (65)
years of age unless gainfully
employed or engaged in busi-
ness [Sec. 159]
• Assessment shall be based on
a uniform standard of value
[Sec. 198]
• Improve the definition of the
term “machinery” [Sec. 199]
• Propose additional to the
definition of terms such as
agricultural land, assessment
level, commercial land, indus-

54 Issues and Critical Actions in Local Governance

trial land, machinery, mineral
lands [Sec. 199]
• Declaration of real property be
kept and filed by the provin-
cial, city or municipal assessor
under a uniform classification
system defined by the DOF
[Sec. 207]
• Include recreational lands in
the special classes [Sec. 216]
 Category League of League of Cities of League of League of Others
Provinces of the the Philippines Municipalities of Barangays of the
Philippines the Philippines Philippines
Fiscal • Compute the IRA based on
Matters the BIR gross collections of the
second fiscal year based on the
LGUs tax effort and equaliza-
tion factors [Sec. 284]
• Sixty percent (60%) must be
allotted as the share of LGUs
in the national revenue taxes
[Sec. 284]
• Provision for penalty and
sanctions for failure to comply
with the preceding sections
[Sec. 286]
• Increase in the shares and
percentage provided by the
existing section [Sec. 291]
•
• Fifty percent (50%) of the
proceeds should be dedicated
to lower the cost of electricity;
at least 25% shall be used for
livelihood projects; and 25% to
the general fund [Sec. 294]
• The local sanggunian must be

Annex A
represented [Sec. 316]

55
 Category League of League of Cities of League of League of Others
Provinces of the the Philippines Municipalities of Barangays of the
Philippines the Philippines Philippines
Fiscal • Balances of ppropriations out
Matters of the 20% development fund,
and 5% calamity fund shall not
revert to the unappropriated
surplus of the general fund
[Sec. 322]

NTSC:
• Amusement places should
include country and sports
clubs, golf-courses, beach and
other resorts, recreation parks,
cockpits and other areas where
one also watches shows, par-
ticipate in the activities or use

56 Issues and Critical Actions in Local Governance

the facilities there [Sec. 131(c)]
• Gross sales or receipts shall
be the amount of money or
counterpart received during
the taxable year [Sec. 131(n)]
• Allow LGUs to impose regular
fees on vessels with tonnage of
three (3) tons and below [Sec.
133(d)]
 Category League of League of Cities of League of League of Others
Provinces of the the Philippines Municipalities of Barangays of the
Philippines the Philippines Philippines
Fiscal • Allow LGUs to impose excise
Matters tax on articles enumerated
under the NIRC with the ex-
ception of petroleum prod-
ucts [Sec. 133(h)]
• Allow LGUs to impose taxes
on GOCCs, income tax, agri-
cultural and aquatic products
when sold by marginal fisher-
men [Sec. 133]
• Allow LGUs to tax for the
registration and issuance of
licenses or permits of motor
vehicles except tricycles and
public utility vehicles operat-
ing within the province [Sec.
133]
• Allow the provinces to impose
taxes on business enjoying a
franchise, whether local, na-
tional, or legislated [Sec. 137]
• Grant the city or municipal
mayor the recommendatory
power in issuing permit to

Annex A
extract quarry resources [Sec.
138]

57
 Category League of League of Cities of League of League of Others
Provinces of the the Philippines Municipalities of Barangays of the
Philippines the Philippines Philippines
Fiscal • Increase the professional tax to
Matters PhP600 per person engaged in
the practice of profession [Sec.
139]
• Increase the tax to PhP1,000
[Sec. 141]
• Simplify the local business tax
by specifying a maximum rate
of 2% (on gross receipts) and de-
leting the enumeration of busi-
nesses with corresponding grad-
uated tax schedules [Sec. 143]
• Empower the local authorities
concerned to perform both the
registration and licensing for

58 Issues and Critical Actions in Local Governance

the operation of fishing vessels
weighing three (3) tons or less
[Sec. 149]
• Broaden the scope of taxing
powers of barangays by allow-
ing them to levy taxes on stores
and retailers with gross sales of
PhP75,000 in the case of cities
and PhP45,000 in the case of
municipalities [Sec. 152(a)]
 Category League of League of Cities of League of League of Others
Provinces of the the Philippines Municipalities of Barangays of the
Philippines the Philippines Philippines
Fiscal • Increase the basic community
Matters tax [Sec. 157]
• Shorten the period on the
deadline for filing of and de-
ciding of protests [Sec. 195)]
• Should be done by the DOF in
consultation with the Associ-
ation of Local Assessors and
Treasurers [Sec. 201]
• Consolidation of the Assess-
ment Rolls of the municipal-
ities by the provincial assessor
[Sec. 205]
• Declaration of real property
be kept and filed by the pro-
vincial, city or municipal as-
sessor under a uniform classi-
fication system defined by the
DOF [Sec. 207]
• The frequency of the gen-
eral revision of real property
should be every five (5) years,
provided that a conjunctive
measure shall be included in

Annex A
the IRR [Sec. 219]

59
 Category League of League of Cities of League of League of Others
Provinces of the the Philippines Municipalities of Barangays of the
Philippines the Philippines Philippines
Fiscal • Should not include exemption
Matters to machineries and equipments
used by local water districts and
GOCCs engaged in the sup-
ply and distribution of water
and/or transmission of electric
power [Sec. 234]
• Fix uniformly the SEF tax rate
at one-half (1/2) of the rate for
basic real property tax [Sec.
235]
• Set the maximum rate of idle
land tax at three percent (3%),
and amend the definition and
coverage of the idle land tax
[Sec. 236]

60 Issues and Critical Actions in Local Governance

• Transfer the primary responsi-
bility to collect real property tax
and deputize the barangay trea-
surers from the municipal trea-
surer to the provincial treasurer
[Sec. 247]
• Deputize the barangay treasur-
ers to the city and municipal
treasurers in the MMA to collect
the real property tax [Sec. 247]
 Category League of League of Cities of League of League of Others
Provinces of the the Philippines Municipalities of Barangays of the
Philippines the Philippines Philippines
Fiscal • Increase the application of
Matters interest on delinquent real
property tax to sixty (60)
months [Sec. 255]
• Distribute the proceeds of
the RPT as follows: province
(40%); municipality (45%);
barangay (15%), and in the
MMA: City/municipality
(75%); barangay (25%) [Sec.
271]
• Allocate 20% to the general
fund of the municipality in-
stead of dividing the same be-
tween the province and mu-
nicipality [Sec. 272]
• Fix the shares of the province
and the municipality, and the
MMA share from the col-
lections of municipalities in
Metro Manila in accordance
with the schedule in Section
271 [Sec. 273]

Annex A
61
 Category League of League of Cities of League of League of Others
Provinces of the the Philippines Municipalities of Barangays of the
Philippines the Philippines Philippines
Fiscal • Compute the IRA based on
Matters the BIR gross collections of
the second fiscal year based
on the LGUs tax effort and
equalization factors [Sec. 284]
• Exclude from the computa-
tion of the certified gross BIR
collection those that actually
accrue to the LGUs [Sec. 284]

S t r u c t u r e s • President and • Allow LGUs • Make all manda- • Omit the re- BLGS:
and Systems DILG shall have to incorporate tory positions in striction on • The causes for temporary in-
no authority to their coopera- all LGU level op- the number of capacity should include med-
impose disci- tive undertak- tional five years barangay tan- ical or health reasons [Sec.
plinary actions ings [Sec. 33] after the effectivity ods who shall 46(b)] The phrase “Elective

62 Issues and Critical Actions in Local Governance

against local of- • Include vice- of the proposed be granted local officials” in the last sen-
ficials [Secs. 61, mayors and act [Secs. 443, 454, insurance and tence of the provision should
63, 66, 67] vice-governors 463, 469-470, 474- other benefits be clarified to mean provin-
in the Local 476, 478-487, 490] in paragraph cial, city, and municipal elec-
D e ve l opm e nt (d) [Sec. tive local officials only [Sec.
Councils (LDC) 393(d)] 81]
[Sec 107]
 Category League of League of Cities of League of League of Others
Provinces of the the Philippines Municipalities of Barangays of the
Philippines the Philippines Philippines
Structures • Give to the SK • Authorize the lo- • Should be supplemented to in-
and Systems chairman the cal treasurer in all clude injunctions, restrictions,
authority to LGU levels to val- or qualifications relative to the
appoint the SK idate the compu- practice of profession by the lo-
secretary and tation on the shar- cal government appointive per-
treasurer [Sec. ing of the proceeds sonnel [Sec. 90]
423] from the use of na- • Include the types of interper-
• Prohibit gov- tional wealth pre- sonal disputes that can be settled
ernment offi- pared by national by the Lupon [Sec. 408]
cials from giv- government agen-
ing direct or cies or GOCCs BLGD:
indirect support concerned [Sec. • Define agricultural land, and
to the election 470] how often reclassification may
of any SK candi- be allowed [Sec. 20]
date [Sec. 423] • Reclassification shall be under-
taken in accordance with land re-
quirement for urban development
in the approved land [Sec. 20]
• The role of the presiding officer
must be given to the LCE [Sec. 49]
• The responsibility of designing
local organizational structure
and staffing pattern shall be ex-
ercised by the local sanggunian

Annex A
[Sec. 77]

63
 Category League of League of Cities of League of League of Others
Provinces of the the Philippines Municipalities of Barangays of the
Philippines the Philippines Philippines
Structures • Should include the Budget Of-
and Systems ficer of the concerned LGU in
the board [Sec. 98]
• Barangay treasurers should be
at least high school graduate
[Sec. 395]

PIEP:
• Reclassification of agricultural
lands should be made consis-
tent with national and regional
planning standards and guide-
lines [Sec. 20]
• CLUP should be made as the
basis for reclassification and dis-
pense with the requirement of

64 Issues and Critical Actions in Local Governance

DAR conversion if the lands has
already been rezoned to urban
use under the CLUP [Sec. 20]
• A licensed environmental plan-
ner should be appointed for
cities and to be given priority
to municipalities within three
(3) years from the amendment
(professionalization of the
PDC) [Sec. 476]
 Category League of League of Cities of League of League of Others
Provinces of the the Philippines Municipalities of Barangays of the
Philippines the Philippines Philippines
Popular • Expand member- • Specify the players who relate • Abolish the pre- • Increase the BLGS
Participation ship of some Lo- to the LGUs: national gov- paratory recall ercentage re- • The ambi-
cal Special Bodies ernment, GOCCs and public assembly (PRA) quirement to guity of the
(LSBs) to include quasi- corporations [Sec. 5] [Sec. 70(b)] initiate recall phrase, two
Civil Society Or- • Provisions to expand NG- • Lower the percent- from twen- (2) repre-
ganizations/Non- O-PO participation be liber- age requirement ty-five per- sentatives of
Governmental Or- ally interpreted in favour of to initiate recall cent (25%) to nongover n-
ganizations (CSO/ the NGOs and Pos [Sec. 5] from twenty-five thirty percent mental or-
NGO) representa- • Require government author- percent (25%) to (30%) [Sec. g an i z at i ons
tives particularly ities to give notices to the twenty percent 70] should be
the Local School general public and to conduct (20%) [Sec. 70(d)] addressed
Board [Sec. 35] public hearings before imple- or clarified
• Provide for en- menting their projects [Sec. in the Code
abling laws for 27] or IRR [Sec.
election of sectoral • Specify the roles of local chief 37(a)(4)]
representatives in executives and sanggunians in
the local sanggu- the provision on linkages with
nians in order to NGOs and Pos [Sec. 35]
operationalize the • Abolish the preparatory recall
provisions of the assembly (PRA) [Sec. 70(b)]
Code on sectoral • Lower the percentage require-
representation ment to initiate recall from
[Sec. 41(c)] twenty-five percent (25%) to
twenty percent (20%) [Sec.

Annex A
70(d)]

65
 Annex B. Comparison of the Omnibus Amendments to the Local Government Code as Proposed By

66
Sen. Aquilino Pimentel Jr., and the Union of Local Authorities of the Philippines
Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
SEC. 2. Declaration of Policy. - (a) It is SEC. 2. Declaration of Policy. - (a) It is SEC. 2. Declaration of Policy. – It is
hereby declared the policy of the State that hereby declared [the] A policy of the State hereby declared the policy of the State:
the territorial and political subdivisions of TO ENSURE that [the] ITS territorial (a) XXX
the State shall enjoy genuine and mean- and political subdivisions [of the State]
ingful local autonomy to enable them to shall enjoy genuine and meaningful local (b) to ensure the accountability of local
attain their fullest development as self- re- autonomy to enable them to attain [their elective officials to the people through
liant communities and make them more fullest] FULL development as self-reli- the mechanisms of recall, initiative and
effective partners in the attainment of ant communities and [make them more] referendum.
national goals. Toward this end, the State BECOME effective partners in the attain-
shall provide for a more responsive and ment of national goals. (c) to require all national government
accountable local government structure agencies and offices including govern-
instituted through a system of decentral- (B) Toward this end, the State shall pro- ment owned and controlled corpora-
ization whereby local government units vide for a more responsive and account- tions (GOCCs) , as well as private firms
shall be given more powers, authority, re- able local government structure instituted or entities, to consult with and secure
sponsibilities, and resources. The process through a system of decentralization prior approval of local government
of decentralization shall proceed from the [whereby] WHERE local government units, non- governmental, people’s or-

Issues and Critical Actions in Local Governance

national government to the local govern- units [shall be given] ARE GRANTED ganizations and other concerned sectors
ment units. more powers, authority, responsibilities [,] of the community, before any of their
and resources. The process of decentral- programs or projects is implemented in
(b) It is also the policy of the State to en- ization shall proceed from the [National] their areas.
sure the accountability of local government CENTRAL Government to the local gov-
units through the institution of effective ernment units.

Prepared by the Office of Senator Aquilino Pimentel, Jr., and the Union of Local Authorities in the Philippines as published in www.pcij.org
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
mechanisms of recall, initiative and refer- [(b)] (C) It is also [the] A policy of the
endum. State to [ensure the accountability of local
government units through the institution
(c) It is likewise the policy of the State to of] INSTITUTE effective mechanisms
require all national…XXX [of] FOR recall, initiative and refer-
endum, TO ENSURE THAT LOCAL
ELECTIVE OFFICIALS ARE MORE AC-
COUNTABLE TO THE PEOPLE.

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

State to require all [national] CENTRAL
GOVERNMENT agencies and offices to
conduct [periodic consultations] PUBLIC
HEARING AND CONSULT with THE
appropriate local government units, non-
governmental and people’s organizations,
and other concerned sectors of the com-
munity before any [project or] program
OR PROJECT is APPROVED FOR im-
plement[ed]ATION BY CENTRAL GOV-
ERNMENT AGENCIES, OFFICES OR
GOVERNMENT-OWNED OR CON-

Annex B
TROLLED CORPORATIONS, in their
respective jurisdictions.

67
68
Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
SEC. 3. Operative Principles of Decentral- SEC. 3. Operative Principles of Decentral- SEC. 3. Operative Principles of Decen-
ization. – The formulation and implemen- ization. – The formulation and implemen- tralization. – The formulation and im-
tation of policies and measures on local tation of policies and measures on local plementation of policies and measures
autonomy shall be guided by the following autonomy shall be guided by the on local autonomy shall be guided by
operative principles: (a) XXX following operative principles: the following operative principles:
(b) XXX (a) XXX (a)XXX
(c) Subject to civil service law, rules (b) XXX (b)XXX
and regulations, local officials and (c) [Subject to civil service law, rules (c)Subject to civil service law, rules
employees paid wholly or mainly and regulations,] [l] Local officials and regulations, local officials
from local funds shall be appointed and employees WHO ARE paid and employees paid wholly or
or removed, according to merit and wholly [or mainly] from local mainly from local funds shall be
fitness, by the appropriate appointing funds shall, UNLESS OTHERWISE appointed or removed, according
authority; PROVIDED UNDER THIS CODE, to merit and fitness, by the appro-
(d) The vesting of duty, responsibility, be appointed [or removed] BY THE priate appointing authority. For
and accountability in local govern- GOVERNOR, MAYOR, OR this purpose, Vice- Governors,
ment unit shall be accompanied with PUNONG BARANGAY OR BY City and Municipal Vice-may-
provisions for reasonably resources to THE VICE-GOVERNOR OR ors shall likewise have the power
discharge their powers and effectively VICE-MAYOR AS THE CASE to appoint their respective per-

Issues and Critical Actions in Local Governance

carry out their functions; hence, MAY BE according to merit and sonnel.
they shall have the power create and fitness, AND MAY ONLY BE RE- (d)The vesting of duty, responsibility,
broaden their own sources of revenue MOVED FOR CAUSE, SUBJECT and accountability in local gov-
and the right to a just share in na- TO CIVIL SERVICE LAW, RULES ernment unit shall be accompa-
tional taxes and an equitable share in AND REGULATIONS [by the ap- nied with provisions for reasonably
the proceeds of the utilization and propriate appointing authority]; resources to discharge their powers
development of the national wealth (d) XXX (e) XXX and effectively carry out their func-
within (f) XXX tions; hence, they shall have the
power create and broaden
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
their respective areas; (g) XXX (h) XXX their own sources of revenue and the
(e) XXX (i) Local government units shall share with right to a just share in national taxes
(f) XXX the [National] CENTRAL and an equitable share in the proceeds
(g) XXX Government the responsibility [in the of the utilization and development of
(h) XXX management and maintenance of] TO the national wealth within their re-
(i) XXX MAINTAIN SOUND ecological balance spective areas;
(j) XXX [within] IN their RESPECTIVE terri-
(k) XXX tori[al]ES [jurisdiction], subject to the Subsequent laws mandating additional
(l) XXX provision of this Code [and national pol- functions and responsibilities to LGUs
(m) XXX icies]; shall be separately and adequately funded
(j) XXX by the National Government.
(k) The realization of local autonomy shall
be facilitated through improved coordina- (e) XXX
tion of [national] CENTRAL government (f) XXX
[policies and] programs AND POLICIES (g) XXX
and TO extenD[sion of] adequate tech- (h) XXX
nical and material assistance to less de- (i) XXX
veloped and deserving local government (j) XXX
units; (k) XXX
(l) The [participation of the] private sector (l) XXX
[in local governance, particularly in (m) XXX
the delivery of basic services], shall be (n) As one operative principle of de-
encouraged TO PARTICIPATE AS centralization, the LGUs shall enjoy

Annex B
fiscal autonomy and exercise

69
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Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
PARTNERS IN LOCAL GOVER- primary authority to allocate,
NANCE, ESPECIALLY IN THE utilize and dispose of funds gen-
DELIVERY OF BASIC SERVICES, erated by them or allotted to
to ensure the [viability] EFFEC- them, that all LGUs particularly
TIVENESS of local autonomy as the cities and municipalities
an [alternative strategy] INSTRU- shall ensure to allocate its hu-
MENT for sustainable development; man and financial resource equi-
[and] tably among all its barangays and
m)The [National] CENTRAL Govern- other politicalsubdivisions it has
ment shall ensure that decentraliza- created in tis own territorial juris-
tion contributes to the continuing dictions. (NEW) discuss in Section
improvement of the performance 106.
of local government units and
the quality of [community] life IN
THEIR COMMUNITIES; AND
(N) LOCAL GOVERNMENT UNITS
SHALL ENJOY FISCAL AUTON-
OMY, AND SHALL EXERCISE

Issues and Critical Actions in Local Governance

PRIMARY AUTHORITY TO AL-
LOCATE, UTILIZE AND DIS-
POSE OF FUNDS GENERATED
BY THEM OR ALLOCATED TO
THEM, SUBJECT TO THE PRO-
VISIONS OF THIS CODE AND
OTHER APPLICABLE LAWS.
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
SEC. 16. General Welfare. – Every local SEC. 16. General Welfare. – Every local SEC. 16. General Welfare. – Every local
government unit shall exercise the pow- government unit shall exercise the pow- government unit shall exercise the pow-
ers expressly granted, those necessarily ers expressly granted, those necessarily ers expressly granted, those necessar-
implied there from, as well as powers implied there from, as well as powers ily implied therefrom, as well as powers
necessary, appropriate, or incidental for necessary, appropriate, or incidental for necessary, appropriate, or incidental for
its efficient and effective governance, and its efficient and effective governance, and its efficient and effective governance,
those which are essential to the promotion those which are essential to the promo- and those which are essential to the pro-
of the general welfare. Within their tion of the general welfare. Within their motion of the general welfare. Within
respective territorial jurisdictions, local respective territorial jurisdictions, local their respective territorial jurisdictions,
government units shall ensure and sup- government units shall ensure and sup- local government units shall ensure
port, among other things, the preserva- port, among other things, the preserva- and support, among other things, the
tion and enrichment of culture, promote tion and enrichment of culture, promote preservation and enrichment of cul-
health, enhance the right of the people to health, , enhance the right of the people ture, promote health, welfare and safety
a balanced ecology, encourage and sup- to a balanced ecology, encourage and sup- particularly of women and children,
port the development of appropriate and port the development of appropriate and enhance the right of the people to a bal-
self-reliant scientific and technological ca- self-reliant scientific and technological ca- anced ecology, encourage and support
pabilities, improve public morals, enhance pabilities, improve public morals, enhance the development of appropriate and
economic prosperity and social justice, economic prosperity and social justice, self-reliant scientific and technological
promote full employment among their promote full employment among their capabilities, improve public morals,
residents, maintain peace and order, and residents, maintain peace and order, and enhance economic prosperity and so-
preserve the comfort and convenience of preserve the comfort and convenience of cial justice, promote full employment
their inhabitants. their inhabitants. among their residents, maintain peace
and order, and preserve the comfort and

Annex B
convenience of their inhabitants.

71
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Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment

SEC. 17. Basic Services and Facilities. - SEC. 17. Basic Services and Facilities. - SEC. 17. Basic Services and Facilities. -
(c) The DPWH shall devolve the
(c) Notwithstanding the provisions of (c) Notwithstanding the provisions of implementation and transfer the
subsection (b) hereof, public works and subsection (b) hereof, public works and corresponding funds of projects to the
infrastructure projects and other facili- infrastructure projects and other facili- qualified LGUs (Barangay, Munici-
ties, programs and services funded by the ties, programs and services funded by the pal, City and Province) except those
national government under the annual national government under the annual that concern national highways,
General Appropriations Act, other spe- General Appropriations Act, other special wharves, airports and other infrastruc-
cial laws, pertinent executive orders, and laws, pertinent executive orders, and those ture s which are national importance.
those wholly or partially funded from for- wholly or partially funded from foreign (Bicameral)
eign sources, are not covered under this sources, are not covered under this
Section, except in those cases where the Section, except in those cases where the
local government unit concerned is duly local government unit concerned is duly
designated as the implementing agency designated as the implementing agency
for such projects, facilities, programs, for such projects, facilities, programs, and
and services. services.

Issues and Critical Actions in Local Governance

 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment

SEC. 25. National Supervision over Local SEC. 25. National Supervision over Local SEC. 25. National Supervision over Lo-
Government Units. - (a) Consistent with Government Units. - (a) Consistent with cal Government Units. – (a) Consistent
the basic policy on local autonomy, the the basic policy on local autonomy, the with the basic policy on local autonomy,
President shall exercise general supervi- President shall exercise general supervi- the President shall exercise general
sion over local government units to en- sion over local government units to ensure supervision over local government
sure that their acts are within the scope that their acts are within the scope of units only on matters of national
of their prescribed powers and functions. their prescribed powers and functions. programs and policies to ensure that
their prescribed powers and functions.
(Basic policy on local autonomy: The (Basic policy on local autonomy: The
President to exercise general supervision President to exercise general supervision (Supervision – limited only to national
over LGUs) over LGUs) programs and policies Refer to ruling on
Pimentel vs Aguirre)

SEC. 26. Duty of National Government SEC. 26. Duty of National Government SEC. 26. Duty of National Government
Agencies in the Maintenance of Ecological Agencies in the Maintenance of Ecologi- Agencies in the Maintenance of Ecolog-
Balance. - It shall be the duty of every na- cal Balance. - It shall be the duty of every ical Balance. – Subject to Section 2 (
tional agency or government-owned or national agency or government-owned c), all private firms or entities, not only
controlled corporation authorizing or or controlled corporation authorizing or national government agencies and
involved in the planning and implemen- involved in the planning and implemen- GOCCs shall hold actual consultations
tation of any project or program that may tation of any project or program that may and public hearings with Local Devel-
cause pollution, climatic change, deple- cause pollution, climatic change, deple- opment Councils and coordinate with

Annex B
tion of non- renewable resources, loss of tion of non-renewable resources, loss of LGUs, NGOs/ POs and other sectors
crop crop land, rangeland, concerned to explain the

73
74
Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
land, rangeland, or forest cover, and ex- or forest cover, and extinction of animal potential impact of their programs
tinction of animal or plant species, to con- or plant species, to consult with the local or projects on ecological balance, be-
sult with the local government units, non- government units, nongovernmental or- fore implementing them on LGU juris-
governmental organizations, and other ganizations, and other sectors concerned diction.
sectors concerned and explain the goals and explain the goals and objectives of
and objectives of the project or program, the project or program, its impact upon
its impact upon the people and the com- the people and the community in terms
munity in terms of environmental or eco- of environmental or ecological balance,
logical balance, and the measures that will and the measures that will be undertaken
be undertaken to prevent or minimize the to prevent or minimize the adverse
adverse effects thereof. effects thereof.

Section 28. Powers of Local Chief Ex- Section 28. Powers of Local Chief Ex- Section 28. Powers of Local Chief
ecutives over the Units of the Philippine Na- ecutives over the Units of the Philippine Na- Executives over the Units of the Philip-
tional Police. - The extent of operational tional Police. - The extent of operational pine National Police. - The extent of
supervision and control of local chief ex- supervision and control of local chief ex- operational supervision and control
ecutives over the police force, fire protec- ecutives over the police force, fire protec- of local chief executives over the po-
tion unit, and jail management personnel tion unit, and jail management personnel lice force, fire protection unit, and jail

Issues and Critical Actions in Local Governance

assigned in their respective jurisdictions assigned in their respective jurisdictions management personnel assigned in
shall be governed by the provisions of shall be governed by the provisions of their respective jurisdictions shall be
Republic Act Numbered Sixty-nine hun- Republic Act Numbered Sixty-nine governed by the provisions of Repub-
dred seventy-five (R.A. No. 6975), other- hundred seventy-five (R.A. No. 6975), lic Act Numbered Sixty-nine hun-
wise known as “The Department of the otherwise known as “The Department of dred seventy-five (R.A. 6975), oth-
Interior and Local Government Act of the Interior and Local Government Act of erwise known as “The Department
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
1990”, and the rules and regulations issued 1990”, and the rules and regulations is- of Interior and Local government Act
pursuant thereto. sued pursuant thereto. of 1990”, and the rules and regulations
issued pursuant thereto.

Refer to MO. 77 dated October _, 2002;

HB & SB on 2 Level PNP. ( for NEB
consideration)

Section 37. Local Prequalification, Bids Section 37. Local Prequalification, Bids Section 37. Local Prequalification,
and Awards Committee (Local PBAC). and Awards Committee (Local PBAC). Bids and Awards Committee (Local
- (a) There is hereby created a local pre- - (a) There is hereby created a local pre- PBAC). - (a) There is hereby created a
qualification, bids and awards committee qualification, bids and awards committee local prequalification, bids and wards
in every province, city, and municipality, in every province, city, and municipality, committee in every province, city , mu-
which shall be primarily responsible for which shall be primarily responsible for nicipality and barangay, which shall be
the conduct of prequalification of contrac- the conduct of prequalification of contrac- primarily responsible for the conduct
tors, bidding, evaluation of bids, and the tors, bidding, evaluation of bids, and the of prequalification of contractors, bid-
recommendation of awards concerning recommendation of awards concerning ding, evaluation of bids, and the rec-
local infrastructure projects. The gover- local infrastructure projects. The governor ommendation of awards concerning
nor or the city or municipal mayor shall or the city or municipal mayor shall act as local infrastructure projects. The gov-
act as the chairman with the following as the chairman with the following as mem- ernor, the city or municipal mayor and
members: bers: the punong barangay shall act as the
chair with the vice governor and the

Annex B
city or municipal vice mayor as vice-
chair; and the following as members:

75
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Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
Section 38. Local Technical Committee. Section 38. Local Technical Committee. Section 38. Local Technical Commit-
- (a) There is hereby created a local - (a) There is hereby created a local tech- tee. - (a) There is hereby created a local
technical committee in every province, nical committee in every province, city technical committee in evry province,
city and municipality to provide techni- and municipality to provide technical as- city, municipality and, whenever ap-
cal assistance to the local prequalification, sistance to the local prequalification, bids propriate, in the barangay, to provide
bids and awards committees. It shall be and awards committees. It shall be com- technical assistance to the local pre-
composed of the provincial, city or mu- posed of the provincial, city or municipal qualification, bids and awards com-
nicipal engineer, the local planning and engineer, the local planning and develop- mittee. It shall be cmposed of the pro-
development coordinator, and such other ment coordinator, and such other officials vincials city of municipal engineer, the
officials designated by the local prequalifi- designated by the local prequalification, local planning and development coor-
cation, bids and awards committee. bids and awards committee. dinator, and such other officials des-
ignated by the local prequalification,
bids and awards committee.

For further discussion as to the tech-

nical committee at the barangay level.
Section 44. Permanent Vacancies in the Of- Section 44. Permanent Vacancies in the Of- Section 44. Permanent Vacancies in the
fices of the Governor, Vice-Governor, Mayor, fices of the Governor, Vice-Governor, Mayor, Offices of the Governor, Vice-Governor,

Issues and Critical Actions in Local Governance

and Vice- Mayor. and Vice- Mayor. Mayor, and Vice- Mayor. – XXX

FOR NEB CONSIDERATION.

H.B. No. 1459 – AN ACT PROHIBITING

CERTAIN LOCAL OFFICIALS TO FILL
THE VACANCY IN THE OFFICES OF
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
THE GOVERNOR OR MAYOR AND VICE
GOVERNOR OR VICE MAYOR, AMEND-
ING FOR THE PURPOSE SECTION 44
OF THE REPUBLIC ACT NO.
7160, OTHERWISE KNOWSN AS THE
LOCAL GOVERNMENT CODE OF 1991.
Introduced by Reps. Emilio c. Macias II,
Douglas RA Cagas, Antonio P. Yapha Jr.

Note:
Transmitted to the Senate on May 24, 2002
Approved on Third reading on May 23,
2002
Section 52. Sessions. - (a) On the first day Section 52. Sessions. - (a) On the first day Section 52. Sessions. – (a) On the first
of the session immediately following the of the session immediately following the day immediately following the election
election of its members, the sanggunian election of its members, the sanggunian of its members, the legislature shall, by
shall, by resolution, fix the day, time, and shall, by resolution, fix the day, time, resolution, fix the day, time, and place
place of its regular sessions. The minimum and place of its regular sessions. The of its regular sessions. The minimum
numbers of regular sessions shall be once minimum numbers of regular sessions number of regular sessions shall be once
a week for the sangguniang panlalawigan, shall be once a week for the sangguniang a week or at least four (4) times a month
sangguniang panlungsod, and sanggu- panlalawigan, sangguniang panlungsod, for the provincial legislature, city legis-
niang bayan, and twice a month for the and sangguniang bayan, and twice a lature, and municipal

Annex B
sangguniang barangay. month for the sangguniang barangay. legislature, and twice a month for the
barangay legislature.

77
78
Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
Section 54. Approval of Ordinances. - (a) Section 54. Approval of Ordinances. - Section 54. Approval of Ordinances. - (a)
XXX (a) XXX XXX
(b) The veto shall be communicated by
(b) The veto shall be communicated (b) The veto shall be communicated the Governors and Mayors concerned to
by the local chief executive concerned by the local chief executive con- the legislature within ten (10) working
to the sanggunian within fifteen (15) cerned to the sanggunian within fif- days.
days in the case of a province, and ten teen (15) days in the case of a prov-
(10) days in the case of a city or a ince, and ten (10) days in the case of The following are for further discussion.
municipality; otherwise, the ordi- a city or a municipality; otherwise,
nance shall be deemed approved as if the ordinance shall be deemed ap- Approval of ordinances.
he had signed it. proved as if he had signed it. • within ten (10) working days upon re-
ceipt the approval of the ordinance by
the Chief Executive.
• in cases the Presiding Officer fails or
refuses to attest within three (3) days
upon receipt thereof, the Sannguian
Secretary
• if no action has been taken by the Pre-

Issues and Critical Actions in Local Governance

siding Officer and/or by the Chief Ex-
ecutive within the days specified after
submission of such an ordinance or
resolution, the same shall be presumed
consistent with the law and, therefore,
valid. (PCL)
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
Section 56. Review of Component City and Section 56. Review of Component City and SEC. 56. Review of Component City
Municipal Ordinances or Resolutions by Municipal Ordinances or Resolutions by and Municipal Ordinances or Resolu-
the Sangguniang Panlalawigan. the Sangguniang Panlalawigan. tions by the Provincial Legislature.

(d) If no action has been taken by the (d) If no action has been taken by the CLARIFICATION TO THE WORD
sangguniang panlalawigan within thirty sangguniang panlalawigan within thirty “ACTION”
(30) days after submission of such an (30) days after submission of such an
ordinance or resolution, the same shall ordinance or resolution, the same shall (d) If no decision has been has been
be presumed consistent with law and be presumed consistent with law and taken by the sangguniang panlalaw-
therefore valid. therefore valid. igan within thirty (30) days after the
submission of such an ordinance
or resolution, the same shall be
presumed consistent with law and
thereof valid.
SEC. 70. Initiation of the Recall Process. – SEC. 70. Initiation of the Recall Process. – SEC. 70. Initiation of the Recall Process.
(a) Recall may be initiated by a prepara- (a) Recall may be initiated by a prepara- – Recall of any elective provincial, city,
tory recall assembly or by the registered tory recall assembly or by the registered municipal, or barangay official may
voters of the local government unit to voters of the local government unit to be validly initiated upon petition of at
which the local elective official subject to which the local elective official subject least twenty-five percent (25%)……
such recall belongs to such recall belongs. XXX

Note:

Annex B
Recall Assembly is amended by Republic Act

79
80
Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
9244 Otherwise known as An Act Elimi-
nating the Preparatory Recall Assembly as
a Mode of Instituting Recall of Elective Lo-
cal Government Officials, amending for
the Purpose Sections 70 and71, Chapter 5,
Title One Book I of RA 7160, and For Other
Purposes
SEC. 77. Responsibility for Human Re- SEC. 77. Responsibility for Human Re- SEC. 77. Responsibility for Human Re-
sources and Development. – The chief ex- sources and Development. – The chief ex- sources and Development. – The Chief
ecutive for every local government unit ecutive for every local government unit Executive of every local government
shall be responsible for human resources shall be responsible for human resources unit , including the Vice-Governor and
and development in his unit and shall take and development in his unit and shall take Vice- Mayor with respect to their re-
all personnel actions in accordance with all personnel actions in accordance with spective offices, shall be responsible for
the Constitutional provisions on civil ser- the Constitutional provisions on civil ser- human resources and development in
vice, pertinent laws, rules and regulations vice, pertinent laws, rules and regulations their unit … xxx
thereon, including such policies, guide- thereon, including such policies, guide-
lines, and standards as the Civil Service lines, and standards as the Civil Service

Issues and Critical Actions in Local Governance

Commission may establish: Provided, Commission may establish: Provided,
That the local chief executive may employ That the local chief executive may employ
emergency or casual employees or labor- emergency or casual employees or labor-
ers paid on a daily wage or piecework ba- ers paid on a daily wage or piecework ba-
sis and hired through job orders for local sis and hired through job orders for local
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
projects authorized by the sanggunian projects authorized by the sanggunian
concerned, without need of approval or concerned, without need of approval or
attestation by the Civil Service Commis- attestation by the Civil Service Commis-
sion: Provided, further, That the period sion: Provided, further, That the period of
of employment of emergency or casual employment of emergency or casual la-
laborers as provided in this Section shall borers as provided in this Section shall not
not exceed six (6) months. exceed six (6) months.

SEC. 80. Public Notice of Vacancy; Per- SEC. 80. Public Notice of Vacancy; Per- SEC. 80. Public Notice of Vacancy;
sonnel Selection Board. – (a) XXX sonnel Selection Board. – (a) XXX Personnel Selection Board. – (a) XXX
(b) XXX (b) XXX (b) There shall be established in every
(c) XXX (c) XXX province, XXX…as would contribute
to employee welfare. The legislature of
the respective local government unit
shall have its own personnel selection
board with the same functions as above.
(c) XXX
(d) Any appointment to a permanent
or temporary position made by the
LCE shall be made with the endorse-
ment of the personnel selection board.

Annex B
81
82
Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment

SEC. 96. Permission to Leave Station. – (a) SEC. 96. Permission to Leave Station.– (a) SEC. 96. Permission to Leave Station.
Provincial, city, municipal, and barangay Provincial, city, municipal, and barangay – (a) Provincial, city, municipal, and
appointive officials going on official travel, appointive officials going on official travel, barangay appointive officials going on
shall apply and secure written permis- shall apply and secure written permission official travel, shall apply and secure
sion from their respective local chief from their respective local chief executives written permission from their respec-
executives before departure. The applica- before departure. The application shall tive local chief executives before depar-
tion shall specify the reasons for such specify the reasons for such travel, and the ture. Members of the local legislature at
travel, and the permission shall be given permission shall be given or withed based all levels shall apply and secure written
or withed based on considerations of pub- on considerations of public interest, fi- permission from their respective Pre-
lic interest, financial capability of the local nancial capability of the local government siding Officers before departure.
government unit concerned and urgency unit concerned and urgency of the travel.
of the travel. AUTOMATIC DESIGNATION
OF THE SENIOR PROVINCIAL
CITY AND MUNICIPAL LEGIS-
LATURE

Issues and Critical Actions in Local Governance

It is proposed that there should be an
expressed provision in the Local Govern-
ment Code to the effect that during the
temporary absence of the Vice- Gover-
nor, the highest ranking Provincial, City,
Municipal legislature for the province,
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
city and municipality shall be automati-
cally become acting Vice Governor or
Vice Mayor. (PBMLP)

[Move to Section 46 (a), (b), - Temporary

Vacancy in the Office of the Local Chief
Executive and the Vice-Governor and
Vice- Mayor (based on Section 44)]

LOCAL SCHOOL BOARDS LOCAL SCHOOL BOARDS LOCAL SCHOOL BOARDS

SEC. 98. Creation, Composition, and Com- SEC. 98. Creation, Composition, and Com- SEC. 98. Creation, Composition, and
pensation. - (a) There shall be established pensation. - (a) There shall be established Compensation. - (a) There shall be es-
in every province, city, or municipality in every province, city, or municipality tablished in every province, city, or
a provincial, city, or municipal school a provincial, city, or municipal school municipality a provincial, city, or mu-
board, respectively. board, respectively. nicipal school board, respectively.

(b) The composition of local school boards (b) The composition of local school (b) The composition of local school
shall be as follows: boards shall be as follows: boards shall be as follows:

(1) The provincial school board shall be (1) The provincial school board shall be (1) The provincial school board shall
composed of the governor and the composed of the governor and the division be composed of the provincial gover-

Annex B
division superintendent of schools as co- superintendent of schools as co-chairman; nor as chairperson and the Vice-Gov-
chairman; XXX XXX ernor and the division superintendent

83
of schools as co- vice Chair ; XXX
84
Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
(2) The city school board shall be com- (2) The city school board shall be com- (2) The city school board shall be com-
posed of the city mayor and the city su- posed of the city mayor and the city su- posed of the city mayor as chairperson
perintendent of schools as co- chairmen; perintendent of schools as co- chairmen; and the Vice-Mayor and the city super-
XXX XXX intendent of schools as co-vice Chair;
XXX
(3) The municipal school board shall be (3) The municipal school board shall
composed of the municipal mayor and the be composed of the municipal mayor (3) The municipal school board shall
district supervisor of schools as co- chair- and the district supervisor of schools as be composed of the municipal mayor
men; co-chairmen; as chairperson and the Vice-Mayor and
the district supervisor of schools as co-
vice Chair; XXX

SEC. 99. Functions of Local School Boards. SEC. 99. Functions of Local School Boards. SEC. 99. Functions of Local School
- The provincial, city or municipal school - The provincial, city or municipal school Boards. - The provincial, city or
board shall: board municipal school board shall:

Issues and Critical Actions in Local Governance

(a) Determine, in accordance with shall: (a) Determine the annual budget of the
the criteria set by the Department of school board in coordination with
Education, Culture and Sports, the (b) Determine, in accordance with the concerned DepEd. The annual
annual supplementary budgetary the criteria set by the Department of and supplements budget shall be
needs Education, Culture and Sports, the equitably allocated among all school
districts in all LGUs concerned.
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
for the operation and maintenance of annual supplementary budgetary (b) XXX
public schools within the province, needs for the operation and mainte- (c) XXX
city, or municipality, as the case nance of public schools within (d) XXX
may be, and the supplementary local the province, city, or municipality, (e) Local School Boards may have the
cost of meeting such as needs, which as the case may be, and the supple- following additional functions:
shall be reflected in the form of an mentary local cost of meeting such
annual school board budget corre- as needs, which shall be reflected in 1) provide funds for the ac-
sponding to its share of the proceeds the form of an annual school board quisition of school sites, school
of the special levy on real property budget corresponding to its share of buildings, equipment, vehicles,
constituting the Special Education the proceeds of the special levy on books, and learning materials,
Fund and such other sources of rev- real property constituting the Spe- and the like;
enue as this Code and other laws or cial Education Fund and such other 2) provide funds for scholarships
ordinances may provide; sources of revenue as this Code and allowances with priority to
and other laws or ordinances may poor and deserving students;
The Department of Education, Culture provide; 3) may grant non-taxable monthly
and Sports shall consult the local school augmentation allowances; and
board on the appointment of division The Department of Education, Culture 4) provide funds for necessary per-
superintendents, district supervisors, and Sports shall consult the local school sonnel services to include aca-
school principals, and other school of- board on the appointment of division demic and non- academic person-
ficials. superintendents, district supervisors, nel.
school principals, and other school
officials.

Annex B
85
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Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
The appointment of the division super-
intendents, district supervisors, and
school principals shall be taken from a
list of three recommendees by the re-
spective local school board, and no
such appointment shall be valid with-
out confirmation from the same.

(c) (2) Establishment and maintenance (c) (2) Establishment and maintenance of NEW SECTION
of extension classes where necessary; extension classes where necessary; and
and SEC. 100. Review of Local School Board
Budget

(a) The local school board shall be sub-

jected to review by the Local Leg-
islature.

(c) Review of local school board

Issues and Critical Actions in Local Governance

annual budget – within ten (10)
days after its enactment, the lo-
cal school boards shall furnish cop-
ies of the budget to the provincial
legislature, city legislature, munic-
ipal legislature concerned for re-
view and approval: If the provincial
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
legislature, municipal legislature,
city legislature, municipal legis-
lature as the case may be fails to
tale action on the local school
board budget within thirty (30)
days from the set thereof, the
same shall be deemed approved.
(For NEB consideration)
(d) (2) Establishment and
maintenance of extension classes
where necessary, provide for the
hiring of additional teachers at
all levels; and

SEC. 101. Compensation and Remunera- SEC. 101. Compensation and Remunera- THE LEGISLATIVE LEAGUES SUGGEST
tion. - The co-chairmen and members of tion.- The co-chairmen and members of THAT WE GIVE HONORARIUM TO
the provincial, city or municipal school the provincial, city or municipal school THE MEMBERS OF THE LSB. FOR NEB
board shall perform their duties as such board shall perform their duties as such CONSIDERATION
without compensation or remuneration. without compensation or remuneration.
Members thereof who are not government Members thereof who are not government
officials or employees shall be entitled to officials or employees shall be entitled to
necessary traveling expenses and allow- necessary traveling expenses and allow-

Annex B
ances chargeable against the funds of the ances chargeable against the funds of the
local school board concerned, subject to local school board concerned, subject to
existing accounting and auditing rules existing accounting and auditing rules

87
and regulations. and regulations.
88
Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
SEC. 102. Creation and Composition. - (a) SEC. 102. Creation and Composition. - (a) SEC. 102. Creation and Composi-
There shall be established a local health There shall be established a local health tion. -
board in every province, city, or munici- board in every province, city, or munici- (a) There shall be established a local
pality. The composition of the local health pality. The composition of the local health health board in every province,
boards shall be as follows: boards shall be as follows: city, or municipality. The compo-
sition of the local health boards
(1) The provincial health board shall be (1) The provincial health board shall shall be as follows:
headed by the governor as chairman, be headed by the governor as chair-
the provincial health officer as vice- man, the provincial health officer as (1) The provincial health board shall
chairman, and the chairman of the vice-chairman, and the chairman be headed by the governor as
committee on health of the sanggu- of the committee on health of the chairman, the provincial health
niang panlalawigan, a representative sangguniang panlalawigan, a repre- officer as vice-chairman, and
from the private sector or non-gov- sentative from the private sector or the chairman of the committee
ernmental organizations involved in non- governmental organiza- on health of the Provincial Leg-
health services, and a representative tions involved in health services, and islature, a representative from
of the Department of Health in the a representative of the Department of the private sector or non- gov-
province, as members; Health in the province, as members; ernmental organizations
involved in health services, and

Issues and Critical Actions in Local Governance

a representative of the Depart-
ment of Health in the province,
as members;
SEC. 107. Composition of Local Develop- SEC. 107. Composition of Local Develop- SEC. 107. Composition of Local Devel-
ment Councils. - The composition of the ment Councils. - The composition of the opment Councils. - The composition of
local development council shall be as fol- local development council shall be as fol- the local development council shall be
lows: lows: as follows:
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
(a) The barangay development council (a) The barangay development council (a) The barangay development coun-
shall be headed by the punong baran- shall be headed by the punong baran- cil shall be chaired by the punong
gay and shall be composed of the fol- gay and shall be composed of the fol- barangay and shall be composed of
lowing members: XXX lowing members: XXX the following members: XXX

(b) The city or municipal development (b) The city or municipal development (b) The city or municipal develop-
council shall be headed by the mayor council shall be headed by the mayor ment council shall be chaired by
and shall be composed of the follow- and shall be composed of the following the mayor and the vice mayor as
ing members: members: vice chair, and shall be composed of
the following members:
(c) The provincial development council (c) The provincial development council (c) The provincial development council
shall be headed by the governor and shall be headed by the governor and shall be chaired by the governor
shall be composed of the following shall be composed of the following and the vice governor as vice chair,
members: members: and shall be composed of the fol-
lowing members:
d) The local development councils may (d) The local development councils may
call upon any local official concerned call upon any local official concerned (5) Provincial president of the Vice
or any official of national agencies or or any official of national agencies or Mayors’ League (VMLP) to include
offices in the local government unit to offices in the local government unit to the committee on infrastructure
assist in the formulation of their re- assist in the formulation of their re- and planning in all levels of legisla-
spective development plans and pub- spective development plans and public ture except the barangays. (NEW)
lic investment programs. investment programs.

Annex B
89
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Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment

(d) XXX

(e) The local development councils

(LDCs) shall be composed of only
20 barangay representatives plus
one representative for every 20
barangays, in cities or munic-
ipalities with more than 20 baran-
gays.

SEC. 108. Representation of Non- gov- SEC. 108. Representation of Non- govern- SEC. 108. Representation of Non- gov-
ernmental Organizations. - Within a pe- mental Organizations. - Within a period ernmental Organizations. - Within a
riod of sixty (60) days from the start of of sixty (60) days from the start of organi- period of sixty (60) days from the start
organization of local development coun- zation of local development councils, the of organization of local development
cils, the non-governmental organizations non- governmental organizations shall councils, LGU accredited non-govern-
shall choose from among themselves their choose from among themselves their mental organizations shall choose from

Issues and Critical Actions in Local Governance

representatives to said councils. The lo- representatives to said councils. The lo- LDC representatives through their re-
cal sanggunian concerned shall accredit cal sanggunian concerned shall accredit spective federations or associations, if
non- governmental organizations subject non-governmental organizations subject any.
to such criteria as may be provided by law. to such criteria as may be provided by law.
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment

SEC. 110. Meetings and Quorum. - The local SEC. 110. Meetings and Quorum. - The lo- SEC. 110. Meetings and Quorum. -
development council shall meet at least once cal development council shall meet at least The local development council shall
every six (6) months or as often as may be once every six (6) months or as often as may meet at least four (4) times a year
necessary. be necessary.

LOCAL PEACE AND ORDER COUN- LOCAL PEACE AND ORDER COUN- LOCAL PEACE AND ORDER
CIL CIL COUNCIL

SEC. 116. Organization. - There is SEC. 116. Organization. - There is SEC. 116. Organization.- There is
hereby established in every province, city hereby established in every province, city hereby established in every province, city
and municipality a local peace and or- and municipality a local peace and or- and municipality a local peace and order
der council, pursuant to Executive Order der council, pursuant to Executive Order council, pursuant to Executive Order
Numbered Three hundred nine (E.O. No. Numbered Three hundred nine (E.O. No. Numbered Three hundred nine (E.O.
309), as amended, Series of 1988. The lo- 309), as amended, Series of 1988. The lo- No. 309), as amended, Series of 1988. The
cal peace and order councils shall have the cal peace and order councils shall have the local peace and order councils shall have
same composition and functions as those same composition and functions as those the same composition and functions as
prescribed by said executive order. prescribed by said executive order. those prescribed by said executive order.
Accredited NGOs/POs are allowed to send
no more than two representatives to the lo-
cal peace, law and order council.

Annex B
91
92
Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
Chapter 1. – Settlement of Boundary Chapter 1. – Settlement of Boundary Chapter 1. – Settlement of Boundary
Disputes Disputes Disputes

SEC. 118. Jurisdictional Responsibility for SEC. 118. Jurisdictional Responsibility SEC. 118. Jurisdictional Responsibility
Settlement of Boundary Dispute. - Bound- for Settlement of Boundary Dispute. for Settlement of Boundary Dispute.
ary disputes between and among local - Boundary disputes between and – For the LGUs concerned in the
government units shall, as much as pos- among local government units shall, boundary disputes to file the neces-
sible, be settled amicably. To this end: … as much as possible, be settled amica- sary court proceedings before the
XXX bly. To this end: …XXX appropriate regular courts after the
failure of the legislature concerned
to settle the disputes amicably
within 60 days based on it certifica-
tion for that purpose.
SEC. 130. Fundamental Principles. - The SEC. 130. Fundamental Principles. - The SEC. 130. Fundamental Principles. -
following fundamental principles shall following fundamental principles shall The following fundamental principles
govern the exercise of the taxing and govern the exercise of the taxing and other shall govern the exercise of the taxing
other revenue-raising powers of local revenue- raising powers of local govern- and other revenue-raising powers of
government units: ment units: local government units:

Issues and Critical Actions in Local Governance

(a) XXX (a) XXX (a) XXX
(b) XXX (b) XXX (b) XXX
(c) The collection of local taxes, fees, (c) The collection of local taxes, fees,
charges and other impositions shall not be charges and other impositions shall not
left to any private person in its behalf. be left to any private person in its
behalf.
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
Except in accordance with the Build-Oper- Except in accordance with the Build-Oper- (c) The collection of local taxes, fees,
ate- Transfer Law ate- Transfer Law charges and other impositions shall
in no case be left to any private
H.B. No. 758 – AN ACT INCREASING H.B. No. 758 – AN ACT INCREASING except in accordance with the Build-
THE AMOUNT OF SUPPLIES WHICH THE AMOUNT OF SUPPLIES WHICH Operate-Transfer Law and if so autho-
MAY BE PROCURED BY LOCAL GOV- MAY BE PROCURED BY LOCAL GOV- rized by said LGU in its behalf.
ERNMENT UNITS THROUGH PER- ERNMENT UNITS THROUGH PER-
SONAL CANVASS, THEREBY AMEND- SONAL CANVASS, THEREBY AMEND-
ING FOR THE PURPOSE SECTION 367 ING FOR THE PURPOSE SECTION 367
OF REPUBLIC ACT NO. 7160 – Intro- OF REPUBLIC ACT NO. 7160 – Intro-
duced by Reps. Cynthia A. Villar and duced by Reps. Cynthia A. Villar and
Vincent Garcia Vincent Garcia

Note: Note:

Transmitted to the Senate on April 24,2002 Transmitted to the Senate on April 24,2002

Approved on Third Reading on April 23,2002 Approved on Third Reading on April 23,2002

SEC. 133. Common Limitations on the SEC. 133. Common Limitations on the SEC. 133. Common Limitations on the
Taxing Powers of Local Government Units. Taxing Powers of Local Government Units. Taxing Powers of Local Government
Units.

Annex B
(d) The imposition and collection of
franchise fees of vessels with tonnage

93
94
Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
(d) Customs duties, registration fees of ves- (d) Customs duties, registration fees of of below five tons shall be carried out
sel and wharfage on wharves, tonnage dues, vessel and wharfage on wharves, tonnage by the cities and municipalities.
and all other kinds of customs fees, charges dues, and all other kinds of customs fees,
and dues except wharfage on wharves con- charges and dues except wharfage on (l) The LGU shall have a share in the
structed and maintained by the local gov- wharves constructed and maintained by collection of franchise fees of public
ernment unit concerned; the local government unit concerned; utility vehicles operating within its
jurisdiction. The LGU shall have the
(l) Taxes, fees or charges for the registration (l) Taxes, fees or charges for the registra- power to issue franchise and collect
of motor vehicles and for the issuance of all tion of motor vehicles and for the issuance franchise fees of public utility vehicles
kinds of licenses or permits for the driving of all kinds of licenses or permits for the exclusively operating within its juris-
thereof, except tricycles; driving thereof, except tricycles; diction subject to implementing
rules and regulation to be issued by the
o) Taxes, fees or charges of any kind on the (o) Taxes, fees or charges of any kind on local legislature through appropriate
National Government, its agencies and the National Government, its agencies ordinance taking into consideration
instrumentalities, and local government and instrumentalities, and local govern- maximum holding and carrying capac-
units. ment units. ity of existing infrastructure.

The LGUs may allow the private sector

Issues and Critical Actions in Local Governance

to collect local taxes fees and charges
and other impositions on its behalf.

(o) LGUS shall impose taxes on quasi-

public corporation, government banks,
financing and investments institutions,
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
gambling and gaming enterprises op-
erated by the central government or its
agents or instrumentalities, etc., which
have been given permits by the LGU;

(p) NEW SECTION (for revision into

appropriate language)

Giving LGUs the power to impose ex-

cise taxes on articles enumerated in the
national Revenue Code (e.g. cigarettes)
except petroleum. (For NEB consider-
ation)

Note: This will reduce the NRS share of

other LGUs
(Subject for further discussion)

SEC. 137. Franchise Tax. - Notwithstand- SEC. 137. Franchise Tax. - Notwithstand- SEC. 137. Franchise Tax. – The city
ing any exemption granted by any law or ing any exemption granted by any law or shall have the power to levy franchise
other special law, the province may impose other special law, the province may impose tax of any business enjoying a fran-
a tax on businesses enjoying a franchise, at a tax on businesses enjoying a franchise, at chise granted by Congress, a national

Annex B
the rate not exceeding fifty percent (50%) the rate not exceeding fifty percent (50%) government agency or LGU, including
of one percent (1%) of the gross annual of one percent (1%) of the gross annual power generation, transmission and

95
96
Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
receipts for the preceding calendar year receipts for the preceding calendar year distribution, telecommunications, ice
based on the incoming receipt, or realized, based on the incoming receipt, or re- plants, and storage facilities, legal gam-
within its territorial jurisdiction. alized, within its territorial jurisdiction. bling or gaing activities, and the like
NOT otherwise tax by the province.

(Reiteration of Section 151, proposed to

be deleted)
SEC. 152. Scope of Taxing Powers. – XXX SEC. 152. Scope of Taxing Powers – XXX SEC. 152. Scope of Taxing Powers– XXX

(a) Taxes - On stores or retailers with fixed (a) Taxes - On stores or retailers with fixed (a) Taxes - On stores or retailers
business establishments with gross sales of business establishments with gross sales of with fixed business establishments with
receipts of the preceding calendar year of receipts of the preceding calendar year of gross sales of receipts of the preceding
Fifty thousand pesos (P50,000.00) or less, Fifty thousand pesos (P50,000.00) or less, calendar year of Fifty thousand pe-
in the case of cities and Thirty thousand in the case of cities and Thirty thousand sos (P50,000.00) or less, in the case
pesos (P30,000.00) or less, in the case of pesos (P30,000.00) or less, in the case of of cities and Thirty thousand pesos
municipalities, at a rate not exceeding one municipalities, at a rate not exceeding one (P30,000.00) or less, in the case of mu-
percent (1%) on such gross sales or re- percent (1%) on such gross sales or re- nicipalities, at a rate not exceeding one
ceipts. ceipts. percent (1%) on such gross sales

Issues and Critical Actions in Local Governance

or receipts.
SEC. 157. Individuals Liable to Commu- SEC. 157. Individuals Liable to Com- SEC. 157. Individuals Liable to Com-
nity Tax. - Every inhabitant of the Phil- munity Tax. - Every inhabitant of the munity Tax.- Every inhabitant of the
ippines eighteen (18) years of age or over Philippines eighteen (18) years of age or Philippines eighteen (18) years of age
who has been regularly employed on a over who has been regularly employed or over who has been regularly em-
wage or salary basis for at least thirty (30) on a wage or salary basis for at least ployed on a wage or salary basis for
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
consecutive working days during any cal- thirty (30) consecutive working days at least thirty (30) consecutive working
endar year, or who is engaged in business during any calendar year, or who is en- days during any calendar year, or who
or occupation, or who owns real property gaged in business or occupation, or who is engaged in business or occupation, or
with an aggregate assessed value of One owns real property with an aggregate who owns real property with an aggre-
thousand pesos (P1,000.00) or more, or assessed value of One thousand pesos gate assessed value of One thousand
who is required by law to file an income (P1,000.00) or more, or who is required pesos (P1,000.00) or more, or who is
tax return shall pay an annual additional by law to file an income tax return shall required by law to file an income tax
tax of Five pesos (P5.00) and an annual pay an annual additional tax of Five pe- return shall pay an annual additional
additional tax of One peso (P1.00) for ev- sos (P5.00) and an annual additional tax tax of Five pesos (P5.00) and an annual
ery One thousand pesos (P1,000.00) of in- of One peso (P1.00) for every One thou- additional tax of One peso (P1.00) for
come regardless of whether from business, sand pesos (P1,000.00) of income regard- every One thousand pesos (P1,000.00)
exercise of profession or from property less of whether from business, exercise of income regardless of whether from
which in no case shall exceed Five thou- of profession or from property which in business, exercise of profession or from
sand pesos (P5,000.00). no case shall exceed Five thousand pesos property which in no case shall exceed
(P5,000.00). Five thousand pesos (P5,000.00).
SEC. 193. Withdrawal of Tax Exemption SEC. 193. Withdrawal of Tax Exemption SEC. 193. Withdrawal of Tax Exemp-
Privileges. - Unless otherwise provided Privileges. - Unless otherwise provided in tion Privileges. - Unless otherwise pro-
in this Code, tax exemptions or incen- this Code, tax exemptions or incentives vided in this Code, tax exemptions or
tives granted to, or presently enjoyed by all granted to, or presently enjoyed by all incentives granted to, or presently en-
persons, whether natural or juridical, in- persons, whether natural or juridical, in- joyed by all persons, whether natural or
cluding government-owned or controlled cluding government- owned or controlled juridical, including government-owned
corporations, except local water districts, corporations, except local water districts, or controlled corporations, except local

Annex B
cooperatives duly registered under R.A. cooperatives duly registered under R.A. water districts, cooperatives duly regis-
No. 6938, non-stock and non-profit hos No. 6938, non-stock and non-profit hos tered under R.A. No. 6938, non-stock

97
98
Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
pitals and educational institutions, are pitals and educational institutions, are and non-profit hospitals and educa-
hereby withdrawn upon the effectivity of hereby withdrawn upon the effectivity of tional institutions, are hereby
this Code. this Code. withdrawn upon the effectivity of this
Code.

SEC. 218. Assessment Levels. – XXX SEC. 218. Assessment Levels. – XXX SEC. 218. Assessment Levels. – XXX

SEC. 219. General Revision of Assessment SEC. 219. General Revision of Assessment SEC. 219. General Revision of As-
and Property Classification. - The provin- and Property Classification. - The provin- sessment and Property Classification.
cial, city or municipal assessor shall un- cial, city or municipal assessor shall un- - The provincial, city or municipal
dertake a general revision of real property dertake a general revision of real property assessor shall undertake a general
assessments within two (2) years after the assessments within two (2) years after the revision of real property assessments
effectivity of this Code and every three (3) effectivity of this Code and every three (3) within two (2) years after the effectivity
years thereafter. years thereafter. of this Code and every three (3) years
thereafter.
SEC. 272. Application of Proceeds of the SEC. 272. Application of Proceeds of the SEC. 272. Application of Proceeds of
Additional One Percent SEF Tax. Additional One Percent SEF Tax. the Additional One Percent SEF Tax.

Issues and Critical Actions in Local Governance

H.B. No. 456 – AN ACT EXPANDING H.B. No. 456 – AN ACT EXPANDING H.B. No. 456 – AN ACT EXPAND-
THE PURPOSES AND APPLICATION THE PURPOSES AND APPLICATION ING THE PURPOSES AND APPLI-
OF THE SPECIAL EDUCATION FUND OF THE SPECIAL EDUCATION FUND CATION OF THE SPECIAL EDU-
(SEF), AMENDING FOR THE PUR- (SEF), AMENDING FOR THE PUR- CATION FUND (SEF), AMENDING
POSE SECTION POSE SECTION FOR THE PURPOSE
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
272 OF REPUBLIC ACT NO. 7160, 272 OF REPUBLIC ACT NO. 7160, OTH- SECTION 272 OF REPUBLIC ACT
OTHERWISE KNOWN AS THE LOCAL ERWISE KNOWN AS THE LOCAL NO. 7160, OTHERWISE KNOWN
GOVERNMENT CODE OF 1991, AND GOVERNMENT CODE OF 1991, AND AS THE LOCAL GOVERNMENT
FOR OTHER PURPOSES – Introduced FOR OTHER PURPOSES – Introduced CODE OF 1991, AND FOR OTHER
by Rep. Antonio Eduardo Nachura by Rep. Antonio Eduardo Nachura PURPOSES – Introduced by Rep. An-
tonio Eduardo Nachura
Note: Note:
Note:
Transmitted to the Senate on April 24, 2002 Transmitted to the Senate on April 24, 2002
Transmitted to the Senate on April 24,
Approved on Third Reading on April 23, Approved on Third Reading on April 23, 2002
2002 (for NEB consideration) 2002 (for NEB consideration)
Approved on Third Reading on April
23, 2002 (for NEB consideration)

SEC. 284. Allotment of Internal Revenue SEC. 284. Allotment of Internal Revenue SEC. 284. Allotment of Internal Reve-
Taxes. - Local government units shall have Taxes. - Local government units shall have nue Taxes. - - Local government units
a share in the national internal revenue a share in the national internal revenue shall have a share in the national in-
taxes based on the collection of the third taxes based on the collection of the third ternal revenue taxes based on the col-
fiscal year preceding the current fiscal year fiscal year preceding the current fiscal year lection of the third fiscal year preceding
as follows: XXX as follows: XXX the current fiscal year as follows: XXX

Annex B
99
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
SEC. 285. Allocation to Local Government SEC. 285. Allocation to Local Government SEC. 285. Allocation to Local Govern-
Units. - The share of local government Units. - The share of local government ment Units. - The share of local gov-
units in the internal revenue allotment units in the internal revenue allotment ernment units in the internal revenue
shall be collected in the following shall be collected in the following man- allotment shall be collected in the fol-
manner: ner: lowing manner:

SEC. 287. Local Development Projects. SEC. 287. Local Development Proj- SEC. 287. Local Development Proj-
- Each local government unit shall ap- ects. - Each local government unit shall ects. appropriate in its annual budget
propriate in its annual budget no less appropriate in its annual budget no less no less than twenty percent (20%) of
than twenty percent (20%) of its annual than twenty percent (20%) of its annual its annual internal revenue allotment
internal revenue allotment for develop- internal revenue allotment for develop- for development projects. Copies of
ment projects. Copies of the development ment projects. Copies of the development the development plans of local gov-
plans of local government units shall be plans of local government units shall be ernment units shall be furnished the
furnished the Department of Interior and furnished the Department of Interior and Department of Interior and Local Gov-
Local Government. Local Government. ernment.

100 Issues and Critical Actions in Local Governance

 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
SEC. 291. Share of the Local Governments SEC. 291. Share of the Local Governments SEC. 291. Share of the Local Govern-
from any Government Agency or Owned or from any Government Agency or Owned or ments from any Government Agency
Controlled Corporation. – XXX Controlled Corporation. – XXX or Owned or Controlled Corporation.–
XXX
(b) Forty percent (40%) of the min- (b) Forty percent (40%) of the min-
ing taxes, royalties, forestry and fish- ing taxes, royalties, forestry and fishery (b) Forty percent (40%) of the mining
ery charges and such other taxes, fees or charges and such other taxes, fees or taxes, royalties, forestry and fishery
charges, including related surcharges, in- charges, including related surcharges, in- charges and such other taxes, fees or
terests, or fines the government agency or terests, or fines the government agency or charges, including related surcharges,
government owned or controlled corpora- government owned or controlled corpora- interests, or fines the government
tion would have paid if it were not other- tion would have paid if it were not other- agency or government owned or con-
wise exempt. wise exempt. trolled corporation would have paid if
it were not otherwise exempt.

SEC. 297. Loans, Credits, and Other SEC. 297. Loans, Credits, and Other SEC. 297. Loans, Credits, and Other
Forms of Indebtedness of Local Govern- Forms of Indebtedness of Local Govern- Forms of Indebtedness of Local Govern-
ment Units. – ment Units. – ment Units. –

(a) A local government unit may con- (d) A local government unit may con- (g) A local government unit may
tract… XXX tract… XXX contract…XXX
(b) XXX (e) XXX (h) XXX
(c) XXX (f) XXX (i) XXX

Annex B
101
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
Section 299. Bonds and Other Long-Term Section 299. Bonds and Other Long-Term Section 299. Bonds and Other Long-
Securities. - Subject to the rules and reg- Securities. - Subject to the rules and Term Securities. of the Central Bank
ulations of the Central Bank and the Se- regulations of the Central Bank and the and the Securities and Exchange Com-
curities and Exchange Commission, prov- Securities and Exchange Commission, mission, provinces, cities, and mu-
inces, cities, and municipalities are hereby provinces, cities, and municipalities are nicipalities are hereby authorized to
authorized to issue bonds, debentures, hereby authorized to issue bonds, deben- issue bonds, debentures, securities,
securities, collaterals, notes and tures, securities, collaterals, notes and collaterals, notes and other obliga-
other obligations…XXX other obligations…XXX tions…XXX
SEC. 302. Financing, Construction, Main- SEC. 302. Financing, Construction, Main- SEC. 302. Financing, Construction,
tenance, Operation, and Management of tenance, Operation, and Management of Maintenance, Operation, and Manage-
Infrastructure Projects by the Private Sec- Infrastructure Projects by the Private Sec- ment of Infrastructure Projects by the
tor. - tor. - Private Sector. -

(a) Local government units may enter into (a) Local government units may enter into (a) Local government units may enter
contracts with any duly prequalified indi- contracts with any duly prequalified indi- into contracts with any duly prequal-
vidual contractor, for the financing, con- vidual contractor, for the financing, con- ified individual contractor, for the fi-
struction, operation…XXX struction, operation…XXX nancing, construction, operation…
XXX

102 Issues and Critical Actions in Local Governance

SEC. 311. Depository Accounts. - Local SEC. 311. Depository Accounts. - Lo- SEC. 311. Depository Accounts.- Lo-
treasurers shall maintain depository ac- cal treasurers shall maintain depository cal treasurers shall maintain deposi-
counts in the name of their respective local accounts in the name of their respec- tory accounts in the name of their re-
government units with banks, preferably tive local government units with banks, spective local government units with
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
government-owned, located in or near- preferably government-owned, located in banks, preferably government-owned,
est to their respective areas of jurisdiction. or nearest to their respective areas of ju- located in or nearest to their respec-
Earnings of each depository account shall risdiction. Earnings of each depository tive areas of jurisdiction. Earnings
accrue exclusively thereto. account shall accrue exclusively thereto. of each depository account shall accrue
exclusively thereto.
H.B. No. 756 – AN ACT PROVIDING FOR H.B. No. 756 – AN ACT PROVIDING FOR
GREATER FISCAL AUTONOMY IN FAVOR GREATER FISCAL AUTONOMY IN FAVOR H.B. No. 756 – AN ACT PROVIDING
OF LOCAL GOVERNMENT UNITS (LGUs) OF LOCAL GOVERNMENT UNITS (LGUs) FOR GREATER FISCAL AUTONOMY
IN THE CHOICE OF DEPOSITORY BANKS, IN THE CHOICE OF DEPOSITORY BANKS, IN FAVOR OF LOCAL GOVERNMENT
AMENDING SECTION 311 OF REPUBLIC AMENDING SECTION 311 OF REPUBLIC UNITS (LGUs) IN THE CHOICE OF DE-
ACT NO. 7160, OTHERWISE KNOWN AS ACT NO. 7160, OTHERWISE KNOWN POSITORY BANKS, AMENDING SEC-
THE LOCAL GOVERNMENT CODE OF AS THE LOCAL GOVERNMENT CODE OF TION 311 OF REPUBLIC ACT NO. 7160,
1991 – Introduced by Reps. Cynthia A. Vil- 1991 – Introduced by Reps. Cynthia A. Vil- OTHERWISE KNOWN AS THE LOCAL
lar and Prospero A. Pichay, Jr. lar and Prospero A. Pichay, Jr. GOVERNMENT CODE OF 1991 – Intro-
duced by Reps. Cynthia A. Villar and
Note : Note : Prospero A. Pichay, Jr.

Transmitted to the Senate on March 7, 2002 Transmitted to the Senate on March 7, 2002 Note :

Approved on Third Reading on March 6, Approved on Third Reading on March 6, Transmitted to the Senate on March
2002 2002 7, 2002

Approved on Third Reading on March

Annex B
6, 2002

103
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
SEC. 329. Barangay Funds. - Unless SEC. 329. Barangay Funds. - Unless SEC. 329. Barangay Funds. - Un-
otherwise provided in this Title, all the otherwise provided in this Title, all the less otherwise provided in this Ti-
income of the barangay from whatever income of the barangay from whatever tle, all the income of the barangay
source shall accrue to its general fund and source shall accrue to its general fund from whatever source shall accrue to
shall, at the option of the barangay con- and shall, at the option of the barangay its general fund and shall, at the option
cerned, be kept as trust fund in the cus- concerned, be kept as trust fund in the of the barangay concerned, be kept as
tody of the city or municipal treasurer or custody of the city or municipal trea- trust fund in the custody of the city or
be deposited in a bank, preferably surer or be deposited in a bank, preferably municipal treasurer or be deposited in
government- owned, situated in or near- government-owned, situated in or nearest a bank, preferably government-owned,
est to its area of jurisdiction. Such funds to its area of jurisdiction. Such funds shall situated in or nearest to its area of
shall be disbursed in accordance with the be disbursed in accordance with the pro- jurisdiction. Such funds shall be dis-
provisions of this Title. Ten percent (10%) visions of this Title. Ten percent (10%) of bursed in accordance with the provi-
of the general fund of the barangay shall the general fund of the barangay shall be sions of this Title. Ten percent (10%) of
be set aside for the sangguniang kabataan. set aside for the sangguniang kabataan. the general fund of the barangay shall
be set aside for the sangguniang kabat-
aan.
SEC. 339. Cash Advances. - No cash ad- SEC. 339. Cash Advances.- No cash ad- SEC. 339. Cash Advances.- No cash
vance shall be granted to any local official vance shall be granted to any local official advance shall be granted to any lo-

104 Issues and Critical Actions in Local Governance

or employee, elective or appointive, unless or employee, elective or appointive, unless cal official or employee, elective or ap-
made in accordance with the rules and made in accordance with the rules and pointive, unless made in accordance
regulations as the Commission on Audit regulations as the Commission on Audit with the rules and regulations as the
may prescribe. may prescribe. Commission on Audit may prescribe.
SEC. 367. Procurement through Personal SEC. 367. Procurement through Personal SEC. 367. Procurement through Per-
Canvass. - Upon approval by the Commit- Canvass. - Upon approval by the Com- sonal Canvass. - Upon approval by
tee on Awards, procurement……XXX mittee on Awards, procurement……XXX the Committee on Awards, procure-
ment…… XXX
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
(b) Barangay purchases shall not exceed (b) Barangay purchases shall not exceed (b) Barangay purchases shall not ex-
the amounts specified hereunder for all the amounts specified hereunder for all ceed the amounts specified hereunder
items in any one month for each barangay: items in any one month for each barangay: for all items in any one month for each
barangay:
SEC. 386. Requisites for Creation. – (a) SEC. 386. Requisites for Creation. – (a) SEC. 386. Requisites for Creation. – (a)
XXX XXX XXX
(b) XXX (c) XXX (b) XXX (c) XXX (b) XXX (c) XXX

SANGGUNIANG KABATAAN SANGGUNIANG KABATAAN SANGGUNIANG KABATAAN

SEC. 423. Creation and Election. SEC. 423. Creation and Election. SEC. 423. Creation and Election.

(b) A sangguniang kabataan official (b) A sangguniang kabataan official who, (b) A sangguniang kabataan offi-
who, during his term of office, shall have during his term of office, shall have passed cial who, during his term of office, shall
passed the age of twenty-one (21) years the age of twenty-one (21) years shall be have passed the age of twenty-one (21)
shall be allowed to serve the remaining allowed to serve the remaining portion of years shall be allowed to serve the re-
portion of the term for which he was the term for which he was elected. maining portion of the term for which
elected. he was elected.
SEC. 424. Katipunan ng Kabataan. - SEC. 424. Katipunan ng Kabataan. SEC. 424. Katipunan ng Kabat-
The katipunan ng kabataan shall be com- - The katipunan ng kabataan shall be com- aan. - The katipunan ng kabataan
posed of all citizens of the Philippines ac- posed of all citizens of the Philippines ac- shall be composed of all citizens of
tually residing in the barangay for at least tually residing in the barangay for at least the Philippines actually residing in the

Annex B
six (6) months, who are fifteen (15) but six (6) months, who are fifteen (15) but not barangay for at least six (6) months,
not more than twenty-one (21) years more than twenty-one (21) years of age, who are fifteen (15) but not more than

105
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
of age, and who are duly registered in the and who are duly registered in the list of twenty-one (21) years of age, and who
list of the sangguniang kabataan or in the the sangguniang kabataan or in the official are duly registered in the list of the
official barangay list in the custody of the barangay list in the custody of the baran- sangguniang kabataan or in the offi-
barangay secretary. gay secretary. cial barangay list in the custody of the
barangay secretary.

SEC. 428. Qualifications. - An elective offi- SEC. 428. Qualifications. - An elective offi- SEC. 428. Qualifications. - An elective
cial of the sangguniang kabataan must be a cial of the sangguniang kabataan must be a official of the sangguniang kabataan
citizen of the Philippines, a qualified voter citizen of the Philippines, a qualified voter must be a citizen of the Philippines, a
of the katipunan ng kabataan, a resident of of the katipunan ng kabataan, a resident of qualified voter of the katipunan ng ka-
the barangay for at least one (1) year im- the barangay for at least one (1) year im- bataan, a resident of the barangay for at
mediately prior to election, at least fifteen mediately prior to election, at least fifteen least one (1) year immediately prior to
(15) years but not more than twenty- one (15) years but not more than twenty- one election, at least fifteen (15) years but
(21) years of age on the day of his election, (21) years of age on the day of his election, not more than twenty- one (21) years
able to read and write Filipino, English, or able to read and write Filipino, English, or of age on the day of his election, able to
the local dialect, and must not have been the local dialect, and must not have been read and write Filipino, English, or the
convicted of any crime involving moral convicted of any crime involving moral local dialect, and must not have been
turpitude. turpitude. convicted of any crime involving moral

106 Issues and Critical Actions in Local Governance

turpitude.

SEC. 433. Sangguniang Kabataan Trea- SEC. 433. Sangguniang Kabataan Trea- SEC. 433. Sangguniang Kabataan
surer. - The sangguniang kabataan trea- surer. - The sangguniang kabataan trea- Treasurer. - The sangguniang kabataan
surer shall: surer shall: treasurer shall:
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment

(a) Take custody of all sangguniang ka- (a) Take custody of all sangguniang ka- (a) Take custody of all sangguniang
bataan property and funds not other- bataan property and funds not otherwise kabataan property and funds not oth-
wise deposited with the city or municipal deposited with the city or municipal trea- erwise deposited with the city or mu-
treasurer; surer; nicipal treasurer;
(b) XXX (b) XXX (b) XXX
(c) XXX (c) XXX (c) XXX
(d) XXX (d) XXX (d) XXX
(e) Submit to the sangguniang kabataan (e) Submit to the sangguniang kabataan (e) Submit to the sangguniang ka-
and to the sangguniang barangay certi- and to the sangguniang barangay bataan and to the sangguniang baran-
fied and detailed statements of actual in- certified and detailed statements of gay certified and detailed statements of
come and expenditures at the end of actual income and expenditures at the actual income and expenditures at the
every month; and end of every month; and end of every month; and
(f) XXX (f) XXX (f) XXX

Annex B
107
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
SEC. 434. Privileges of Sangguniang Ka- SEC. 434. Privileges of Sangguniang Ka- SEC. 434. Privileges of Sangguniang
bataan Officials. - The sangguniang ka- bataan Officials. - The sangguniang ka- Kabataan Officials. - The sangguniang
bataan chairman shall have the same bataan chairman shall have the same kabataan chairman shall have the same
privileges enjoyed by other sangguniang privileges enjoyed by other sangguniang privileges enjoyed by other sanggu-
barangay officials under this Code subject barangay officials under this Code subject niang barangay officials under this
to such requirements and limitations pro- to such requirements and limitations pro- Code subject to such requirements and
vided herein. During their incumbency, vided herein. During their incumbency, limitations provided herein. During
sangguniang kabataan officials shall be ex- sangguniang kabataan officials shall be their incumbency, sangguniang ka-
empt from payment of tuition and ma- exempt from payment of tuition and ma- bataan officials shall be exempt from
triculation fees while enrolled in public triculation fees while enrolled in public payment of tuition and matriculation
tertiary schools, including state colleges tertiary schools, including state colleges fees while enrolled in public tertiary
and universities. The national government and universities. The national government schools, including state colleges and
shall reimburse said college or university shall reimburse said college or university universities. The national government
the amount of the tuition and matricula- the amount of the tuition and matricula- shall reimburse said college or uni-
tion fees: Provided, That, to qualify for the tion fees: Provided, That, to qualify for versity the amount of the tuition and
privilege, the said officials shall enroll in a the privilege, the said officials shall enroll matriculation fees: Provided, That, to
state college or university within or near- in a state college or university within or qualify for the privilege, the said of-
est their area of jurisdiction. nearest their area of jurisdiction. ficials shall enroll in a state college or

108 Issues and Critical Actions in Local Governance

university within or nearest their area
of jurisdiction.
Section 436. Pederasyon ng mga Kabat- Section 436. Pederasyon ng mga Kabat- Section 436. Pederasyon ng mga Kabat-
aan. aan. aan.

(a) XXX (a) XXX (a) XXX

(b) XXX (b) XXX (b) XXX
(c) XXX (c) XXX (c) XXX
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
SEC. 437. Constitution and By-Laws. - SEC. 437. Constitution and By-Laws. - SEC. 437. Constitution and By-Laws. -
The term of office, manner of election, re- The term of office, manner of election, re- The term of office, manner of election,
moval and suspension of the officers of the moval and suspension of the officers of the removal and suspension of the officers
pederasyon ng mga sangguniang kabataan pederasyon ng mga sangguniang kabataan of the pederasyon ng mga sangguniang
at all levels shall be governed by the con- at all levels shall be governed by the con- kabataan at all levels shall be governed
stitution and by-laws of the pederasyon stitution and by- laws of the pederasyon by the constitution and by-laws of the
in conformity with the provisions of this in conformity with the provisions of this pederasyon in conformity with the
Code and national policies on youth. Code and national policies on youth. provisions of this Code and national
policies on youth.
Section 438. Membership in the Sanggu- Section 438. Membership in the Sanggu- Section 438. Membership in the
nian. nian. Sanggunian.

(a) XXX (d) XXX (g) XXX

(b) XXX (e) XXX (h) XXX
(c) XXX (f) XXX (i) XXX

SEC. 439. Observance of Linggo ng Kabat- SEC. 439. Observance of Linggo ng Kabat- SEC. 439. Observance of Linggo ng Ka-
aan. - aan. - bataan. -

(a) Every barangay, municipality, city and (a) Every barangay, municipality, city and (a) Every barangay, municipality, city
province shall, in coordination with the province shall, in coordination with the and province shall, in coordination
pederasyon ng mga sangguniang kabataan pederasyon ng mga sangguniang kabat- with the pederasyon ng mga sanggu-

Annex B
at all levels, conduct an annual activity to aan at all levels, conduct an annual activity niang kabataan at all levels, con-
be known as the Linggo ng Kabataan to be known as the Linggo ng Kabataan duct

109
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
on such date as shall be determined by the on such date as shall be determined by the an annual activity to be known as
Office of the President. Office of the President. the Linggo ng Kabataan on such date
as shall be determined by the Office of
the President.
The Authority of the Presiding Officer TThe Authority of the Presiding Officer The Authority of the Presiding Offi-
cer
SEC. 445. Powers, Duties and Compensa- SEC. 445. Powers, Duties and Compensa-
tion. tion. SEC. 445. Powers, Duties and Compen-
sation.
(a) The vice-mayor shall: (a) The vice-mayor shall: (a) The vice-mayor shall:
(2) Subject to civil service law, rules
(2) Subject to civil service law, rules and (2) Subject to civil service law, rules and and regulations, appoint all officials
regulations, appoint all officials and em- regulations, appoint all officials and em- and employees of the sangguniang
ployees of the sangguniang bayan, except ployees of the sangguniang bayan, except bayan, except those whose manner of
those whose manner of appointment is those whose manner of appointment is appointment is specifically provided in
specifically provided in this Code; specifically provided in this Code; this Code;
SEC. 447. Powers, Duties, Functions and SEC. 447. Powers, Duties, Functions and SEC. 447. Powers, Duties, Functions

110 Issues and Critical Actions in Local Governance

Compensation. - Compensation. - and Compensation. -

(a) The sangguniang bayan, as the legisla- (a) The sangguniang bayan, as the legisla- (a) The sangguniang bayan, as the leg-
tive body of the municipality, shall en- tive body of the municipality, shall enact islative body of the municipality, shall
act ordinances, approve resolutions and ordinances, approve resolutions and ap- enact ordinances, approve resolutions
appropriate funds…XXX propriate funds…XXX and appropriate funds…XXX
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
SEC. 454. Officials of the City Government. SEC. 454. Officials of the City Government. SEC. 454. Officials of the City Govern-
ment.
(a) There shall be in each city a mayor, a (a) There shall be in each city a mayor,
vice- mayor, sangguniang panlungsod a vice-mayor, sangguniang panlungsod (a) There shall be in each city a mayor,
members, a secretary to the sangguniang members, a secretary to the sangguniang a vice-mayor, sangguniang panlungsod
panlungsod, a city treasurer, a city as- panlungsod, a city treasurer, a city asses- members, a secretary to the
sessor, a city accountant, a city bud- sor, a city accountant, a city budget officer, sangguniang panlungsod, a city trea-
get officer, a city planning and devel- a city planning and development coordi- surer, a city assessor, a city accountant,
opment coordinator, a city engineer, a city nator, a city engineer, a city health officer, a city budget officer, a city planning
health officer, a city civil registrar, a city a city civil registrar, a city administrator, a and development coordinator, a city
administrator, a city legal officer, a city city legal officer, a city veterinarian, a city engineer, a city health officer, a city
veterinarian, a city social welfare and de- social welfare and development officer, civil registrar, a city administrator, a
velopment officer, and a city general ser- and a city general services officer. city legal officer, a city veterinarian, a
vices officer. city social welfare and development of-
ficer, and a city general services officer.

SEC. 456. Powers, Duties and Compensa- SEC. 456. Powers, Duties and Compensa- SEC. 456. Powers, Duties and Compen-
tion… XXX tion… XXX sation… XXX

(2) Subject to civil service law, rules and (2) Subject to civil service law, rules and (2) Subject to civil service law, rules
regulations, appoint all officials and em- regulations, appoint all officials and em- and regulations, appoint all officials
ployees of the sangguniang panlungsod, ployees of the sangguniang panlungsod, and employees of the sangguniang

Annex B
except those whose manner of appoint- except those whose manner of appoint- panlungsod, except those whose
ment is specifically provided in this Code; ment is specifically provided in this Code; manner of appointment is specifically

111
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
provided in this Code;

SEC. 463. Officials of the Provincial Gov- SEC. 463. Officials of the Provincial Gov- SEC. 463. Officials of the Provincial
ernment. ernment. Government.

(a) There shall be in each province a gov- (a) There shall be in each province a gov- (a) There shall be in each province a
ernor, a vice-governor, members of the ernor, a vice-governor, members of the governor, a vice-governor, members of
sangguniang panlalawigan, a secretary to sangguniang panlalawigan, a secretary to the sangguniang panlalawigan, a secre-
the sangguniang panlalawigan, a provin- the sangguniang panlalawigan, a provin- tary to the sangguniang panlalawigan,
cial treasurer, a provincial assessor, a pro- cial treasurer, a provincial assessor, a a provincial treasurer, a provincial as-
vincial accountant, a provincial engineer, provincial accountant, a provincial engi- sessor, a provincial accountant, a pro-
a provincial budget officer, a provincial neer, a provincial budget officer, a provin- vincial engineer, a provincial budget
planning and development coordinator, cial planning and development coordina- officer, a provincial planning and de-
a provincial legal officer, a provincial ad- tor, a provincial legal officer, a provincial velopment coordinator, a provincial
ministrator, a provincial health officer, a administrator, a provincial health officer, a legal officer, a provincial administrator,
provincial social welfare and development provincial social welfare and development a provincial health officer, a provincial
officer, a provincial general services offi- officer, a provincial general services offi- social welfare and development officer,

112 Issues and Critical Actions in Local Governance

cer, a provincial agriculturist, and a pro- cer, a provincial agriculturist, and a pro- a provincial general services officer, a
vincial veterinarian. vincial veterinarian. provincial agriculturist, and a provin-
cial veterinarian.

Section 466. Powers, Duties, and Com- Section 466. Powers, Duties, and Section 466. Powers, Duties, and
pensation. - (a) The vice-governor shall: Compensation. - (a) The vice-governor Compensation. - (a) The vice-governor
shall: shall:
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment
Article Three – The Sangguniang Panla- Article Three – The Sangguniang Panla- Article Three – The Sangguniang
lawigan lawigan Panlalawigan

Section 467. Composition. - (a) The sang- Section 467. Composition. - (a) The sang- Section 467. Composition. - (a) The
guniang panlalawigan, the legislative body guniang panlalawigan, the legislative sangguniang panlalawigan, the legisla-
of the province body of the province tive body of the province

Section 468. Powers, Duties, Functions Section 468. Powers, Duties, Functions Section 468. Powers, Duties, Func-
and Compensation. – and Compensation. – tions and Compensation. –

(5) Exercise such other powers and per- (5) Exercise such other powers and (5) Exercise such other powers and
form such other…XXX perform such other…XXX perform such other…XXX

TITLE V TITLE V TITLE V

APPOINTED LOCAL OFFICIALS APPOINTED LOCAL OFFICIALS APPOINTED LOCAL OFFICIALS

COMMON TO ALL MUNICIPALITIES, COMMON TO ALL MUNICIPALITIES, COMMON TO ALL MUNICIPALI-
CITIES AND PROVINCES CITIES AND PROVINCES TIES, CITIES AND PROVINCES

Annex B
113
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment

ARTICLE I ARTICLE I ARTICLE I

Secretary to the Sanggunian Secretary to the Sanggunian Secretary to the Sanggunian

Section 469. Qualifications, Powers and Section 469. Qualifications, Powers and Section 469. Qualifications, Powers
Duties. - (a) There shall be a secretary to Duties. - (a) There shall be a secretary to and Duties. - (a) There shall be a secre-
the sanggunian who shall be a career of- the sanggunian who shall be a career of- tary to the sanggunian who shall be a
ficial with the rank and salary equal to a ficial with the rank and salary equal to a career official with the rank and salary
head of department or office. head of department or office. equal to a head of department or office.

Section 470. Appointment, Qualifications, Section 470. Appointment, Qualifications, Section 470. Appointment, Qualifica-
Powers, and Duties. - (a) The treasurer Powers, and Duties. - - (a) The treasurer tions, Powers, and Duties. - - (a) The
shall be appointed by the Secretary of Fi- shall be appointed by the Secretary of Fi- treasurer shall be appointed by the Sec-
nance from a list of at least three (3) rank- nance from a list of at least three (3) rank- retary of Finance from a list of at least
ing, eligible recommendees of the gover- ing, eligible recommendees of the gover- three (3) ranking, eligible recommend-
nor or mayor, as the case may be, subject nor or mayor, as the case may be, subject ees of the governor or mayor, as the
to civil service law, rules and regulations. to civil service law, rules and regulations. case may be, subject to civil service law,

114 Issues and Critical Actions in Local Governance

rules and regulations.
 Codal Provision Pimentel’s Proposed Amendment ULAP’s Proposed Amendment

Section 471. Assistant Treasurer. - (a) An Section 471. Assistant Treasurer. - (a) An Section 471. Assistant Treasurer. - (a)
assistant treasurer may be appointed by assistant treasurer may be appointed by An assistant treasurer may be ap-
the Secretary of Finance from a list of at the Secretary of Finance from a list of at pointed by the Secretary of Finance
least three (3) ranking, eligible recom- least three (3) ranking, eligible recom- from a list of at least three (3) ranking,
mendees of the governor or mayor, subject mendees of the governor or mayor, subject eligible recommendees of the governor
to civil service law, rules and regulations to civil service law, rules and regulations. or mayor, subject to civil service law,
rules and regulations.

Annex B
115
 Annex C.
Bills That Seek to Amend the Local Government Code of 1991
as Filed in the House of Representatives,
July 2013 to February 2014

Bill Bill Title Principal

Number Author
HB00027 An Act Strengthening And Reforming The Del Mar, Raul
Sangguniang Kabataan Amending For That V.
Purpose Certain Provisions Of Republic Act
No7160, Otherwise Known As The Local
Government Code Of 1991 And Republic Act
No9340, Resetting The Barangay And Sk Elec-
tions
HB00044 An Act Restricting The Unneccessary Cre- Piamonte,
ation/Conversion Of Local Government En- Mariano Jr. U.
tities Amending For The Purpose Sections
450, 452, And 461 Of Republic Act No7160
Otherwise Known As The Local Government
Code Of 1991 As Amended By Republic Act
No. 9009

HB00046 An Act Designating Barangays As The Imple- Antonino-

menting Agencies For Priority Development Nadres, Mag-
Programs And Projects Thereby Amend- nolia Rosa C.
ing Republic Act Number 7160 Otherwise
Known As The Local Government Code And
For Other Purposes

HB00055 An Act Providing All Barangay Officials, In- Benitez,

cluding Barangay Tanods, Members Of The Alfredo B.
Lupon Ng Tagapamayapa, Barangay Health
Workers And Barangay Day Care Workers,
A Lump Sum Retirement Pay Equivalent To
One (1) Year Honorarium, Amending For The
Purpose Sect

HB00056 An Act Providing Incentives To Barangay Benitez,

Tanods And Appropriating Funds Therefor Alfredo B.

116 Issues and Critical Actions in Local Governance

 Bill Bill Title Principal
Number Author
HB00065 An Act Removing The Authority Of The Sang- Del Rosario,
guniang Panlalawigan And Sangguniang Pan- Anthony G.
glunsod To Create Barangays And Granting
Internal Revenue Allotments To Barangays
Created By Said Local Sanggunians, Amend-
ing For The Purpose Sections 6 And 285 Of
Republic Act 7160

HB00090 An Act Establishing The Magna Carta For Bagatsing,

Barangays Amado S.

HB00109 An Act To Reform And Strengthen The Sang- Bag-Ao, Kaka

guniang Kabataan (SK), Amending For That J.
Purpose Republic Act No7160, Otherwise
Known As The Local Government Code Of
The Philippines And For Other Purposes

HB00120 An Act To Exempt The Family Home From Aggabao,

The Payment Of Real Property Tax Giorgidi B.

HB00129 An Act Separating From The Second Legisla- Abu, Raneo E.

tive District Of The Province Of Batangas To
Constitute The Lone Legislative District Of
The City Of Batangas
HB00158 An Act Providing All Barangay Officials, In- Yap, Susan A.
cluding Barangay Tanods, Members Of The
Lupon Ng Tagapamayapa, Barangay Health
Workers And Barangay Day Care Workers,
A Lump Sum Retirement Pay Equivalent To
One (1) Year Honorarium
HB00180 An Act Creating The Barangay Pension Fund Colmenares,
To Provide Pension Benefits To All Barangay Neri
Officials
HB00186 An Act Mandating Full Public Disclosure By Castelo, Win-
Governors, City Mayors, Municipal Mayors, ston "WIN-
Treasurers, Accountants, Budget Officers And NIE"
Other Fund Accountable Officers Of The Local
Budget And Finances Of The Local Govern-
ment Unit Amending Thereby Section 352 Of
Republic Act 7160

Annex C 117
 Bill Bill Title Principal
Number Author
HB00188 An Act Increasing The Term Of Office Of Castelo,
Barangay Officials By Another Two Years Winston
Thereby Making Five Year Their Term Of Of-
fice And For Other Purposes
HB00196 An Act Mandating Local Government Units Yap, Arthur
To Earmark A Portion Of Their Internal Rev- Cua
enue Allotment (IRA) For Free Medicines To
Indigent Patients In Their Jurisdictions
HB00198 An Act Prescribing The Honoraria Or Al- Yap, Arthur
lowances Of Barangay Officials At Minimum Cua
Wage Levels, Amending For The Purpose
Section 393 Paragraph (a) Of Republic Act
No7610, As Amended, Otherwise Known As
The Local Government Code Of 1991, And
For Other Purpose
HB00229 An Act Authorizing Grant Of Compensation Macrohon-
In The Form Of Additional Honorarium To Nuno, Lilia
Barangay Health Workers
HB00232 An Act Exempting From The Population And Loyola, Roy
The Land Area Requirements The Conversion M.
Of A Municipality Into A Component City If
It Has A Locally Generated Average Annual
Income Of At Least Two Hundred Twenty
Million Pesos (P220,000,000.00)
HB00233 An Act An Act Making The Appointment Of Loyola, Roy
Cooperatives Officer Mandatory In All Prov- M.
inces, Cities, And Municipalities Amending
Section 487 (a) Of Republic Act No7160, As
Amended, Otherwise Known As The Local
Government Code Of 1991
HB00234 An Act Making The Appointment Of An En- Loyola, Roy
vironment And Natural Resources Officer M.
Mandatory In All Provinces, Cities And Mu-
nicipalities, Amending Section 484 (a) Of Re-
public Act No7160 As Amended, Otherwise
Known As "The Local Government Code Of
1991"

118 Issues and Critical Actions in Local Governance

 Bill Bill Title Principal
Number Author
HB00313 An Act Providing Incentives To All Barangay Macapagal-
Officials, Including Barangay Tanods And Arroyo, Gloria
Members Of The Lupong Tagapamayapa, And
Barangay Employees And For Other Purposes
HB00317 An Act Amending Certain Provisions Of Re- Macapagal-
public Act No. 7160 Entitled "THE Local Gov- Arroyo, Gloria
ernment Code Of The Philippines" And For
Other Purposes”
HB00318 An Act Strengthening Further The Organic Macapagal-
Act For The Autonomous Region In Muslim Arroyo, Gloria
Mindanao, Amending For The Purpose Re-
public Act No9054 "AN Act To Strengthen
And Expand Organic Act For The Autono-
mous Region In Muslim Mindanao, Amend-
ing For The Purpose
HB00325 An Act Amending Sections 284 And 393 Of Suarez, Aleta
Republic Act No. 7160, Otherwise Known As C.
"THE Local Government Code Of 1991"
HB00336 An Act Amending Republic Act No. 7883 Aragones, Sol
HB00357 An Act Providing For Tax Exemption And Colmenares,
Subsidies For The Local Music Industry And Neri
Amending For This Purpose Certain Sections
Of The Local Government Code Of 1991
HB00412 An Act Providing For Representation In All Yap, Arthur
Levels Of Local Government For Senior Cit- Cua
izens, Creating The Sangguniang Senior Cit-
izens, The Katipunan Ng Senior Citizens,
Providing For Their Powers And Functions,
Amending For The Purpose Pertinent Sections
Of Republic Act No. 7160, Otherwise Known
As “THE Local Government Code Of 1991”
HB00420 An Act Making The Appointment To The Po- Yap, Arthur
sitions Of Local Agriculturist, Environment Cua
And Natural Resources Officer And Social
Welfare And Development Officer, Manda-
tory In All Local Government Units, Amend-
ing For The Purpose Pertinent Section Of Re-
public Act No. 7160

Annex C 119
 Bill Bill Title Principal
Number Author
HB00499 An Act Granting Travel Allowances To Baran- Biazon, Ro-
gay Health Workers, Amending For The Pur- dolfo G.
pose Republic Act No7883, Otherwise Known
As 'THE Barangay Health Workers' Benefits
And Incentives Act Of 1995,' And Providing
Funds Therefor
HB00500 An Act Granting Franking Privileges To Sang- Biazon, Ro-
guniang Barangays dolfo G.
HB00582 An Act Mandatorily Creating The Position Zamora, Ma-
Of The Municipal General Services Officer, ria Carmen S.
Amending For The Purpose Book Iii, Title
Two, Chapter 2, Section 443(A) Of Republic
Act No 7160, Otherwise Known As The Local
Government Code Of 1991
HB00590 An Act Amending Section 393, Paragraph Belmonte, Jose
(D) Of Republic Act Numbered 7160, Other- Christopher Y.
wise Known As The Local Government Code
Of 1991, Providing Funds Therefore And For
Other Purposes
HB00613 An Act Amending Section 286 Of Republic Binay, Mar-
Act No. 7160,Otherwise Known As The Local Len Abigail S.
Government Code Of The Philippines, Pro-
viding For The Automatic Appropriation And
Release Of The Internal Revenue Allotment
Of Local Government Units
HB00614 An Act Expanding The Purposes And Appli- Binay,
cation Of The Special Education Fund (SEF), Mar-Len Abi-
Amending For The Purpose Sections 100, 235 gail S.
And 272 Of Republic Act 7160, Otherwise
Known As The Local Government Code Of
1991
HB00674 An Act Amending Section 450 Of Republic Sarmiento,
Act 7160 Otherwise Known As The Local Cesar V.
Government Code Of 1991, As Amended By
Republic Act No9009, By Exempting Capital
Towns Of Provinces Without Cities From The
Income Requirement Set Forth Therein And
For Other Purposes

120 Issues and Critical Actions in Local Governance

 Bill Bill Title Principal
Number Author
HB00681 An Act Removing The Internal Revenue Al- Arnaiz,
lotment From The Metropolitan Manila De- George P.
velopment Authority (MMDA), Amending
For The Purpose Republic Act No7924, En-
titled ˜An Act Creating The Metropolitan
Manila Development Authority, Defining Its
Powers And Functions”
HB00685 An Act Transferring The Jurisdiction For Fil- Arnaiz,
ing Administrative Complaint Against Erring George P.
Local Elective Official Of A Component City
To The Sangguniang Panlalawigan Amending
For The Purpose Section 61 Of Republic Act
No7160 As Amended
HB00688 An Act Providing For The Direct Payment Arnaiz,
To The Host Local Government Units Of Its George P.
Forty Percent (40%) Share Of The Gross Tax
Collection From The Utilization And Devel-
opment Of National Wealth Within Its Terri-
torial Jurisdiction
HB00712 An Act Creating A Special Metropolitan Po- Erice, Edgar R.
litical Subdivision In The National Capital
Region, To Be Called The 'METROPOLITAN
Manila Regional Administration' (MMRA),
Defining Its Structure Of Government, Enu-
merating Its Powers And Functions, Provid-
ing Funding Thereof
HB00730 An Act Changing The Term Of Office Of All Co,
Barangay Officials From Three (3) Years To Christopher S.
Five (5) Years And Providing A System For
Recall, Amending For The Purpose Section
43 And Section 74, Respectively, Of Republic
Act Numbered Seven Thousand One Hun-
dred Sixty
HB00739 An Act Amending Title V, Section 40 (A), (8) Abayon,
And Section 471 (A) Of Ra 7160, Otherwise Harlin C.
Known As The Local Government Code Of
1991
HB00740 An Act Granting One Thousand (P1,000.00) Abayon,
Pesos Monthly Allowance To All Barangay Harlin C.
Tanods And Appropriating Funds Therefor
Annex C 121
 Bill Bill Title Principal
Number Author
HB00742 An Act Amending Section 13 Of Republic Act Abayon,
7160 Otherwise Known As The Local Gov- Harlin C.
ernment Code Of 1991
HB00776 An Act Authorizing Local Government Units Cari, Jose
And Public Officers To Secure The Services Of Carlo L.
Special Or Private Counsels In Criminal, Civil
And Special Proceedings Cases, Amending
For This Purpose Section 481 Of Republic Act
No7160, Otherwise Known As The Lo
HB00816 An Act Providing Compensation To Barangay Briones,
Officials, Amending For The Purpose Repub- Nicanor M.
lic Act No7160, Otherwise Known As The
"LOCAL Government Code Of 1991" And
Appropriating Funds Therefor
HB00830 An Act Exempting Private Educational Insti- De La Cruz,
tutions From Local Tax Jonathan A.
HB00895 An Act Allowing Senior Citizen To Serve As Castelo,
Representative To The Sangguniang Bayan Winston
Thereby Amending Pertinent Provision In
The Local Government Code And For Other
Purposes
HB00966 An Act Amending Section 450 Of Republic Acedillo,
Act No7160, Otherwise Known As The Lo- Francisco
cal Government Code Of 1991, As Amended, Ashley L.
Allowing The Conversion Of A Municipality
Which Has A Land Area Of At Least Fifty (50)
Square Kilometers Or Inhabitants Of At Least
Twelve Thousand
HB00967 An Act Providing For A Twenty (20) Year Acedillo,
Barangay Development Program, Appropriat- Francisco
ing Funds Therefor And For Other Purposes Ashley L.
HB00973 An Act Upgrading The Benefits And Incen- Acedillo,
tives Of Barangay Tanod Members Who Have Francisco
Rendered At Least One Year Of Service In The Ashley L.
Barangay Government

122 Issues and Critical Actions in Local Governance

 Bill Bill Title Principal
Number Author
HB01007 An Act Granting Twenty Percent (20%) Dis- Fortuno, Sal-
count On Transportation Fare And Hotel vio B.
Accommodation Charge, Amending For The
Purpose Section 393 Of Republic Act No7160
As Amended, Otherwise Known As The Local
Government Code Of 1991
HB01056 An Act Providing For The Direct Remittance Gonzales,
To The Host Local Government Of Its Forty Neptali Ii M.
Percent Share (40%) Of The Proceeds Derived
From The Utilization And Development Of
National Wealth, Amending For The Pur-
pose Section 293 Of Republic Act No7160 As
Amended
HB01091 An Act Providing For The Direct Remittance Rodriguez,
To The Host Local Government Of Its Forty Rufus B.
Percent Share (40%) Of The Proceeds Derived
From The Utilization And Development Of
National Wealth, Amending For The Pur-
pose Section 293 Of Republic Act No7160 As
Amended
HB01097 An Act Providing All Barangay Officials, In- Sy-Alvarado,
cluding Barangay Tanods, Barangay Health Mavictoria R.
Workers And Barangay Day Care Workers,
A Lump Sum Retirement Pay Equivalent To
One (1) Year Honorarium, Amending For The
Purpose Section 393 Of Republic Act No7160
As Amended
HB01122 An Act Abolishing The Sangguniang Kabat- Erice, Edgar R.
aan And Creating The Barangay Youth Coun-
cil In Lieu Thereof, Repealing The Pertinent
Provisions Of The Local Government Code
Of 1991, And For Other Purposes
HB01125 An Act Abolishing The Sangguniang Kabat- Garay,
aan, Amending For This Purpose The Rel- Florencio C.
evant Provisions Of Republic Act No7160,
Otherwise Known As The Local Government
Code Of 1991, And In Lieu Thereof, Provid-
ing For The Election Of A Youth Sector Rep-
resentative

Annex C 123
 Bill Bill Title Principal
Number Author
HB01183 An Act Expanding The Purposes And Appli- Teodoro,
cation Of The Special Education Fund(Sef) Marcelino R.
Amending For The Purpose Section 272 Of
Republic Act No7160, Otherwise Known As
The Local Government Code Of 1991 And
For Other Purposes
HB01184 An Act Strengthening The Local School Teodoro,
Boards, Amending For The Purpose Sections Marcelino R.
98, 99 And 100 Of Republic Act No7160, Oth-
erwise Known As "THE Local Government
Code Of 1991"
HB01189 An Act Compelling Local Government Units Teodoro,
To Set Aside At Least Fifteen Percent(15%) Of Marcelino R.
Their Annual Internal Revenue Allotments
For Local Health Programs, Amending For
The Purpose Section 287 Of Republic Act No.
7160
HB01190 An Act Providing The Minimum Monthly Teodoro,
Hazard Allowance Of Accredited Barangay Marcelino R.
Health Workers, Amending For This Purpose
The Barangay Health Workers' Benefits And
Incentives Act Of 1995
HB01207 An Act Providing For The Criteria In The Ac- Teodoro,
creditation Of Nongovernmental Organiza- Marcelino R.
tions, Amending For The Purpose Section 108
Of Republic Act No7160, Otherwise Known
As 'The Local Government Code Of 1991'"
HB01209 An Act Amending Section 324 Of Republic Teodoro,
Act No7160, Otherwise Known As The Local Marcelino R.
Government Code Of 1991 And For Other
Purposes
HB01234 An Act Extending Educational Benefit To Almonte,
Legitimate Dependent Children Of Baran- Jorge T.
gay Tanods And Accredited Barangay Health
Workers, Amending For The Purpose Section
393 Of Republic Act No7160 As Amended,
Otherwise Known As The Local Government
Code Of 1991

124 Issues and Critical Actions in Local Governance

 Bill Bill Title Principal
Number Author
HB01240 An Act Prohibiting Local Government Units Ramos, Deo-
From Applying For Loans To Finance Infra- gracias Jr. B.
structure Projects And Lending Institutions
From Approving It Or Releasing The Proceeds
One Year Before Elections
HB01241 An Act Amending Sections 352 And 513, Re- Ramos, Deo-
public Act No7160, Otherwise Known As The gracias Jr. B.
Local Government Code Of 1991
HB01243 An Act Amending Republic Act No7160 For RRamos, Deo-
The Purpose Of Including Municipal Waters gracias Jr. B.
In The Computation Of A Local Government
Unit's Internal Revenue Allotment
HB01249 An Act Making The Punong Barangay An Ap- Ramos, Deo-
pointed Official, Amending For The Purpose gracias Jr. B.
Ra No7160, Otherwise Known As The Local
Government Code Of 1991
HB01251 An Act Rationalizing The Income Require- Garcia, Gwen-
ment For The Creation Of A Province And dolyn F.
The Declaration Of Highly-Urbanized Status
In The Case Of Component Cities, Amend-
ing For The Purpose Republic Act Numbered
7160, Otherwise Known As The 'Local Gov-
ernment Code Of 1991
HB01252 An Act Abolishing The Sangguniang Kabat- Gomez, Lucy
aan, Amending For The Purpose The Relevant T.
Provisions Of Republic Act No7160, Other-
wise Known As The Local Government Code
Of 1991
HB01257 An Act Imposing A Mandatory Ad Valorem Umali, Rey-
Tax On Idle Lands Amending For The Pur- naldo V.
pose Sections Two Hundred Thirty Six, Two
Hundred Thirty Seven, And Two Hundred
Seventy Three Of Republic Act No7160, Oth-
erwise Known As 'THE Local Government
Code Of 1991'
HB01259 An Act Providing For The Election Of Youth Umali, Rey-
Representative To Be Known As The Kagawad naldo V.
Ng Kabataan As Regular Member Of The
Sangguniang Barangay Abolishing For The
Purpose The Sangguniang Kabataan As Pro-
vided Under Republic Act No. 7160
Annex C 125
 Bill Bill Title Principal
Number Author
HB01283 The Barangay Workers Act Defensor,
Arthur Jr R.
HB01299 An Act Granting Provinces A Share In The Garcia,
Proceeds Of Real Property Taxes Imposed By Gwendolyn F.
Component Cities, Amending Section 271
Of Republic Act Number 7160, Otherwise
Known As "THE Local Government Code Of
1991"
HB01313 An Act Amending Paragraph (A), Section Escudero,
393, Chapter Iv, Title I, Book Iii Of Republic Evelina G.
Act No7160, The Local Government Code, As
Amended, Increasing The Benefits Of Baran-
gay Officials
HB01322 An Act Reverting To The National Govern- Escudero,
ment The Discharge Of Basic Agricultural Evelina G.
Functions And Responsibilities Devolved To
Local Government Units And Amending For
The Purpose Republic Act No7160, Otherwise
Known As The Local Government Code Of
1991
HB01333 An Act Changing The Age Requirement For Gunigundo,
The Sangguniang Kabataan (SK) Members Magtanggol T.
From 15-17 To 18-21 And To Remove Sk Fed-
eration President As Ex-Officio Member Of
Sangguniang Bayan, Sangguniang Panlung-
sod And Sangguniang Panlalawigan, And For
Other Purposes
HB01336 An Act Providing Incentives To All Barangay Gullas, Gerald
Officials, Including Barangay Tanods And Anthony Jr V.
Members Of The Lupong Tagapamayapa, And
Barangay Employees And For Other Purposes
HB01367 An Act Increasing The Share Of Local Gov- Antonino-
ernment Units In The National Internal Rev- Nadres,
enue Taxes, Further Amending For The Pur- Magnolia Rosa
pose Section 284 Of Republic Act No7160, As C.
Amended Otherwise Known As The Local
Government Code Of 1991

126 Issues and Critical Actions in Local Governance

 Bill Bill Title Principal
Number Author
HB01369 An Act Abolishing The Sangguniang Kabat- Kho, Elisa T.
aan, Amending For The Purpose Certain Pro-
visions Of The Local Government Code
HB01395 An Act Authorizing Barangays As The Imple- Garay,
menting Agencies For Priority Development Florencio C.
Assistance Programs And Projects Up To A
Maximum Of Three Hundred Thousand Pe-
sos (P300,000.00) And For Other Purposes
HB01411 An Act Granting Fixed Monthly Honoraria Abayon,
And Other Benefits To Accredited Barangay Harlin C.
Health Workers, Amending For The Purpose
Section 6 Of Republic Act 7883 Otherwise
Known As The Barangay Health Workers In-
centives And Benefits Act Of 1995
HB01414 An Act Granting Travel Allowances To Baran- Abayon,
gay Health Workers, Amending For The Pur- Harlin C.
pose Republic Act No7883, Otherwise Known
As 'THE Barangay Health Workers' Benefits
And Incentives Act Of 1995' And Providing
Funds Therefor
HB01422 An Act Granting Additional Insurance Ben- Abayon,
efits To Barangay Captains, Providing Funds Harlin C.
For The Payment Of Its Premiums, And For
Other Purposes
HB01430 An Act In Relation To The Disaster Prepared- Abayon,
ness Plans Of Local Government Units Harlin C.
HB01477 An Act Amending Sections 326 And 327 Of Garay,
Republic Act No7160, Otherwise Known As Florencio C.
The Local Government Code Of 1991
HB01480 An Act Providing For Tax Exemptions And Mercado-
Subsidies For The Local Music Industry, Revilla, Lani
Amending For This Purpose Certain Sections
Of The Local Government Code Of 1991
HB01520 An Act Providing Insurance Benefits To Teodoro,
Barangay Tanods And Increasing The Marcelino R.
Amount Of Coverage Of Insurance Benefits
Of Local Government Officials, Amending
For This Purpose, Republic Act No6942 And
Appropriating Funds Therefor

Annex C 127
 Bill Bill Title Principal
Number Author
HB01524 An Act Introducing Reform To The Sanggu- Teodoro,
niang Kabataan, Amending For This Purpose Marcelino R.
Certain Provisions Of Republic Act No7160,
Otherwise Known As 'THE Local Govern-
ment Code Of 1991', And For Other Purposes
HB01532 An Act To Strengthen Local Government Teodoro,
Units By Amending Certain Provisions Of Marcelino R.
Republic Act No7160, Otherwise Known As
The Local Government Code Of 1991
HB01549 An Act Providing For The Exclusion Of Inter- Amante, Erlpe
nal Revenue Allotment In The Income Classi- John M.
fication System Of Local Government Units,
Thereby Amending Section 4(A) Of Executive
Order No249, Series Of 1987
HB01602 An Act Entitling Barangays Created By Local Cayetano,
Government Units To A Just Share In The Na- Lino S.
tional Internal Revenue Taxes, Amending, For
That Purpose, Section 285 Of Republic Act
No7160, As Amended, Otherwise Known As
The Local Government Code Of 1991
HB01618 An Act Providing All Barangay Officials, In- Rodriguez,
cluding Barangay Tanods, Members Of The Rufus B.
Lupon Ng Tagapamayapa, Barangay Health
Workers And Barangay Day Care Workers,
A Lump Sum Retirement Pay Equivalent To
One (1) Year Honorarium
HB01640 An Act Providing Benefits To Barangay Yap, Susan A.
Volunteer Workers
HB01647 An Act Amending Section 393 Of Republic Fortuno, Sal-
Act No7160 As Amended, Otherwise Known vio B.
As The Local Government Code Of 1991 To
Extend Educational Benefit To Legitimate De-
pendent Children Of Barangay Tanods And
Accredited Barangay Health Workers

128 Issues and Critical Actions in Local Governance

 Bill Bill Title Principal
Number Author
HB01655 An Act Granting Additional Insurance Ben- Villarica,
efits To Punong Barangays And Providing Linabelle Ruth
Funds For The Payment Of Its Premiums R.
HB01672 An Act Upgrading The Benefits And Incen- Tambunting,
tives Of Barangay Tanod Brigades, Amending Gus S.
For The Purpose Sec393 (d) Of Republic Act
7160, Otherwise Known As The Local Gov-
ernment Code Of 1991
HB01693 An Act Providing Incentives To All Barangay Nograles,
Officials, Including Barangay Tanods And Karlo Alexei B.
Members Of The Lupong Tagapamayapa, And
Barangay Employees And For Other Purposes
HB01704 An Act Exempting Capital Towns Of Prov- Bernos, Maria
inces Without Cities From The Income Re- Jocelyn V.
quirement Subject To Certain Conditions,
Amending For The Purpose Of Section 450
Of Republic Act 7160, As Amended By Re-
public Act 9009, Otherwise Known As The
Local Government Co
HB01726 An Act Removing The Internal Revenue Al- Romualdo,
lotment Of The Metropolitan Manila Devel- Xavier Jesus D.
opment Authority (MMDA), Amending For
The Purpose Republic Act No7924, Entitled
'AN Act Creating The Metropolitan Manila
Development Authority, Defining Its Powers
And Functi
HB01758 An Act Exempting Any Person Who Sells Any Violago,
Real Property To The Government Or Any Of Joseph Gilbert
Its Political Subdivisions Or Instrumentalities F.
From The Payment Of Capital Gains Tax And
For Other Purposes
HB01764 An Act Providing Additional Insurance Ben- Violago, Jo-
efits To Barangay Captains, Providing Funds seph Gilbert F.
For The Payment Of Premiums, And For
Other Purposes
HB01798 An Act Prohibiting City Mayors, Munici- Mercado-Re-
pal Mayors And Provincial Governors From villa, Lani
Making Appointment Two (2) Months Imme-
diately Before The Next Local Elections And
Pending Assumption To Office Of Their
Successors And For Other Purposes

Annex C 129
 Bill Bill Title Principal
Number Author
HB01809 An Act Creating The Human Resource Man- Salvacion,
agement Office In The Local Government Andres D.
Units, And Defining Its Functions
HB01817 An Act Amending Sections 284 And 286 Of Evardone,
Republic Act 7160, Otherwise Known As The Ben P.
Local Government Code Of 1991
HB01818 An Act Providing For The Automatic Re- Evardone,
tention By The Barangay Of Its Fifty Percent Ben P.
(50%) Share In The Community Tax Col-
lected By Said Barangay, Amending Section
164 Of The Local Government Code Of 1991
HB01877 An Act Amending Republic Act 7160 Other- Garin, Oscar
wise Known As The Local Government Code Jr.
Of 1991

HB01882 An Act Strengthening Local Health Boards, Enverga,

Amending For The Purpose Sections 102 Of Wilfrido Mark
Republic Act No7160, Otherwise Known As M.
The Local Government Code Of 1991, As
Amended, And For Other Purposes
HB01884 An Act Strengthening Local School Boards, Enverga, Wil-
Amending For The Purpose Sections 98, 99 frido Mark M.
And 100 Of Republic Act No7160, Otherwise
Known As The Local Government Code Of
1991, As Amended, And For Other Purposes
HB01887 An Act Providing Additional Retirement Ben- Enverga,
efits To All Barangay Officials And For Other Wilfrido Mark
Purposes M.
HB01889 An Act Providing Additional Benefits And Enverga,
Incentives To All Barangay Tanods And For Wilfrido Mark
Other Purposes M.
HB01903 An Act Providing Insurance Benefits To The Magsaysay,
Members Of Barangay Tanod And Lupong Eulogio
Tagapamayapa "AMANG" R.
HB01918 An Act Amending Section 311 Of Republic Arroyo,
Act No. 7160, Otherwise Known As 'THE Lo- Diosdado
cal Government Code Of 1991' Macapagal

130 Issues and Critical Actions in Local Governance

 Bill Bill Title Principal
Number Author
HB01993 An Act Mandating Local Government Units Go, Arnulfo F.
To Appropriate In Their Annual Budgets At
Least 10% Of Their Annual Internal Revenue
Allotments For Local Health Programs And
Services And For Other Purposes
HB02005 An Act Providing For The Direct Remittance Matugas,
To The Host Local Government Of Its Forty Francisco T.
Percent (40%) Share Of The Proceeds Derived
From The Utilization And Development Of
National Wealth, Amending For The Purpose
Section 293 Of Republic Act No7160, As Ame
HB02006 An Act Amending Section 461, Paragraph (b) Matugas,
Of The Local Government Code Of 1991 Francisco T.
HB02008 An Act Amending Sections 102 (a)(1), (2), Velasco, Lorna
(3), 443(A), 454(A), 463(A) And 478(A) Of Q.
Republic Act No7160, As Amended By Re-
public Act No8553, Otherwise Known As The
Local Government Code Of 1991
HB02020 An Act Adopting IRA Portability For Ev- Rodriguez,
ery Conversion Of Municipality Into City Oscar S.
Amending For That Purpose Section 285 Of
R.A7160 Otherwise Known As The Local
Government Code Of 1991
HB02025 An Act Increasing The Benefits Of Barangay Acop, Romeo
Officials, Amending For The Purpose Section M.
393 Of Republic Act No7160, As Amended,
Otherwise Known As 'THE Local Govern-
ment Code Of 1991'
HB02033 An Act Abolishing The Use Of Community Escudero,
Tax Certificate And The Power To Levy Com- Evelina G.
munity Tax Repealing For That Purpose The
Pertinent Provisions Of Republic Act No7160,
As Amended, Otherwise Known As The Local
Government Code Of 1991
HB02040 An Act Rationalizing Local Taxation Amend- Escudero,
ing For That Purpose Section 150, Chapter 1, Evelina G.
Title One, Book Ii Of Republic Act No7160,
As Amended, Otherwise Known As The Local
Government Code

Annex C 131
 Bill Bill Title Principal
Number Author
HB02046 An Act Providing Incentives To Barangay Deloso-Mon-
Officials And Employees And For Other Pur- talla, Cheryl
poses
HB02048 An Act Amending Section 286 Of Republic Binay,
Act 7160, Otherwise Known As The Local Mar-Len Abi-
Government Code Of The Philippines, Pro- gail S.
viding For The Automatic Appropriation And
Release Of The Internal Revenue Allotment
Of Local Government Units
HB02124 An Act Creating The Position Of Barangay Teodoro,
Nutrition Worker In Every Barangay, Pro- Marcelino R.
viding Incentives Thereto And Appropriating
Funds Therefor, Amending For This Purpose
Presidential Decree No1569
HB02170 An Act Mandating All Local Government Mendoza,
Units To Earmark Ten Percent (10%) Of Their Mark Llandro
Respective Internal Revenue Allotment (IRA) L.
For Agriculture And Food Security Programs,
Projects And Activities For A Period Of Ten
(10) Years
HB02172 An Act Providing Security Of Tenure To The Mendoza,
Barangay Secretary And Barangay Treasurer Mark Llandro
L.
HB02189 An Act Authorizing Cities And Municipalities Cari, Jose
To Issue Government Gratuitous Permits For Carlo L.
Sand, Gravel And Other Quarry Resources In
Their Territorial Jurisdiction, Amending For
This Purpose Section 138 Of Republic Act
7160
HB02194 An Act Amending Republic Act No7160 Or Bravo,
The Local Government Code Anthony M.
HB02196 An Act Abolishing The Use Of Community Bravo,
Tax Certificate And The Power To Levy Com- Anthony M.
munity Tax Repealing For That Purpose The
Pertinent Provisions Of Republic Act No7160,
As Amended, Otherwise Known As The Local
Government Code Of 1991

132 Issues and Critical Actions in Local Governance

 Bill Bill Title Principal
Number Author
HB02213 An Act Rationalizing Local Taxation Amend- Escudero,
ing For That Purpose Section 150, Chapter 1, Evelina G.
Title One, Book Ii Of Republic Act No7160,
As Amended, Otherwise Known As The Local
Government Code
HB02254 An Act Devolving To Municipalities And Cit- Romualdo,
ies The Registration Of Fishing Vessels With Xavier Jesus
A Maximum Gross Weight Of Three Tons Or "XJ" D.
Less
HB02314 An Act Mandating Every Barangays To Al- Calalay, Fran-
locate Five Percent (5%) Of Its General Fund cisco
For Programs, Projects And Activities For
Senior Citizens, Amending For The Purpose
Republic Act No7160, Otherwise Known As
The Local Government Code Of 1991
HB02321 An Act Introducing Reforms In The Sanggu- Oaminal,
niang Kabataan, Amending For The Purpose Henry S.
Certain Sections Of Republic Act No7160, As
Amended, Otherwise Known As The Local
Government Code Of 1991 And Republic Act
No. 8044
HB02323 An Act Granting Five Hundred (P500.00) Pe- Haresco,
sos Monthly Allowance To All Barangay Tan- Teodorico Jr T.
ods And Appropriating Funds Therefor
HB02353 An Act Amending Section 138 Of Republic Sarmiento,
Act 7160 Also Known As The Local Gov- Cesar V.
ernment Code Of 1991, By Transferring The
Power To Levy And Collect Taxes As Well As
To Issue Permits On Sand, Gravel And Other
Quarry Resources From The Provinces To The
Cities And Municipalities
HB02373 An Act Reverting To The National Govern- Escudero,
ment The Discharge Of Basic Health Services Evelina G.
Devolved To Local Government Units (LGUs)
And Amending For The Purpose Republic
Act No7160, Otherwise Known As The Local
Government Code Of 1991

Annex C 133
 Bill Bill Title Principal
Number Author
HB02386 An Act Empowering Provincial Governments Garcia, Gwen-
To Administer Land Reclamation In Their dolyn F.
Area Of Jurisdiction, Maximize Their Uti-
lization And Provide For Their Development
Consistent With Public Interest And For
Other Purposes
HB02395 An Act Mandating The Inclusion Of All Pu- Collantes,
nong Barangays Within The Coverage Of Sonny P.
The Government Service Insurance Systems
(GSIS) And Philippine Health Insurance Cor-
poration (PHILHEALTH)
HB02412 An Act Extending Educational Benefits To Le- Oaminal,
gitimate Dependent Children Of Accredited Henry S.
Barangay Health Workers, Members Of The
Lupong Tagapamayapa, Barangay Tanods,
Civilian Volunteer Organizations, Barangay
Police Action Teams And Purok Presidents,
Amendin
HB02420 An Act To Provide Additional Non-Mone- Bello, Silvestre
tary Economic Benefits To All Elected And
Appointed Barangay Officials, Amending For
This Purpose Section 393 (a) Book Iii Title
One Of Republic Act 7160, Otherwise Known
As The Local Government Code

HB02447 An Act Granting One Thousand Five Hun- Rodriguez,

dred Pesos (P1,500.00) Monthly Allowance Rufus B.
To All Barangay Tanods And Appropriating
Funds Therefor
HB02536 An Act Divesting The Sangguniang Kabat- Erice, Edgar R.
aan Of The Power To Administer The 10%
Of Barangay Funds Allocated For Youth-Ori-
ented Programs, Projects, Services And Activ-
ities, Amending For The Purpose Section 329
Of Republic Act No. 7160
HB02546 An Act Restoring The Tax Exemption On Mendoza,
Real Property Owned By Labor Organiza- Raymond
tions, Amending For The Purpose Article Democrito C.
242 Of Presidential Decree No442, Otherwise
Known As The Labor Code Of The Philip-
pines, And Sections 193 And 234 Of Republic
Act No. 7160

134 Issues and Critical Actions in Local Governance

 Bill Bill Title Principal
Number Author
HB02560 An Act Allowing Local Government Units To Rodriguez,
Retain Fifty Percent (50%) Of The Proceeds Rufus B.
From All Taxes, Fees And Fines Collected
Under Presidential Decree Numbered Eleven
Hundred And Eighty Five, Otherwise Known
As The Fire Code Of The Philippines
HB02589 An Act Establishing The Liga Ng Bayaning Tambunting,
Kabataan (LBK) Amending For That Pur- Gus S.
pose The Pertinent Provisions Of Republic
Act No7160, Otherwise Known As The Local
Government Code Of 1991
HB02596 An Act Authorizing A Local Government Castelo, Win-
Unit To Create A Corporate Entity And/Or ston
Authority To Attract Domestic And Foreign
Investment To Generate Additional Source Of
Revenue And For Other Purposes
HB02598 An Act Allowing Senior Citizen To Serve As Castelo, Win-
Representative To The Sangguniang Bayan ston
Thereby Amending Pertinent Provision In
The Local Government Code And For Other
Purposes
HB02599 An Act Authorizing Principal As Represen- Castelo, Win-
tative To The Local School Board Thereby ston
Amending Pertinent Provision In The Local
Government Code And For Other Purposes
HB02619 An Act Increasing The Share Of Local Gov- Matugas,
ernment Units In The National Internal Rev- Francisco
enue Taxes, Amending For The Purpose Sec- "LALO" T.
tions 284 Of Republic Act No7160 Otherwise
Known As The Local Government Code Of
1991
HB02625 An Act Amending Certain Provisions Of Re- Gatchalian,
public Act 7160 Entitled 'THE Local Govern- Sherwin T.
ment Code Of The Philippines' And For
Other Purposes

Annex C 135
 Bill Bill Title Principal
Number Author
HB02626 An Act Granting Internal Revenue Allotment Yap, Susan A.
To Barangays Created By Local Government
Units After The Effectivity Of Republic Act
7160, Amending For This Purpose Section
285 Of Republic Act No7160, As Amended,
Otherwise Known As The Local Government
Code
HB02637 An Act Providing For Additional Benefits And Pagdilao,
Incentives For Barangay Tanods, Amending Samuel D.
For The Purpose Section 393 Of Republic
Act No7160, Otherwise Known As The Local
Government Code Of 1991
HB02695 An Act Granting Additional Insurance Ben- Loyola, Roy
efits To Barangay Captains, Providing Funds M.
For The Payment Of Its Premiums, And For
Other Purposes
HB02723 An Act Amending Section 482(A), Article 12 Cosalan,
Of Republic Act No7160, Otherwise Known Ronald M.
As The Local Government Code, To Require
The Mandatory Appointment Of Agricultur-
ist In Municipalities

HB02734 An Act Separating The City Of San Fernando Rodriguez,

From The Third District Of Pampanga, Cre- Oscar S.
ating For That Purpose The Lone District Of
The City Of San Fernando
HB02748 An Act Establishing The Liga Ng Mga Kina- Vargas,
tawan Ng Kabataan (LKK) Amending For Alfredo III D.
That Purpose The Pertinent Provisions Of Re-
public Act No7160, Otherwise Known As The
Local Government Code Of 1991
HB02756 An Act Increasing The Allowances Of Baran- Castelo, Win-
gay Officials, Granting Honoraria And Other ston
Benefits To Barangay Tanods And Providing
Funds Therefor, Amending For The Purpose
The Local Government Code Of 1991
HB02757 An Act Granting Hazard Pay To All Du- Castelo, Win-
ly-Appointed Barangay Tanod Brigades Dur- ston
ing Their Incumbency, Appropriating Funds
Therefor
136 Issues and Critical Actions in Local Governance
 Bill Bill Title Principal
Number Author
HB02764 An Act Creating The Human Resource Man- Sarmiento,
agement Office In The Local Government Mel Senen S.
Units And Defining Its Functions
HB02787 An Act Establishing The Liga Ng Bayaning Teodoro,
Kabataan (LBK) Amending For That Pur- Marcelino R.
pose The Pertinent Provisions Of Republic
Act No7160, Otherwise Known As The Local
Government Code Of 1991
HB02822 An Act Providing Financial Assistance To Castelo, Win-
Barangay Officials Who Have Served For ston
Three (3) Terms, Appropriating Funds There-
for
HB02850 An Act Regulating The Maintenance, Estab- Alvarez,
lishment, Or Construction Of Fuel Depots Francisco Josef
And Warehouses, Or Storage Of Other Flam- George E.
mable Or Hazardous Chemicals And Sub-
stances And For Other Purposes

HB02872 An Act Creating The Position Of Barangay Arroyo, Dios-

Nutrition Worker In Every Barangay Provid- dado Maca-
ing Incentives Thereto, Appropriating Funds pagal
Therefor, Amending For The Purpose Presi-
dential Decree No. 1569
HB02912 An Act Amending Section 285 Of R.A7160 Rodriguez,
Otherwise Known As The Local Government Oscar S.
Code Of 1991
HB02943 An Act Amending Section 61 Of Republic Act Marcos, Im-
7160, Otherwise Known As The Local Gov- elda R.
ernment Code Of 1991
HB02952 An Act Amending Section 150 Of Republic Aliping, Nica-
Act No7160, Otherwise Known As The 'Local sio Jrm.
Government Code Of 1991'
HB02954 An Act Rationalizing The Income Require- Cojuangco,
ments And Other Requisites For The Declara- Enrique M.
tion Of Highly Urbanized Status In The Case
Of Component Cities And For The Creation
Of A Province, Amending For The Purpose
Sections 452, 453 And 461 Of Republic Act
No. 716

Annex C 137
 Bill Bill Title Principal
Number Author
HB03000 An Act To Reform And Strengthen The Sang- Gutierrez,
guniang Kabataan And Providing Funds Ibarra III M.
Therefore
HB03001 An Act Authorizing The Utilization Of The Pancho,
Sangguniang Kabataan (SK) Fund Of Every Gavini C.
Barangay For The Development Of Public El-
ementary And Secondary Schools
HB03013 An Act Institutionalizing A Ten Percent Quimbo, Ro-
Budgetary Allocation Of Barangays For The mero S.
Impelementation Of Programs, Projects, Ac-
tivities, And Services For Senior Citizens,
Amending For This Purpose The Pertinent
Provisions Of Republic Act 7160 Otherwise
Known
HB03085 An Act Providing For The Welfare Of Baran- Umali,
gay Tanods, Amending For The Purpose Sec- Reynaldo V.
tion 393 Of Republic Act No7160, Otherwise
Known As The Local Government Code Of
1991
HB03123 An Act Granting A Fixed Monthly Hono- Quimbo, Ro-
raria And Additional Benefits To Accred- mero S.
ited Barangay Health Workers, Amending
For This Purpose Section 6 Of Republic Act
No7883 Otherwise Known As The Barangay
Health Workers' Benefits And Incentives Act
Of 1995
HB03193 An Act Increasing The Christmas Bonus Of Haresco,
All Barangay Officials And Appropriating Teodorico Jr T.
Funds Therefor
HB03198 An Act Amending Certain Sections Of Re- Fernandez,
public Act 9740 Otherwise Known As 'AN Danilo Ramon
Act Converting The Municipality Of Biã‘An In S.
The Province Of Laguna Into A Component
City To Be Known As The City Of Biã‘An'
HB03209 An Act Formulating The Sustainable Devel- Umali,
opment Council For Mindoro Island, Creat- Reynaldo V.
ing The Administrative Machinery To Its Im-
plementation, Providing Funds Therefor, And
For Other Purposes

138 Issues and Critical Actions in Local Governance

 Bill Bill Title Principal
Number Author
HB03210 An Act Creating The Position Of The Tourist Co,
Officer In All Provinces, First Class Munici- Christopher S.
palities And Cities, Or Municipalities And
Cities Where Tourism Is Considered A Major
Local Industry, And Defining Its Qualifica-
tions, Powers, Duties
HB03231 An Act Granting The Barangays Created Un- Amante, Erlpe
der Republic Act 7160, Otherwise Known John M.
As The Local Government Code Of 1991 As
Amended, Their Internal Revenue Allotment
(IRA), Amending For This Purpose Section
285 Of Republic Act 7160, And For Other
Purposes
HB03300 An Act Requiring Local Governments To Rodriguez,
Earmark A Portion Of Their Internal Revenue Rufus B.
Allotments For Free Medicines To Indigent
Patients In Their Localities, And For Other
Purposes
HB03349 An Act Abolishing The Election Of Barangay Rodriguez,
Officials, Declaring All Elective Barangay Po- Oscar S.
sitions As Appointive Positions; Amending
For That Purpose Sections 39, 40, 41, 42, And
43 Of R.A7160 Otherwise Known As The Lo-
cal Government Code Of 1991
HB03362 An Act Increasing The Income Requirement Rodriguez,
For The Creation Of Municipality, And Prov- Oscar S.
ince And Conversion Of A Component Into
A Highly Urbanized City Amending For That
Purpose Sections 442(A), 452(A) And 461(A)
Of R.A7160 Otherwise Known As The Local
Gover
HB03388 An Act To Develop And Strengthen Youth Erice, Edgar R.
Participation In Nation-Building By Creating
The Kalipunan Ng Mga Anibang Kabataan
(KAK) In Every Province, City And Munici-
pality In The Philippines
HB03416 An Act Authorizing Local Government Units Garin, Oscar
To Implement A Salary Increase Of Not More Jr.
Than Five Percent (5%) Every Five (5) Years,
And For Other Purposes
Annex C 139
 Bill Bill Title Principal
Number Author
HB03428 An Act Amending Certain Provisions Of Ar- Gatchalian,
ticle Ii, Sections 470, Paragraph C And 471, Sherwin T.
Paragraph B, Of The Local Government Code,
Providing Funds Therefor, And For Other
Purposes
HB03470 An Act Amending Presidential Decree Rodriguez,
No1445, Otherwise Known As The Govern- Rufus B.
ment Auditing Code Of The Philippines, By
Allowing Bonded Barangay Treasurers To
Retain The Barangays' 50% Share From Pay-
ments Of Community Tax Certificates
HB03480 An Act Making The Position Of The Munic- Co,
ipal Agriculturist Mandatory, Amending For Christopher S.
The Purpose Sections 442 And 482 Of Re-
public Act No7160, Otherwise Known As The
'LOCAL Government Code Of 1991'
HB03538 An Act Strengthening The Local Taxation Abu, Raneo E.
And Fiscal Matters Of The Local Government
Units, Amending For The Purpose Republic
Act No7160, Otherwise Known As The “Local
Government Code Of 1991'
HB03541 An Act Amending Certain Provisions Of Leachon, Doy
Republic Act No7160 Otherwise Known As C.
'THE Local Government Code Of 1991' And
For Other Purposes
HB03542 An Act Amending Section 470 (a) Of Repub- Nava, Pablo
lic Act No7160 Otherwise Known As The III R.
'LOCAL Government Code Of 1991' Thereby
Requiring The Concurrence Of The Sanggu-
niang Concerned With The List Of Recom-
mendees Of The Governor Or Mayor
HB03592 An Act Increasing The Composition Of Pacquiao,
Barangay Officials, Amending For The Pur- Emmanuel D.
pose Republic Act No7160, Otherwise Known
As 'THE Local Government Code Of The
1991', As Amended
HB03603 An Act Granting One Thousand Five Hun- Primicias-Ag-
dred Pesos (P1,500.00) Monthly Allowance abas, Marlyn
To All Barangay Tanods And Appropriating L.
Funds Therefor

140 Issues and Critical Actions in Local Governance

 Bill Bill Title Principal
Number Author
HB03619 An Act Imposing A Cap On The Loan Obliga- Aggabao,
tions Of Local Government Units, Amending Giorgidi B.
For The Purpose The 'LOCAL Government
Code Of 1991', As Amended
HB03621 An Act Regulating The Use Of Local Gov- Aggabao,
ernment Units' Internal Revenue Allotment Giorgidi B.
(IRA), Amending For The Purpose The 'LO-
CAL Government Code Of 1991',
As Amended
HB03734 An Act Providing For Mandatory Appoint- Amante, Erlpe
ment Of Tourism Officers In Provinces And John M.
Cities And Optional Appointment In Munic-
ipalities, Amending For The Purpose Repub-
lic Act 7160, Otherwise Known As The Local
Government Code Of 1991 As Amended,
And For Other Purposes
HB03757 An Act Mandating All Local Government Velarde,
Units To Allocate At Least Five Percent (5%) Mariano Mi-
Of Their Internal Revenue Allotment For chael Jr M.
Medical Assistance To Children With Special
Health Care Needs Residing Within Their
Territorial Jurisdiction

HB03759 An Act Reverting To The National Govern- Antonino-

ment The Discharge Of Health And Social Nadres, Mag-
Welfare Services, Repealing For The Purpose nolia Rosa C.
Certain Sections Of Republic Act No7160, As
Amended Otherwise Known As The Local
Government Code Of 1991
HB03763 An Act Providing All Barangay Officials, In- Alvarez,
cluding Barangay Tanods, Members Of The Mercedes Kho
Lupon Ng Tagapamayapa, Barangay Health
Workers And Barangay Day Care Workers,
A Lump Sum Retirement Pay Equivalent To
One (1) Year Honorarium
HB03772 An Act Providing For A More Equitable Shar- Violago,
ing Of Duties And Responsibilities By And Joseph Gilbert
Between Local Government Executives In F.
The Management Of Sand, Gravel And Other
Quarry Resources In Their Respective Juris-
dictions

Annex C 141
 Bill Bill Title Principal
Number Author
HB03816 An Act Providing Retirement Benefit To Suansing,
Barangay Officials And Workers Including Ging
Punong Barangay, Sangguniang Barangay
Member, Barangay Tanods, Lupon Ng Taga-
pamayapa Member, Barangay Secretary,
Barangay Treasurer, Barangay Health Work-
ers And Barangay Day C
HB03845 An Act Instituting Training Program For The Magsaysay,
Members Of The Local School Boards Eulogio R.
HB03848 An Act Mandating The Establishment Of Defensor,
Public Crematoriums In Cities And Munici- Arthur Jr R.
palities And Extending Free Cremation Ser-
vices To Indigent Families Amending For
Such Purpose The Local Government Code
HB03860 An Act Mandating An Increase On The Al- Castelo,
lowance Of All Barangay Lupon, Bsdo, And Winston
Barangay Staff Who Have Served For One (1)
Term, Appropriating Funds Therefor
HB03890 An Act Reverting To The National Govern- Rodriguez,
ment The Discharge Of Basic Agricultural Rufus B.
Functions And Responsibilities Devolved To
Local Government Units And Amending For
The Purpose Republic Act No7160, Otherwise
Known As The Local Government Code Of
1991
HB03925 An Act Instituting Reforms To Promote And Paquiz, Leah
Protect The Economic, Social, Political Rights S.
And Well Being Of Barangay Health Workers
Towards Quality Health Service Delivery And
Appropriating Funds Therefor, Repealing For
This Purpose Republic Act No7883,
HB03988 An Act Creating The Position Of Barangay Rodriguez,
Nutrition Worker In Every Barangay Provid- Rufus B.
ing Incentives Thereto, Appropriating Funds
Therefor Amending For The Purpose Presi-
dential Decree No. 1569

142 Issues and Critical Actions in Local Governance

 Annex D.
Bills That Seek to Amend the Local Government Code of 1991
as Filed in the Philippine Senate,
July 2013 to February 2014

Bill Bill Title Principal Au-

Number thor
SBN-1842 Local Government Code (Fair Market Defensor Santiago,
Values) Miriam
SBN-1752 Providing For Local Autonomy In The De- Defensor Santiago,
termination Of State Policy On Gambling Miriam
SBN-1512 Amending Sec. 13, Delegating The Au- Ejercito-Estrada,
thority To Declare Special Public Holidays Jinggoy P.
SBN-1504 Bureau Of Fire Protection (BFP) Devolu- Ejercito-Estrada,
tion Act Of 2013 Jinggoy P.
SBN-20 Local Government Code Of 1991, Amend- Escudero, Francis
ments Re Discharge Of Basic Agricultural G.
Functions
SBN-2143 Local Music Industry Incentive Act Poe, Grace L.

SBN-2045 Share In National Taxes Of Local Govern- Pimentel, Aquilino

ment Units Koko III L.
SBN-2036 New Local Government Code Of The Ejercito-Estrada,
Philippines Jinggoy P.
SBN-2027 Amending Sec. 272, Ra 7160 (Special Ed- Ejercito-Estrada,
ucation Fund) Jinggoy P.
SBN-1963 Amending Secs. 284 & 286, Ra 7160 (In- Ejercito-Estrada,
creasing The Internal Revenue Allotment Jinggoy P.
Of LGUs)
SBN-1857 Local Government Code Of 1991 Ejercito, Joseph
(Amending Secs. 352 And 513) Victor G.
SBN-1684 National Barangay Benefits Augmentation Ejercito-Estrada,
Fund (Local Government Code Of 1991) Jinggoy P.
SBN-1603 Tax Exemption Privileges To Electric Co- Ejercito-Estrada,
operatives Jinggoy P.
SBN-1591 Amending Sec. 285, Government Units Ejercito-Estrada,
Re-Allocation Of The Ira Of LGUs Jinggoy P.
SBN-1572 Amending Sec. 138, Ra 7160 ( Tax On Defensor Santiago,
Sand, Gravel And Other Quarry Re- Miriam
sources)
Annex D 143
 Bill Bill Title Principal
Number Author
SBN-1220 Direct Remittance Of The Share Of Local Ejercito,
Government Units Joseph Victor
G.
SBN-1170 Local Music Industry Incentives Act Trillanes,
Antonio F.
SBN-1082 Local Government Code (Use Of Community Escudero,
Tax Certificate) Francis G.
SBN-986 Allotment Of Internal Revenue Taxes By The Recto, Ralph
LGUs G.
SBN-948 Tax On Idle Lands, Amending The Local Gov- Revilla Jr.,
ernment Code Ramon A.
SBN-940 Local Music Industry Incentives Act Revilla Jr.,
Ramon A.
SBN-613 Remittance Of The Share Of Local Govern- Recto, Ralph
ment Units G.
SBN-346 Local Government Code (Sec. 293, R.A. No. Legarda,
7160) Loren B.
SBN-120 Local Taxation, Local Government Code Escudero,
Francis G.
SBN-113 Automatic Appropriations And Release To The Marcos,
Host LGUs, Share From National Wealth Taxes Ferdinand R.
SBN-5 Local Government Code Of 1991, Amendment Sotto III,
Vicente C.
SBN-1499 Local Health Board, To Include Representative Ejercito-Est-
From Pta, Senior And War Veterans Associa- rada, Jinggoy
tions P.
SBN-1228 Local Government Code (Titles V And Vi, Ejercito,
Secs. 102 And 107) Joseph Victor
G.
SBN-1090 Liga Ng Bayaning Kabataan (LBK) Aquino IV,
Paolo Benigno
SBN-68 Sangguniang Kabataan Empowerment Act Ejercito,
Joseph Victor
G.
SBN-1824 Local Government Code Of 1991 (Repealing Defensor
Sec. 17(B), Paragraph 1(V) Of R.A. No. 7160) Santiago,
Miriam

144 Issues and Critical Actions in Local Governance

 Bill Bill Title Principal
Number Author
SBN-1635 Repealing Sec. 90, Limiting The Practice Of Ejercito-
Profession By Elected Local Government Of- Estrada,
ficials Jinggoy P.
SBN-2093 Amending Sections 443 & 482 (A), Local Lapid, Manuel
Government Code (Municipal Agricultur- M.
ists)
SBN-2058 Barangay Tanod Welfare Act Ejercito,
Joseph Victor
G.
SBN-1972 Amending Secs. 352 & 513, Ra 7160 (Posting Ejercito-
Of The Summary Income And Expenditures) Estrada,
Jinggoy P.
SBN-1956 Amending Sec. 393 (D), Ra 7160 (Upgrading Ejercito-
The Benefits And Incentives Of Barangay Estrada,
Tanod Brigades) Jinggoy P.
SBN-1943 Creation Of Local Development Councils Aquino IV,
Paolo Benigno
SBN-1881 Amending Secs. 447, 458 And 468, RA 7160 Defensor
(Granting Local Sanggunians To Issue Sub- Santiago,
poena) Miriam
SBN-1828 Local Government Code Of 1991 (Position Defensor
Of Secretary To The Sanggunian) Santiago,
Miriam
SBN-1709 Amending Sec. 487 (A), RA 7160 (Appoint- Lapid, Manuel
ment Of Cooperatives Officers In Local Gov- M.
ernment Units)
SBN-1699 Amending Sec. 40 (D), Ra No. 7160, On Dual Defensor
Citizenship Santiago,
Miriam
SBN-1685 Local Government Code Of 1991 (Amending Ejercito-
Sec. 325 (A), R.A. No. 7160) Estrada,
Jinggoy P.
SBN-1528 Environment And Natural Resources Officer Ejercito-
Estrada,
Jinggoy P.
SBN-1491 Income Requirements For The Conversion Ejercito, Joseph
Of A Municipality Into A Component City Victor G.
SBN-1390 Annual Income Requirement For Coversion Honasan II,
Of A Municipality Into A City Gregorio B.
Annex D 145
 Bill Bill Title Principal
Number Author
SBN-1491 Income Requirements For The Conversion Of Ejercito,
A Municipality Into A Component City Joseph Victor
G.
SBN-1464 Sk To Implement An Environmental Protec- Ejercito-
tion Program Estrada,
Jinggoy P.
SBN-1459 Barangay Secretary, Appointment, Qualifica- Ejercito-
tions, Power And Duties Estrada,
Jinggoy P.
SBN-1390 Annual Income Requirement For Coversion Honasan II,
Of A Municipality Into A City Gregorio B.
SBN-1361 Fair Market Values Of Real Property Ejercito-
Estrada,
Jinggoy P.
SBN-1335 Pre-Condition To Filing Of Complaint In Defensor
Court Santiago,
Miriam
SBN-1299 Local Government Code (Social Welfare And Ejercito-
Development Officers) Estrada,
Jinggoy P.
SBN-1185 Requisites For Conversion Of A Municipality Trillanes,
Into A Component City Antonio F.
SBN-922 Local Government Code (Secs. 443, 454, 463) Lapid, Manuel
M.
SBN-1464 Sk To Implement An Environmental Protec- Ejercito-
tion Program Estrada,
Jinggoy P.
SBN-1459 Barangay Secretary, Appointment, Qualifica- Ejercito-
tions, Power And Duties Estrada,
Jinggoy P.
SBN-542 Salaries Of Barangay Officials Ejercito-
Estrada,
Jinggoy P.
SBN-541 Creating The Local Housing Board Ejercito-
Estrada,
Jinggoy P.

146 Issues and Critical Actions in Local Governance

 Bill Bill Title Principal
Number Author
SBN-407 Annual Income Requirement For The Cre- Marcos,
ation Of A Highly Urbanized City Ferdinand R.
SBN-370 Integrated Solid Waste Collection And Dis- Ejercito-
posal Act Estrada,
Jinggoy P.
SBN-359 Barangay Health Workers Act Of 2013 Ejercito-
Estrada,
Jinggoy P.
SBN-284 Local Government Code (Practice Of Profes- Revilla Jr.,
sion) Ramon A.
SBN-223 Barangay Health Workers Act Of 2013 Ejercito,
Joseph Victor
G.
SBN-177 Local Government Code (Amending Sec. 44 Revilla Jr.,
Of R.A. 7160) Ramon A.
SBN-134 Redefining The Composition Of Barangay Of- Ejercito-
ficials Estrada,
Jinggoy P.
SBN-124 Benefits Of Barangay Officials Escudero,
Francis G.
SBN-114 Amending Sec. 61 Of The Local Government Marcos, F
Code Of 1991 erdinand R.
SBN-108 Local Government Code Of 1991, Amending Marcos,
Sec. 461 Ferdinand R.

Annex D 147