THE LOCAL GOVERNMENT CODEOF THE PHILIPPINESBOOK IGENERAL PROVISIONSTITLE ONE. - BASIC PRINCIPLESCHAPTER 1. - THE CODE:POLICY AND APPLICATIONSECTION 1. Title. - This Act shall be known and cited as the "LocalGovernment Code of 1991".SEC. 2. Declaration of Policy. - (a) It is hereby declared the olicy o! theState that the territorialand oliticals"bdi#isions o! the State shallen$oy%en"ine and &eanin%!"l local a"tono&y to enable the& to attain their !"llestde#elo&ent as sel!-reliant co&&"nities and&akethe&&oree!!ecti#eartners in the attain&ent o! national %oals. Toward this end' the State shallro#ide !or a &ore resonsi#e and acco"ntable local %o#ern&ent str"ct"reinstit"tedthro"%h a syste& o!decentrali(ationwhereby local %o#ern&ent"nits shall be %i#en &ore owers' a"thority' resonsibilities' and reso"rces.The rocess o! decentrali(ation shall roceed !ro& the national %o#ern&entto the local %o#ern&ent "nits.cralaw(b) It is also the olicy o! the State to ens"re the acco"ntability o! local%o#ern&ent "nits thro"%h the instit"tion o! e!!ecti#e &echanis&s o! recall'initiati#e and re!erend"&.cralaw(c)It is likewise the olicy o! the State to re)"ire all national a%encies ando!!ices to cond"ct eriodic cons"ltations with aroriate local %o#ern&ent"nits' non-%o#ern&ental andeole*sor%ani(ations' andotherconcernedsectors o! the co&&"nity be!ore any ro$ect or ro%ra& is i&le&ented intheir resecti#e $"risdictions.cralawSEC. +. Operative Principles of Decentralization. - The !or&"lation andi&le&entation o! olicies and &eas"res on local a"tono&y shall be %"idedby the !ollowin% oerati#e rinciles,chanrobles #irt"al law library(a) There shall be an e!!ecti#e allocation a&on% the di!!erent local%o#ern&ent "nits o! their resecti#e owers' !"nctions' resonsibilities' andreso"rces-(b) There shall be established in e#ery local %o#ern&ent "nit an acco"ntable'e!!icient' anddyna&icor%ani(ational str"ct"reandoeratin%&echanis&that will &eet the riority needs and ser#ice re)"ire&ents o! itsco&&"nities-(c) S"b$ect toci#il ser#icelaw' r"lesandre%"lations' local o!!icialsande&loyeesaidwhollyor &ainly!ro&local !"ndsshall beaointedorre&o#ed' accordin%to&erit and!itness' bythearoriateaointin%a"thority-(d) The #estin% o! d"ty' resonsibility' and acco"ntability in local %o#ern&ent"nits shall be acco&anied with ro#ision !or reasonably ade)"ate reso"rcesto dischar%e their owers and e!!ecti#ely carry o"t their !"nctions- hence'theyshall ha#etheower tocreateandbroadentheir ownso"rces o!re#en"eandtheri%httoa $"st shareinnational ta.esandane)"itableshareintheroceedso! the"tili(ationandde#elo&ent o! thenationalwealth within their resecti#e areas-(e) /ro#inces with resect to co&onent cities and &"nicialities' and citiesand &"nicialities with resect to co&onent baran%ays' shallens"re thatthe acts o! their co&onent "nits are within the scoe o! their rescribedowers and !"nctions-(!) 0ocal %o#ern&ent "nits &ay %ro" the&sel#es' consolidate or coordinatetheir e!!orts'ser#ices'and reso"rces !or "roses co&&only bene!icialtothe&-(%)Thecaabilitieso!local %o#ern&ent"nits'eseciallythe &"nicialitiesand baran%ays'shallbeenhanced by ro#idin% the& with oort"nities toarticiate acti#ely in the i&le&entation o! national ro%ra&s and ro$ects-(h) There shall be a contin"in% &echanis& to enhance local a"tono&y notonly by le%islati#e enablin% acts b"t also by ad&inistrati#e andor%ani(ational re!or&s-(i) 0ocal %o#ern&ent "nitsshall sharewiththenational %o#ern&ent theresonsibilityinthe&ana%e&ent and&aintenanceo! ecolo%ical balancewithin their territorial $"risdiction' s"b$ect to the ro#isions o! this Code andnational olicies-($) E!!ecti#e &echanis&s !or ens"rin% the acco"ntability o! local %o#ern&ent"nits to their resecti#econstit"ents shall be stren%thened inorder to"%radecontin"ally the )"ality o! local leadershi-(k) The reali(ation o! local a"tono&y shall be !acilitated thro"%h i&ro#edcoordination o! national %o#ern&ent olicies and ro%ra&s and e.tension o!ade)"ate technical and &aterial assistance to less de#eloed and deser#in%local %o#ern&ent "nits-(l) The articiation o! the ri#ate sector in local %o#ernance' artic"larly inthe deli#ery o! basic ser#ices' shall be enco"ra%ed to ens"re the #iability o!local a"tono&y as an alternati#e strate%y !or s"stainablede#elo&ent- and cralaw(&) The national %o#ern&ent shall ens"re that decentrali(atioontrib"tes tothe contin"in% i&ro#e&ent o! the er!or&ance o! local%o#ern&ent "nitsand the )"ality o! co&&"nity li!e.cralawSEC. 1. Scope of Application. - This Code shall aly to all ro#inces' cities'&"nicialities' baran%ays' and other olitical s"bdi#isions as &ay be createdby law' and' to the e.tent herein ro#ided' to o!!icials' o!!ices' or a%encies o!the national %o#ern&ent.cralawSEC. 2. !les of "nterpretation. - In the interretation o! the ro#isions o!this Code' the !ollowin% r"les shall aly,chanrobles #irt"al law library(a)Anyro#ision ona owero! alocal %o#ern&ent"nitshallbe liberallyinterreted in its !a#or' and in case o! do"bt' any )"estion thereon shall beresol#ed in !a#or o! de#ol"tion o! owers and o! the lower local %o#ern&ent"nit. Any !air and reasonable do"bt as to the e.istence o! the ower shall beinterreted in !a#or o! the local %o#ern&ent "nit concerned-(b) Incaseo! do"bt' anyta. ordinance or re#en"e&eas"re shall beconstr"ed strictly a%ainst the local %o#ern&ent "nit enactin% it' and liberallyin !a#or o! the ta.ayer. Any ta. e.e&tion' incenti#e or relie! %ranted byany local %o#ern&ent "nit "rs"ant to the ro#isions o! this Code shall beconstr"ed strictly a%ainst the erson clai&in% it.cralaw(c) The %eneral wel!are ro#isions in this Code shall be liberally interretedto%i#e&oreowerstolocal %o#ern&ent "nitsinacceleratin%econo&icde#elo&ent and "%radin% the )"ality o! li!e !or the eole in theco&&"nity-(d) 3i%hts and obli%ations e.istin% on the date o! e!!ecti#ity o! this Code andarisin% o"t o! contracts or any other so"rce o! restation in#ol#in% a local%o#ern&ent "nit shall be %o#erned by the ori%inal ter&s and conditions o!said contracts or the law in !orce at the ti&e s"ch ri%hts were #ested- and cralaw(e)In the resol"tion o! contro#ersies arisin% "nder this Code where no le%alro#ision or $"risr"dence alies' resort &ay be had to the c"sto&s andtraditions in the lace where the contro#ersies take lace.cralawCHAPTER 2. - GENERAL POWERS AND ATTRIBUTES OF LOCALGOVERNMENT UNITSSEC. 4. A!t#ority to Create LocalGovernment $nits. - A local%o#ern&ent"nit &ay be created' di#ided' &er%ed' abolished' or its bo"ndariess"bstantiallyalteredeither bylawenactedbyCon%ressinthecaseo! aro#ince' city' &"niciality' or any other olitical s"bdi#ision' or by ordinanceassed by the san%%"nian% anlalawi%an or san%%"nian% anl"n%sodconcerned in the case o! a baran%ay located within its territorial $"risdiction's"b$ect to s"ch li&itations and re)"ire&ents rescribed in this Code.SEC. 5. Creation and Conversion. - As a %eneral r"le' the creation o! alocal%o#ern&ent "nit or its con#ersion !ro& one le#elto another le#elshallbebased on #eri!iable indicators o! #iability and ro$ected caacity to ro#ideser#ices' to wit,chanrobles #irt"al law library(a) Inco&e. - It &"st bes"!!icient' basedonaccetablestandards' toro#ide !or all essential %o#ern&ent !acilities and ser#ices and secial!"nctions co&&ens"- rate with the si(e o! its o"lation' as e.ected o! thelocal %o#ern&ent "nit concerned-(b) /o"lation. - It shall be deter&ined as the total n"&ber o! inhabitantswithintheterritorial $"risdictiono! thelocal %o#ern&ent "nit concerned-and cralaw(c) 0and Area.- It &"st be conti%"o"s' "nless it co&rises two or &oreislands or is searated by a local %o#ern&ent "nit indeendent o! the others-roerlyidenti!iedby&etesandbo"ndswithtechnical descritions-ands"!!icient to ro#ide !or s"ch basic ser#ices and !acilities to &eet there)"ire&ents o! its o"lace. Co&liance with the !ore%oin% indicators shallbe attested to by the 6eart&ent o! 7inance (6O7)' the NationalStatisticsO!!ice (NSO)' and the 0ands 8ana%e&ent 9"rea"(089) o! the 6eart&ent o!En#iron&ent and Nat"ral 3eso"rces(6EN3).cralawSEC. :. Division and %er&er. - 6i#ision and &er%er o! e.istin%local%o#ern&ent "nits shall co&ly with the sa&e re)"ire&ents hereinrescribed !or their creation, /ro#ided' howe#er' That s"ch di#ision shall notred"ce the inco&e' o"lation' or land area o! the local %o#ern&ent "nit or"nits concerned to less than the &ini&"& re)"ire&ents rescribed in thisCode, /ro#ided' !"rther' That the inco&e classi!ication o! the ori%inallocal%o#ern&ent "nit or "nits shall not !all below its c"rrent inco&e classi!icationrior to s"ch di#ision. The inco&e classi!ication o! local%o#ern&ent "nitsshall be "dated within si. (4) &onths !ro& the e!!ecti#ity o! this Code tore!lect the chan%es in their !inancialosition res"ltin% !ro& the increasedre#en"es as ro#ided herein.cralawSEC. ;. A'olition of Local Government $nits. - A local %o#ern&ent "nit &aybe abolished when its inco&e' o"lation' or land area has been irre#ersiblyred"cedtoless thanthe&ini&"&standardsrescribed!or itscreation"nder 9ook III o! this Code' as certi!ied by the national a%encies &entionedin Section 15 hereo! to Con%ress or to the san%%"nian concerned' as thecase &ay be.cralawThe law or ordinance abolishin% a local%o#ern&ent "nitshallseci!y thero#ince' city' &"niciality' or baran%aywithwhichthelocal %o#ern&ent"nitso"%ht to be abolished will be incororated or &er%ed.cralawSEC. 1