GOVPH (/)

Republic Act No. 7160

REPUBLIC ACT NO. 7160

AN ACT PROVIDING FOR A LOCAL GOVERNMENT CODE OF 1991

BOOK I

General Provisions

TITLE I

Basic Principles

CHAPTER I

The Code: Policy and Application

SECTION 1. Title. – This Act shall be known and cited as the “Local Government Code of
1991”.

SECTION 2. Declaration of Policy. – (a) It is hereby declared the policy of the State that the
territorial and political subdivisions of the State shall enjoy genuine and meaningful local
autonomy to enable them to attain their fullest development as self-reliant communities and
make them more effective partners in the attainment of national goals. Toward this end, the
State shall provide for a more responsive and accountable local government structure
instituted through a system of decentralization whereby local government units shall be given
more powers, authority, responsibilities, and resources. The process of decentralization shall
proceed from the National Government to the local government units.

(b) It is also the policy of the State to ensure the accountability of local government units
through the institution of effective mechanisms of recall, initiative and referendum.

(c) It is likewise the policy of the State to require all national agencies and o5ces to conduct
periodic consultations with appropriate local government units, nongovernmental and people’s
organizations, and other concerned sectors of the community before any project or program is
implemented in their respective jurisdictions.

SECTION 3. Operative Principles of Decentralization. – The formulation and implementation of

(a) There shall be an effective allocation among the different local government units of their
respective powers, functions, responsibilities, and resources;

(b) There shall be established in every local government unit an accountable, e5cient, and
dynamic organizational structure and operating mechanism that will meet the priority needs
and service requirements of its communities;

(c) Subject to civil service law, rules and regulations, local o5cials and employees paid wholly
or mainly from local funds shall be appointed or removed, according to merit and ctness, by
the appropriate appointing authority;

(d) The vesting of duty, responsibility, and accountability in local government units shall be
accompanied with provision for reasonably adequate resources to discharge their powers and
effectively carry out their functions; hence, they shall have the power to create and broaden
their own sources of revenue and the right to a just share in national taxes and an equitable
share in the proceeds of the utilization and development of the national wealth within their
respective areas;

(e) Provinces with respect to component cities and municipalities, and cities and
municipalities with respect to component barangays, shall ensure that the acts of their
component units are within the scope of their prescribed powers and functions;
(f) Local government units may group themselves, consolidate or coordinate their efforts,
services, and resources for purposes commonly beneccial to them;

(g) The capabilities of local government units, especially the municipalities and barangays,
shall be enhanced by providing them with opportunities to participate actively in the
implementation of national programs and projects;

(h) There shall be a continuing mechanism to enhance local autonomy not only by legislative
enabling acts but also by administrative and organizational reforms;

(i) Local government units shall share with the national government the responsibility in the
management and maintenance of ecological balance within their territorial jurisdiction,
subject to the provisions of this Code and national policies;

(j) Effective mechanisms for ensuring the accountability of local government units to their
respective constituents shall be strengthened in order to upgrade continually the quality of
local leadership;

(k) The realization of local autonomy shall be facilitated through improved coordination of
national government policies and programs and extension of adequate technical and material
assistance to less developed and deserving local government units;

(l) The participation of the private sector in local governance, particularly in the delivery of
basic services, shall be encouraged to ensure the viability of local autonomy as an alternative
strategy for sustainable development; and

(m) The national government shall ensure that decentralization contributes to the continuing
improvement of the performance of local government units and the quality of community life.

SECTION 4. Scope of Application. – This Code shall apply to all provinces, cities,
municipalities, barangays, and other political subdivisions as may be created by law, and, to
the extent herein provided, to o5cials, o5ces, or agencies of the national government.

SECTION 5. Rules of Interpretation. – In the interpretation of the provisions of this Code, the
following rules shall apply:
(a) Any provision on a power of a local government unit shall be liberally interpreted in its
favor, and in case of doubt, any question thereon shall be resolved in favor of devolution of
powers and of the lower local government unit. Any fair and reasonable doubt as to the
existence of the power shall be interpreted in favor of the local government unit concerned;

(b) In case of doubt, any tax ordinance or revenue measure shall be construed strictly against
the local government unit enacting it, and liberally in favor of the taxpayer. Any tax exemption,
incentive or relief granted by any local government unit pursuant to the provisions of this Code
shall be construed strictly against the person claiming it.

(c) The general welfare provisions in this Code shall be liberally interpreted to give more
powers to local government units in accelerating economic development and upgrading the
quality of life for the people in the community;

(d) Rights and obligations existing on the date of effectivity of this Code and arising out of
contracts or any other source of prestation involving a local government unit shall be governed
by the original terms and conditions of said contracts or the law in force at the time such
rights were vested; and

(e) In the resolution of controversies arising under this Code where no legal provision or
jurisprudence applies, resort may be had to the customs and traditions in the place where the
controversies take place.

CHAPTER II

General Powers and Attributes of Local Government Units

SECTION 6. Authority to Create Local Government Units. – A local government unit may be
created, divided, merged, abolished, or its boundaries substantially altered either by law
enacted by Congress in the case of a province, city, municipality, or any other political
subdivision, or by ordinance passed by the sangguniang panlalawigan or sangguniang
panlungsod concerned in the case of a barangay located within its territorial jurisdiction,
subject to such limitations and requirements prescribed in this Code.

SECTION 7. Creation and Conversion. – As a general rule, the creation of a local government
unit or its conversion from one level to another level shall be based on vericable indicators of
viability and projected capacity to provide services, to wit:
(a) Income. – It must be su5cient, based on acceptable standards, to provide for all essential
government facilities and services and special functions commensurate with the size of its
population, as expected of the local government unit concerned;

(b) Population. – It shall be determined as the total number of inhabitants within the territorial
jurisdiction of the local government unit concerned; and

(c) Land Area. – It must be contiguous, unless it comprises two (2) or more islands or is
separated by a local government unit independent of the others; properly identiced by metes
and bounds with technical descriptions; and su5cient to provide for such basic services and
facilities to meet the requirements of its populace.

Compliance with the foregoing indicators shall be attested to by the Department of Finance
(DOF), the National Statistics O5ce (NSO), and the Lands Management Bureau (LMB) of the
Department of Environment and Natural Resources (DENR).

SECTION 8. Division and Merger. – Division and merger of existing local government units
shall comply with the same requirements herein prescribed for their creation: Provided,
however, That such division shall not reduce the income, population, or land area of the local
government unit or units concerned to less than the minimum requirements prescribed in this
Code: Provided, further, That the income classiccation of the original local government unit or
units shall not fall below its current income classiccation prior to such division.

The income classiccation of local government units shall be updated within six (6) months
from the effectivity of this Code to rehect the changes in their cnancial position resulting from
the increased revenues as provided herein.

SECTION 9. Abolition of Local Government Units. – A local government unit may be abolished
when its income, population, or land area has been irreversibly reduced to less than the
minimum standards prescribed for its creation under Book III of this Code, as certiced by the
national agencies mentioned in Section 7 hereof to Congress or to the sanggunian concerned,
as the case may be.

The law or ordinance abolishing a local government unit shall specify the province, city,
municipality, or barangay with which the local government unit sought to be abolished will be
incorporated or merged.
SECTION 10. Plebiscite Requirement. – No creation, division, merger, abolition, or substantial
alteration of boundaries of local government units shall take effect unless approved by a
majority of the votes cast in a plebiscite called for the purpose in the political unit or units
directly affected. Said plebiscite shall be conducted by the Commission on Elections
(COMELEC) within one hundred twenty (120) days from the date of effectivity of the law or
ordinance effecting such action, unless said law or ordinance cxes another date.

SECTION 11. Selection and Transfer of Local Government Site, O5ces and Facilities. – (a) The
law or ordinance creating or merging local government units shall specify the seat of
government from where governmental and corporate services shall be delivered. In selecting
said site, factors relating to geographical centrality, accessibility, availability of transportation
and communication facilities, drainage and sanitation, development and economic progress,
and other relevant considerations shall be taken into account.

(b) When conditions and developments in the local government unit concerned have
signiccantly changed subsequent to the establishment of the seat of government, its
sanggunian may, after public hearing and by a vote of two-thirds (2/3) of all its members,
transfer the same to a site better suited to its needs. Provided, however, That no such transfer
shall be made outside the territorial boundaries of the local government unit concerned.

The old site, together with the improvements thereon, may be disposed of by sale or lease or
converted to such other use as the sanggunian concerned may deem beneccial to the local
government unit concerned and its inhabitants.

(c) Local government o5ces and facilities shall not be transferred, relocated, or converted to
other uses unless public hearings are crst conducted for the purpose and the concurrence of
the majority of all the members of the sanggunian concerned is obtained.

SECTION 12. Government Centers. – Provinces, cities, and municipalities shall endeavor to
establish a government center where o5ces, agencies, or branches of the National
Government, local government units, or government-owned or -controlled corporations may, as
far as practicable, be located. In designating such a center, the local government unit
concerned shall take into account the existing facilities of national and local agencies and
o5ces which may serve as the government center as contemplated under this Section. The
National Government, local government unit or government-owned or -controlled corporation
concerned shall bear the expenses for the construction of its buildings and facilities in the
government center.

SECTION 13. Naming of Local Government Units and Public Places, Streets and Structures. –
(a) The sangguniang panlalawigan may, in consultation with the Philippine Historical
Commission (PHC), change the name of the following within its territorial jurisdiction:

(1) Component cities and municipalities, upon the recommendation of the sanggunian
concerned;

(2) Provincial roads, avenues, boulevards, thoroughfares, and bridges;

(3) Public vocational or technical schools and other post-secondary and tertiary schools;

(4) Provincial hospitals, health centers, and other health facilities; and

(5) Any other public place or building owned by the provincial government.

(b) The sanggunians of highly urbanized cities and of component cities whose charters
prohibit their voters from voting for provincial elective o5cials, hereinafter referred to in this
Code as independent component cities, may, in consultation with the Philippine Historical
Commission, change the name of the following within its territorial jurisdiction:

(1) City barangays, upon the recommendation of the sangguniang barangay concerned;

(2) City roads, avenues, boulevards, thoroughfares, and bridges;

(3) Public elementary, secondary and vocational or technical schools, community colleges and
non-chartered colleges;

(4) City hospitals, health centers and other health facilities; and

(5) Any other public place or building owned by the city government.

(c) The sanggunians of component cities and municipalities may, in consultation with the
Philippine Historical Commission, change the name of the following within its territorial
jurisdiction:
(1) City and municipal barangays, upon recommendation of the sangguniang barangay
concerned;

(2) City, municipal and barangay roads, avenues, boulevards, thoroughfares, and bridges;

(3) City and municipal public elementary, secondary and vocational or technical schools, post-
secondary and other tertiary schools;

(4) City and municipal hospitals, health centers and other health facilities; and

(5) Any other public place or building owned by the municipal government.

(d) None of the foregoing local government units, institutions, places, or buildings shall be
named after a living person, nor may a change of name be made unless for a justicable reason
and, in any case, not oftener than once every ten (10) years. The name of a local government
unit or a public place, street or structure with historical, cultural, or ethnic signiccance shall not
be changed, unless by a unanimous vote of the sanggunian concerned and in consultation
with the PHC.

(e) A change of name of a public school shall be made only upon the recommendation of the
local school board concerned.

(f) A change of name of public hospitals, health centers, and other health facilities shall be
made only upon the recommendation of the local health board concerned.

(g) The change of name of any local government unit shall be effective only upon raticcation
in a plebiscite conducted for the purpose in the political unit directly affected.

(h) In any change of name, the O5ce of the President, the representative of the legislative
district concerned, and the Bureau of Posts shall be noticed.

SECTION 14. Beginning of Corporate Existence. – When a new local government unit is
created, its corporate existence shall commence upon the election and qualiccation of its
chief executive and a majority of the members of its sanggunian, unless some other time is
cxed therefor by the law or ordinance creating it.
SECTION 15. Political and Corporate Nature of Local Government Units. – Every local
government unit created or recognized under this Code is a body politic and corporate
endowed with powers to be exercised by it in conformity with law. As such, it shall exercise
powers as a political subdivision of the national government and as a corporate entity
representing the inhabitants of its territory.

SECTION 16. General Welfare. – Every local government unit shall exercise the powers
expressly granted, those necessarily implied therefrom, as well as powers necessary,
appropriate, or incidental for its e5cient and effective governance, and those which are
essential to the promotion of the general welfare. Within their respective territorial
jurisdictions, local government units shall ensure and support, among other things, the
preservation and enrichment of culture, promote health and safety, enhance the right of the
people to a balanced ecology, encourage and support the development of appropriate and
self-reliant scienticc and technological capabilities, improve public morals, enhance economic
prosperity and social justice, promote full employment among their residents, maintain peace
and order, and preserve the comfort and convenience of their inhabitants.

SECTION 17. Basic Services and Facilities. – (a) Local government units shall endeavor to be
self-reliant and shall continue exercising the powers and discharging the duties and functions
currently vested upon them. They shall also discharge the functions and responsibilities of
national agencies and o5ces devolved to them pursuant to this Code. Local government units
shall likewise exercise such other powers and discharge such other functions and
responsibilities as are necessary, appropriate, or incidental to e5cient and effective provision
of the basic services and facilities enumerated herein.

(b) Such basic services and facilities include, but are not limited to, the following:

(1) For a Barangay:

(i) Agricultural support services which include planting materials distribution system and
operation of farm produce collection and buying stations;

(ii) Health and social welfare services which include maintenance of barangay health center
and day-care center;
(iii) Services and facilities related to general hygiene and sanitation, beauticcation, and solid
waste collection;

(iv) Maintenance of katarungang pambarangay;

(v) Maintenance of barangay roads and bridges and water supply systems;

(vi) Infrastructure facilities such as multi-purpose hall, multi-purpose pavement, plaza, sports
center, and other similar facilities;

(vii) Information and reading center; and

(viii) Satellite or public market, where viable;

(2) For a Municipality:

(i) Extension and on-site research services and facilities related to agriculture and cshery
activities which include dispersal of livestock and poultry, cngerlings, and other seeding
materials for aquaculture; palay, corn, and vegetable seed farms; medicinal plant gardens; fruit
tree, coconut, and other kinds of seedling nurseries; demonstration farms; quality control of
copra and improvement and development of local distribution channels, preferably through
cooperatives; interbarangay irrigation systems; water and soil resource utilization and
conservation projects; and enforcement of cshery laws in municipal waters including the
conservation of mangroves;

(ii) Pursuant to national policies and subject to supervision, control and review of the DENR,
implementation of community-based forestry projects which include integrated social forestry
programs and similar projects; management and control of communal forests with an area not
exceeding cfty (50) square kilometers; establishment of tree parks, greenbelts, and similar
forest development projects;

(iii) Subject to the provisions of Title Five, Book I of this Code, health services which include
the implementation of programs and projects on primary health care, maternal and child care,
and communicable and non-communicable disease control services; access to secondary and
tertiary health services; purchase of medicines, medical supplies, and equipment needed to
carry out the services herein enumerated;